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Term deposit rates pick up

BSP
YIELDS on term deposits picked up anew yesterday as banks matched the offerings of the Bangko Sentral ng Pilipinas (BSP), mirroring market expectations for rising interest rates.
Players betted as much as P97.548 billion under the term deposit facility (TDF) during Wednesday’s auction, slightly higher than the P96.262 billion the previous week and more than the P90 billion which the central bank placed on the auction block.
Yields maintained their ascent from the previous week even as the offerings went oversubscribed, with the market preference shifting towards the short end.
Demand for the seven-day tenor recovered to reach P50.121 billion, even higher than the P47.031 billion received a week ago to surpass the P40-billion auction size. Yields posted a slight increase to average 3.4434% compared to 3.4397% a week ago.
Meanwhile, bids received for the 14-day deposits softened to P30.661 billion, down from P31.297 billion although still more than the P30 billion which the BSP wanted to sell. Yields averaged 3.4704%, a tad higher than the 3.4648% fetched during the April 25 exercise.
The 28-day instruments also received tepid demand this week, as bids slipped to P16.766 billion from P17.934 billion the previous week to again settle below the P20-billion offering. Still, rates sought by banks inched up to 3.465% from 3.4574%.
The TDF is currently the central bank’s main tool in capturing excess funds in the local financial system. The BSP expects to keep market rates closer to the 3% benchmark rate by paying returns to banks who park their excess funds under the facility. — Melissa Luz T. Lopez

PAGCOR Q1 profit rises 7.6% on higher gains from gaming operations

PHILIPPINE Amusement and Gaming Corp. (PAGCOR) reported a 7.6% increase in net income of P1.42 billion in the first quarter, as gains from gaming operations grew by double-digits during the period.
PAGCOR also reported that its income as of end-March was more than double its target for the period.
The state-run company, which is under the Office of the President, recorded income from gaming operations of P15.80 billion, 12.5% higher than the level a year ago. It was higher by 4.7% over the target.
Net of taxes and contributions, gaming profit and other income reached P8.45 billion, up 9.3% from last year.
The growth in PAGCOR’s income from gaming operations outpaced the rise in its expenses at P7.03 billion, up 9.7% from the previous year.
During the first three months of 2018, the company paid a total of P789.92 million in franchise tax, which is equivalent to 5% of its gaming operations income. It also paid P7.49 billion to the government as its share at 50% of gaming profit. Both amounts were higher by around 12.5% over the level a year ago.
PAGCOR remitted a fixed amount of P15 million to the Dangerous Drugs Board as called for under Republic Act 9165 or the law instituting the comprehensive dangerous Drugs Act of 2002.
PAGCOR is mandated to regulate, operate, authorize and license games of chance, games of cards and games of numbers, particularly casino gaming in the Philippines. It generates revenues for the state’s socio-civic and national development programs while helping promote the tourism industry.
It operates casino branches as well “satellite” casinos all over the Philippines under the Casino Filipino name. — Victor V. Saulon

Celebrating Ting Hun at Diamond

FOR CHINESE couples, the journey towards their wedding starts with a symbolic union of the two families and announcement of their engagement. Diamond Hotel Philippines has come up with a Chinese Engagement Ting Hun Package, which incudes event venues, authentic Chinese dishes, service, and more. For a grand fête, there is the Diamond Ballroom which includes a pre-function area with a view of the poolside for registration and cocktails. An intimate celebration can be held at the Constellation function room at the 27th floor. There is a choice between three Chinese Lauriat menu packages, prepared by Chinese sous chef Yang Yong. The floral arrangement per table, including the cake and registration table, will be provided. Couples may also choose from a backdrop design or photo booth with three hours unlimited snapshots. To complete the package is a complimentary overnight stay in a Deluxe Room with buffet breakfast for two. A Chinese Account Manager whose expertise is handling Chinese corporate and social events is also part of the dedicated Events Team. For inquiries and reservations, call 528-3000 loc. 8414.

Cooperation, info sharing to aid banks’ cybersecurity

COOPERATION and information sharing in the financial system are crucial in enhancing the sector’s resilience versus cybersecurity threats, the Bangko Sentral ng Pilipinas (BSP) said.
In an executive forum organized by Maybank Philippines, Inc. on Wednesday, BSP Deputy Governor Chuchi G. Fonacier said cooperation within the financial system is integral to shield itself from threats posed in the digital space.
“Beyond merely enforcing compliance, cooperation and collaboration engagements among relevant stakeholders, which include fellow regulators, the banking industry as well as relevant state agencies, lay a critical role in enhancing the financial system’s cyber-resilience,” she said in a keynote speech.
Ms. Fonacier said banks need to step up their information security position beyond their respective networks.
“Information sharing allows BSP-supervised financial institutions to enhance the threat intelligence that enables the quick identification, prevention and response to emerging persistent threats.”
Ms. Fonacier also noted that instilling a strong cybersecurity culture, as well as continuing to strive towards stronger cybersecurity and resilience through constant improvements, is also important to keep the threats at bay.
Department of Information and Communication Technology Assistant Secretary Allan S. Cabanlong said banks are now taking cybersecurity seriously due to the monetary authority’s regulations.
“For all banks, [embedding cybersecurity into all their projects] is happening because the BSP is proactive with that. They have distributed circulars in order for banks to comply with cybersecurity measures,” Mr. Cabanlong said in a panel discussion, adding that banks have become more resilient because of this.
“With this, even though financial institutions are being attacked every single day, they are still resilient — they can still operate.”
Ms. Fonacier also highlighted that the role of the government is also “critical and strategic” in ensuring the safety of the banking industry from cyber criminals.
“The government plays a critical and strategic role in this quest for cybersecurity on a nationwide scale that would promote the benefits of technology in the economy while managing attended risks and vulnerability,” Ms. Fonacier said.
Despite comparing technology to a “double-edged sword,” Ms. Fonacier said it is still a “game-changer” for the banking industry.
“Technology is a game changer that revolutionizes the way banking products are designed and delivered… These transformations allow consumers easy access to their funds anytime, anywhere, and in real time,” the central bank official said.
For Maybank Philippines, the industry’s entry into the digital era poses challenges and opportunities in terms of cyber-threats.
“Our mantra is not a question of if but when. Our risk management sets zero tolerance to cybersecurity incidents,” said Maybank Philippines Information Technology Head Bernardo G. Talimban, Jr. in the panel discussion. — Karl Angelo N. Vidal

DBM, AirAsia ink deal to give discounts to gov’t employees

THE Department of Budget and Management (DMB) and Philippines AirAsia, Inc. on Wednesday signed a deal which would provide discounted fares to government personnel taking official trips.
AirAsia Philippines is the third airline that has inked the government fares agreement (GFA), after Philippine Airlines and Cebu Pacific.
Aside from cheaper fares, other benefits of the GFA include waived rebooking fees, additional baggage allowance and free web admin fee.
“As government officials, it is our duty to get the most out of the limited public resources entrusted to us. The GFA is a step towards getting the highest value for the hard-earned money of our Filipino taxpayers,” Budget Secretary Benjamin E. Diokno said during the signing event, noting that airline services are one of the most requested in government procurement activities.
AirAsia President and Chief Executive Officer (CEO) Dexter M. Comendador said this was its first partnership with the government.
The government has a lump-sum budget of P4 billion for official travels in 2018, covering trips by air, land and sea.
“As of end of December 2017, a total amount of P202.8 million has been generated as sales for the GFA. Considering that these airline tickets were purchased at a discount of 8% to 9% less than the regular price, a savings of P19.5 million was achieved for the government as of 2017. We expect this to be much higher this year,” Mr. Diokno said.
At present, a total of 138 government agencies, including state universities and colleges and government-owned and controlled corporations, can avail of the GFA’s benefits. — Denise A. Valdez

Human error, the leading cause of cybersecurity breaches — study

LACK of skills among employees is a critical barrier holding enterprises back from implementing threat management more effectively, a new study on cybersecurity showed.
Based on the 2018 Cyberthreat Defense Report, a joint study by the CyberEdge Group and cybersecurity services firm Imperva Incapsula, the lack of skilled personnel and low security awareness among workers are the top two barriers that inhibit companies from adequately defending themselves from cyber-attacks.
“Threats are constantly evolving and the chances of being attacked are increasing significantly as enterprises everywhere integrate new web-facing technology into their day-to-day systems,” Niño Valmonte, director for marketing & digital innovation of IP Converge Data Services, Inc. (IPC), Imperva Incapsula’s cybersecurity services partner, said in a statement.
“New types of attack methods are always emerging, and a single employee oversight can make or break a company. This study reveals how it is imperative to keep pace with the threat landscape as it evolves and continue educating ourselves on the latest attack methods,” he added.
HUMAN ERROR AS TOP RISK
When asked on what type of attack companies are most concerned with, the respondents’ answers revealed that the top three are Malware, Ransomware, and Phishing — threats that commonly enter a computer through the negligent actions of the user.
These three attacks often spread through spam e-mails that contain malicious attachments. Opening the e-mail will end up installing the threat into a computer. What’s more devastating about this is that once installed, most of them are programmed to automatically send themselves to the mailing list of an infected computer, thereby spreading itself further. Other common sources of the top three cyber threats are malicious files hidden inside downloaded files and software, and through a method called drive-by downloading, which occurs when malicious programs are automatically downloaded by visiting an infected website.
“Cybercriminals often use trickery to get people to unknowingly download malicious files. This can be an e-mail with a file attached that tells you it is a receipt for a delivery, a new tool for a web browser, or even a bogus antivirus program that has malware hidden inside. These are just a few examples of how attackers can infiltrate a network that every company and its employees must know about,” Mr. Valmonte said.
In order to avoid these threats, IPC recommends that businesses conduct constant training in order to instill the right skills, awareness, and the “cybersecurity culture” required in workers to fight against new and evolving threats.

• Practices in keeping a computer clean, including sensibly limiting the programs, apps, and data that can be downloaded and installed, and speaking up whenever a computer exhibits strange behavior;

• Using long, strong passwords that has the combination of uppercase letters, lowercase letters, symbols, numbers, and changing them routinely;

• Recognizing and deleting e-mail messages with suspicious subject lines and links;

• Constant and consistent backup of files and/or applications;

“By starting with these steps, a company can already drastically reduce the installation of malicious programs within their network,” said Mr. Valmonte.
The study was conducted in organizations with more than 500 employees worldwide.

What are the top 5 regions in terms of sectoral performance?

How PSEi member stocks performed — May 2, 2018

Here’s a quick glance at how PSEi stocks fared on Wednesday, May 2, 2018.

DBM confident of funding CCT, military pensions

THE BUDGET department is confident that it can find the money for the increase in cash transfers (CCT) and pension overhaul for uniformed personnel next year, but added it needs to be selective with project proposals from government agencies due to “funding pressures” in 2019.
The cash transfers and pension commitments are “part of the 2019 budget; we are going to take that into account. We are confident we have enough revenue to cover the increase easily,” Budget Secretary Benjamin E. Diokno said during a briefing yesterday in Mandaluyong City.
Mr. Diokno noted that the government’s tax collecting agencies have been exceeding their targets in recent months.
Budget Memorandum No. 130, signed by Mr. Diokno on April 13, included a Tier 2 Budget Call — a notice to government agencies for new project proposals. The budget for Tier 2 items is P362.3 billion in 2019.
According to the memorandum, project proposals may need to compete for resources in the 2019 budget due to “funding pressures” including the P12-billion Tax Reform Cash Transfer Project, which calls for the P200 monthly transfer to beneficiaries to be raised to P300; the P33.9 billion for pensions for uniformed personnel following the lifting of pension indexation next year; and the P60.1-billion transfer of coconut levy funds to farmers upon ratification of the Coconut Farmers and Industry Development Act.
“We can do it. We actually have a funding forecast until the end of President (Rodrigo R.) Duterte’s term,” he said.
Funding requirements for uniformed personnel pensions have been growing in recent years because the pensions rise in step with the compensation paid to active-duty staff. Mr. Duterte signed in January Joint Resolution No. 1, authorizing the increase in base pay and incentives for soldiers and policemen.
The government suspended indexation this year.
Mr. Diokno said that the government “will not suspend indexation,” next year, but will proceed with a higher payout for pensioners to catch up with counterparts in active service.
“That’s our commitment to the pensioners,” he said.
The Department of Budget and Management has set a P3.78-trillion expenditure program for 2019, up 12.2% from this year’s actual budget. — Elijah Joseph C. Tubayan

BoI-approved investments up; PEZA declines in first quarter

INVESTMENT pledges approved by two government agencies in the first quarter rose 53.2% year on year to P182.83 billion, the Department of Trade and Industry (DTI) said.
Proposals approved by the Board of Investments (BoI) accounted for 83.2% or P152.12 billion, up sharply from P67.97 billion a year earlier.
The remaining P30.72 billion worth of investment proposals was approved by the Philippine Economic Zone Authority (PEZA), down 40.2% from a year earlier.
Filipino investors accounted for 92.5% of the approved investment proposals or P169.08 billion, up 73.2% from a year earlier. The foreign investors’ approved pledges worth P13.75 billion were down 36.5% from a year earlier.
The electricity, gas, steam and air-conditioning supply segment had approved proposals worth P104.35 billion, accounting for 57.1% of the total and sharply higher than the year-earlier total of P4.8 billion.
Real estate investment proposals accounted for P27.24 billion or 14.9%; followed by manufacturing at P23.85 billion or 13%; water supply, sewerage, and waste management at P13.87 billion or 7.6%, and transportation and storage at P7.01 billion or 3.8%.
Japan was the biggest source of the approved foreign investment, with P7.86 billion or 57.2% of the total, up sharply from P0.61 billion a year earlier.
The UK was the origin of P1.54 billion worth of investment proposals, followed by the Netherlands at P0.88 billion; Singapore at P0.56 billion; and the US at P0.45 billion.
The Philippines has seven Investment Promotion Agencies authorized to grant tax and non-tax incentives to investors putting up businesses or expanding existing ones in the country.
Aside from the BoI and PEZA, the other IPAs are Clark Development Corp., Subic Bay Metropolitan Authority, Authority of the Freeport Area of Bataan, BoI-Autonomous Region in Muslim Mindanao (BoI-ARMM) and Cagayan Economic Zone Authority. — Janina C. Lim

New tender for Vietnam, Thai rice set for Friday

THE National Food Authority (NFA) will conduct another tender for the import of 250,000 metric tons (MT) of rice on Friday, after the failure of a bid conducted last week.
In a statement issued Wednesday, NFA Administrator Jason Laureano Y. Aquino said the Friday date was set to give suppliers from Vietnam and Thailand more time.
“We would have wanted to do this earlier, but representatives of the two supplier countries asked for time to prepare the necessary documentation and consult with their respective authorities,” he added.
The NFA will be issuing new reference prices for 15% broken and 25% broken rice to be more in line with the prevailing world market price on the day before the bid and accounting for the peso exchange rate.
The agency also said it will adjust the delivery period for 100,000 metric tons (MT) of 25% broken rice to not later than May 31, with another 100,000 MT to arrive by June 15.
The remaining 50,000 MT which should be 15% broken rice should arrive no later than June 30.
Mr. Aquino said that the agency is “optimistic that the second round will succeed.”
The Philippines has memoranda of agreement with Thailand and Vietnam for government-to-government rice procurement. The shipment is intended to replenish NFA’s rice buffer stock.
Last week, the NFA set a reference price of $483.63 per MT for 15% broken rice and $474.18 per MT for 25% broken rice.
Thailand did not bid to supply 15% broken rice and asked $530 per MT for 25% broken rice. Vietnam asked for $530 per MT for 15% broken and $521 per MT for 25% broken.
The NFA will conduct another open tender for other countries and private traders to procure another 250,000 MT of rice for use as buffer stock in the three months to September, when rice supply tends to dry up.
The tender will be divided into nine lots, and the shipments will be directed to 14 ports nationwide.
A pre-bidding conference will be held on Tuesday while the deadline for bid submissions is May 22. — Anna Gabriela A. Mogato

Trade dep’t seeking to tap ex-Soviet nations’ GSP

THE Philippines is hoping to boost trade with another nontraditional market — the Eurasian Economic Union (EAU) — by accessing that bloc’s generalized system of preferences (GSP).
“To enhance market access, the Philippines proposed to engage in dialogue the Eurasian Economic Commission (EEC),” the Department of Trade and Industry (DTI) said in a statement on Wednesday, and asked for information on the EAU market and regulations.
The EAU’s original members are Belarus, Kazakhstan and the Russian Federation. It later admitted Armenia and Kyrgyzstan. The EEC conducts negotiations for the EAU.
The bloc grants GSP status to selected products from developing countries.
In a recent meeting with Russia, the Philippines sought Moscow’s assistance in tapping its GSP scheme.
The two countries met on April 19 in Manila to convene their Joint Commission on Trade and Economic Cooperation, a mechanism to improve bilateral economic relations.
During the meeting, both sides agreed to disclose the final results of their veterinary missions to audit Philippine seafood and seafood products and Russian meat products.
“The audit was undertaken to ensure the safety of consumers against diseases and contamination from these export products,” the DTI said.
Both countries gave updates on business arrangements initiated during the official visit to Russia of President Rodrigo R. Duterte last year.
The initial deals agreed during the visit involved engineering and design services for steel structures and pipeline construction, among others.
The Philippines has been exploring nontraditional markets like Russia as part of the government’s shift to an independent foreign policy. — Janina C. Lim