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Recto says Philippines still on track to achieve ‘A’ credit rating

FITCH RATINGS affirmed the country’s long-term foreign currency issuer default rating at “BBB” and retained its “stable” outlook. — PHILIPPINE STARMIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINES is still on track to meeting its goal of achieving an “A” rating status, Finance Secretary Ralph G. Recto said.

This after Fitch Ratings affirmed the country’s long-term foreign currency issuer default rating at “BBB” and retained its “stable” outlook.

“Yes, as expected. We are on the road to an ‘A’ rating. A better credit rating will help us create more jobs and reduce poverty by 2028,” Mr. Recto told BusinessWorld in a Viber message.

In a commentary dated June 7, Fitch Ratings affirmed the Philippines’ “BBB” investment grade rating and maintained its “stable” outlook.

A “BBB” rating indicates low default risk and reflects the economy’s adequate capacity to pay debt. Meanwhile, a “stable outlook” means it is likely to be maintained rather than lowered or upgraded over the next 18-24 months.

Fitch cited the Philippines’ “strong medium-term growth, which supports a gradual reduction in government debt/gross domestic product (GDP) over the medium term and the large size of the economy relative to ‘BBB’ peers.”

“The rating is constrained by low GDP per head, despite an upward trend. Governance standards are weaker than at ‘BBB’ peers, though Fitch believes World Bank Governance Indicator scores somewhat overstate this,” it added.

The Philippine economy grew by 5.7% in the first quarter, better than the 5.5% in the previous quarter.

The government is targeting 6-7% growth this year, although Fitch expects Philippine GDP growth to average 5.8% this year.

“We forecast real GDP growth of above 6% over the medium term, considerably stronger than the ‘BBB’ median of 3%, supported by large investments in infrastructure and reforms to foster trade and investment, including public-private partnerships (PPPs).”

Meanwhile, Fitch noted the government’s latest revisions in its fiscal consolidation targets, which “scaled back” both revenue and expenditure programs.

“We believe there is some risk of further fiscal slippage, given the government’s continued focus on economic growth and the approach of midterm elections in May 2025,” the credit rater said.

Fitch also expects inflation to average 3.8% this year, within the 2-4% target band but above the central bank’s 3.5% full-year forecast.

In a separate statement, Budget Secretary Amenah F. Pangandaman said that Fitch’s assessment of strong growth prospects in the country is a welcome development.

“We hope to sustain our momentum for growth and keep our lead as one of the fastest-growing economies in Southeast Asia,” she said.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted that the debt watcher has maintained its rating even during the pandemic.

“These reflect the Philippines’ improved economic and credit fundamentals, as well as improvements in fiscal performance in recent years that could help attract a bigger roster of international investments and international credit at much lower cost and with better terms into the country,” he said in a Viber message.

Mr. Ricafort said Fitch’s latest credit rating shows signs of the country’s resilience and improved investor confidence.

This was also reflected by the narrower credit risk premium in the Philippines’ latest global bond issuance, he added.

The Philippine government raised $2 billion from its dual-tranche issuance of dollar bonds in May.

The Finance department earlier said it was able to secure funding at very cheap rates due to the country’s “exceptional performance beyond its current credit rating.”

On the other hand, Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said that the latest rating action is “nothing to crow about.”

“While it meets the minimum grade for almost all forms of investment agencies, it indicates a certain elevated level of risks. In this period of great uncertainty and greater protectionism, this rating does not provide any advantage for countries competing for greater investment, especially in the Southeast Asian region,” he said in an e-mail.

“The grade only reflects a financial good standing but has no complimentary regard for its real sector where growth should now emanate. Without a strong and stable real sector, even this financial status is bound to weaken,” he added.

Mr. Lanzona also said that the country is unlikely to achieve an “A” rating unless there is “comprehensive industrial reform and structural transformation.”

The government is targeting to achieve an “A” level rating by 2028 or the end of the Marcos administration.

In 2019, the Finance department and Bangko Sentral ng Pilipinas organized an interagency committee for the “Road to A Credit Rating Agenda.”

Apart from Fitch’s latest rating action, the Philippines currently holds investment grade ratings of “Baa2” with Moody’s Ratings and “BBB+” with S&P Global Ratings. Both have also assigned a “stable” outlook to their ratings.

PHL big banks’ asset growth quickens in Q1

REUTERS

By Abigail Marie P. Yraola, Deputy Research Head

THE COMBINED ASSETS of the Philippines’ biggest lenders rose in the first quarter, fueled by increasing confidence in the economy’s prospects.

The latest edition of BusinessWorld’s quarterly banking report showed that the aggregate assets of 44 universal and commercial banks (U/KBs) grew by 10.54% year on year to P24.93 trillion in the first quarter from P22.55 trillion a year ago.    

This pace was faster than 7.6% logged in the last three months of 2023.

Big banks’ asset and loan growth rises in Q1

Asset growth was the fastest since it posted 11.25% in the first quarter of 2023.

Total loans of these big banks went up by 13.75% to P12.52 trillion in the January-to-March period, faster than the 10.84% a year ago. 

In the first three months, lending growth logged its highest in 21 quarters or since the 15.13% logged in the fourth quarter of 2018.

The growth in assets and lending may be attributed to the improved economic outlook, after gross domestic product (GDP) expanded by 5.7% in the January-to-March period. Businesses are likely to borrow more to support investment plans while consumers may take out loans when they expect higher incomes.

BSP data also showed the share of bad loans to the total loan portfolio, also known as the nonperforming loan (NPL) ratio, jumped to 3.6% in the first quarter from 3.39% in the previous quarter. A year ago, NPL ratio stood at 3.63%. 

Loans are considered nonperforming if any principal and/or interest are left unpaid for over 90 days from the contractual due date or accrued interests for more than 90 days have been capitalized, refinanced, or delayed by agreement.    

The net NPL ratio, on the other hand, jumped to 1.5% from 1.48% in the previous quarter.   

Meanwhile, the banks’ median return on equity (RoE), which is an indicator of profitability, dipped to 8.02% in the first quarter from 8.79% in the same period a year ago.        

The RoE, the ratio of net profit to average capital, measures the amount that shareholders make on every peso they invest in a company.

Additionally, the big banks’ median capital adequacy ratio (CAR) — which reflects the lender’s ability to absorb losses from risk-weighted assets — reached 19.64% during the period. This was lower than the 19.73% in the same period last year and the 20.17% a quarter earlier.   

The ratio remained well above the regulatory minimum of 10% set by the BSP as well as the international minimum standard of 8% under the Basel III framework. 

The leverage ratio — which gauges the institution’s ability to absorb shocks by measuring the bank’s capital relative to total exposure — reached a median of 11.27% during the period.   

The current figure exceeded the central bank’s 5% guideline as well as the international standard of 3%.

Meanwhile, the net interest margin (NIM) of these big banks slipped to 3.32% from 3.97% in the previous quarter.   

This is an indicator of banks’ investing efficiency by dividing annualized net interest income by average earning assets.

During the January-to-March period, the return on assets (RoA), which measures the profit generated per peso of an asset, rose to 1.6% from 1.5% in the fourth quarter.

In the first quarter, BDO Unibank, Inc. (BDO) remained the largest bank in terms of total assets with P4.49 trillion, followed by Metropolitan Bank & Trust Co. (Metrobank) with P3.59 trillion and Land Bank of the Philippines (LANDBANK) with P3.29 trillion.   

Sy-led BDO also led the industry in lending with P2.92 trillion worth of loans issued, followed by Bank of the Philippine Islands (BPI) with P2.03 trillion and Metrobank with P1.58 trillion.   

In terms of deposits, BDO led with P3.63 trillion, followed by LANDBANK with P2.9 trillion and BPI with P2.42 trillion.   

Among banks with at least P100 billion assets, MUFG Bank Ltd., logged the fastest year-on-year asset growth with 27%, followed by Security Bank Corp., (22.51%) and Metrobank (22.08%).   

Meanwhile, Philippine Trust Co. was the most aggressive lender with an annual increase of 34.03%, followed by Maybank Philippines, Inc. with 33.09% and Standard Chartered Bank with 24.85%.

BusinessWorld Research has been tracking the financial performance of the country’s large banks quarterly since the late 1980s using banks’ published statements.

23 years of shaping energy regulation in the Philippines

The ERC joined the Business-to-Business Matching Event to Support Energy Transition (B2B SET) organized by the Department of Energy in collaboration with the United States Agency for International Development last February.

The Energy Regulatory Commission (ERC) has been an essential institution in overseeing and regulating the energy sector in our country since its inception. With its commitment to ensuring a dependable, cost-effective, and sustainable energy supply, the ERC has continued to uphold the highest standards and promote a resilient energy industry for the benefit of the nation.

The ERC’s roots can be traced back to the early regulation of public services in the Philippines in the early 20th century. In 1914, the Board of Public Utility Commissioners was created, patterned after the Public Service Law of the State of New Jersey. This board was responsible for regulating public services, including electricity.

With the enactment of Commonwealth Act No. 146 on Nov. 7, 1936, also known as the Public Service Law, the regulation of public utilities, including the electric power sector, was placed under the jurisdiction of the Public Service Commission (PSC). The PSC was responsible for overseeing and controlling public services, ensuring fair rates, and maintaining quality standards in the delivery of these services.

Later on, the government created the Department of Energy (DoE) and consequently abolished the Oil Industry Commission in 1977, which was replaced by the creation of the Board of Energy (BoE) through Presidential Decree No. 1206. The BoE assumed the powers and functions of the Board of Power and Waterworks (BoPW) over the electric power industry.

ERC Chairperson and CEO Monalisa C. Dimalanta participated in BusinessWorld Insights x Project KaLIKHAsan Energy Forum, themed “Achieving Balance in the Philippine Energy System,” last April.

In 1987, significant changes occurred with the issuance of Executive Order No. 172 by President Corazon C. Aquino as the BoE was reconstituted into the Energy Regulatory Board (ERB). The establishment of the ERB was part of the former President’s government reorganization program aimed at consolidating regulatory and adjudicatory functions pertaining to the energy sector under a single entity.

A landmark development in the Philippine energy sector was the enactment of the Electric Power Industry Reform Act (EPIRA) in 2001. EPIRA, or Republic Act No. 9136, was a comprehensive legislation aimed at restructuring the Philippine electric power industry to promote competition, ensure transparency, and improve efficiency in the delivery of electricity services. Under EPIRA, the Energy Regulatory Commission (ERC) was established to replace the ERB.

Decades of driving a competitive energy sector

Since its inception, the ERC has been instrumental in addressing consumer complaints and resolving disputes within the energy sector. According to the ERC’s latest report for the Office of the President’s 8888 Citizens’ Complaint Center, the commission received a resolution rate of 100% of citizens’ concerns from January to September 2023.

One of the ERC’s primary responsibilities is setting electricity rates for transmission and distribution utilities. In 2006, the commission introduced the performance-based regulation (PBR) framework to govern these rates. PBR, an internationally-accepted rate setting methodology, aims to achieve competitive outcomes by incentivizing utilities to improve efficiency and service quality.

In 2013, the ERC implemented the Retail Competition and Open Access (RCOA), allowing large consumers to choose their electricity suppliers. This move was substantial in fostering competition and driving down electricity prices. As a result, industrial and commercial consumers experienced reduced power costs, which in turn benefited the economy.

In 2020, the ERC further expanded the coverage of RCOA, aligned with Section 31 of EPIRA and Rule 12 of its Implementing Rules and Regulations (IRR), which mandates the promotion of competition and the restructuring and modernization of the electric power industry. The new resolution, promulgated by the ERC, extended the RCOA coverage to end-users with an average monthly peak demand of at least 500 kW for the preceding 12 months, starting Feb. 26, 2021.

ERC Chairperson & CEO Monalisa C. Dimalanta joined the Clean and Affordable Renewable Energy (CARE) Convergence 2023 last November to discuss the commission’s role in advancing renewable energy transition in the country.

The ERC’s thorough evaluation of market readiness, infrastructure, customer awareness, and economic impact informed the decision to lower the threshold. Under the new resolution, qualified end-users, now categorized as contestable customers within the 500 kW-749 kW consumption range, can switch to the Competitive Retail Electricity Market (CREM).

The operational RCOA scheme is currently effective in Luzon and Visayas grids. With the expanded implementation, further reductions in electricity rates are anticipated and are expected to attract more investors, create job opportunities, and contribute to the country’s economic recovery, particularly in the aftermath of the COVID-19 pandemic.

In 2023, the ERC issued 14 rules and regulations, 77 decisions, and 1,156 orders as of December 2023, demonstrating its commitment to regulatory clarity and consistency. The commission also issued Certificates of Compliance (COCs) for 135 independent power producers, 4,124 qualified end-users, 489 self-generation facilities and distributed energy resources, and 7 retail electricity suppliers.

Furthermore, the ERC tested and calibrated 2,073,598 new watt-hour meters, approved 33 new meter types, certified 22 meter shops, and conducted 36,988 in-service testing in November 2023.

Meanwhile, the ERC has launched the full implementation of the Lifeline Rate Subsidy Program last January, aimed at providing significant discounts on electricity bills for qualified low-income households.

The program is designed to alleviate the financial burden on poor households by subsidizing their electricity costs. Qualified beneficiaries, specifically those enrolled in the Pantawid Pamilyang Pilipino Program (4Ps) and other low-income electricity consumers who use no more than 100 kilowatt-hours (kWh) per month, are eligible for the subsidy.

As of the latest data, around 4.2 million households are beneficiaries of the 4Ps, which forms a significant portion of the lifeline rate subsidy target group. The average monthly electricity consumption for these households typically falls well below the 100-kWh threshold, making them prime candidates for the subsidy. According to the ERC, the subsidy can reduce electricity bills by as much as 50%, providing substantial financial relief to these households.

The lifeline rate subsidy is established under Republic Act 11552, which extends and enhances the implementation of the lifeline rate as specified in Section 73 of Republic Act 9136, also known as the Electric Power Industry Reform Act.

The ERC also played a crucial role in implementing the Renewable Energy Act, which aimed to accelerate the development of renewable energy sources. The ERC remains committed to fostering the growth of the sector for the country to attain energy self-reliance and reduce dependence on fossil fuels.

In a statement, ERC Chairperson Atty. Monalisa C. Dimalanta said that there has been a 20% increase in renewable energy utilization in the Philippines since 2008. With the energy sector valued at P7.6 trillion, the chairperson shared the responsibilities of the commission, including enforcing least-cost pricing, promoting market competition, and providing consumer choices.

The ERC’s regulations facilitated the integration of renewable energy into the national grid, contributing to a more sustainable energy mix. Hence, the implementation of policies promoting renewable energy has led to substantial growth in this sector. As of 2022, the current energy mix in 2022 is made up of 32.7% of renewable energy.

A vision of independence and fairness

In a recent address, Atty. Dimalanta said that the ERC operated with a budget of over P1.2 billion in 2023, the highest budget allocated to the commission since its establishment. The chairperson emphasized that the agency must use the budget wisely to fulfill its responsibilities and ensure the efficient and effective regulation of the energy sector.

Regarding renewable energy (RE), the Philippine government aims to increase the share of RE in the supply mix to 35% by 2030 and 50% by 2050. This will be achieved by promoting energy efficiency and conservation, as well as pursuing emerging technologies to ensure energy security.

In addition, the ERC and the Board of Investments have joined forces to address issues in the electric power industry, aiming to attract more investments in the Philippines.

Both agencies have agreed to work together to effectively address issues in the electric power industry, particularly those affecting contestable customers who are struggling with financial distress caused by abrupt increases in power rates leading to disconnection of power supply.

The partnership is expected to have a significant impact on investments in the Philippines, particularly as the world transitions to green energy.

Atty. Dimalanta also revealed ERC’s partnership with the National Economic and Development Authority (NEDA) in developing an affordability index during the Foundation for Economic Freedom’s monthly Fellows Meeting in 2023. This index is expected to provide clearer metrics on the energy sector’s performance across different regions, aiding in better energy efficiency planning.

The chairperson emphasized the importance of the commission’s independence, credibility and fairness in its regulatory decisions. Hence, the ERC will continue to engage with stakeholders and implement programs aimed at promoting transparency, accountability, and public participation in the energy sector. — Mhicole A. Moral

CREC mulls green bond issuance for next year

CREIT.COM.PH

CITICORE Renewable Energy Corp. (CREC) is exploring the possibility of issuing green bonds next year, the listed company’s president said.

The decision hinges on the prevailing interest rate environment, CREC President and Chief Executive Officer Oliver Y. Tan told reporters on Friday last week.

“Most likely (it will be) next year because we would want to wait for a rate cut, for rates to go down,” he added.

Mr. Tan also said there is neither a range nor a size yet for the planned green bonds issuance.

On Friday, CREC listed its P5.3-billion initial public offering (IPO) consisting of 1.79 billion common shares, with a 10% overallotment option of up to 178.57-million secondary common shares at P2.70 apiece.

The company’s stock price was unchanged at the close of trading.

The public listing also secured a $12.5-million investment from the United Kingdom’s Mobilist Program, which provides assistance to support infrastructure development and green transition in Southeast Asia.

Mr. Tan said that while CREC remains open to potential mergers and acquisitions, he clarified that such endeavors are not currently part of the company’s immediate agenda,

“Of course, there are opportunities because if you look at solar, these are fragmented. There are opportunities to consolidate. But right now, we are focused on rolling out our projects,” he said.

Sought for comment on CREC’s market debut, Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message: “It was a decent first-day performance with fairly stable trading throughout the session. CREC’s listing shows the equity market remains very open to promising renewable energy companies.”

“Moreover, the general success of Oceanagold (Philippines), Inc. and CREC could pave the way for other IPOs, though the larger offerings might wait until we see a dovish shift in monetary policy,” he added.

Meanwhile, Mr. Tan said that CREC is interested in participating in the third round of the Energy department’s Green Energy Auction program (GEA-3).

“Primarily, solar. I believe the Energy Department will include solar and battery energy storage systems. So that will also be another technology we are interested in. Also onshore wind,” he said.

The GEA program seeks to promote renewables as the primary source of energy through competitive selection. It will help achieve the government’s target of hiking the share of renewables in the energy mix to 35% by 2030 and 50% by 2040.

CREC aims to add one gigawatt (GW) of solar energy capacity annually to the Philippine energy mix, focusing on ready-to-build or under construction projects over the next five years, aiming for a total of around 5 GW by 2028. — Revin Mikhael D. Ochave

Empowering the underprivileged: The Lifeline Rate Program’s impact on accessibility and affordability of electricity

The ERC, together with the DoE and DSWD, held an information and education campaign (IEC) and registration caravan in Tagum City, Davao del Norte last April to encourage more registrants for the Lifeline Rate Program.

Public utility services are fundamental to modern society. While access to them is often taken for granted, power, water, transportation, and other utilities are crucial for maintaining public health, safety, and economic stability. However, with the rising price of goods due to inflation, disparities in access to these essential services exist, particularly in rural and underserved urban areas.

Data from Australia-based consulting firm International Energy Consultants (IEC) indicates that while power rates in the Philippines are fair and reasonable, there is still room for improvement after the country’s average tariff ranked 21st out of 46 energy markets globally and only 3% below the global average.

In an effort to make power more accessible and affordable to these sectors, President Ferdinand R. Marcos, Jr. launched the Lifeline Rate Program in August last year. The program, implemented by the Energy Regulatory Commission (ERC), Department of Energy (DoE), and Department of Social Welfare and Development (DSWD), aims to subsidize low-income households who are unable to pay their electricity bills at full cost.

Beneficiaries of the “4Ps Act” (Pantawid Pamilyang Pilipino Program) under Republic Act No. 11310, or customers living below the poverty line set by the Philippine Statistics Authority, are qualified to avail of discounted rates for their power bills.

According to the ERC’s current guidelines, qualified beneficiaries must maintain their monthly electricity usage below the 100-kWh threshold. This limitation is crucial to ensure that the program targets households that are genuinely in need and promotes energy conservation among users.

To apply for the program, eligible individuals may prove their qualifications by submitting to their Distribution Utility (DU) or Electric Cooperative (EC) a certification from the local Social Welfare and Development Office (SWDO) issued in the past six months showing that their family income is below the poverty threshold or, for 4Ps members, be included in the DSWD’s Certified List of 4Ps Beneficiaries provided by the ERC.

Lifeline Rate Program information dissemination and registration in Zamboanga City

Additionally, applicants for the discounted power rates have to provide a duly accomplished Lifeline Rate Application Form, their most recent electricity bill, and any valid government-issued identification card (ID) containing the signature and address of the customer.

Each qualified household can receive the lifeline rate from only one DU or EC service. In case multiple beneficiaries from the same household apply for the lifeline rate, only one application will be approved to ensure that more households in need can receive assistance.

The discounts on power rates for eligible beneficiaries vary depending on the prevailing rates of their DUs or ECs, as well as their monthly electricity consumption.

For qualified individuals with zero to 20 kWh of monthly household power consumption living in the Meralco franchise area, a 100% discount is applied on generation charges, including system loss, transmission, and distribution components of their bill. However, they are still required to pay a fixed metering charge of P5 which results to a significantly reduced total payable amount of around only P20 from their overall electric bill compared to more or less P250 if they had not availed themselves of the Lifeline Rate.

Similarly, customers with a monthly usage of 21 kWh-50 kWh who apply for the Lifeline Rate will pay approximately P300 on their electric bills. Without the program, these customers would face an undiscounted bill of around P550.

Meanwhile, eligible beneficiaries consuming 51 kWh-70 kWh per month who apply for the Lifeline Rate will pay around P522.90, compared to the undiscounted rate of P763.37. For those consuming 71 kWh-100 kWh, the program reduces their bill to approximately P904.21, instead of the standard P1,099.10. This substantial reduction ensures that electricity remains affordable for households with limited income, providing critical financial relief and support.

Despite these benefits, only 191,399 households out of the 4.2 million 4Ps beneficiaries have registered for the Lifeline Rate discount as of Dec. 15 according to DoE Electric Power Industry Management Bureau Director Luningning Baltazar.

She attributes this low number of registrants to the lack of dedicated meters for qualified individuals and the practice of several households sharing power meters, making consumption by eligible users difficult to track. While Ms. Baltazar said that they would be looking into addressing the issue, she still encouraged 4Ps beneficiaries to register as they are still studying the question of what would be the appropriate threshold.

Information campaign on the Lifeline Rate Program in Malaybalay City, Bukidnon

To motivate eligible individuals to apply for the program, the DoE, ERC, and DSWD have continued the information dissemination effort in partnership with the local government units.

Most recently, last April, 560 from Tagum City, Davao Del Norte; 750 from Davao City; 266 from Butuan City, Agusan del Norte; 196 attendees from Bayugan City, Agusan del Sur; 380 from Claver, Surigao del Norte; and 411 from Lebak, Sultan Kudarat participated in the information and education campaign and registration drives through encouragement by the local SWDO units, 4Ps Provincial Links, and their DUs and ECs.

By making electricity more accessible through discounted rates, the Lifeline Rate program not only alleviates the economic burden on vulnerable households but also shows the commitment of the government to improving the quality of life for all Filipinos. With the persistent effort shown by government agencies in implementing the program, more and more Filipinos are empowered to enjoy a basic necessity essential for daily living without facing undue financial hardship. — Jomarc Angelo M. Corpuz

Target scam syndicates, not POGOs — PAGCOR chief

THE Philippine Amusement and Gaming Corp. (PAGCOR) said the government should go after scam syndicates instead of banning Philippine offshore gaming operators (POGOs).

“We do not need to outlaw POGOs; what we need to do is intensify anti-crime operations against suspected alien hackers, against scammers and cybercriminals who are usually hiding in highly secured buildings and compounds,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said in a statement on Sunday.

“These criminal syndicates are not engaged in offshore gaming at all, and even if they are, they are doing it illegally. So they are the real threat, and we must go after them with everything that we have,” he added.

Some lawmakers are proposing a ban on POGOs, citing concerns about reputational and national security risks, as well as cases related to human trafficking, torture, and other crimes.

Finance Secretary Ralph G. Recto earlier said he is not opposed to proposals to ban POGOs. He also said that he will make his own recommendations to the Palace “at the appropriate time.”

“To us, the real threats are the alien hacking and scam syndicates that operate underground, and they are the ones that our law enforcement agencies are trying to locate and dismantle,” Mr. Tengco said.

“We should not blame and demonize our licensed gaming operators because they are closely monitored by PAGCOR. Our licensees pay taxes, and they help provide legitimate jobs and livelihoods to a lot of people,” he added.

PAGCOR said that legitimate internet gaming licensees contributed more than P5 billion to its gross revenues last year.

The state gaming firm also said it has “imbedded monitoring teams in the physical venues of all licensed gaming operators, including land-based casinos, to ensure compliance with the terms of their licenses.”

“Those found violating the provisions of their licenses are meted fines and penalties and, in the most serious offenses, the licenses are revoked and their bonds forfeited.”

In April, Malacañang ordered the Anti-Money Laundering Council to freeze the assets of a POGO hub in Tarlac province.

The Philippine National Police reported earlier that a total of 4,039 people were victims of crimes related to POGOs in the first half of 2023. — Luisa Maria Jacinta C. Jocson

PHL gaming operators told to prioritize security risks

MICHAL PARZUCHOWSKI-UNSPLASH

GAMING COMPANIES catering to Filipino players should prioritize addressing security risks, including location information, to ensure the integrity of their transactions, app development and mobile security platform provider Appdome, Inc. said.

“Because the Philippines has legalized and regulates online gambling, this is an important revenue stream for the country,” Appdome Mobile App Security Evangelist Jan Sysmans said in an e-mail interview.

“It is critical that operators here are equipped to face security risks, especially around location verification,” he added.

He said that location is fundamental to the integrity of in-app transactions, as it provides transaction traceability and supports know-your-customer (KYC) requirements critical to fighting fraud and scams.

Gambling and lottery apps rely on geographic location data to ensure their mobile applications are accessible only within authorized areas, he noted.

However, there are various risks that attackers could exploit.

“Attackers can tamper with global positioning system (GPS) signals or sensors, providing false location information, which compromises app functionality and revenue generation. These fake GPS apps allow attackers to manipulate authentic location providers via geo-location spoofing, license control bypass, and evasion of geo-fencing requirements,” he said.

“Unauthorized virtual private network (VPN) use also introduces risks by allowing users to hide their true IP (internet protocol) addresses, enabling malicious activities such as bypassing geo-restrictions, accessing restricted content, conducting man in the middle attacks, among others,” he added.

With this, Mr. Sysmans said it is “critical” that gaming companies catering to Filipino players understand their compliance obligations.

“With threat actors getting more sophisticated and the growth in mobile channels, net-net geo-location compliance is essential. Ultimately, this is crucial to fighting against fake GPS apps, fake accounts, unauthorized VPNs, SIM (subscriber identity module) swapping schemes, hooking frameworks, GPS signal spoofing, or manipulating sensors such as the gyroscope or accelerometer,” he said.

“Operators more generally also need to ensure their mobile apps come with comprehensive security features to safeguard sensitive user data and prevent unauthorized access to the app,” he added.

Appdome is an app development and mobile security platform provider. It has over 300 solutions spanning mobile app security, mobile fraud, malware and cheat prevention, and mobile bot defense.

For the first quarter, the country’s gross gaming revenue rose by 18.5% to a record-high of P81.7 billion based on Philippine Amusement and Gaming Corp. data. — Revin Mikhael D. Ochave

Nissan PHL introduces new president

Outgoing Nissan Motor Philippines, Inc. (NPI) President Juan Manuel Hoyos (left) turns over a ‘key fob’ to new President Yasuhisa Masuda. — PHOTO BY KAP MACEDA AGUILA

Mr. Masuda steps up to the plate; Mr. Hoyos moves on to new role

NISSAN PHILIPPINES, INC. (NPI) recently marked the turnover of leadership reins with an event in Grand Hyatt Hotel, Taguig City.

NPI President Juan Manuel Hoyos formally stepped down from his post, moving on to lead the Mexico-based Nissan Importers Business Unit (NIBU) in the Americas. In his place, Yasuhisa Masuda assumes the presidency of NPI.

The handover ceremony was witnessed by partners from the government and industry, dealer network principals, and members of the media. Also at the event were Nissan Senior Vice-President and Global Sales and Infiniti Head Jose Roman, and Nissan ASEAN and Thailand President Toshihiro Fujiki.

Under Mr. Hoyos’ watch, “Nissan Philippines was able to launch multiple products across different segments, contributing to the local expansion of Nissan’s footprint. By the end of the 2023 fiscal year, Nissan grew 31%, achieving strong sales across its product lineup,” said NPI in a release. Mr. Hoyos was appointed to the position in April 1, 2022, succeeding Atsushi Najima.

Said the outgoing executive, “I truly believe that Nissan Philippines will be in good hands under the leadership of Masuda. The years of experience he has gained from working with Nissan are sure to aid the brand in sustaining the growth that we have established in the last few years. I am looking forward to seeing what the future has in store for Nissan Philippines under this new chapter.”

Mr. Masuda has over 12 years of experience with Nissan, joining the brand in 2011. He held various leadership positions in Market Intelligence, Brand and Media Strategy. Prior to his appointment at Nissan Philippines, he held the position of chief marketing officer for Nissan’s Japan Marketing Division.

As he takes on the role of President, Mr. Masuda is expected to sustain the growth trajectory set by Mr. Hoyos. Under his leadership, he plans to strengthen “Nissan’s push for electrification and exciting image, digitization initiatives, and building a strong dealer network — fulfilling the brand’s promise of bringing innovation that excites its customers.”

“I am looking forward to seeing where we can take the Nissan brand in the coming years. The Philippines has always been a promising market for the brand, and we will continue to work to sustain, if not surpass the growth that has been achieved in the country,” said Mr. Masuda.

A chance to meet National Living Treasures  and seeing the crafts they create

A collection of Tausug woven items — ARJALE JAYRIE QUERAL

By Joseph L. Garcia, Senior Reporter

HOW many times do you get several National Living Treasures in one room, and actually hold in your hands what they make?

This is, we believe, the crowning glory of Likha 3, the third iteration of Likha, a project spearheaded by the Office of the First Lady, Liza Araneta Marcos. The project was aimed to bring together just weavers in February 2023, according to Deputy Social Secretary Dina Arroyo Tantoco. The weavers attended workshops and were given free space to showcase their goods. The reception was so great that they decided to hold a second one a few months later, in June, to coincide with Independence Day on June 12.

“It’s actually the biggest one so far,” said Ms. Arroyo Tantoco about the third iteration. “I think that system has been perfected.”

There are over 80 exhibitors, spread over three sections at the Philippine International Convention Center (PICC) Forum. Section 1 is devoted to newcomers, while Section 2 is filled with graduates of the first two Likha programs. “You can see the difference from the first Likha to now. They have more merchandise, more products. You can tell that they’re really learning from this whole experience,” said Ms. Arroyo Tantoco

Section 3, meanwhile, is for more established brands that work with local communities (there’s Artefino’s Hearte Fino, as well as representation from Habi). Other exhibitors include government agencies that provide help to small businesses, and, of course, a special section devoted to Gamaba (Gawad sa Manlilikha ng Bayan) awardees, deemed National Living Treasures, as recognized by the National Commission for Culture and the Arts (NCCA). These include Abina Coguit for Agusan Manobo Embroidery, Estelita Bantilan for Blaan Mat Weaving, Marife Ganahon for Higaonon Mat Weaving, Magdalena Gamayo for Ilocano Textile Weaving, Teofilo Garcia for Katukong Ilocano (Gourd Hat) Making, Bundos Fara for T’Boli Brass Casting, and Barbara Ofong for T’Boli Textile Weaving.

“I think it’s really just to give a chance for people here to meet them directly,” said Ms. Arroyo Tantoco. “I would never have met these Gamaba awardees. It’s our culture, our craft — they are national treasures.”

Co-organizer designer Lenora Cabili said that projects like these help preserve craft for generations to come. “The preservation starts there. It’s the awareness that it actually exists,” she said, while she stood near the WUTHLE (Women United Through Handcrafted Lace and Embroidery) booth. Had we not spotted Ms. Cabili there, we would not have known that there was a community of handmade bobbin lacemakers in Iloilo, first taught by Belgian nuns. “When the awareness happens, I think that’s when people will start buying. That’s one way of preserving it.”

She continued: “There’s just a lot that needs to be done, especially when you want to utilize culture through craft, as a way to build the identity of the Filipino. Craft really plays a central role.” Likha co-organizer Al Valenciano added, “And it goes down to agriculture. A lot of the things they make are from the land.”

A problem with cultural preservation is that, if judging by the age of the Gamaba awardees, there’s a certain chance that traditional crafts will just die with the old guard. The indigenous communities to which these traditions belong get smaller as younger people move to the cities for better pay. Luckily, some hold on. At the T’Boli Textile Weaving booth to be occupied by Ms. Ofong, a younger relative, Ian Christopher Ofong, was there to talk about the craft. There are more than 30 steps to make a yard of fabric, patterns gathered from dreams, and woven for four to six months, he explained. He himself was wearing a jacket made from T’nalak. “Ito iyong identity namin (this is our identity),” he said, asked about the importance of preserving the craft for people his age (he’s in his 20s). For him, a way to encourage young people to pick up their traditional crafts is through recognition: “Kapag marunong silang gumawa ng T’nalak, kilala sila, not just in the Philippines but in the whole world.”

Mr. Valenciano agrees: “The fact that they’re here, when they go here, they’ll be so proud and tell the community: ‘Importante pala ang ginagawa nila (it turns out that what they’re doing is so important).’”

Recognition, yes; but ascribing value (financial and otherwise), is just as important. Ms. Cabili says. “When it’s craft, the value is in the way it’s created. When you look at the process of the craft, there has to be an appreciation, and put a proper value into what they’ve created. It comes at a price.”

“The younger generation would be encouraged, that it’s a career that they can get into. That’s the cycle that needs to be encouraged,” she said.

Likha 3 is now open to the public until June 11 at the PICC Forum, CCP Complex, Pasay City.

Globe says 116 new cell sites to improve service delivery

STOCK PHOTO | Image by Aopsan from Freepik

GLOBE Telecom, Inc. said it added 116 new cell sites and upgraded more than 800 mobile sites in the first quarter of the year to enhance its service delivery.

“Our plan supplements investments we’ve made in the last 3-4 years, (and) we remain focused on improving service consistency and availability to deliver good customer experience and support traffic across regions and territories,” Globe Senior Vice-President and Head of Network Planning and Engineering Joel R. Agustin said in a statement on Sunday. 

The listed Ayala-led telecommunications company said it continues to expand the reach of its network and improve the service delivery after building a total of 116 new cell sites and upgraded about 812 mobile sites to long-term evolution (LTE) in the first quarter of the year. 

It also deployed 19,544 fiber-to-the-home (FTTH) lines of fiber-optic cable that can transmit data at high speeds, Globe said.

“While the figure is lower compared to last year’s rollout, it is a strategic move to maximize the utilization of the company’s existing fiber inventory amid a reduction in capital expenditures,” Globe noted.

For this year, Globe has set aside $1 billion for the company’s expansion plans and to boost its operations.

“Globe’s continuous investments in network infrastructure ensure enhanced connectivity, facilitating a range of digital activities from online learning and remote work to e-commerce and entertainment,” the company said. — Ashley Erika O. Jose

Wilcon Depot opens 95th store in Santa Barbara, Pangasinan

In anticipation of its upcoming celebration of 47 years of excellence, Wilcon Depot launched its 95th store in Santa Barbara, Pangasinan. The long-term campaign of #FlyingHighTo100 is counting down to its finale. With just a few more stores to go in their expansion campaign, Wilcon is continuously committed to enriching Filipino communities and driving economic growth. In photo are (from left) representative from the office of Pangasinan 3rd District Congresswoman Maria Rachel Arenas, Shaian Sotto, Brgy. Ventinilla, Sta. Barbara, Pangasinan Barangay Captain Lloyd Jethro Zaplan, Sta. Barbara Pangasinan Vice-Mayor Rogelio Navarro, Sta. Barbara Pangasinan Mayor Carlito Zaplan Sr., Wilcon Depot SEVP-COO Rosemarie Bosch-Ong, SVP for Human Resource Grace Tiong, HCG Philippines VP for Sales and Marketing David Chang, Limson Marketing CEO Carl Lim, and Wilcon Depot AVP for Sales and Operations Francis Lazaro.

Wilcon Depot brings 47 years of industry excellence in home improvement and building needs in Santa Barbara, Pangasinan on June 7, 2024. Continuing its legacy of “Building Big Ideas,” the leading retail giant successfully opened its 95th store nationwide. With only five more stores before reaching the century mark, Wilcon’s #FlyingHighTo100 expansion campaign is on the cusp of completion.

Santa Barbara was abuzz with the grand opening rites of the Wilcon big-box store led by Wilcon Depot executives and joined by Santa Barbara local government officials. SEVP & COO Rosemarie Bosch-Ong extends her gratitude to the esteemed guests, local government officials, media partners, suppliers, and customers attending the grand opening. She also expresses her joy that Wilcon’s expansion campaign is nearly complete, with just a few more stores to open, making its premium products and services accessible throughout the country.

Wilcon’s store in Santa Barbara, Pangasinan

Wilcon lives up to its name as the leading provider of high-grade supplies and materials that caters to the needs of Filipino communities. The successful opening of Wilcon’s store in Santa Barbara joins Wilcon Depot-Villasis in delivering customer delight through its product offerings and services in Pangasinan. It also opens employment opportunities and other economic benefits to the town. This is a big step to the continuous development of Santa Barbara and has once again put the town in the list of top investment areas in this part of the region.

Santa Barbara is a first-class municipality located in the central plains of Pangasinan, dotted with historic churches and carries a rich historical narrative. The town’s name pays homage to Santa Barbara, the patron saint of the artillerymen and miners. While it exudes a quaint, traditional charm, Santa Barbara is also a potential hub for business and economic growth. It is well-connected by a network of roads and highways, ensuring easy access for goods and people.

As part of its #FlyingHighTo100 expansion campaign, Wilcon is transforming the construction industry landscape through its commitment to sustainability, innovation, quality, and customer service.

Wilcon’s product line has always been remarkable. Its exclusive and in-house products include Pozzi for trusted bathroom solutions; Hamden Kitchen Appliances, an ideal partner for your kitchen needs; Alphalux, an energy-efficient lighting solutions brand; Kaze, an appliance brand that will help you live a healthy space; Hills, a trusted brand for construction and electrical power tools; P.Tech, your partner for reliable building materials; Rocersa, Emigres, STN Ceramica, Stylish Spanish Tiles with a contemporary interpretation of a classic style; Arte Ceramiche, Verona Tiles, and Saigres, Asian tiles for a more sophisticated home; Energie Ker, Gardenia Orchide, and Novabell, Sophisticated Italian Tiles; Grohe and Kohler for bathroom and plumbing solutions; Franke, convenient kitchen solutions; and Rubi a partner when it comes to tile cutting necessities; and among many other brands, are made accessible in the new Wilcon Depot-Santa Barbara, Pangasinan.

Start building big ideas with Wilcon Depot and shop daily at its newest store from 8:00 a.m. to 7:00 p.m. Visit Wilcon Depot Santa Barbara, Pangasinan located at Zone 3 Mc. Arthur Highway, Ventinilla, Santa Barbara, Pangasinan. Valued customers can also shop online at Wilcon by visiting shop.wilcon.com.ph/.

For more information about Wilcon, visit www.wilcon.com.ph or follow their social media accounts on Facebook, Instagram, and TikTok, or subscribe and connect with them on Viber Community, LinkedIn, and YouTube. Or you may contact Wilcon Depot Hotline at 88-WILCON (88-945266) for inquiries.

 


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VinFast Auto lands in PHL

PHOTO BY DYLAN AFUANG

Vietnam’s pioneer auto brand continues global expansion, enters third Southeast Asian market

By Dylan Afuang

THROUGH VINFAST Auto, Vietnam is now present in the global electric vehicle space — competing against makers from North America, China, Europe, Japan, and South Korea. And as part of its global expansion, the Vietnamese electric two- and four-wheeler manufacturer has joined the burgeoning EV market here in the Philippines.

Last week, VinFast Philippines did so with a public showcase of the brand’s local selection of electric cars and motorcycles, and announcement of ambitions for the market.

Established in 2017, VinFast is the mobility arm of Vietnam’s Vingroup conglomerate that operates in fields of education, real estate, and technology, among many other industries. The auto brand touts itself as one of the first of its kind to switch to producing only pure-electric vehicles, when it did so in 2022.

“We don’t only produce EVs, but also electric buses for public transportation, electric motorbikes for adventurers, and electric bicycles for those who love the outdoors,” Deputy CEO for Sales and Marketing of VinFast Philippines Jude Racadio explained during the brand’s public launch in Pasay City.

As the company believes that widespread adoption of EVs can enable the world to achieve sustainability, it’s “this mission (that) motivates us to expand into vibrant markets like the US, Canada, as well as promising Southeast Asian markets like Thailand and Indonesia, and now, the Philippines,” the executive added.

In this particular region, the Philippines is the third country VinFast is entering.

For her part, VinFast Philippines CEO Nguyen Thi Minh Ngoc explained to the media on the sidelines of the launch program that the “Philippine government giving supportive policies for EVs” led the brand to choosing the archipelago as its next market.

In Republic Act 11697 or the Electric Vehicle Industry Development Act (EVIDA), import duties on battery-, plug-in hybrid, and hybrid-electric vehicles (BEVs, PHEVs, HEVs), electric motorcycles and bicycles, as well as the importation of electrified vehicle parts and related production equipment, are reduced to zero.

“We also believe that the Philippines is a promising market,” Ms. Ngoc added, “so we’re bringing our (vehicles) with accessible prices. And with the quality of our four- and two-wheeled vehicles, Filipinos can join the race to green mobility.”

The brand’s four-wheel lineup consists of the VF 5, the VF e34, the VF 7, and the VF 9. As of writing, the brand has not yet revealed these models’ prices, although they’re slated to go on sale by the end of June, and will be delivered to customers by the third quarter.

VinFast Philippines is also “exploring the (local) introduction” of the VF 3 mini-SUV and is “researching the potential for electric motorbikes and bicycles,” it said in a release.

The brand has named EV Solutions; K1 Prestige Bay Motors, Inc.; and Autoflare Corp. in Metro Manila; and MNV Auto Group, Inc. in Iloilo City as its initial dealership partners. In Manila, the first VinFast dealership is eyed to open by month’s end.

In a release, the brand claimed that it will offer car purchases with batteries and a unique battery subscription policy. With the latter promo, buyers can essentially lease the car’s battery instead of purchasing the car outright, in order to theoretically lower the EV’s initial purchase price.

In terms of after-sales programs, the VinFast EVs will come with warranties spanning from seven to 10 years. For units acquired through subscription, the brand could replace these cars’ batteries for free should their capacities fall below 70%.