More taxes needed for gov’t reforms

May 3, 2018 | 12:33 am

By Melissa Luz T. Lopez
Senior Reporter
THE PHILIPPINES needs to collect more taxes to address the “urgent task” of traffic congestion and efficient public transport, the Asian Development Bank (ADB) chief said as he threw support for upcoming revenue reform measures.
Investor optimism has significantly improved as far as the Philippine economy is concerned, although infrastructure gaps remain a major issue especially in urban areas amid robust domestic activity, ADB President Takehiko Nakao said.

“The perception of investors outside the Philippines as well as in the Philippines is now becoming better. I think this administration under President Duterte has been providing the impression that they will do something,” Mr. Nakao said in an April 11 interview with BusinessWorld.
“I think the Philippine economy is picking up and there’s some more expectations, and for ADB, it’s nice to see those developments in the Philippines. But of course for Manila transport and some rural poverty, there are many things to do.”
“Infrastructure transport in urban areas like Manila and Davao are urgent tasks,” Mr. Nakao said, as he acknowledged the Duterte government’s P8-trillion “Build, Build, Build,” program.
Central to realizing these ambitious infrastructure spending goals is tax reform, which will fund a huge chunk of big-ticket projects in the pipeline, the ADB president said.
The first tranche of the government’s comprehensive tax reform program has kicked in Jan. 1, from which the state intends to raise around P82.3 billion in additional revenues.
Together with up to four more tax packages expected to be passed into law, the share of revenues is expected to rise to 17.5% of gross domestic product by 2022, coming from a 16.3% share this year.
The Tax Reform for Acceleration and Inclusion (TRAIN) law reduced personal income tax rates for those earning P2 million annually. Revenue losses — pegged at roughly P10 billion a month — is expected to be offset by the removal of some value-added tax breaks; higher fuel, automobile, mineral and coal excise tax rates, as well as new levies on sugar-sweetened drinks and cosmetic surgery.
TRAIN has been pointed as the culprit for a surge in commodity prices in recent months. However, the reality is that the state needs to raise even more revenues for a deeper funding base, Mr. Nakao noted.
“People talk about the negative impact on economic activities and inflation by raising tax, but this country needs more tax revenues to do more things,” Mr. Nakao said. “To do more public service including the infrastructure investments, I think efforts to raise more revenues and those which rationalize the too-complicated [tax] system is important.”
“We are now starting to have a concrete plan of many things. Some of them have already been started building, but some of them we are still in designing stage like subways,” Mr. Nakao added, pointing out that “collective and decisive” actions from the central government are needed to ensure that plans go beyond the drawing board.
The ADB holds its 51^st annual meeting from Thursday to Saturday as they engage government leaders and experts on discussions on embracing digitization and addressing infrastructure gaps to address pockets of poverty across Asia.

Climate change proposals center on reforestation, limiting coal power projects

May 3, 2018 | 12:32 am

CIVIL SOCIETY organizations consulted by the Asian Development Bank (ADB) said their key proposals to mitigate climate change center on forest protection and curbing the use of coal in power plants.
The ADB’s Strategy 2030 sessions with these organizations hope to encourage innovative approaches to achieve a “prosperous, inclusive, resilient, and sustainable Asia and the Pacific.”
Devon Ronald Dublin, project coordinator of the Global Environment Facility-Satoyama Project for Conservation International, said reforestation efforts have great potential in addressing climate change.

“We came to the conclusion that 30% of necessary emission reductions can come from the protection and restoration of forests,” he said at the ADB session yesterday.
“If the ADB could integrate it in the strategy as a way to mitigate climate change, it would help,” he added.
Hemantha Withanage, executive director of the Centre for Environmental Justice, meanwhile urged the bank to pay more attention to reducing the share of power projects involving coal.
“If we are focusing on climate change, all countries need to bring down coal. The strategy should focus on climate change. Some 50% of investments should be carbon-neutral, not low-carbon,” he said.
In a statement, the Asian People’s Movement on Debt and Development added that the ADB’s commitment of $2 billion a year to clean energy projects is not enough because “it still supports coal-based power projects.”
“Fossil fuel — especially coal — has been recognized as a key driver of climate change,” it added.
In drafting its Strategy 2030, the ADB said that it will ensure that environmental considerations are “fully mainstreamed” and pledged to take a “comprehensive approach to build climate and disaster resilience.”
It added that about 75% of ADB’s funding commitments will be made “climate-relevant by 2030.”
Marlene Ramirez, Secretary General of the Asian Partnership for the Development of Human Resources in Rural Areas, said that aside from environmental issues, the bank should also support resiliency for agriculture outright in the face of climate change.
“It is commendable that the strategy covers climate change resilience, but what is missing is the strong link to proposed climate actions (in relation to) agriculture. We cannot underestimate the systematic risk posed by climate change on food security and livelihoods in the Asia and the Pacific region,” she said.
“Farmers’ organizations and cooperatives that thrive are active contributors to economic, social and political development. We believe that have key roles in job creation and reducing poverty. Majority of farmers need a lift not only in financing and capitalization but especially in the policy environment, as well as the legal basis to advance their work. They also need a range of capacity-building and technical advisory services,” Ms. Ramirez said.
Valerie Hill, Director of the ADB’s Strategy, Policy and Business Process Division, said that the bank aims to finalize the Strategy 2030 for board approval by the third quarter, in time for the work planning and budget cycle that starts in the same period.
“The current vision is to eliminate poverty in the region by 2020. What we want to do in the next in the Strategy 2030 is to expand that vision beyond poverty reduction,” Ms. Hill said. — Elijah Joseph C. Tubayan

Factory activity picks up in April

May 3, 2018 | 12:31 am

By Elijah Joseph C. Tubayan
Reporter
FACTORY activity in the country improved in April as output and new orders from here and abroad picked up the pace even as inflation remains elevated, according to an IHS Markit survey conducted for Nikkei.
The Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) rose to 52.7 in April from 51.5 in March, the highest level for the year.
“The recent upturn of the Philippines manufacturing sector was lifted by strengthening demand conditions at the start of the second quarter. Order book growth accelerated noticeably to a four-month high, which was accompanied by faster output expansion,” the report read.
“As a result, Filipino goods producers raised employment levels and scaled up purchasing activity. Inventories also increased, though supply chains came under pressure. Optimism remained high, as did inflationary pressures,” it added.
The report noted an improvement in client demand, with new orders growing at the fastest rate since December 2017. New orders from abroad was the highest in 16 months. As a result, output volumes rose to its fastest in four months.
This led to companies hiring more workers, yielding a net job creation after two months of job cuts.
The report, however, said that overall input costs rose due to higher prices paid for fuel, industrial metal, sugar, and paper, as well as the weaker exchange rate and the effect of the new excise taxes.
Republic Act No. 10963 — or the Tax Reform for Acceleration and Inclusion (TRAIN) — took effect on Jan. 1, which reduced personal income, estate and donors tax rates, but removed some value-added tax exemptions; hiked excise tax rates for automobiles, minerals, tobacco and fuel; as well as imposed new excise levies on sugar-sweetened beverages and cosmetic procedures.
“As a consequence, the rate of inflation remained sharp and well above its historical average, though slower than the survey-record pace in March. In response, firms passed on higher costs to their clients by again raising selling prices. The pace of charge inflation was the second-fastest in the survey history,” the report read.
A PMI reading above 50 suggests improvement in business conditions compared to the previous month, while a score below that signals deterioration.
The manufacturing PMI is composed of five sub-indices, with new orders accounting for 30%, followed by output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).
Commenting on the report, IHS Principal Economist Bernard Aw said first quarter manufacturing expansion was affected by the new excise taxes, but the April data “suggests that demand has since adjusted to these higher levies.”
“However, higher excise taxes continued to be felt through the pricing mechanism. While easing from the survey-record rate in March, input cost inflation remained elevated, not least because of a weak exchange rate, supply shortages and suppliers’ price hikes. In most cases, firms were able to pass on some of the higher costs to their customers, but the pressure on profit margins remains marked,” Mr. Aw said.
“With companies’ optimism remaining high, despite the dip in April, it looks likely that growth may well accelerate further in coming months,” he added.
Michael L. Ricafort, an economist at the Rizal Commercial Banking Corp., said that the rise in manufacturing activity is an effect of the higher foreign direct investments (FDIs) that stood at $10 billion in end-2017.
“The latest pick up in Philippine manufacturing activity may reflect improvements in the Philippine economic fundamentals, especially in terms of record foreign direct investments… some of the FDIs in the manufacturing sector have already become operational/online,” Mr. Ricafort said in an e-mail yesterday.
Mr. Ricafort noted that the reduction of individual tax rates “has increased the incomes and purchasing/spending power of consumers,” boosting demand for manufactured goods.
Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion, meanwhile, said that “this is also the validation of the business optimism prevalent since the last part of the first quarter.”
“Although the new taxes somehow dampened production in the first quarter, it seems that a lot of the producers have adjusted fairly, and demand has also somehow beginning to adjust to the new fiscal structure,” he said.
Mr. Asuncion said that strong consumer demand and the upbeat manufacturing sector likely drove gross domestic product (GDP) growth in the second quarter to 7.2%, higher than his 6.9% estimate for the first three months.

Philippine rice imports expected to cool inflation — economic planner

May 3, 2018 | 12:30 am

PHILIPPINE inflation will ease from a five-year high once lawmakers approve a measure that will allow more rice imports, giving authorities scope to delay an interest rate increase, according to a senior economic planner.
Inflation that climbed to 4.3% in March will cool by at least 1 percentage point once a law limiting overseas purchases of the nation’s staple grain is amended by Congress by the end of the first half of the year, Economic Planning Undersecretary Rosemarie Edillon said in an April 27 interview in her office in Metro Manila.
Some economists are of the view the central bank should refrain from raising interest rates to see if lawmakers can pass the law on rice by June, Edillon said, citing discussions at the April 24 meeting of the Development Budget Coordination Committee. President Rodrigo Duterte last week backed the removal of import limits on the grain to boost stockpiles that were depleted.
“A 25-basis-point hike could stall growth,” said the 53-year-old economist who gave up a job in Australia to join the government in 2012. Edillon, who’s not involved with the monetary policy making, stressed that while the central bank supports growth, it is independent and may have other factors to consider. The economy likely expanded close to 7% in the first quarter, she said.
Cost of rice, the second-biggest component in the Philippine consumer basket, is at a three-year high as supply dwindled, adding to price pressures from a tax reform that boosted costs of fuel and sugary drinks. Central bank Governor Nestor Espenilla, who’s kept the benchmark rate steady, prompting some to observe that he was behind the curve on inflation, said on April 24 that the economy can withstand any tightening, signaling he’s ready to raise if necessary.
Edillon believes that inflation related to the tax reform has peaked in March and any pressures are likely to come from oil, rice and other items. Data due May 4 will show consumer prices probably accelerated to 4.5% in April from a year earlier, according to the median estimate of 12 economists surveyed by Bloomberg.
Philippines currently limits rice imports to a volume identified by the National Food Authority, which prioritizes buying from local farmers. The arrangement, which the World Trade Organization had been pushing to end, not only limits rice supply but also boosted domestic prices to twice the world prices.
Enabling a market-driven importation slapped with at least 35% in tariff will boost the supply of the grain and cut retail prices by as much as P7 per kilogram from P44 a kilogram, Edillon said.
To retain the rice restrictions, introduced in 1996, the Philippines had allowed the entry of more meats and other items to pacify trading partners, Edillon said. If the government fails to pass rice reform by June, Edillon said trading partners such as Australia, Canada and the U.S. could push for even more concessions in other agricultural products.
The state-run food agency subsidizes rice farmers by buying their output at high prices and selling them low to poor consumers.
“Assuming that you have 2.1 million families depending on rice farming, we are 22 million households in all in the Philippines that have to pay the high prices,” Edillon said. “It’s too lopsided.” — Bloomberg

Maynilad eyes future waste-to-energy projects

May 3, 2018 | 12:09 am

By Victor V. Saulon, Sub-Editor
MAYNILAD Water Services, Inc. is looking at waste-to-energy as a possible future venture once the technology has advanced to make the project financially feasible, company officials said.
“We’re looking at waste-to-energy,” Antonio F. Garcia, vice-president at Maynilad and head of wastewater management, said on Wednesday as the company invited media and the water regulatory office to look at its latest sewage treatment plant (STP) in Malibay, Pasay City.
Although the project is not yet part of the Maynilad’s latest five-year business plan ending in 2021, Mr. Garcia said it remains part of its continuous study to make STP operations more efficient.
“This has something to do with the operating expense of the facility,” he said. “So while we are continuing expanding, we’re also continuing to look for technologies… that would lower the operating cost of our system.”
Mr. Garcia said Maynilad considers wastewater as a resource and has been using the processed water collected from households for its own use for now. In the future, he was looking at offering the processed water to the nearby airport.
“We’re going to venture only into waste-to-energy if the investment that we’re going to put could be recouped by the savings that we’ll be getting from reduction of power [of the] wastewater treatment plant,” he said.
For now, Mr. Garcia said the company was looking at three strategic sites within the concession area wherein a centralized solid waste processing facility could be built to generate enough power for its own use. Power costs account for about 60% of an STP’s operating expense.
Sought for comment, Randolf T. Estrellado, Maynilad chief operating officer, said: “The business plan we submitted does not yet include waste-to-energy projects essentially because the level of technology today and the kind of wastewater that we’re getting, which is from the drainage… It’s not as concentrated.”
At present, Maynilad operates and maintains three water treatment plants, 20 wastewater plants, 28 pumping stations, 32 reservoirs, eight mini-boosters, 30 online boosters and 7,675 kilometers of water pipelines. Maynilad’s customer base has expanded to 1,358,758 service connections or more than 9.4 million people.
Maynilad is an agent and contractor of Metropolitan Waterworks and Sewerage System (MWSS) for the west zone of the greater Manila area. Its coverage spans certain areas in Manila, Quezon City and Makati City. It also covers Caloocan, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon. Outside Metro Manila, the company covers the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario — all in Cavite province.
These facilities entail costs, which find their way into the customer’s water bill. The water concessionaire is required to secure approval of the MWSS regulatory office for the budget it plans to allocate for sewerage expansion and sanitation.
For the 2017-2021 period, Maynilad has committed to spend P37 billion, followed by a bigger budget for 2022-2037 at P101.4 billion to fully cover the sewerage and sanitation requirements within its concession area.
Mr. Garcia said the plan is for each municipality within Maynilad’s concession area to have at least one sewage treatment facility. He said the decentralized location of the STPs minimizes problems in implementation.
Maynilad’s water reclamation facility in Pasay City serves the areas of Malibay, Maricaban and Villamor in Pasay City, and San Roque and Bangkal in Makati City.

Grab flags high demand amid limited number of drivers

May 3, 2018 | 12:08 am

By Denise A. Valdez
GRAB Philippines said Wednesday its pool of 35,000 drivers falls far too short to meet the 600,000 passenger demand it receives every day.
After its acquisition of Uber Philippines in March, only 11,000 of 19,000 Uber drivers were able to move to Grab, as some names were not in the master list of drivers of the Land Transportation Franchising and Regulatory Board (LTFRB).
“LTFRB has a master list of drivers. Only the names in this master list are allowed to apply in Grab. Since the master list does not reflect all the active drivers Uber used to have, there are now around 6,000 displaced drivers,” Grab Philippines country manager Brian P. Cu said in Filipino.
He said Grab has been requesting the LTFRB to have the 6,000 drivers on-board so the company can come closer to meeting the demands of the riding public.
Before Uber’s shutdown, Grab had a pool of 24,000 cars which were able to accommodate 60 to 65% of bookings. Meanwhile, Uber’s 19,000 vehicles catered to 50% of the demand.
Mr. Cu also noted that the increase in the number of transportation network companies (TNC) does not mean a corresponding increase in the number of cars on the road, since LTFRB has a cap of 65,000 transport network vehicle service (TNVS) allowed to drive.
“There is an increase in TNC, but it doesn’t mean there is an increase in cars. Even when the 600,000 [demand] gets spread out across five different TNCs, the supply wouldn’t change,” he said.
Last month, the LTFRB accredited five new TNCs — Hype Transport Systems, Inc., Hirna, GoLag, Inc. or Owto, and Micab Systems Corp.
Mr. Cu added that the 65,000 TNVS limit set by the LTFRB is intended to service 75% of the demand. He said that right now, they are only able to cater to 53% of the demand, and down to 37% during peak hours.
“We’re under the impression [that there are many cars], we’re under the impression [that drivers are picky], which is not true. Seventy (70%) to 75% of the time, [when you can’t get a ride, it’s because there are no cars], he added.
With the challenges posed by government regulation such as the suspension of the P2-per-minute waiting time charge, Grab said its current base of 35,000 cars is continuously dropping, making it harder to attend to passenger demand and book a ride.
LTFRB board member Aileen A. Lizada appeals for understanding, stressing that ride-hailing is a new denomination for them. “It’s still too early to set rigid rules on a technology that is still being tested first by its newness vis-a-vis the owners, drivers, passengers and competition,” she said.
She added the LTFRB is prioritizing issuing accreditation to TNC applicants, and from there will hold dialogues to address other concerns.

8990 Holdings posts double-digit income growth in 2017

May 3, 2018 | 12:07 am

8990 HOLDINGS, Inc. delivered a double-digit growth in profit last year on the back of higher revenues and improved margins.
In a disclosure to the stock exchange, the mass housing developer reported that consolidated net income grew 16% year on year to P4.14 billion from the P3.58 billion in 2016.
The real estate firm managed to reverse the 22% drop in earnings in the first three quarters of 2017, which was reportedly dampened by delays in securing project permits.
Consolidated revenue stood at P10.18 billion last year, a tenth higher than the P9.27 billion in the previous year and breaching the full-year target of P10 billion.
Real estate revenues increased 12% year on year to P10.17 billion from P9.11 billion, while rental revenue slid to P10.9 million from P12.2 million.
Gross income margins improved to 56% at the close of 2017 from 54% in 2016 mainly due to its “sound internal financial planning policies with respect to landbank acquisition and project budgeting process,” 8990 Holdings said.
“We look forward to bringing 8990 to greater heights as we launch more large-scale projects that will surely strengthen our position in the affordable housing industry,” 8990 Holdings President and Chief Executive Officer Willie J. Uy was quoted in the statement as saying.
In terms of sales value, Luzon cornered the largest chunk at 58%, followed by Visayas at 33% and Mindanao at 9%.
The company further noted that medium-rise and high-rise buildings are now contributing more to housing revenues, up to 47% from 26%.
Reservation sales inched up 3% year on year to 8,387 units from 8,111 in 2016.
8990 Holdings launched a total of 23,661 units from seven projects located in Bulacan, Davao, Iloilo, Bacolod and Cebu last year.
The company plans to launch five projects worth P60 billion this year across the country, expanding its geographically diversified real estate portfolio.
At the close of 2017, 8990 Holdings had a land bank of 510 hectares worth P152 billion, sufficient for development in the next 8 to 10 years.
Shares of 8990 Holdings were flat at P6.80 apiece on Wednesday. — Krista Angela M. Montealegre

DFNN nets P131.9M

May 3, 2018 | 12:06 am

DFNN, Inc. saw its profits surge in 2017 due to an increase in commission fees from platform affiliates and revenues from software maintenance services.
In a regulatory filing, DFNN reported its net income attributable to parent reached P131.9 million last year, increasing more than six-fold from P19.94 million in 2016.
The information technology (IT) company said its group revenues soared 270% to P961.95 million in 2017, from P259.88 million in the previous year.
“The boost in revenues is largely due to the 300% rise in commission fees from platform affiliates and a 438% improvement in service income attributable to revenue generated from software maintenance services,” DFNN said in a statement.
DFNN’s commission revenues jumped 340% to P917.91 million, driven by the 201% increase in electronic gaming machines to 6,093 in 2017 from 2,296 in 2016.
Sale of licenses went down 58% to P12.53 million last year from a year ago’s P30.04 million due to the drop in purchases from clients.
Service fees, which include revenues from software maintenance services, rose by 51% to P31.5 million in 2017.
DFNN expenses stood at P899.54 million, up by 172% last year.
“The increase in cost of services is corollary to the increase in commission income during the year brought about by the increase in volume and gaming outlets. General and administrative expenses likewise increased as the Company has to augment its manpower resources, logistics and technical supports to meet the demands due to the increase in business activities,” the company said.
DFNN President and CEO Calvin Lim expressed confidence the company’s positive performance in 2017 will continue this year.
“We are confident that this will carry over to this year as we add new revenue streams and extend our core competencies to other avenues within the technology sector,” he said in a statement.
DFNN currently engages in online gaming services, with its subsidiary Pacific Gaming Investments Pty. Ltd. working on game developments for the firm, HatchAsia, Inc. for management and technology expertise, and iWave, Inc. for system integration software and technology development. — Patrizia Paola C. Marcelo

Anchor Land net profit hits P620M

May 3, 2018 | 12:05 am

ANCHOR Land Holdings, Inc. reported an 11% increase in profit in 2017, driven by higher real estate sales and increased rental income.
In a regulatory filing, Anchor Land said its net income stood at P620.05 million as of end-2017, compared to the previous year’s P559.76 million.
The property developer’s revenues jumped 25% to P6.01 billion last year. The bulk or 90% of revenues were derived from real estate sales, which rose 27% to P5.38 billion. This was driven by sales from Monarch Parksuites in Bay City and three projects in Binondo, namely Anchor Grandsuites, Princeview Parksuites and Oxford Parksuites.
“We continued to enhance our competitive lead in our core niche markets with our luxury developments which secured a steady source of income for the company last year,” Anchor Land CEO Steve Li was quoted as saying in a separate statement.
Rental income increased 26% to P366.06 million in 2017, due to higher occupancy at its warehouses One Logistics in Baclaran and One Soler in Binondo. Anchor Land also has shopping center projects, One Shopping Center and Two Shopping Center in Baclaran, as well as commercial units in its properties, Admiral Baysuites, Solemare Parksuites, Anchor Skysuites, Wharton Parksuites and Mandarin Square.
Anchor Land is aiming to bring the share of rental income to 20% of its overall revenue by 2020.
The company will soon expand its presence in Bay City, with the opening of the high-end Bay Life Venue which will house the Anchor Land Corporate Center and a seafood restaurant.
Anchor Land is also building Cosmo Suites in Pasay, which will offer 3,000 bedspaces for employees, and a warehousing facility Juan Luna Logistics in Binondo.
“The Philippines’ continuously growing economy also helped boost our business. And with a 6-7% GDP growth, we are optimistic that we will be able to sustain our growth which will pave the way for the company’s long-term development,” Mr. Li said.

Lower RRR to boost banks’ profit

May 3, 2018 | 12:05 am

peso remittance — *PHILIPPINE STAR/KRIZ-JOHN ROSALES*

By Melissa Luz T. Lopez, Senior Reporter
REDUCED reserve requirements will help boost incomes of Philippine banks, Fitch Ratings said, even as it flagged that sustained rapid credit growth could lead to bigger problem loans incurred by players.
Six of the country’s major banks rated by Fitch would enjoy a bigger bottom lines thanks to robust economic growth and from the recent cut in bank reserves announced by the Bangko Sentral ng Pilipinas (BSP) and would support “buoyant” lending activities.
“We expect GDP (gross domestic product) and credit growth to stay strong in the near term. Banking system leverage has been rising steadily but remains moderate overall, and a healthy economy will support debt-servicing capacity,” the debt watcher said in a report published yesterday.
Buoyant domestic activity is seen to support further growth for its rated lenders, namely BDO Unibank, Inc., the Bank of the Philippine Islands, Metropolitan Bank & Trust Co., China Banking Corp., the Philippine National Bank, and the Rizal Commercial Banking Corp.
Fitch expects GDP growth at 6.8% for both 2018 and 2019, keeping the Philippines as one of the fastest-growing economies in the region.
“Healthy GDP growth and rising corporate and household incomes will continue to support the debt-servicing capacity of borrowers. However, sustained rapid credit growth warrants close monitoring as it can disguise the buildup of asset-quality risks,” the credit rater said.
“Fitch believes the current rate of credit growth in the Philippines raises banking-sector credit risks which may only become apparent towards the end of the current upswing.”
Fitch pointed out that credit growth has averaged 17% from 2012-2017, roughly twice the pace of GDP growth. Credit analysts flagged that the banks’ high borrower concentration and accelerated credit growth “could render them vulnerable to an economic correction.”
Bank lending grew by 18.3% in March, marking the slowest pace in over a year but still clocking in at double digits, according to central bank data.
The reduction of the reserve requirement ratio imposed on big banks to 19% provides another impetus for increased bank lending, the debt watcher said, but will also lift overall yields “as the mandatory reserves do not earn interest.”
Banks could also see a bigger share of non-performing loans as they hand out more credits to the consumer and small business segments, although Fitch Ratings said these risks will remain “manageable” over the near term as the financial firms enjoy favorable operating conditions and as banks observe risk management protocols.

Mark Zuckerberg unveils plans for Facebook dating service

May 3, 2018 | 12:05 am

SAN JOSÉ, UNITED STATES — Facebook chief Mark Zuckerberg announced Tuesday the world’s largest social network will soon include a new dating feature — while vowing to make privacy protection its top priority in the wake of the Cambridge Analytica scandal.
Zuckerberg unveiled the plans as he addressed Facebook’s annual F8 developers conference in San Jose, California — emphasizing that the focus would be on helping people find long-term partners.
“This is going to be for building real, long-term relationships, not just hookups,” Zuckerberg said in presenting the new feature, noting that one in three marriages in the United States start online — and that some 200 million Facebook users identify as being single.
Under the new feature, users will be able to create a separate “dating” profile not visible to their network of friends, with potential matches recommended based on dating preferences, points in common and mutual acquaintances.
It will be free of charge, in line with Facebook’s core offering. The announcement sent shares in the online dating giant Match.com tumbling, finishing the formal trading day down 22%.
The 33-year-old CEO also said the dating offer was built from the ground up with privacy and safety in mind, as he underscored the firm’s commitment to boosting privacy protections.
Facebook’s closely watched developer conference comes as the giant faces intense global scrutiny over the mass harvesting of personal data by Cambridge Analytica, a British political consultancy that worked for Donald Trump’s 2016 election campaign.
Facebook has admitted up to 87 million users may have had their data hijacked in the scandal, which saw Zuckerberg grilled at length by the US Congress last month.
“We need to make sure that never happens again,” Zuckerberg told the audience, lightening the talk by sharing that friends made on online streaming video watch party at the social network of his hours testifying before Congress.
‘CLEAR HISTORY’
In a related move, Facebook announced an upcoming feature called “Clear History” that will allow users to see which apps and websites send the network information, delete the data from their account, and prevent Facebook from storing it.
The social network has already moved to limit the amount of data it shares with third-party applications and plans further steps to prevent a repeat of the Cambridge Analytica debacle, Zuckerberg said.
Facebook is also reviewing applications overall as well as auditing those that accessed large amounts of data to make sure access isn’t abused, he said.
“Security isn’t a problem than you ever fully solve,” Zuckerberg said, outlining the slew of efforts by Facebook to battle election interference, misinformation, spam among other challenges.
“This is an arms race; we are going to be working to stay ahead of our adversaries forever.”
Zuckerberg’s blend of humor, humility, confidence and determination in a keynote presentation seemed to resonate with the gathering of developers, who credited Facebook with taking responsibility for problems and working on fixing them.
“I respect that they came out with it and didn’t do a cover-up,” said Malik Gillins of Movez, a start-up behind an app crafted to streamline social event planning.
CCS Insight analyst Geoff Blaber was among analysts who felt Zuckerberg struck a successful balance between addressing the data privacy scandal and keeping outside developers focused on building apps to enhance the social network.
“Defiant message from Zuckerberg at #F8,” Blaber wrote on Twitter. “Feels like the first time they’ve been on the front foot in this saga.”
MESSAGE TRANSLATION
Facebook separately announced that its popular Messenger app would soon be able to translate missives in real time, deploying artificial intelligence to enable text conversations between people using different languages.
The feature will launch in the United States with English and Spanish translations of conversations in the Marketplace section of Facebook, and will be extended to general Messenger use in coming weeks, the service said in a blog post.
Facebook joins Internet giants Amazon, Google and Microsoft in offering artificial-intelligence based translation features — most prominently Google’s Pixel ear buds which promise real-time translation across dozens of languages.
Plans were also revealed to simplify the Messenger app, which critics contend has gotten clunky, and add group voice and video calls to Facebook’s other messaging service WhatsApp.
The slew of announcements at the developer-centric “F8” conference also included the arrival of a stand-alone Oculus Go headset to widen support for virtual reality by supporting social experiences such as watch parties. — AFP

The woman behind the question ‘Masarap Ba?’

May 3, 2018 | 12:05 am

By Joseph L. Garcia, Reporter
I WISH I had 176,000 followers on Instagram, with the list brimming with food writers and Manila’s most famous chefs and restaurateurs. I wish they could hang on every word I said, and all it would take is to answer the question, “Masarap ba (Is it good)?” Someone lives this life, and it’s the founder of the Instagram and Facebook pages Masarap Ba.
Masarap Ba began as an Instagram page in 2015, in which the anonymous poster would visit restaurants, or buy fresh-off-the-shelves products, and post photos of them on social media, superimposed with the name of the product and the verdict, “Masarap (good)” or “Hindi Masarap (not good)” accompanied by a short caption. The short caption is usually written in Tagalog, in prose that’s easily understandable, sometimes hyperbolic (the poster sometimes writes about the gates of Heaven opening with a first bite), and definitely young, funny, and witty. The page’s intro says: “Simple lang ’yan: masarap o hindi. Ang pinakahonest na personal food account sa history of mankind (It’s simple. Is it good or not? The most honest personal food account in the history of mankind).”
It’s a young woman, by the way, who goes under the cloak of anonymity to test the latest offerings by fastfood brands, buffets, or chains.
In an e-mail interview with BusinessWorld, she still kept her anonymity and gave us a pseudonym: Katrina Abaan (read: katabaan, or fatness in Tagalog). Apparently, she does freelance work in the arts, and calls herself a kindergarten dropout but a college graduate. While she isn’t involved in the food industry at present, she says that she does have a background in the culinary arts.
Asked how and why she started her pages, she said in a mixture of English and Tagalog: “I liked eating out a lot, so I used to check out a lot of blogs. I’d always get disappointed because the dishes aren’t always that good. The pictures are nice, the write-ups were long, but waley, bola lang pala (it was all flattery),” she said.
Later on, she continued, a blogger friend told her that restaurants would invite them to write about them and realized that far too often, the food community would often write good things about these restaurants, because well, three-course meals were at stake. Thus, Ms. Abaan decided to go out on her own, using her own money, with no formal invitations and fanfare, and decided to go straight to the point: good or bad. As for the captions, she says that she writes the way she talks. “Kwela daw kasi ako ayon sa chismis (Rumor has it that I’m funny).”
“I want to describe things in a way that you could taste it just by thinking about it. Simple, funny, creative… and there are no limits, so this should be fun!” she said.
Her choice of restaurants is a mix of high and low, from dinners in hotels to launches of Jollibee’s new Chickenjoy flavor. She says that she visits restaurants based on her budget and mood. She always seems to have a nose for new restaurants, because, apparently, her followers (again, numbering to the hundred thousands) ask her to test new restaurants which they’re still reluctant to try — this then becomes a transaction based on trust. As for her mix of high and low, she says it’s because she doesn’t believe that only expensive dishes can be good. With this, she also says that “serious” food writers would rarely take the time off to notice small eateries or real hole-in-the-walls, which she says have become a bit of a hobby for her.
The difference as well between this anonymous woman and regular food writers is that when writers become a face, restaurants treat them far better, thus ensuring a good review. Her anonymity then gives her some power over these restaurants, where they would treat her the same way her 176,000 followers would be treated. “It must be awkward (for all of us) if they’re waiting how I’d react with every spoonful,” she said in a mixture of English and Tagalog. “I want to be snubbed by waiters, I want them to serve what they really make. No extra garnishes or bigger servings, just because a critic is around.
“People deserve the truth.”
She mostly works alone, though last year, she tapped one of her friends to serve as administrator, simply to keep track of reviews and organize e-mails. Another friend of hers has joined the team to go around tastings when she’s too busy, but insists that she answers each of her comments by herself, still.
“Influencers” are a dime a dozen these days, but Ms. Abaan has managed to literally influence someone’s dinner choices by remaining completely anonymous. “I’m a very private person, so I won’t get kidnapped,” she said in a mixture of English and Tagalog. “Maybe I’m just really effective in expressing myself in Tagalog, so I can connect easily with people without showing my face.”
So this woman doesn’t get paid, sponsored, or even gets a shred of recognition (but her writing does). Why does she do it? “Good karma, which is priceless. Immeasurable happiness. A sense of fulfillment because I know I affect people positively even if they don’t know me.” It’s all about spreading the good vibes, and her followers sometimes tell her how happy she makes them feel just by viewing her stories on Instagram. She says that she has used her influence to help a special cause of hers, which are animals and animal shelters, but that’s it. (One time, she struck a deal with a bank using a debit card they issued to pay for her meal at a restaurant she visited, so she could donate to an animal shelter, but she disclosed this information to her readers.)
We look at food as sustenance and nourishment, but sustenance and nourishment for the body is not enough. Surviving is one thing, and truly living is another.
Good food sustains and nourishes the mind and soul as well, and can remind us why we do this: why we continue to do what we do, why we get up in the morning to go around and conquer. Ms. Abaan then says why the question “Masarap Ba?” is important. “I believe we are emotionally connected with our food. Food has memories combined with feelings. If it’s satisfying, we feel happy. If not, we feel ‘lugi’ (shortchanged). It ain’t enough that just because you’re alive after tasting it, it will be good enough. Food is nourishment, and to be nourished means to be loved and cared for. We need to feel a certain level of happiness when we nourish ourselves.”
Follow Masarap Ba on Instagram at @masarapba, and on Facebook at facebook.com/Masarapba/.

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