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National Reinsurance Corporation of the Philippines to conduct its Annual Stockholders’ Meeting on June 26

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
JUNE 26, 2024 / 2:00 P.M.

DEAR STOCKHOLDERS:

Please be advised that the Annual Meeting of Stockholders of NATIONAL REINSURANCE CORPORATION OF THE PHILIPPINES (the “Company”) will be held on June 26, 2024, Wednesday, at 2:00 p.m., at the Carlos P. Romulo Auditorium, Podium 4, Tower II, RCBC Plaza, 6819 Ayala Avenue, Makati City, with the following agenda:

  1. Call to Order
  2. Proof of Notice of Meeting and Certification of Quorum
  3. Approval of Minutes of Previous Stockholders’ Meeting held on July 5, 2023
  4. Management Report for the Year Ended December 31, 2023
  5. Ratification of All Acts of the Board of Directors and Officers during the Preceding Year
  6. Appointment of Independent Auditors for 2024 and 2025
  7. Increase in Directors’ Per Diem for attendance in Board and Committee Meetings
  8. Election of Directors
  9. Re-election of Mr. Medel T. Nera as Independent Director
  10. Other Matters
  11. Adjournment

Only stockholders of record at the close of business on May 13, 2024 are entitled to notice of, to attend, and to participate in this year’s Annual Meeting. Stockholders who are unable to attend the Annual Meeting in person may execute a proxy or vote in absentia.

Proxy
Proxies must be submitted and addressed to the attention of the Corporate Secretary at the 31st Floor BPI-Philam Life Makati, 6811 Ayala Avenue, Makati City, Philippines or via email at asm@nat-re.com not later than 3:00 p.m. on or before June 14, 2024.

A proxy executed by a corporation shall be in the form of a board resolution duly certified by the Corporate Secretary or in a proxy form executed by a duly authorized corporate officer accompanied by a Corporate Secretary’s Certificate quoting the board resolution authorizing the said corporate officer to execute the proxy. Validation of proxies shall be held on June 21, 2024, at 2:00 p.m. at the principal office of the Corporation.

Voting in Absentia
Stockholders who intend to vote in absentia must submit the requirements by email at asm@nat-re.com or at the registration portal.  Please refer to this link for the list of requirements – https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#rvj.

The link for the online voting facility will be emailed to the concerned stockholders after the Company has validated the submitted requirements. Stockholders may cast their votes in absentia from May 28, 2024, until 11:00 a.m. of June 26, 2024.

On-site Registration
To avoid any inconvenience in registering your attendance at the meeting, you or your duly designated proxy, are required to bring this Notice, and any identification documents containing a photograph and signature, such as a passport, driver’s license, or any government-issued identification. Registration starts at exactly 1:00 p.m. and will close at 2:00 p.m. on June 26, 2024.

Copies of the Notice of the Meeting, Definitive Information Statement, and other related documents in connection with the annual meeting may be accessed through the company’s website and through the PSE Edge portal at https://edge.pse.com.ph.

For any concerns, please reach us through asm@nat-re.com.

For complete information on the Company’s annual meeting, please visit www.nat-re.com/investor-relations/annual-stockholders-meeting.

May 23, 2024, Makati City, Metro Manila.

Access to Notice of Meeting, Agenda Items and Explanation of Agenda Items, Proxy Form, Sample Secretary Certificate, Definitive Information Statement, Management Report, Financial Statements, SEC Form 17A and Minutes of Stockholders’ Meeting dated July 5, 2023 can be downloaded by scanning the QR code provided herewith.

Likewise, you may also download it from the Company’s website by clicking this link https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#files.

Electronic copies of the same documents are also available at the PSE Edge.

For the Board of Directors,

(Original Signed)
NOEL A. LAMAN
Corporate Secretary

 

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Mini mind-bender

The author, wearing VR (virtual reality) goggles, readies to pilot the Mini Mixed Reality E-Gokart around a closed course in Spain. — PHOTO BY JU LEN YEOW

Buckle up and put on that VR headset; we’re driving off

THE SIGHT of a non-descript, exposed patch of earth greets our group of journalists who have arrived aboard pure-electric Mini Countryman vehicles. It’s a short drive from our hotel in Sitges just outside of Barcelona in Spain, where eight batches of media and content creators from all over the world are billeted for the international media launch (and drive) of the all-new Mini Cooper Electric. More on that in a coming article.

There’s an interesting sidelight to the main agenda. Mini’s bright minds have come up with what they call Mini Mixed Reality, where “drivers can immerse themselves in a unique journey through the Mini universe while behind the wheel of a Mini, all through the power of virtual reality.”

It sounds so exciting and cutting edge and, to be honest, not quite what we expected as we regard the dirt “circuit” in front of us, while sipping hot chocolate made on the spot by a gentleman in a food truck. He also serves, among other things, chicharon. But I digress.

There are only two Minis (both new Cooper Electric units) in the whole world that are equipped to showcase this technology still in its development stage. Both vehicles are now in Spain to help spread the word about this Mini project that is not so, well, mini.

Making the rounds today is “Jim” (the other car is called Jill, by the way). We spy the participant driver with VR (virtual reality) goggles strapped on, given instructions by tech expert Daniel Zimmermann in the front passenger seat. There are several traffic cones in the circuit, but that’s it, and only clearly defined treadmarks show where each of us should drive.

The thing is, we don’t even have to be looking at the road — the real one, anyway — when we drive.

Okay, let’s start from the beginning.

I hop aboard the car in funky green and black wrap (I thought it was camouflaged, actually) and greet Daniel, who helps me put on the VR goggles. A tracking device, suction-cupped to the windshield, monitors my head movement. I hear Mr. Zimmermann typing on the QWERTY keyboard I spied earlier, then asks me to start the Mini’s motor and move to the starting line.

At this point, I can still see everything in the real world. “One second, while I start the experience,” he says. “Welcome to the Mini Mixed Reality, a journey through the minds of our designers,” a voice says. And just when I wonder what’s going to happen, a few more keystrokes from Daniel later, the screen on the VR delivers a high-resolution, arcade-game-like image once I reach the start area.

I am transported to this cartoonized urban setting, with lots of Mini branding, and dynamic elements. Daniel prods me to step on the power and hit the digital road. Large playing cards dart out of the way as the vehicle approaches them; the same thing happens with yellow discs with waffle patterns, along with oversized hockey pucks. Brightly colored balls appear, and “bounce off” as the Mini “hits” them. This brief drive also features surreal sections of rainbow-colored streets, and even one where I spy a whale nonchalantly “swimming” past me. A voice cheers me on.

But by far the most challenging portions are those where the “street” and “environment” are supplanted by outer space. I know for a fact that I’m negotiating a dirt road, but my mind is confused by the visual cues it’s getting. For a split-second I hesitate to go further, then continue stepping on the accelerator past this section.

“It’s part of the experience. We work with sound, immersive technology, colors, and so on,” later says Mini Mixed Reality Developer Martin Höpfinger in an exclusive interview with “Velocity.”

“We also consider the feedback from other participants, and one told me that she was afraid of falling off the street. That shows me that we kind of did a good job here because within a second these participants are in this virtual world, and they believe what they see and hear and what they feel,” he continued.

Mini predicates the technology on a gaming computer (which takes its place in the back seats and the trunk), and employs GPS tracking to ascertain real-time location. There are a lot of secret things going on as well that Mini won’t tell us just yet.

The most important thing, of course, is to know what the end-game for Mini Mixed Reality is. Aside from being loads of fun, the innovation, continued Mr. Höpfinger, runs true to the BMW Group’s aspiration to be a technology leader.

“We want to have new products and so on,” he added. “We also could use this technology for the development, for example, of automated driving. There are many things that we could do.”

This much we can surmise: This melding of the real and the virtual can lend itself to use cases such as training beginner drivers, or even those with, say, a race to run. We’ve now seen that you can customize a track even if you only have access to an open patch of earth.

For now, Mini’s engineers are enjoying this tech flex which has been two years in the making — and we certainly can expect to see more of it in the not-too-distant future.

Support the BIR, strengthen the law to fight illicit trade

PHILIPPINE STAR/EDD GUMBAN

The illicit tobacco trade has been a hot topic particularly among lawmakers lately, albeit overshadowed by slightly more scandalous talks of alleged foreign espionage, leaked drug intelligence reports, and leadership shuffles in powerful places. But that doesn’t make it any less important or urgent.

Worth noting is a bill filed by Representative Joey Salceda that strengthens existing law for more effective enforcement to curb the illicit tobacco trade.

Despite the progress made since the landmark passing of the Sin Tax Law of 2012, the Philippines is still heavily burdened by the health and economic costs of tobacco-related diseases such as lung cancer, heart disease, and stroke. The Department of Health calculates that these illnesses cost the government at least P188 billion yearly, and that the illicit trade threatens to balloon such expenditures further. The effect of the illicit trade of cigarettes and vape products is two-fold; by evading regulatory measures designed to limit access and consumption, these products bypass food and drug safety standards while shrinking the government’s already shaky tax base and universal healthcare fund.

Estimates from the Bureau of Internal Revenue (BIR) put forgone revenues from the illicit tobacco trade at approximately P60 billion in 2023 alone — that’s P60 billion that could have been spent improving or expanding access to the country’s healthcare services. In a time of heightened inflation, declining excise tax collections, and the refusal of the Department of Finance to bolster our coffers with new or raised taxes, these losses are even more troubling.

The recent uptick in illicit trade — a threat to both our fiscal and public health puts into stark contrast the intensified tax administration campaign of the BIR. The agency has since risen to the challenge of plugging revenue leakages through comprehensive internal restructuring and the introduction of key reforms to the tax collection system. In a forceful show of political will and the BIR’s commitment to meeting national tax targets, Commissioner Romeo “Jun” Lumagui himself has spearheaded operations to apprehend and build strong cases against illicit traders.

Evidently, the BIR is doing its best with what little resources it has. But to effectively fight illicit trade, it needs more than just the regulatory power afforded by its own revenue regulations and issuances.

And the heavy work of fighting illicit trade cannot be simply left to the revenue-collecting agencies.

Without the necessary backing of legislation and institutionalized mechanisms, systems, and data-driven protocols, law enforcement agencies will be hampered in pinning down the illicit traders. Our agencies will be doomed to play catch-up to illicit trade’s many forms to elude arrest and conviction.

The decline of volume of sales of tobacco products may be attributed to a rise in consumption of new products like vapes and electronic cigarettes, which in the main are contrabands or counterfeits.

The access to cheap illicit products leads to increased consumption of harmful, substandard products and higher prevalence of smoking-related diseases, thus jeopardizing if not reversing the substantial health gains made possible by sin taxes. The first to be hit by illicit tobacco trade are the poorest sectors of society.

The tobacco industry is using the illicit trade as an excuse to prevent tax rate increases. Or for that matter to defer the implementation of the existing law’s automatic adjustment of tax rates to inflation.

This is a dangerous and simplistic approach to policy making. The result will make all tobacco products cheaper, leading to higher harmful consumption. At the same time, it will further erode revenues. Further, scholarly studies from all over the globe have shown that higher prices or taxes are not the key determinant of illicit trade; rather illicit trade is more a function of poor tax administration and weak governance. Good enforcement of the rules is the key.

The fight against illicit trade cannot be an isolated effort of revenue-collecting agencies, namely the BIR and Bureau of Customs. Such a far-reaching and complicated problem requires a whole-of-government approach that properly equips different agencies with the tools, data, and structures necessary to strengthen enforcement and accountability.

The recent filing of House Bill (HB) 10329 or the Anti Illicit Tobacco Trade Bill by Representative Joey Salceda, Chairman of the House Ways and Means Committee is a way forward to strengthen and enable good enforcement. The HB contains specific provisions which increase the stakes for accountability at all points in the tobacco value chain, encourage inter-agency collaboration and information sharing, and impose heavy penalties based on degree of involvement in illicit trade. The bill can be improved by adding provisions for citizen participation in monitoring taxes and prices, prevention of conflict-of-interest in the implementation of the tracking and tracing system and clearer definition of regulated products.

We are hopeful that the HB will be strengthened, not watered down. We are hopeful that the technical working group sessions to be chaired by Representative Stella Quimbo will facilitate the passage of the bill in the House of Representatives. And we are hopeful that the Senate will likewise approve a counterpart bill and pave the way for a unified bill of both Houses of Congress that the President will sign into law.

 

Therese Hipol is a policy researcher for Action for Economic Reforms’ fiscal and health policy team.

Style (05/27/24)

Aivee Clinic offers “pre-juvenation”

THE AIVEE Clinic has announced its new treatment, the Aivee Revive that introduces the concept of “pre-juvenation.” This treatment uses Merz Aesthetics’ Belotero Revive, a dermal filler that combines glycerol with cross-linked hyaluronic acid to help with enhanced hydration, resulting in improved skin elasticity, firmness, and structure. Its composition delivers the product directly into the skin for deep hydration, beyond the reach of any topical skincare. Glycerol helps to hydrate the skin and create a more natural-looking result. It also has anti-inflammatory properties that can reduce swelling and bruising at the injection site, making the recovery process much smoother. The Aivee Revive treatment guarantees results within nine to 12 months. “At the end of the day, we really want to introduce new treatments. This is really an evolving field, there is something always new to discover. We always want to be at the forefront of technology, that’s why we’re so excited today!” Dr. Aivee Teo was quoted as saying in a press release. To book an appointment, contact 0917-728-3838 or 0969-223-0499 or visit the clinic branches at Aivee Clinic Commerce Center Alabang, Aivee Clinic SM Megamall Fashion Hall, Aivee Clinic Vertis North, Aivee Clinic Fort BGC, and the Aivee Institute Fort BGC.

Have fun under the sun with Nuxe

THE NEW Nuxe Sun range offers broad-spectrum UVA/UVB protection, using a 100% natural-origin antioxidant duo consisting of rice and rosemary extracts. The patented sunscreen system, exclusive to Nuxe, combines two esters and three organic sunscreens, delivering twice the UVA protection to help prevent damage from UVA rays. To reduce the impact on the aquatic ecosystem, Nuxe Sun products contain three organic sunscreens per formula, tested on free-water algae, marine-water algae, a bacterium, and corals representing this entire ecosystem. It is non-sticky, leaves no white marks, and its scents include Sweet Orange, Tiare, and Vanilla. The Nuxe Melting Sun Lotion 150 ml (P2,550) and Nuxe Delicious Sun Spray 150 ml (P2,650) offer SPF 50 protection, and both feature an exclusive patented filtering complex, offering wide-spectrum UVA/UVB protection and doubled effectiveness against UVA rays. The Nuxe Light Sun Fluid (P2,650), offering SPF 50 protection, has an ultra-light texture that leaves no white streaks. Enriched with water hyacinth extract, it deeply hydrates the skin and strengthens its natural barrier. This is the only Nuxe Sun range with a vegan formula, which includes natural extracts of rice, rosemary, and tocopherol, a pure form of vitamin E, which helps moisturize and protect the skin from free radicals. Nuxe is exclusively available at Rustan’s (Alabang, Makati, Shangri-La Plaza) and Rustans.com.

Patis Tesoro welcomes fashion innovators in workshop

FASHION designer, artist, and social activist Patis Tesoro championed the significance of tradition during the exclusive tour of her estate and workshop in San Pablo, Laguna for a group of fashion designers and educators. This is in line with her mission to make sure future generations understand the importance of crafts and skills in weaving, machine embroidery, needlework, natural dye, and hand painting. The immersive visit was spearheaded by her daughter, artist Nina Poblador, who welcomed her fellow mentors from the Fashion Design and Merchandising (FDM) Program of the De La Salle-College of Saint Benilde (DLS-CSB) School of Environment and Design (SED). The team was comprised of Roxoanne Bagano Dizon, Brendon Ellis Bigay, Roxanne Hoey, DK Katigbak, Cecille Lansang, Jontie Martinez, Trina Peñaflorida, Jinggay Serag, and Benilde FDM Chairperson Ionica Abrahan Lim. Fashion director and veteran choreographer Ogee Atos, fashion photographer Bong Regala, and 2001 Binibining Pilipinas-International Maricarl Tolosa were likewise present. The excursion walked the guests through the legacy of the heritage conservationist, who has dedicated decades of her life to preserving and reviving the local piña fabric industry. It provided a comprehensive overview of her design and production processes centered on local materials and community involvement. The visitors met local craftsmen of Laguna, whom the artisan trained in the traditional art of embroidery, hand painting, and sewing. She continues to provide employment opportunities at the Tesoro Factory. The lifestyle icon personally showcased her wide array of works, which included bespoke Filipiniana, custom embroidery, hand-painted garments, handmade surface designs such as beadworks, and paintings, and shared her insights on the Philippine fashion industry, particularly on the current state of traditional embroidery within the country at the height of machines and affordable alternatives. Among the core points of discussion was the crucial role of the academe in this endeavor, which brought to light Benilde’s newly offered Bachelor in Textile Design Program.

L’Oréal launches beauty tech startup tilt

TO SPUR the next era of beauty, L’Oréal has launched the Big Bang Beauty Tech Innovation Program in the South Asia, Pacific, Middle East and North Africa (SAPMENA) region, which includes the Philippines. The biggest open innovation competition for the beauty sector, it offers startups the chance to develop their innovation in a commercial pilot and potential exposure to the 35 markets of the SAPMENA region. The competition emphasizes the co-creation and co-development of innovative beauty technology and marketing solutions. Startups will address one or more of the five challenge themes: Consumer Experience, Content, Media, New Commerce, and Tech for Good. Through their participation, startups will have the opportunity to connect with commercial and digital leaders, including strategic partners and mentors who can offer insights to test new ideas and potential to scale. Vismay Sharma, President of L’Oréal SAPMENA Zone, said in a statement: “Asia and the Middle East are young, vibrant markets with a strong and dynamic startup ecosystem and opportunities for growth. Leveraging Beauty Tech, L’Oréal wants to uncover better and more novel ways of connecting with consumers and answering unmet needs through beauty innovations. We are on the lookout for unique solutions that leverage data and tech — we believe augmented tech, online platforms and digital services have great potential to elevate the consumer experience.” The top three SAPMENA Grand Finale winners will win a L’Oréal-funded commercial pilot opportunity and a year-long mentorship program with senior executives from L’Oréal and the program partners including Accenture, Google and Meta. Startups who prove successful pilots in SAPMENA could have the opportunity to work with L’Oréal globally. The three regional online semifinals for the GCC, India, and Southeast Asia will culminate in an in-person SAPMENA Grand Finale. Up to 10 startup finalists across SAPMENA will vie for the top prizes at the Grand Finale in Singapore on Oct. 23. Judges will comprise senior executives from L’Oréal and the program partners. The deadline for submission of entries is July 13, with the Southeast Asia online semifinal to be held on Sept. 30, and the SAPMENA in-person Grand Finale in Singapore to be held on Oct. 23. Apply at the competition website at bigbang.lorealsapmena.com.

Coffee production hampered by small scale of growers’ farms

REUTERS

By Adrian H. Halili, Reporter

COFFEE farmers in the Philippines operate mostly small-scale farms, limiting their ability to rapidly ramp up production, according to Nestlé Philippines, Inc.

Nestlé Corporate Affairs Head Joey Uy III said: “The average farm size is one to two hectares. … given the size of their land, it might not be enough,” Mr. Uy told reporters at the weekend.

Smallholder farmers — those with between one and two hectares of land – account for an estimated 80% of Philippine coffee production.

These growers are typically located in Mindanao area, where about 70–80% of coffee is produced, because the climate there is suitable for growing coffee.

The Philippines imports the majority of its coffee requirements, mostly from Vietnam, as local production cannot meet demand. Local coffee can service about 38% of market needs.

“The medium-scale farmers have five hectares. And then (there are) big farm land owners as well. So, it varies,” Mr. Uy said.

“But our focus is on the small farmers. We want to consolidate them into associations or work with cooperatives,” he added.

The company requires about 40,000 metric tons of coffee per year at its Cagayan de Oro processing plant.

He said Nestlé conducts technical training for coffee farmers to improve the yield of the high value crop to 1 metric ton per hectare. The company trains 4,000 to 8,000 farmers per year.

He added that yields have also increased due to the use of regenerative agriculture, which aims to maintain the fertility of the soil.

“We also bring back the health of our land. Normally, when you always harvest, you also uproot the nutrients. So, we practice regenerative agriculture as well,” he said.

“That means that we have to practice balanced fertilization and not to be fully dependent on chemicals into the land. So we try to inject composting, agroforestry, intercropping, covered crops, in order to bring back the health of the land,” he added.

The government’s Coffee Industry Roadmap seeks to increase the self-sufficiency rate of the industry to about 47%.

The Department of Agriculture (DA)  is proposing a budget of P32 billion next year for high-value crops.

“We have like almost 30 crops to look into. So, the mechanism now is to introduce transformative interventions to address farm productivity,” Agriculture Undersecretary Cheryl Marie Natividad-Caballero said.

The DA is also planning to put up multi-purpose cold storage facilities to minimize post-harvest losses of high value crops.

“It’s still a proposition, but while waiting for 2025, we are doing our due diligence. We are going around to see where we have a competitive advantage for a particular crop in a particular location,” Ms. Natividad-Caballero added.

Angkas now preparing for four-wheel operations, expansion

PHILIPPINE STAR/EDD GUMBAN

DBDOYC, Inc., the company behind the Angkas motorcycle taxi app, aims to offer its services to more locations nationwide and is currently preparing to operate four-wheel vehicles, its top official said.

“It is really determining the key cities. I think there is an opportunity for us to be able to expand the Angkas system where it is really needed, especially in the provincial cities,” Angkas Chief Executive Officer George I. Royeca said on the sidelines of the BusinessWorld Economic Forum last week.

“We hope we will get their approval soon. If we could expand to as many cities as possible, that would be great,” he added.

The motorcycle taxi provider is also venturing into the four-wheel business after securing approval to commence operations.

“We have gotten our approval already, so it is just a matter of time. We are in preparation right now. Hopefully, over the next few months, we will see Angcars on the road,” he said.

Mr. Royeca said that Angcars will initially launch in Metro Manila, while the fleet size is still being determined.

Angkas expects this new addition to boost the company’s overall operations.

“Well, it is definitely a much bigger base. I think it is going to be a high contributor but our hearts are still focused on developing the informal sector of two-wheels,” Mr. Royeca said. 

He also said the government should legitimize motorcycle riders as they are a big contributor to the country’s economy.

“The informal workers, such as boatmen, masseuses, and habal-habal drivers, are already working, but without the help of the government and financial services, and proper access to a lot of these different benefits. What’s missing are policies in our economy that recognize them. Through recognizing the informal sector, we could reinforce their work, significantly boost the economy, and uplift millions of Filipinos almost overnight,” he said during the forum.

“On top of the infrastructure, which we know is being taken care of by the private sector, let’s take a look at the human aspect, the human capital and how do we make them informed and empowered members to strive in this economic ecosystem,” he added.—Ashley Erika O. Jose

DBP looking to issue bonds in the second semester

BW FILE PHOTO

THE Development Bank of the Philippines (DBP) is eyeing a bond issuance in the second half of the year to raise fresh funds, its top official said.

“Our approved fund reserve for the year is around P45 billion. We have raised initially P8.75 billion in the first quarter. We intend to issue the balance depending on the market conditions,” DBP President and Chief Executive Officer Michael O. de Jesus told reporters last week.

The bonds will have short-term tenors and will likely be issued in the third or fourth quarter, he said.

The bond issuance could be peso or dollar-denominated, but the bank is more inclined to issue peso bonds, Mr. De Jesus added.

Proceeds will fund the bank’s general corporate requirements, he said.

Mr. De Jesus said the bank is bullish on its outlook for this year and expects the bank’s performance to be “slightly better” than in 2023.

“We’re optimistic. A lot of our loans now are to the power sector and the infrastructure. There’s still a lot of renewables we’re seeing. We always want to be selective in our loans,” he said.

“We’re not after a particular target, meaning a particular asset size. We want to make sure we’re very selective in what we do. We’re prudent.”

Latest data from the DBP showed that its net income jumped by 60% year on year to P4.42 billion in the first half of 2023.

Meanwhile, Mr. De Jesus said the bank is not seeking an extension of the regulatory relief granted to them by the central bank, saying this is “not on the table right now.”

The state bank, along with Land Bank of the Philippines (LANDBANK), were extended regulatory relief following their capital contributions to the Maharlika Investment Corp. (MIC). DBP and LANDBANK were required to provide P25 billion and P50 billion, respectively, to the MIC’s initial funding.

Finance Secretary Ralph G. Recto earlier said the banks could ask for an extension of the relief, but noted this was a “non-issue” as both banks’ financial positions are sound.

President Ferdinand R. Marcos, Jr. last year signed executive orders reducing both the banks’ dividend obligations to the National Government to 0% of their net earnings from 2022.

LISTING
On the other hand, the DBP could list publicly as early as next year, Mr. De Jesus said. “If (the law) is passed this year, you could have an initial public offering (IPO) as early as next year.”

The Department of Finance is proposing to amend both the DBP and LANDBANK’s charters to raise their authorized capital stock and allow for their public listing. The proposal seeks to hike the DBP’s authorized capital stock to P300 billion from P35 billion and the LANDBANK’s to P1 trillion from P200 billion previously.

Mr. De Jesus said that the proposal has been submitted to Congress and is hopeful that this will be approved and passed into law within the year.

Apart from the hike in capital stock and public listing, he said the proposed charter amendments will increase the public ownership of the DBP.

“I think they even increased it from 20% to 30%. It’s a proposal of the DoF. All these have to go through the Senate,” he added, adding that the proposal ensures that the government will still hold a majority stake in the bank. — Luisa Maria Jacinta C. Jocson

Great Wall Motor sets great expectations

Tank 700 Hi-4T SUV — PHOTO BY DYLAN AFUANG

The Chinese auto group bares fresh metal, venture at Beijing Auto Show

By Dylan Afuang

AT AUTO CHINA (or Beijing Auto Show) 2024, Chinese auto group Great Wall Motor (GWM) reiterated the manufacturing prowess of its facilities in Baoding and Xushui, China. It revealed “new-energy” vehicles from its brand umbrella, along with the company’s goals for the future.

These feats were announced by GWM CEO Mu Feng to the visitors of the major auto show, which was staged in Beijing from late April to early May. Car makers from around the world, but especially Chinese ones, bannered their advancements in mobility at Auto China.

“China’s complex topography provides us with a good development and test environment, and we can experience the complex global car scene and to (gain insight in) the needs of users,” Mr. Mu stated in Chinese, whose message was accompanied by English translations flashed on screen at GWM’s booth.

At the 18th Auto China, the GWM unveiled the 700 Hi-4T SUV from Tank; 03, 03 GT, and 07 electric vehicles from Ora; and the H9 and H6 crossovers from Haval. GWM also revealed its venture into motorcycle manufacturing through its new subsidiary, Souo Motorcycles.

Local GWM distributor Luxuriant Auto Group, Inc. (LAGI) will bring in limited examples of the aforementioned Tank SUV, Ora EVs, and H9 this year, LAGI Product Manager Fritz De Ocampo told the Philippine contingent on the sidelines of the show. Last month, the distributor brought local motoring media to China for a tour of GWM’s manufacturing bases and the motor show.

“In 2023, GWM entered the harvest period of high-quality development, and we achieved an annual sales of more than 300,000 vehicles in overseas markets,” the company CEO continued. While “in the first quarter of 2024, GWM sold 92,800 vehicles overseas and 35,800 vehicles in March (alone), both of which maintained a high growth trend.”

Following the executive’s announcement, GWM’s goal to achieve a million units sold in overseas markets annually by 2030 was presented on screen.

Through Souo, the firm plans to make a luxury touring motorbike powered by an eight-cylinder engine, and as of presstime, the brand’s first model could have made its debut in the Chinese market.

Revealed to the Chinese market early this year, the Tank 700 Hi-4T is a full-size SUV powered by a three-liter turbo V6 engine accompanied by a plug-in hybrid system, and is supported by an air suspension system. It boasts a 950-mm water-wading capability.

Known here as the Ora 03 and abroad as the Good Cat, the electric hatchback features a bug-eyed appearance, a brightly colored cabin, and a 400-km range. Its sportier counterpart is the aforementioned 03 GT, which is distinguished by more aggressive exterior details.

Positioned as Ora’s premium model is the 07 fastback. It sports the brand’s signature styling with circular headlamps and a well-appointed interior. Similar to the 03 GT, limited examples of the 07 are allocated for our market.

The Haval H9’s boxy styling wraps a three-row, seven-seat cabin, and engine choices of a two-liter turbo with 221hp, and a 2.4-liter turbodiesel with 185hp. Supporting these is a 4WD system and three differential locks.

Our market’s Haval H6 crossover packs a hybrid powertrain, while the conventionally powered model, available in China, received a new infotainment system inside and styling changes outside. These changes could find their way to the hybrid H6.

“GWM makes Chinese cars a new business card in the world,” Mr. Mu concluded, “and with (entry into) multiple categories, it makes us firmly believe in the realization of (the 2030 goal).”

Where are we now?

MARIAH DALUSONG-UNSPLASH

“We are pleased to see that our economy has sustained its growth, expanding by 5.6% in the fourth quarter of 2023, resulting in a GDP growth rate of 5.6% for the entire year.”

“While this growth is below our target of 6 to 7% for 2023, it keeps us in the position of being one of the best-performing economies in Asia. Among those that have already released their Q4 2023 GDP growth figures, we follow Vietnam (6.7%) while surpassing China (5.2%) and Malaysia (3.4%).”

“More importantly, our full-year GDP for 2023 is now 8.6% higher than pre-pandemic levels. Moreover, the Q4 economic performance validates the strategies and policy directions outlined in the Philippine Development Plan 2023-2028.”

Above was the official start-of-the-year press statement of National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan on the “Economic Performance for Q4 and full year 2023,” released on Jan. 31.

On the same day, the NEDA released the Philippine Development Report, or PDR 2023, to the public. “The PDR identifies the critical programs, projects, and policies begun and implemented in the past year or 2023. As an evidence-based report, it evaluates our country’s performance concerning the outcome indicators identified in the PDP and includes updates on the Marcos Administration’s legislative agenda. As a forward-looking document, the PDR considers and anticipates internal and external developments and scenarios. Finally, it presents the lessons we have learned and lays down plans of action to ensure we remain on track to meet our goals by 2028. I urge the public to read the report to see how we have fared and how we see ourselves moving forward this year,” Mr. Balisacan urged.

Where are we now?

Mr. Balisacan was the keynote speaker at the BusinessWorld Economic Forum, “PH Next: Growth Drivers,” held at the Grand Hyatt Manila on May 22. “We experienced 5.7% growth this month,” he announced. That’s where we are now. Balisacan, chief economic planner for three consecutive presidents — Aquino, Duterte, and Marcos, and former Dean of the School of Economics at the University of the Philippines Diliman (UP), should know.

“Prudent fiscal management has been instrumental in supporting the country’s growth. Following the pandemic, we have sought to reduce our debt and deficit-to-GDP ratios to expand our fiscal space,” Mr. Balisacan said at the BusinessWorld forum. The Philippines Consolidated Fiscal Balance recorded a deficit equal to 6.1% of its Nominal gross domestic product (GDP) in Mar 2024, compared with a deficit equal to 6.2% in the previous quarter.

On the demand side, there is a need for our growth to transition from being mainly consumption driven to being propelled by a more balanced mix of growth drivers. Philippine Statistics Authority (PSA)/NEDA charts showed that the contribution of consumption to GDP in 2021-2023 was 69%, compared to 19.3% from government expenditures, and 43% from investments, pulled down by -23.1% from exports.

On the supply side, contributions of agriculture and manufacturing to growth have declined, while that of services has steadily risen, pointing to the need to strengthen productivity and competitiveness. PSA data for 2021-2023 showed agriculture contributing 0.7%; manufacturing, 15.3%; other industry subsectors, 14.2%; education, 4.8%; ICT, 3.9%; and other Services subsectors, 61.2%.

The Business Process Outsourcing – Information Communication Technology (BPO-ICT) industries have flourished and played a pivotal role in driving service exports. Services export levels were $30.5 billion in 2023, contributing 8.4% to GDP.

The Tourism sector has always been a significant contributor to GDP, with its share reaching nearly 13% of GDP at its peak in 2019, Mr. Balisacan said at the BusinessWorld economic briefing. However, while the economy has fully reopened, the sector has not yet completely recovered. From close to P3 trillion gross value added (GVA) to GDP (a 12.9% contribution), GVA slid to P1 trillion in 2020 (a 5.1% contribution), sluggishly moving up to P1.376 trillion (a 6.2% contribution to GDP).

Mr. Balisacan lamented that while Foreign Direct Investments (FDIs) have risen, the Philippines has lagged behind its dynamic ASEAN neighbors. This indicates the need to further enhance our investment ecosystem and address constraints to doing business, he said. Charts from the UN Trade and Development showed the Philippines most often at the bottom of FDI inflows since 2010, and still the lowest recipient, $9.2 billion in 2022, compared to Indonesia’s $22 billion, Vietnam’s $17.9 billion, and Malaysia’s $16.9 billion.

What’s wrong with us? Mr. Balisacan pointed out that geographic inclusivity remains a challenge to our development and growth, and to our marketability in global competitiveness. Mega Manila, consisting of the National Capital Region (NCR), Central Luzon, and Calabarzon, has, from 2001-2023, contributed more than 50% to GDP (56% in 2021-2023), while the rest eke out their 45% contribution.

The inequalities of opportunities in the regions, and the imbalance in supply and demand factors across the country affect the most crucial factor of production: labor. In the past decade or so, wages have been increasing, albeit gradually. Massive job-generating investments are needed to strengthen the backward and forward linkages between sectors and are crucial to raising wages, Mr. Balisacan stressed.

The Public-Private Partnership (PPP) Code enables the country to achieve inclusive and sustainable growth by establishing a stable and predictable environment for collaboration between the public and the private sectors. The PPPs shall remain a key driver for sustained spending on physical and social infrastructure to boost productivity and raise the country’s competitiveness, Mr. Balisacan confirmed. There are 194 projects under implementation (13 are infrastructure) with total estimated project cost of P3.3 trillion ($59.4 billion). There are 129 projects in the pipeline (32 are infrastructure) with total estimated project cost of P3 trillion ($54 billion).

The Marcos Jr. Administration continues to evaluate, approve and roll out the 185 Infrastructure Flagship Projects (IFPs) under the “Build, Better, More (BBM)” Program worth P954 trillion ($166.6 billion).

“We are confident of meeting our short-term development objectives and we aim for no less socio-economic transformation in the medium term,” Mr. Balisacan promised the Filipino people.

His tandem keynote speaker at the BusinessWorld Economic Forum, representing the private sector, Lance Gokongwei, President CEO of JG Summit Holdings, Inc., pledged the support of the private sector for the government’s PPPs and BBMs, and laid out current individual and cooperative private sector plans and programs to contribute to socio-economic development in the country. The private sector drives 93% of the Philippines’ gross domestic product and employs over 92% of the workforce, per the Asian Development Bank.

“The Philippines is still on track to become an upper middle-income economy next year as long as the growth momentum continues,” Mr. Balisacan told reporters on the sidelines of the economic forum last week (bworldonline.com, May 24). Since 1987, the Philippines has been classified as a lower middle-income economy, according to the World Bank’s earliest records. It still currently classifies the Philippines as a lower middle-income country with gross national income (GNI) per capita of $3,950. Mr. Balisacan said GDP growth must average 6.1% in the next three quarters to hit the government’s 6-7% growth target.

President Ferdinand “Bongbong” Marcos, Jr. has set a target for the Philippines to reach upper middle-income status by 2025. Being an upper middle-income country means having a GNI per capita income range of $4,466 to $13,845.

The World Bank forecasts that the Philippines would be the fastest-growing economy in Southeast Asia this year with a 5.8% growth estimate. For 2025, the multilateral lender hiked its growth forecast for the Philippines to 5.9% from 5.8%. However, the World Bank’s growth forecasts for the Philippines still falls behind the government’s 6-7% target band.

That’s where we are now. Not there yet, it seems.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Diamonds aren’t forever as singer Shirley Bassey sells her gems

INSTAGRAM.COM/SOTHEBYS

LONDON — Dame Shirley Bassey, who famously sang “Diamonds Are Forever” in the James Bond film of the same name, is selling some of her jewelry and watches at auction, with proceeds from the sale to benefit her chosen charities.

The Welsh-born singer, 87, is parting with more than 80 items, including dazzling pieces by high-end names such as Cartier and Van Cleef & Arpels at Sotheby’s Oct. 10 Fine Jewels sale in Paris.

“This collection is eclectic and shows her (Bassey’s) grand personality and superstar status,” said Nikita Binani, Head of Jewellery at Sotheby’s London.

“A lot of the pieces have diamonds, which is a wonderful theme that connects everything together,” she said of the highly varied collection.

Top lots include a diamond necklace with an estimate of €270,000 – €320,000 ($292,500 – $346,700), a diamond and gold parure by Cartier estimated at €200,000 – €250,000, a yellow diamond ring for €165,000 – €200,000, and an emerald and diamond necklace by Van Cleef & Arpels estimated at €60,000 – €70,000.

“Collecting jewelry for me is like collecting memories, and this collection is full of them,” Ms. Bassey said in a press release.

“All the pieces are meaningful and have a story to tell, whether I bought them for myself, or they were gifted to me.”

Among these, she said, is a 1960s Van Cleef & Arpels ring covered in white diamonds Ms. Bassey received from Elton John after performing at one of his AIDS fundraising galas and an emerald parure she bought herself after singing at the Royal Variety Performance for the first time in front of the late Queen Elizabeth.

“One of the things that’s wonderful about this collection is that many of her jewels were gifted or bought or acquired around or connected to a stage performance of hers,” said Ms. Binani.

As well as 1971’s “Diamonds are Forever,” Bassey is known for recording the theme songs for two other James Bond films, 1964’s Goldfinger and 1979’s Moonraker.

Highlights of the collection go on show as part of Sotheby’s London Fine Jewels sale from Friday until May 29. They will also be exhibited in Paris from Oct. 4 in the run-up to the live auction. — Reuters

Debt yields up on Fed minutes

YIELDS on government securities (GS) ended mostly higher last week as investors remained defensive following the result of the 20-year bond auction and the release of minutes of the US Federal Reserve‘s policy meeting this month.

GS yields, which move opposite to prices, went up by an average of 5.11 basis points (bp) week on week at the secondary market, according to the PHP Bloomberg Valuation Service Reference Rates as of May 24 published on the Philippine Dealing System’s website.

Rates at the short end of the curve increased, with the 182- and 364-day Treasury bills (T-bill) rising by 4.23 bps and 0.81 bp to fetch 5.9429% and 6.0323%, respectively. Meanwhile, the yield on the 91-day T-bill dropped by 1.1 bps to 5.7881%.

At the belly, the four-, five-, and seven-year T-bonds saw their yields climb by 1.84 bps (to 6.4519%), 4.37 bps (6.5117%) and 7.7 bps (6.6143%), respectively, while the rates of the two- and three-year papers declined by 4.83 bps (to 6.3104%), and 1.49 bps (6.3867%).

The long end saw bigger yields movements as the 10-, 20-, and 25-year debt jumped by 10.54 bps, 16.26 bps and 17.86 bps to fetch 6.7171%, 6.8338%, and 6.8492%, respectively.

Total GS volume reached P9.62 billion on Friday, lower than the P14.23 billion recorded as of May 17.

“Trading last week began on a quiet note as investors opted to remain defensive following the rise in US yields and the slated new 20-year bond issuance on Tuesday. Most players opted to de-load some of their holdings in the belly and long-ends in anticipation of the new long-end issuance,” Alessandra P. Araullo, chief investment officer at ATRAM Trust Corp., said in a Viber message.

Ms. Araullo added that the weak reception for the new 20-year T-bonds auctioned off last week fueled defensiveness, causing further selling pressure especially in the five-year and 10-year tenors, and also caused market players to look at overseas developments amid a lack of catalysts.

“The release of the US Fed minutes has shown that some Fed officials are willing to hike rates if inflation doesn’t keep moving lower toward the US Fed’s 2% goal. This further caused concern among local market participants as this solidified their stance to remain defensive for the week,” she added.

The minutes of the Fed’s April 30-May 1 policy meeting affected local yield movements, Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., likewise said in a Viber message.

“Market players will remain cautious after the Fed minutes still signalled higher rates for longer. We expect sideways to up movements in rates,” Mr. Ravelas added.

The Bureau of the Treasury (BTr) last week raised just P22.717 billion via the fresh 20-year bonds it auctioned off, lower than the P30-billion program, despite total bids reaching P37.919 billion.

The bonds were awarded at a coupon rate of 6.875%, while accepted yields ranged from 6.6% to 6.95% for an average rate of 6.797%.

Meanwhile, Federal Reserve officials at their last policy meeting said they still had faith that price pressures would ease at least slowly in coming months, but doubts emerged about whether the current level of interest rates was high enough to guarantee that outcome and “various” officials said they’d be willing to hike borrowing costs again if inflation surged, Reuters reported.

That meeting was held before data showed the pace of consumer price increases beginning to cool again in April, yet reflected what US central bank officials since then have said is increased uncertainty about the path of inflation and monetary policy.

“Participants… noted that they continued to expect that inflation would return to 2% over the medium term,” according to the minutes of the April 30-May 1 meeting, but “the disinflation would likely take longer than previously thought.”

While the policy response for now would “involve maintaining” the Fed’s benchmark policy rate in the current 5.25%-5.5% range, “various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the minutes said, employing a modifier not included in the usual set of — like some, many, and most — used in the minutes to give a sense of how many officials voiced a particular opinion.

Fed Chair Jerome H. Powell and other policy makers have since said they feel further rate hikes are unlikely.

But the minutes released on Wednesday excluded specific reference to that notion and to the likelihood of rate cuts this year.

In place of that broad judgment, the latest minutes showed an emerging debate about just how tight monetary policy is, an important consideration that could bear on how fast inflation returns to the central bank’s 2% target — or whether it gets there at all.

For this week, Ms. Araullo said the BTr’s three-year bond auction on Tuesday will be the leading catalyst for market activity, along with data releases in the US, especially first-quarter gross domestic product data and the April personal consumption expenditure report.

“Investors will keep a close eye on where the BTr will award to get a sense if market defensiveness will continue in the short-term. This may give investors a clearer view on where they think monetary policy decisions will be headed so that they can position themselves accordingly,” she said.

Mr. Ravelas added that market will likely look ahead to the release of May Philippine inflation data on June 5. — Lourdes O. Pilar with Reuters

Catch landed at regional fishports up 34.6% in April

Buckets of fish are sold at the Navotas fish port in this file photo. — PHILIPPINE STAR/MICHAEL VARCAS

FISH landed at regional fishports (RFPs) in April amounted to 60,256.88 metric tons (MT) in April, up 34.6% year on year, the Philippine Fisheries Development Authority (PFDA) said.

In a statement, the PFDA said the April total was “the highest fish unloading in the recorded history of PFDA and a 9% increase from the March unloading,” it added.

The General Santos Fishport Complex reported deliveries of 28,027.19 MT, up 21% from a year earlier.

Deliveries at the Navotas fishport totaled 23,344.29 MT during the month, against 23,149.47 MT a year earler.

Both fishports reported record deliveries during April.

The PFDA said that the Lucena Fishport landed 3,152.15 MT, while Bulan Fishport in Sorsogon received 2,030.36 MT.

The sole PFDA fishing complex in Visayas, the Iloilo fishport, landed 2,570.82 MT in April.

It added that the Zamboanga Fishport and the Davao Fishport landed 752.43 MT and 307.03 MT respectively.

The PFDA said that Sual Fishport in Pangasinan reported deliveries of 69.93 MT, while the Camaligan Fishport in Camarines Sur reported 2.68 MT. “All RFPs experienced a significant jump in their month-on-month records,” it added.

Fish volumes rose 9% from a month earlier. — Adrian H. Halili

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