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Term deposit yields inch lower on easing signals

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits went down on Wednesday amid monetary easing signals from policy makers.

The central bank’s term deposit facility (TDF) attracted bids amounting to P212.412 billion on Wednesday, above the P180 billion on the auction block. However, this was below the P240.791 billion in tenders seen a week ago against the P310 billion on offer.

Broken down, tenders for the seven-day papers reached P112.799 billion, higher than the P90 billion auctioned off by the central bank but lower than the P124.448 billion in bids for a P150-billion offer last week.

Banks asked for yields ranging from 6.5% to 6.535%, lower and narrower compared with the 6.5125% to 6.55% band seen a week ago. This caused the average rate of the one-week deposits to decline by 1.13 basis points (bps) to 6.5244% from 6.5357% previously.

Meanwhile, bids for the 14-day term deposits amounted to P99.613 billion, above the P90-billion offer but below the P116.343 billion in tenders against the P160 billion placed on the auction block a week earlier.

Accepted rates were from 6.55% to 6.59%, slightly below the 6.5588% to 6.598% margin recorded a week ago. With this, the average rate for the two-week deposits inched lower by 0.55 bp to 6.5694% from the 6.5749% logged in the previous week’s auction.

The BSP has not auctioned off 28-day term deposits for more than three years to give way to its weekly offerings of securities with the same tenor.

TDF yields went down amid dovish policy signals from local monetary authorities, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Finance Secretary Ralph G. Recto, who sits on the BSP’s policy-setting Monetary Board, said that it was “highly probable” that the Philippine central bank would only start cutting rates after the Fed begins its own easing cycle.

The Federal Reserve held interest rates steady for a seventh straight meeting last week, with expectations of the start of rate cuts being pushed to as late as December. Fed officials are also now projecting only one rate cut this year versus previous expectations of three.

Meanwhile, BSP Monetary Board Member Benjamin E. Diokno told Bloomberg last week that the central bank has room to cut its benchmark rates at least twice this year with inflation still within its annual target.

Headline inflation accelerated to 3.9% year on year in May from 3.8% in April but marked the sixth straight month that inflation settled within the BSP’s 2-4% target band.

From January to May, the consumer price index averaged 3.5%, matching the BSP’s full-year forecast.

BSP Governor Eli M. Remolona, Jr. previously said the earliest the central bank can begin easing its policy stance is in August, adding they could cut rates by 25-50 bps in the second semester.

Mr. Remolona has also said the BSP does not need to wait for the Fed to begin its own easing cycle.

The Monetary Board has kept the benchmark rate at a 17-year high of 6.5% since October 2023 following cumulative hikes worth 450 bps to help tame red-hot inflation. — Luisa Maria Jacinta C. Jocson

Dining In/Out (06/20/24)


Sheraton Manila Bay’s Tour de France du Vin 2024

WINE enthusiasts and connoisseurs are invited to a journey through the vineyards of France via Sheraton Manila Bay’s Tour de France du Vin 2024, held in partnership with Le Cellier French Wine Selection. The wine and dinner event will take place on June 27, 7 p.m., at the Manila Bay Kitchen. For P3,800 net per person, attendees can enjoy a selection of 17 premium wines sourced from Beaujolais, Burgundy, Bordeaux, the Rhone Valley, and the South of France. Some of the highlights of the evening are the 17 regional specialties prepared by Sheraton Manila Bay’s General Manager, Richard Masselin, alongside the hotel’s chefs. Guests will get to sample Pot Au Feu, Coq Au Vin de Bourgogne Rouge, Fish and Seafood Bouillabaise, and more. Wine expert Bernard Flour, owner of Le Cellier French Wine Selection, will be at the event to share his knowledge about the selection, as well as give our guests insight on French wine. Sheraton Manila Bay is located at M. Adriatico cor. Gen. Malvar Streets, Malate, Manila. For updates, follow them on Facebook and Instagram @sheratonmanilabay and on Twitter at @sheratonmnlbay.


SM Markets offers pasalubongs in a jiffy

SM MARKETS makes discovering otherwise hard-to-find pasalubong items easy, with local products available at the nearest supermarket. No more searching all over town or traveling long distances as everything has been brought together in one spot. From Luzon, SM Markets offers items like Basilio’s Bagnet Chips, Ilocos Chichacorn, and Alabanza Longanisa De Recado, all hailing from Baguio or the Ilocos Region. Craving Pangasinan’s boneless daing na bangus? Check out the JSL Dagupan brand. From the Calabarzon region there are items like Noceda Jacobina, Old Center Pancit Lucban, and Bean Central Barako Coffee. The Bicol region is represented by Jovy’s Pili Nuts, Pansit Bato, Bicol’s Best Bicol Express, and Albay Pili Nuts. Favorites from the Visayas Region, specifically from Cebu, are also available including Titay’s Rosquillos, Phil Brand Dried Mango, Shamrock Otap, and Vhonytiff Banana Chips. Products from Iloilo and Bacolod are also in-store, including Bongbong’s Piaya and Biscocho, Merzci Biscocho, Piaya, and Butterscotch, Deocampo’s Barquillos, and RGies Butterscotch. SM Markets also stocks Davao’s Lola Abon’s Mangosteen and Durian candies, and Durian World’s Durian Pastillas and Yema. From Cagayan de Oro, there are Cheding’s Toasted Peanut, De Oro Best Beef and Pork Jerky, and Vjandep Yema Pastel. By featuring these locally made products, SM Markets is supporting Filipino farmers, artisans, and small businesses.


Pop-up alert: Cream-O Me Time Cafe

JACK ‘N JILL Cream-O is opening the Cream-O Me Time Cafe pop-up booth at Greenfield Central Park’s Weekend Market on June 22 and 23, 4 p.m. onwards. The Cream-O Me Time Cafe will offer a range of classic and new Cream-O products like cookies, cakes, and drinks (which are also available for purchase). Activities include reading e-books from the Cream-O Library, listening to tunes from the Cream-Oholics Playlist, taking photos and making social media content via the Pose with Cream-O booth, sharing thoughts on the Cream-O Freedom Wall, and enjoying board games at the Chocolatey Battle station. Visitors will get a chance to take home free packs of Cream-O by posting about the Cream-O Me Time Cafe experience on social media. Jack ‘n Jill Cream-O is from Universal Robina Corp., maker of Pinoy brands such as Great Taste coffee, C2 Cool and Clean, Jack ‘n Jill Piattos, Magic Crackers, and Cloud 9.


New events space opens in Tagaytay

THE CLOUD VILLA, just 30 minutes from the Tagaytay Rotonda, offers a space inspired by Filipino architecture. With all-glass panel windows, an intricate wooden structure, and a sea of clouds as the backdrop, this venue is ideal for a birthday, wedding, or for corporate functions. The Cloud Villa is situated along the Nasugbu Highway, near Sonya’s Garden, Breakfast at Antonio’s, Twin Lakes, and Don Bosco Chapel on the Hill. The Cloud Villa can host 200 to 250 guests with a 256 sqm function hall. Amenities include air conditioning, a preparation room, a caterer’s area, housekeeping, security staff, and a parking lot that can hold up to 30 cars. For inquiries, visit www.thecloudvilla.ph or call 0917-775-2488.


McDonald’s Chicken Flavor Fest is on

STARTING June 14, McDonald’s Chicken McNuggets can now be enjoyed with three new sauce options: Classic Ranch, Fiery Aioli, and Sweet Chili Plum. The fast-food brand now also offers the Black Pepper McChicken sandwich. The McNuggets and chicken sandwich are part of the ongoing Chicken Flavor Fest. According to a release, each Chicken Flavor Fest product is best paired with a glass of Lipton Cool Berry Iced Tea. McDonald’s App users can avail themselves of the six-piece Chicken McNuggets or Black Pepper Chicken with a small Lipton Cool Berry for P99, with savings up to P77. The McDonald’s Chicken Flavor Fest will run at participating stores nationwide from June 14.

Golden MV Holdings, Inc.’s annual meeting of stockholders to be held online on July 15

 

 


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FHC to open P2.7-B Grafik Hotel Baguio by Q1 2025

GOTIANUN-LED Filinvest Hospitality Corp. (FHC) is eyeing to open the P2.7-billion Grafik Hotel Baguio within Camp John Hay by the first quarter (Q1) of 2025, marking the launch of its new hotel line.

The new hotel will offer 256 rooms, five food and beverage outlets, a grand ballroom, meeting spaces, and a spa, FHC said in a statement on Wednesday.

FHC recently topped off the property, which was built in partnership with the Bases Conversion and Development Authority (BCDA) and John Hay Management Corp. (JHMC).

The new hotel in Baguio will be the eighth hotel property of the Filinvest Group and the first one under the Grafik Hotel Collection upscale hospitality brand.

FHC is the hospitality unit of listed holding company Filinvest Development Corp. (FDC).

“The Grafik Hotel Collection is poised to make a significant impact on the local economy. By creating numerous employment opportunities, we aim to engage and uplift the community,” FHC First Senior Vice-President Francis Nathaniel C. Gotianun said.

“Our project will not only boost tourism but also foster a sense of pride and involvement among the residents of Baguio. We are committed to contributing to the city’s growth and prosperity,” he added.

The project has generated about 3,000 jobs during the construction phase and will hire 250-300 employees when it becomes operational. The new hotel will cater to both domestic and international travelers.

“The Grafik Hotel is set to significantly boost the revenue for the John Hay Special Economic Zone by attracting a larger number of tourists. It will play a key role in job creation, balancing economic growth with environmental sustainability,” JHMC President and Chief Executive Officer Marlo Ignacio V. Quadra said.

Chroma Hospitality, Inc. Country Manager James M. Montenegro said the Grafik Hotel Collection aims to “celebrate the beauty and stories of the Philippines.”

“Our properties will serve as gateways to the Filipino experience, offering guests a chance to become part of the narrative through immersive and engaging experiences,” he said.

The Filinvest Group oversees its portfolio of hotels through a partnership with Chroma Hospitality.

Aside from the Grafik Hotel Collection, Chroma Hospitality is the management company behind hotel brands such as Crimson Hotels & Resorts (Mactan, Boracay, and Filinvest City), Quest Hotels & Resorts (Cebu City, Clark, and Tagaytay), Mimosa Plus Golf Course in Clark, Timberland Highlands Resort, and Timberland Mountain Bike Park in San Mateo, Rizal.

FDC stocks were last traded on June 18 at P5.40 per share. — Revin Mikhael D. Ochave

Gov’t partially awards reissued T-bonds as rates rise

BW FILE PHOTO

THE GOVERNMENT made a partial award of the Treasury bonds (T-bonds) it offered on Wednesday at an average rate higher than secondary market levels amid expectations of faster inflation in the coming months.

The Bureau of the Treasury (BTr) raised just P24.003 billion via the reissued 20-year bonds it auctioned off on Wednesday, lower than the P30-billion program, despite total bids reaching P46.331 billion.

The bonds, which have a remaining life of 14 years and seven months, were awarded at an average rate of 6.781%. Accepted yields ranged from 6.72% to 6.82%.

The average rate of the reissued bonds went down by 16.9 basis points (bps) from the 6.95% fetched for the series’ last award on May 14.

However, this was 3.1 bps above the 6.75% coupon for the issue. This was likewise 1.2 bps higher than 6.769% quoted for the 15-year bond, the tenor closest to the remaining life of the papers offered, and 1.5 bps above the 6.766% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

Tuesday’s award brought the total outstanding volume for the series to P139.3 billion.

“The higher T-bond rates reflected expectations of a slight overshoot in domestic inflation above the 4% threshold in the coming months,” a trader said in an e-mail.

Higher global crude prices and a weaker dollar recently led to the higher awarded T-bond rates, as this could lead to faster local inflation, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message. 

The Bangko Sentral ng Pilipinas (BSP) has said it expects inflation to breach the 2-4% target from May to July but ease anew beginning August.

The consumer price index (CPI) picked up to 3.9% year on year in May from 3.8% in April but slowed from 6.1% in the same month last year.

This was the fastest pace since 4.1% in November and marked the fourth straight month of quicker annual inflation.

Still, May marked the sixth straight month that inflation settled within the BSP’s 2-4% annual target.

From January to May, the CPI averaged 3.5%, matching the BSP’s full-year forecast.

The BTr wants to raise P180 billion from the domestic market this month, or P60 billion from Treasury bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — Aaron Michael C. Sy

Justin Timberlake arrested for drunken driving in the Hamptons

Justin Timberlake in a scene from the 2011 film, In Time. — IMDB

POP singer Justin Timberlake was arrested and charged with driving while intoxicated after failing to obey a stop sign and twice veering from his lane in the upscale Hamptons seaside area of New York, authorities said on Tuesday.

Mr. Timberlake was arrested on Long Island in the town of Sag Harbor on Tuesday morning, according to a statement from the local district attorney’s office.

The 43-year-old was arraigned in Sag Harbor Village Justice Court and released, the statement said. His next court date will be a virtual appearance on July 26, the statement said.

According to court documents, police spotted Mr. Timberlake driving a 2025 gray BMW shortly after midnight. The documents said Mr. Timberlake failed to stop at a stop sign and twice failed to keep to the right side of the road.

When stopped by police, Mr. Timberlake’s eyes “were bloodshot and glassy, a strong odor of an alcoholic beverage was emanating from his breath, he was unable to divide attention, he was unsteady afoot and performed poorly on all standardized field sobriety tests,” the documents said.

Representatives for Mr. Timberlake did not immediately respond to requests for comment.

The singer’s attorney, Ed Burke, told Us Weekly that the charge was a single count because he refused the breath test.

“Mr. Timberlake was also charged with two other court citations, running a stop sign and not traveling in the correct traffic lane,” Mr. Burke told the outlet.

People magazine reported that Mr. Timberlake was taken into custody after he left a dinner at the American Hotel.

Mr. Timberlake rose to fame as a member of 1990s boy band ‘N Sync before starting a solo career. His hits include “Can’t Stop the Feeling!,” “Suit & Tie,” and “SexyBack.”

In 2004, Timberlake infamously ripped off part of Janet Jackson’s garment during their Super Bowl halftime show in Houston and briefly bared her breast in what was blamed on a “wardrobe malfunction.”

He returned to headline the Super Bowl halftime show in 2018.

The singer currently is in the middle of his Everything I Thought It Was tour. He has two concerts scheduled in Chicago this weekend and two shows in New York City next week. — Reuters

Security Bank targets to double sustainable loan portfolio by 2025

SECURITY BANK Corp. targets to double its sustainable financing portfolio by 2025, the bulk of which will be made up of investments in wind and solar energy projects, a senior official said on Wednesday.

“The ambition is to book new renewable loans totaling P40 billion by end of December 2025. So, roughly doubling where we ended in 2023,” Security Bank Executive Vice-President and Chief Financial Officer Eduardo M. Olbes said at a media briefing.

As of end-2023, the bank recorded P43.6 billion in qualified green and social loans, it said.

Of this total, P20.6 billion went to renewable energy projects, P14.3 billion was allotted to access to basic infrastructure, P6.6 billion went to green buildings, and P2.1 billion was earmarked for access to essential services, Security Bank said.

Mr. Olbes said “a substantial amount” of their P40-billion renewable financing target for 2025 will be issued this year.

“We have quite a healthy pipeline on the renewable side. It’s a mix of both wind and solar. That is the lion’s share of the pipeline that we see today,” he added.

Aside from funding renewable energy projects, the lender is also looking at further growing its consumer segment by integrating this kind of financing into its loan products for small businesses and individuals, Mr. Olbes said.

“The largest part of our consumer loan book is home loans, and therefore we’re very open [to financing] part of the construction plan or home improvement plans, as well as the installation of solar panels or other things. That’s something that we’re very happy to provide financing for,” the official said.

He added that the bank’s small business lending segment will be rolling out products with a sustainability component later this year and early in 2025.

Security Bank’s net income rose by 11.4% year on year to P2.63 billion in the first quarter.

Its shares closed at P67.40 apiece on Wednesday, dropping by 35 centavos or 0.52% from the previous day. — A.M.C. Sy

Social media isn’t like smoking. Warning labels won’t work

ARPAD CZAPP-UNSPLASH

The Us Surgeon General’s call on Monday for social media services to carry health warning labels makes for a great headline, but it will do little to change harmful habits. More forceful action is needed. Taking inspiration from the anti-smoking efforts that began in the 1960s, Dr. Vivek Murthy’s proposal, he wrote in the New York Times, would “regularly remind parents and adolescents that social media has not been proved safe.”

He wants Congress to approve the idea, saying, “Evidence from tobacco studies show that warning labels can increase awareness and change behavior.”

I support Murthy’s broad conclusions on social media and its risks to the public. It’s becoming increasingly clear that limiting its mental health impact and increasing in-person interaction among young people seem just as vital as battling nicotine addiction. But the tactics used for an earlier generation’s health crisis are no longer a good fit for our current situation.

With tobacco, the goal was to compel people to quit, not moderate, because there are no benefits to smoking — and no drawbacks in stopping. The same obviously can’t be said of social media, as Murthy acknowledged in his advisory on social media, published last year. “Social media can provide benefits for some youth by providing positive community and connection with others who share identities, abilities, and interests,” he stated. “It can provide access to important information and create a space for self-expression.”

The distinction makes warning labels on social media a nonstarter, another pop-up that users will instinctively disregard as they continue to engage.

Social media users need no reminding about the harm — they feel it instinctively. The problem is that they feel helpless to do much about it. Parental interventions, whether by taking devices away or limiting time screen time, have not altered the more powerful dynamics that make social media use so prevalent and damaging. Parents who seek to take more drastic measures for their children, such as allowing them to only use a “dumb” phone with fewer features, risks leaving them isolated from their peers.

Thankfully, Murthy is well aware of the shortcomings of warning labels. Indeed, I wonder if the suggestion is mostly a publicity effort, one designed to bring renewed attention to his more practical recommendations, which, despite being pushed for a year, are not yet close to becoming reality.

Murthy’s other ideas shift the onus from stressed parents to larger bodies, such as schools requiring phone-free environments, or to the social networks themselves, which can tackle some of these problems at scale. Murthy wants age-appropriate restrictions on “push notifications, autoplay and infinite scroll” — three common features of social networks designed to keep users hooked.

The companies have pushed back against most proposals. On Monday, a lobbying group for the tech industry said requiring warning labels would be an abuse of government power. Silicon Valley argues the link between social media use and deteriorating mental health has yet to be established. At the same time, companies resist efforts to open their platforms for proper scrutiny from independent public health experts, as Murthy is calling for. He is right to press ahead in the absence of absolutely definitive evidence (which may never arrive). As he writes, “In an emergency, you don’t have the luxury to wait for perfect information. You assess the available facts, you use your best judgment, and you act quickly.”

But he needs help. Warning labels make little sense to anyone who understands how social media works and would likely quickly become as invisible to Americans as notices about accepting cookies or terms and conditions. Only by changing social media companies through force will Murthy get closer to achieving his aim of building “safer, healthier online environments.” Sadly, Congress doesn’t seem to share his urgency.

 

BLOOMBERG OPINION

Cebu Pacific to launch San Vicente-Cebu route

CEBUPACIFICAIR

CEBU PACIFIC, operated by Cebu Air, Inc., is further expanding its domestic network by launching flights to San Vicente, Palawan from Cebu in October, it said on Wednesday.

“Cebu Pacific is thrilled to expand our domestic network by introducing flights to San Vicente,” Alexander G. Lao, Cebu Pacific president and chief commercial officer, said in a statement.

The airline company will operate flights between Cebu and San Vicente, Palawan four times a week on Tuesdays, Thursdays, Saturdays, and Sundays beginning Oct. 24, the budget carrier said.

The soon-to-be launched flight route to San Vicente, Palawan will not only allow travelers easier access to affordable flights but it also boost inter-island connectivity, Mr. Lao said.

The airline company on Wednesday launched a week-long sale for the Cebu-San Vicente flights. The travel period for the flights on sale is on Oct. 24 until March 29, 2025.

Under Cebu Pacific’s seat sale, flights could cost as low as P1 for the one-way base fare, excluding fees and surcharges.

Meanwhile, the budget carrier is also offering connecting flights to San Vicente, Palawan from Manila for a one-way base fare of as low as P998 until the end of month. The travel period for the promo is also from Oct. 24 until March 29, 2025.

Cebu Air earlier said it was planning to expand its international routes and increase flight frequencies to popular local and foreign destinations in line with its $12-billion aircraft order, whose supplier is set to be announced soon.

To date, Cebu Pacific flies to 35 domestic and 24 international destinations in Asia, Australia, and the Middle East.

Cebu Air shares rose by 10 centavos or 0.36% to end at P28 each on Wednesday. — A.E.O. Jose

Anouk Aimée, actress who starred in La Dolce Vita, 92

ANOUK AIMÉE in La Dolce Vita. — IMDB

PARIS — Anouk Aimée, the French actress whose cult movies included Federico Fellini’s La Dolce Vita, Jacques Demy’s Lola, and Claude Lelouch’s A Man and a Woman, has died aged 92.

“We bid farewell to a world-famous icon, to a great actress of French cinema who took on roles for some of the biggest names, such as Demy, Lelouch and Fellini,” said French Culture Minister Rachida Dati on social media platform X on Tuesday.

Aimee’s daughter Manuela Papatakis said in an Instagram post that Aimée had passed away at home in Paris. — Reuters

Maya Bank deposits hit P32 billion as of May

MAYA BANK saw its deposits grow by 24% year on year to P32 billion at end-May as average savings account balances more than doubled in 12 months, it said on Wednesday.

The digital bank’s depositor base also expanded by 74% to 3.7 million as of May from a year prior, it said in a statement, adding that its active users have surged because of its “competitive interest rates and transformative financial tools.”

“Digital banking is empowering more Filipinos with accessible tools to better manage their finances. It is incredibly rewarding to see how we are helping people, especially those with limited funds, develop strong and sustainable savings habits,” Maya Group President and Maya Bank Co-Founder Shailesh Baidwan said.

“Financial health can be significantly improved through innovation. We have eliminated minimum balance requirements and designed our products to be accessible, allowing users to start saving with any amount they can afford. Additionally, customers benefit from higher interest rates as they use the app for transactions like bill payments and everyday purchases,” Maya Bank President Angelo S. Madrid added.

The digital bank said since its launch in June 2022, its Personal Goals feature, which is mainly used in saving for short and midterm objectives like gadgets, emergencies, and travel, saw 1.6 million created accounts as of end-May.

Meanwhile, its Time Deposit Plus accounts rose by 640% as of April from the level seen in December 2023, which was when the feature was rolled out.

Maya Bank is owned by Voyager Innovations, Inc. PLDT Inc. is Voyager’s main shareholder. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

It is one of the six licensed digital banks in the country. — AMCS

Golden opportunity

PHILIPPINE STAR/KJ ROSALES

Philippine agriculture is at a crossroads. Should the country start commercially producing genetically modified or GM crops such as Golden Rice and BT eggplant? Or should it wait until more comprehensive scientific data are available to prove that such crops are truly safe to propagate and consume, and that they pose no threat to the environment?

Recently, the Court of Appeals favored a petition by environmental groups opposed to GM crops. It stopped the commercial propagation and field testing of Golden Rice and BT eggplant until further safety and environmental assessments were conducted on them. Environmental and farmer groups claimed that GM crops still posed risks to health and the environment.

Golden Rice has been going through research and development at the International Rice Research Institute in Los Baños, Laguna for over 20 years. In fact, it has undergone field testing already, and had been cleared for commercial propagation starting 2023. But those opposed to it claim that despite all the research done thus far, there was not enough data to prove that it was truly safe to propagate and eat.

And those opposed to GM crops may be correct.

But the court decision leaves everything hanging. How much research and data are enough to prove the safety of GM crops? Who is to say whether such data are valid? Until when should the government wait? What type of data, and how much, would satisfy those opposed to GM crops as well as the court?

At the end of the day, we will never conclusively know whether GM crops such as Golden Rice and BT eggplant are completely safe to eat, and will not pose any threat to the environment, until we start commercially growing them and consuming them. The question is, are we willing to take that risk?

We never knew if COVID-19 vaccines were all completely safe when we started distributing them in 2020. But, for COVID, despite the risks, countries went ahead with making new vaccines available because of the need of the times. In a way, we may also have to take similar risks with GM crops, given the unpredictable impact of climate change on agriculture, the growing population, and the internal and external risks to Philippine food security.

Globally, the debate over the use of GM crops will continue, deliberating how to best balance potential health benefits against environmental and safety concerns. At this point, I believe, it is a question of whether we as a country are prepared to take the risk and to deal with the consequences.

The Marcos II Administration wants the country to achieve rice self-sufficiency by 2027, with the country producing all its rice needs and not having to import from abroad. But, as I have noted in previous columns, rice self-sufficiency has been a government objective for more than 60 years now. And all this time, we have not been consistently meeting that target.

In 2021, the rice self-sufficiency ratio went down to 81.5% from 85% the year before, requiring the country to import larger quantities of rice. Data indicates that since the late 1960s, farm yields have increased substantially as we cultivated more high-yielding rice varieties, with average productivity reportedly increasing from 1.23 metric tons per hectare in 1961 to 3.59 metric tons per hectare in 2009. The area under irrigation also grew from under 500,000 hectares in the mid-1960s to about 1.5 million hectares in 2009.

But self-sufficiency in rice production remains unlikely given the rate we have been losing land to development, seemingly stagnating yields, and given that farmers are now a dying breed. Data from the Philippine Statistics Authority indicate that in second quarter 2018, the harvested area for rice fell to 939,790 hectares, from 947,190 million hectares the year before. Yields have also reportedly remained flat in the second quarter at 4.38 tons per hectare.

A more important factor, to me, is that the population is now over 108 million people, and it seems that food consumption growth has been outpacing harvest growth, resulting in a supply gap. This is where importation plays a more crucial role, and the right timing in importation and distribution is key to ensuring supply and price stability.

But considering the rate of development, and the rate of population growth, it is not likely for the trend of supply gaps to disappear or to reverse any time soon. In 1960, there were only 27 million of us. Today, we are more than 108 million. The rate of population growth from the 1960s to the 1980s was about one million per year, but since the 1990s it has been about 1.6 million annually.

In 2013-2017, rice production averaged 12.019 million metric tons (MT) annually, but consumption averaged at a higher rate of 12.850 million MT. The resulting supply gap made it necessary for us to import rice during the period. In 2022, palay (unmilled rice) production was 19.76 million MT. It was at a record high of 19.96 million MT in 2021. In 2022, demand forced us to import a record high 3.8 million MT of rice. In 2021, despite the record harvest, we still imported 2.7 million MT of rice.

Simply put, with the way things are, despite our best harvest in any given year, importation is still necessary. Unless the average annual agricultural sector growth of 1.1% becomes significantly higher than the average population growth of 1.8%. Otherwise, agriculture will always have to play catch up just to meet the food needs of a growing population.

And while GM crops like Golden Rice and BT eggplant may not necessarily boost harvests, for sure they can help improve crop quality. Golden Rice is biofortified with vitamin A. It was developed primarily to address nutritional deficiencies among the population, particularly children. The adverse impact of vitamin A deficiency is on eyesight, which directly impacts education. Golden Rice was seen as significantly reducing vitamin A deficiency in the country, especially among children.

Along with BT eggplant, both crops are also meant to address the need for sturdier varieties that can help mitigate the impact of weather and pestilence on farming and food production. But those who petitioned the court insist that the potential environmental and health risks still outweigh these benefits, unless science can comprehensively prove otherwise.

In short, they claim that the government and researchers have not done enough, and have not produced enough data to prove that GM crops are safe to produce and consume. Until then, and the court agreed, Golden Rice and BT eggplant will just have to wait. The problem with this situation is that nobody knows how long that wait will be.

Meantime, climate continues to change, and varying weather patterns continue to impact farming. Population growth continues to outpace agriculture growth, food security remains uncertain, and Vitamin A deficiency — and its impact on children and their education — persists. Golden Rice, after 20 years, finally presented itself as a golden opportunity. But, it seems, it’s an opportunity that will be missed.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com