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RCBC net profit down to P2.2B

RIZAL Commercial Banking Corp. (RCBC) saw its net income fall by 39.47% in the first quarter in the absence of a one-off gain from its sale of properties recorded in the same period last year, it reported on Monday.

The lender’s attributable net income stood at P2.2 billion last quarter, down from P3.64 billion in the same period last year, the bank’s quarterly report disclosed to the stock exchange showed.

This translated to a return on average equity and a return on average assets of 5.6% and 0.7%, respectively.

The year-on-year decline was mainly driven by a 53.27% decrease in its other operating income to P2.68 billion from P5.73 billion, the report showed.

This was due to a 96.7% decrease in net gains from assets sold to P112 million in the quarter from P3.35 billion a year prior. The higher net gain recorded last year came from the sale of various real estate properties, RCBC said.

The lender also recorded lower gains from trading and securities and foreign exchange in the period due to valuation adjustments amid market conditions.

RCBC also saw a 100% reduction year on year in earnings from trust fees in the first quarter as it spun off its trust operations to a stand-alone corporation effective Jan. 2, it said.

Meanwhile, earnings from service fees and commissions rose by 43.8% year on year to P2.046 billion in the first quarter amid an increase in fee-based income.

The bank’s miscellaneous income also climbed by 32.4% to P507 million in the period on the back of higher dividend earnings.

On the other hand, revenues from core businesses stood at P11.6 billion, RCBC said in a separate statement.

The bank’s net interest income rose by 31.55% to P9.56 billion in the first quarter from P7.27 billion a year prior, amid higher loan volume and average yields.

“Interest income on loans and receivables was higher by 32.3% or P3.5 billion; interest income on trading and investment securities increased by 23.1% or P745 million and other interest income higher by 2.3% or P17 million,” RCBC said in its quarterly report.

“Total interest expense increased by 26% or P1.9 billion due to higher interest expense on deposit liabilities by 32.5% or P2 billion as a result of higher average costs and growth in average volume. Meanwhile, interest expense on bills payable and other borrowings was down by 7% or P85 million,” it said.

The bank’s interest margin was at 3.6% at end-March.

On the other hand, its operating expenses went up by 7.94% to P7.77 billion in the first quarter from P7.19 billion the year prior amid increases in employee benefits and occupancy and equipment-related costs.

Miscellaneous expenses also rose by 13.3% “due to higher credit card-related expenses and increase in regulatory fees and other volume-driven expenses,” RCBC said in its report.

The bank’s cost-to-income ratio stood at 63.5%.

Total assets rose by 7% year on year to P1.23 trillion at end-March amid a 13% growth in earning assets, the lender said

“This was mostly driven by the loan expansion, especially in the consumer segment. Backed by data-driven acquisition and cross-sell campaigns to manage portfolio quality, credit card remains as the bank’s fastest-growing segment which soared by 55%, outperforming industry’s 30%. Similarly, credit card billings closed 42% higher versus industry’s 17%. Meanwhile, personal and salary loans more than doubled from last year as the bank continues to enhance customer experience across its platforms,” the bank said in the statement.

Net loans and receivables stood at P649.19 billion at end-March, its financial statement showed. Its nonperforming loan ratio was at 1.7%.

“Deposits sustained their momentum and closed 12% higher at P959 billion. CASA (current account and savings account) deposits climbed 13% amid stronger push for various cash management initiatives, coupled with client acquisition programs,” the bank added.

Its loan-to-deposit ratio stood at 65.8% at end-March.

The bank’s total equity was at P150.84 billion in the period. Its capital adequacy ratio and common equity Tier 1 ratio stood at 16.27% and 13.71%, respectively.

“We continue to reap the benefits of the bank’s continued digital transformation across the organization. From AI (artificial intelligence) and data-driven campaigns to streamlined processes via robotic process automation, we commit to exploring new and exciting ways we can bring customer experience to the next level,” RCBC President and Chief Executive Officer Eugene S. Acevedo said.

The bank had a consolidated network of 458 branches, 1,465 automated teller machines, and 6,246 ATM Go terminals nationwide at end-March.

RCBC’s shares went down by 20 centavos or 0.87% to close at P22.70 apiece on Monday. — AMCS

What should movement-media solidarity look like?

VISUALS-UNSPLASH

This piece comes out in the wake of two major international observations — International Labor Day (on May 1) and World Press Freedom Day (May 3). The proximity of these two commemorations in May, serendipitous or intentional, invites much reflection on the state of political and social engagement in the Philippines in the post-EDSA period.

Much-weaved into the storyline of Philippine history and society (partly for being the Catholic feast day of St. Joseph the Worker and a decades-long observance of the labor movement in the Philippines), Mayo Uno — May 1 — has been a perennial day of observance for workers’ rights activists, labor unions, and human rights advocates. The relationship between the Philippine Catholic Church and the workers’ movements was never readily apparent — what with the ideological clashes the Catholic Church internationally has had with the specter of communist discourse (of which global workers’ movements are unabashed heirs to).

Even in the 2000s and 2010s, the largely secular workers’ movements can and have been at odds with the Philippine Church when it comes to women’s rights and gender development policies (the Reproductive Health Law being just one of many). Nevertheless, these policy differences can and have been superseded by a shared commitment to human rights and the provisions of the 1987 Constitution. This became existential in the hostile relationship former president Rodrigo Duterte had with Philippine civil society, and the benign-yet- insidious attempts of the incumbent Ferdinand Marcos, Jr. government on charter change.

This is likely behind the symbolic choice of the groups Simbahan at Komunidad Laban sa Charter Change (SIKLAB) and the National Wage Coalition (comprised of the major Philippine trade union blocs) to march from Quiapo Church to their traditional grounds in Mendiola last Mayo Uno, Wednesday. This reaffirms the need for a more united front across different sections of civil society if it is to remain an effective counterbalance to state propaganda and clientelist economic management. This brings us, in turn, to the much-contentious position of mass media and journalism in Philippine politics.

There are enough arguments that the Philippines owes its existence to mass media as much as revolutionary wars: Philippine nationalism was jumpstarted by the literary and journalistic efforts of the Propaganda Movement, after all. Indeed, what kinds of political engagement continue to populate the collective imagination of the Filipino public is as much the decision of organizations mounting their activities as it is the editorial choice of the mass media sector portraying them. Are they are seen as steadfast practitioners of our bill of rights, or perennial rabble-rousers that inconvenience the increasingly gentrifying generations of Filipinos traversing our urban centers and sub-urban spaces? It is almost always a question of which media platform molds which Filipino viewer’s minds, values, and prejudices.

Yet the Philippine media sector, by virtue of its major organs operating under corporate and private ownership, has always struggled with the challenge of living up to its professional and ethical standards. They are further challenged in maintaining their credibility to a population whose reading, watching, and viewing patterns have drastically shifted away from existing market models. They are already prey to (if not actively hooked into) the disinformation networks that bloomed unabated under Duterte and Marcos Jr.

Investigative journalism and editorial/commentary traditions, in turn, have always bumped on the glass ceiling of either operational profitability, funder political alignments, or the ever-present threat of a hostile state apparatus (which may or may not include military/police harassment). This is further problematized when newly established media outfits themselves are either enlisted or built specifically to be the mouthpieces of political interests — witness our reckoning with the SMNI channel of the evangelical Kingdom of Jesus Christ (KJC).

The understanding of the social sciences that the mass media sector and civil society sector are “referees” between competing political factions is currently being upended. Can such sectors really remain “impartial” when they are faced with governments and political coalitions (almost always conservative or right-wing this 21st century) hell-bent on either suborning them to their control, or just flat-out eliminating and suppressing them? Furthermore, how can they bridge connections with the current generations of Filipinos (Millennials, Gen Z, and Gen Alpha) whose experience and relationship with them is largely institutional — and thus likely laced with disappointment, disillusionment, and suspicion?

The answers, perhaps, are already staring us in the face. We benefit from our exposure to global forms of resistance, advocacy, and journalism. Younger generations of every country are actively forging links between media distribution and civil society advocacy. Social media, while actively the breeding ground of negative political stories, is precisely seen as the space of resistance — the seedbed and sandbox of new solidarities that will be brought offline. The ready parallels younger generations see between the Russian invasion of Ukraine, the US-backed genocide of Palestinians by Israel, and China’s bullying of its Asia-Pacific neighbors are difficult to contend with — something older activists shaped by their Cold War-era ideological and geographical loyalties may be blinded by.

Cross-generational solidarity is shown to be possible, but it needs to operate on the forward-looking aspiration of securing a future. This is the very thing younger generations of Filipinos are despairing over as they do not have or are being actively distracted from. Our youth must be reared as direct partners and even immediate leaders of any possible cross-sectoral push for a democratic correction course. They cannot and must not be treated as mere “heirs” to old slogans, tired dreams, and perhaps even falsified aspirations. It is their future, their battle to fight, and therefore their voices that should be at front and center.

When the Philippines is roasting under a harsh summer that is as much about climate change as it is about corporate and politico-driven destruction of our natural resources, there is everything to fight for. These questions are likely going to be the very same dilemmas that will determine the results of the next election cycle in May 2025.

 

Hansley A. Juliano serves as a lecturer to the Department of Political Science, School of Social Sciences, Ateneo de Manila University. In addition to finishing his doctoral research at the Graduate School of International Development, Nagoya University, he also serves as a fellow of the LEARN Research Institute.

Kingdom of the Planet of the Apes cast harnessed their inner apes

IMDB
IMDB

LOS ANGELES — When Freya Allan arrived on set for the first day of filming Kingdom of the Planet of the Apes, she was in for a surprise.

“I walked into this basement and Owen just came towards me as an ape, and there were just a bunch of them running around,” said Ms. Allan, who plays a human named Mae.

“I was like ‘Here we go! This is gonna be the next six months of my life,’” added the 22-year-old British actress.

The film’s lead, Owen Teague, who plays a chimpanzee named Noa, went to “ape school,” along with many other cast members to prepare for their roles.

“We were working on the movement and the voices, and we had this wonderful teacher, Alain Gauthier, who helped us find our bodies as apes, but it was also a bonding experience for the whole ape cast,” Mr. Teague said.

Disney’s 20th Century Fox film, directed by Wes Ball, serves as the franchise’s 10th film in total and the fourth installment of the Planet of the Apes reboot films.

It takes place 300 years after War for the Planet of the Apes and follows young chimp Noa as he tries to protect his clan from a corrupt monarch named Proximus Caesar, who warps the teachings of the original Caesar.

Noa befriends Mae and an orangutan named Raka as they work together to shape the destinies of both apes and humans.

The science-fiction film arrived in theaters on Friday.

Peter Macon, who portrays Raka, also appreciated the opportunity to attend ape school to immerse himself in the ape world.

“School began with studying the skeletal structures of various apes that we were taking on,” he said.

“Orangutans have very different skeletal structures than gorillas, than chimpanzees, than bonobos, so they’re all different,” he added.

He quickly realized that, as the only orangutan in the film, he would have slower movements while all people playing different types of apes could run, jump, and participate in faster action.

For Kevin Durand, who plays the bonobo ape Proximus Caesar, meeting his co-stars as apes before meeting them as their real-life human selves was special.

“We all gave each other license by going into this world together, and just believing in each other and really connecting with each other,” Mr. Durand said.

“Out of those connections, is performances,” he added. — Reuters

Alveo highlights green spaces in new Southern Luzon projects

SERENEO NUVALI — AYALAALVEOLAND.COM

ALVEO LAND CORP. said it is prioritizing extensive parks, open spaces, and spine roads in its latest projects: Sereneo Nuvali and Caleia Vermosa in Southern Luzon.

Launched in March, the 41-hectare Sereneo is the sixth project in the Nuvali eco-estate in Laguna, while Caleia is the second development at Vermosa, located in Imus, Cavite.

“When we looked at what matters, the parks, the pools, the buildings, the clubhouses, we wanted to showcase what is to come. So dedicating greens and open spaces just outside the entrance is already to signal what it’s like,” Alveo President Joseph Carmichael Z. Jugo told reporters last week.

Sereneo has 415 lots with an average size of 275 square meters (sq.m.).

In line with the theme of extensive greenery, about five hectares are dedicated to parks and open spaces, and all lots are within a 200-meter radius.

According to Alveo Land General Manager South Operations Paulo R. Ong, the design includes a five-pavilion multi-structured clubhouse.

Situated on a hilltop, the 770 sq.m. pool complex is said to be the largest pool amenity among all Nuvali neighborhoods.

“Upon entering the development, future residents will be greeted with the Sereneo main spine greenway. What we want to do is from the entrance you’ll be greeted by a linear park leading towards our central amenity core,” Mr. Ong said.

The terminals of the green spine will be 3-hectare Sereneo Central Park.

Meanwhile, the 28-hectare Caleia subdivision inside the Vermosa 725-hectare estate offers 540 lots with an average size of 250 sq.m.

Similarly, it took into consideration the need for expansive greens. This development features 3.3 hectares of interconnected parks and amenities and a 1,700-park entrance, Mr. Ong said.

It also features a multi-structure clubhouse with a 550 sq.m. pool complex.

Caleia is the first residential brand to develop in the north portion of Vermosa, Mr. Ong said.

Among the highlights of this project is the Caleia Park System, a 20-meter-wide and 320-meter green spine that spans the village.

This links the main entrance, main roads, central park amenities, and picnic grove.

“When you enter the development, you’ll drive down the very elegant and quite formal Spine Road where these roads grow trees,” Mr. Jugo said, adding it leads to the 2.5-hectare Central Park.

Among the amenities is the Calaeia Ze Courtyard, featuring a multi-pavilion clubhouse, while the Caleia Picnic Grove has complete barbecue pits and garden tables available.

On lot prices, Sereneo is priced at about P52,000 per sq.m., with a total package price of P15 million.

Meanwhile, Caleia is priced slightly higher at P56,000 per sq.m., with a package price also at P15 million.

Reservation sales from January to March soared by 41% to P12.7 billion, according to Mr. Jugo. — Aubrey Rose A. Inosante

PetroGreen subsidiary inks 10-year supply deal with SNAP

SAN JOSE Green Energy Corp. (SJGEC), a subsidiary of PetroGreen Energy Corp. (PGEC), has signed a supply contract with SN Aboitiz Power Group (SNAP).

SJGEC signed a 10-year contract with SNAP to supply the latter with 15.6 megawatts (MW) of alternating current from its renewable energy facilities, the company said in a statement on Monday. The contract will start next year, it added.

“This power supply agreement strengthens the viability of our 19.6-MWdc (direct current) San Jose Solar Power Project (SJSPP) in Nueva Ecija, our first investment in the province,” PGEC President and Chief Executive Officer Francisco G. Delfin, Jr. said.

The company said that the site development and transmission line works are ongoing for Phase 1 of SJSPP, with a capacity of 10.1 MWdc, which is slated for completion by early 2025.

The 9.5-MWdc Phase 2 is set to be on-line to the grid by the fourth quarter of 2025.

“This investment with PetroGreen for a long-term, renewable power supply aligns with our mission of providing Responsible Energy to our customers who share our commitment of championing sustainability and powering positive change for the country,” SNAP President Joseph Yu said.

PGEC, through its subsidiaries, has inked five power supply contracts with SNAP since 2019, according to Mr. Delfin.

PGEC is the renewable energy arm of publicly listed PetroEnergy Resources Corp. and is a joint venture with Kyuden International Corp., the overseas investment unit of Kyushu Electric Power of Japan.

It has investments in 32-MW Maibarara Geothermal Power Project in Batangas, 50-MW Nabas Wind Power Project in Aklan, and 70-MWdc Tarlac Solar Power Project in Tarlac.

SNAP is a joint venture between Aboitiz Power Corp. and Norwegian company Scatec. — Sheldeen Joy Talavera

PBCom Q1 net income falls as expenses rise

PHILIPPINE BANK of Communication’s (PBCom) net income declined by 8% in the first quarter due to higher interest and operating expenses, it said on Monday.

The lender’s attributable net income stood at P496.13 million in the period, down from the P541.4 million in the same quarter last year, its quarterly report disclosed to the stock exchange showed.

This translated to a return on average assets and return on average equity of 1.36% and 11.13%, respectively, down from 1.71% and 13.66% a year prior.

The bank’s net interest income rose by 7.98% to P1.27 billion last quarter from P1.18 billion a year prior, mainly driven by higher interest earnings from loans, and even with interest expenses nearly doubling amid the increased cost of funds due to elevated interest rates.

Net interest margin stood at 4.02% at end-March, down from 4.27% a year prior.

PBCom’s total operating income grew by 6.28% to P1.6 billion in the first quarter from P1.51 billion in the comparable year-ago period.

Meanwhile, its operating expenses rose by 16.43% year on year to P937.78 million from P805.46 million amid higher spending on compensation, taxes, occupancy and other equipment-related costs, insurance, and miscellaneous items, among others.

The increase in expenses came even as its provisions for impairment losses declined to P1.82 million from P8.91 million last year.

PBCom’s loans and receivables declined by 4.26% to P87.87 billion in the first quarter from P91.77 billion at end-December, its financial statement showed.

Its gross nonperforming loan ratio went up to 3.15% from 2.77%.

On the funding side, deposit liabilities went down by 7.63% to P107.8 billion at end-March from P116.7 billion at end-2023 amid lower time, demand and savings deposits.

The bank’s assets went down by 2.47% to P143.83 billion at end-March from P147.48 billion at the end of 2023.

Meanwhile, total equity rose by 2.03% to P18.01 billion from P17.66 billion.

The bank’s capital adequacy ratio was at 16.84% at end-March, while its liquidity ratio stood at 24.79%. — A.M.C. Sy

How PSEi member stocks performed — May 13, 2024

Here’s a quick glance at how PSEi stocks fared on Monday, May 13, 2024.


Knight Frank: Manila 3rd cheapest prime office cost in Asia Pacific in Q1

THE Philippine capital region was the third-cheapest prime office market of 23 countries in the Asia-Pacific region during the first quarter of 2024, according to real estate consultancy Knight Frank. Read the full story.

 

Knight Frank: Manila 3<sup>rd</sup> cheapest prime office Cost in Asia Pacific in Q1

Clark Airport sees recovery in passenger numbers by 2026

THE operator of Clark International Airport, Luzon International Premier Airport Development Corp. (LIPAD), said it expects passenger numbers to return to pre-pandemic levels by 2026, though the recovery could take place as early as 2025.

“So, hopefully, 2025 will probably be the earliest, and 2026 the latest year that we will be able to do 100% recovery of our pre-pandemic numbers,” LIPAD President and Chief Executive Officer Noel Manankil said at the One Clark Forum on Friday.

“We’d like to do the recovery faster… But in reality, and I think everybody’s aware, there are some challenges also in the industry,” Mr. Manankil said.

These challenges, he said, include the grounding of some aircraft for engine problems involving the Airbus A320/321 NEO fleet, which is in wide use among Philippine carriers.

Last year, engine supplier Pratt & Whitney announced the need to inspect the aircraft type’s engines, which has disrupted flights.

Visitor numbers from China have also not recovered due to travel restrictions, he added.

“If you look at the mix of travelers and airlines that are present in Clark, a big chunk of that is actually coming from the Chinese market. So, that has not recovered fully,” Mr. Manankil said.

Last year, passenger traffic, including domestic and international, at Clark airport hit 2 million, or about 50% of 2019 levels. 

The number of flights at the airport totaled 14,867 last year, equivalent to 42% of 2019 levels, with domestic flights at 24% recovery.

“This year we are looking at anywhere from 2.4 million passengers to 2.7 million passengers, and we are reviewing our traffic projections with (operations concession holder Changi Airports International),” Mr. Manankil said.

The airport’s capacity as designed is 8 million passengers per annum, but as built, capacity is only at 4 million.

Meanwhile, Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua M. Bingcang said that to support LIPAD in achieving its targets, the BCDA, together with Clark International Airport Corp., will be embarking on infrastructure upgrades.

“The thing about Clark (airport) is that it’s government infrastructure. So definitely, the government will provide the needed support,” Mr. Bingcang said.

These projects include the P1.1-billion CRK Direct Access Link to the airport and the P21-billion Clark Entertainment and Events Center.

“These infrastructure projects will ensure that the objective of achieving those numbers is realized,” he said.

The BCDA is also hoping to build a second runway to attract more airlines and provide redundancy for Clark operations in the event of shutdowns or maintenance. — Justine Irish D. Tabile

Manila prime office 3rd cheapest in Asia-Pacific in Q1

ALEXES GERARD-UNSPLASH

THE Philippine capital region was the third-cheapest prime office market of 23 countries in the Asia-Pacific region during the first quarter of 2024, according to real estate consultancy Knight Frank.

According to the Knight Frank Asia-Pacific Office Markets report, Metro Manila prime office costs averaged $28.28 per square foot during the quarter.

Kuala Lumpur ($17.91) was the cheapest, followed by Jakarta ($26.18). Rounding out the bottom six were Phnom Penh ($34.13), Bengaluru (35.99) and Auckland (41.94).

Knight Frank: Manila 3<sup>rd</sup> cheapest prime office Cost in Asia Pacific in Q1Meanwhile, the most expensive were Hong Kong ($159.63), Singapore, ($114.18), and Sydney ($93.47).

“Despite elevated vacancies of close to 25% in Southeast Asia’s emerging markets, prime rents rose by an average of over 2% quarter on quarter mainly on the strength of Manila’s market,” Knight Frank said in the report.

Rents in Manila declined 5.4% year on year, steeper than the 3.2% average drop in the region.

Fifteen of the 23 cities monitored in the region reported stable-to-increasing rents year on year, up from 13 in the fourth quarter of 2023, Knight Frank said.

Manila also recorded a 12.9% vacancy rate in the first quarter, which is projected to rise in the 12-month forecast, the consultancy said.

Seoul recorded the lowest vacancy rate at 1.3% and Kuala Lumpur has the highest at 29.7% in the first quarter.

“Vacancies in the Philippine capital tightened by close to 4% points during the quarter from 16.4% in Q4 2023. A year ago, vacancies were threatening to breach 20%,” it said.

Meanwhile, Manila office space in the pipeline this year is expected to double and exceed 100,000 square meters.

Manila pipeline supply is estimated at 3.5% of the current stock with flight to quality to new projects expected as new stock in 2024 “hits a cyclical high.”

Despite the expected rise in vacancy levels, Knight Frank noted that Philippine outsourcing has experienced a “robust recovery” in the second half of 2023, with rapid take up, especially from existing tenants expanding in top-rated buildings.

Across the region, average prime rents registered their seventh consecutive quarterly decline to 3.2% year on year in the first quarter of 2024, compared with the 2.4% year-on-year fall in the fourth quarter of 2023.

It added that the regional vacancies marginally rose to 14.9%, sustaining a trend that have seen the metric continually breach record highs since the fourth quarter of 2022.

Knight Frank said it is cautious about the expectations for the office market in the region but on the whole, the prime office segment will remain tenant-favorable in 2024 with the vacancy rate expected to stay on an upward trend.

It said occupiers in the region are signaling more return-to-office work arrangements and registered significant gains in sentiment pointing to a return to pre-pandemic levels of occupancy.

“A consistent theme across the region is the strength of demand for space at the higher end. These conditions were particularly acute in Australia and New Zealand but also observed in Tokyo as well as Southeast Asia’s emerging markets,” Knight Frank Global Head of Occupier Strategy and Solutions Tim Armstrong said.

Mr. Armstrong added that the firm expects a flight to quality to intensify as occupiers optimize portfolios, experiment and evolve their hybrid work plans and hit environmental, social, and governance targets. — Aubrey Rose A. Inosante

Three months’ supply set as sugar import trigger

BOC - PUBLIC INFORMATION AND ASSISTANCE DIVISION (BOC-PIAD)

THE Sugar Regulatory Administration (SRA) said on Monday that it has set the decline of sugar inventories to the equivalent of three months’ demand as the trigger event for allowing sugar imports.

SRA Administrator Pablo Luis S. Azcona told reporters: “When we need to import is actually at the moment still undergoing study. We are looking at it,” he said.

“What the SRA and the Department of Agriculture (DA) did was identify a trigger point in stock levels, that if we hit that point that’s when we will activate our importation plan,” Mr. Azcona added.

He said that the three-month trigger point accounts for the shipping time of raw sugar imports and the time they take to clear from the Bureau of Customs.

“If we need to import it will need to arrive in the country in July, August up to the beginning of September before milling season (if the demand continues as is),” he added.

The increase in demand was due to the early end of the milling season, which caused large industrial consumers to stock up.

“If the current demand continues, we will need the sugar by sometimes September to October, which is the start of the milling season,” he said.

He added that President Ferdinand R. Marcos, Jr. had recommended maintain stocks at 185 thousand metric tons (MT) to 200 thousand MT, equivalent to a two-month buffer.

Mr. Azcona said that despite an increase in production during the crop year, demand remained the same.

“We have a lot of stock on hand. So, that’s why regarding imports, we’re just waiting for trigger points. We’re studying it, but it’s not that urgent yet. If demand continues, we might need to import our buffer stock,” he added.

Raw sugar production hit 1.92 million MT as of May 5, 9% higher from a year earlier.

According to the SRA, the national raw sugar inventory was 568,734 MT, while demand was estimated at 1.3 million MT.

“As of now, there are a few mills still producing or harvesting,” he said.

Mr. Azcona said that the imports will help prevent a surge in prices and allow industrial users to build up ample stock.

“What we are preventing is a drop in supply to a level that the market will become insecure… Number two, our industrial or manufacturing market… needs to be secure knowing that their factories will always have a supply of sugar,” he added. — Adrian H. Halili

JICA announces Sumitomo, Hankyu tie-up to enhance LRT-1 operations

PHILIPPINE STAR/EDD GUMBAN

THE Japan International Cooperation Agency (JICA) said the tie-up of Sumitomo Corp. and Hankyu Corp. have agreed to enhance the operations and maintenance of Light Rail Transit Line 1 (LRT-1).

“This project is the first overseas investment in railroad operation and maintenance for Hankyu Corp. and JICA, encouraging Japanese companies to expand their high-quality infrastructure business overseas,” JICA said in a statement. 

The agreement was finalized on April 25.

JICA cited the need to improve transportation infrastructure in the capital region to maximize the Philippines’ growth potential.

“However, Metro Manila is considered one of ASEAN’s (Association of Southeast Asian Nations) most congested metropolitan areas, highlighting the pressing need for improving the public transportation network, including the development of new railroad infrastructure,” JICA said.

Ongoing construction will extend LRT-1 to Cavite.

The LRT-1 Cavite Extension project seeks to add 11 kilometers to the current line, serving 800,000 passengers a day. It would also increase the number of LRT-1 stations from 20 to 28, linking Quezon City to Bacoor, Cavite.

Phase one of the project, which covers an additional 6.2 kilometers to the rail line, is 97% completed as of March, its private operator Light Rail Manila Corp. (LRMC) said. It is expected to be operational by the fourth quarter of 2024.

Sumitomo Corp. began investing in LRT-1 in 2020, supporting the LRMC’s procurement of spare parts.

“From now on, the company will collaborate with Hankyu and JICA, its new partners, to help further increase the value of the business undertaken by LRMC,” it said in a separate statement.

Hankyu Corp. operates urban transportation and real estate businesses in Japan’s Kansai region.

“In collaboration with LRMC and its other shareholders, Sumitomo Corp., Hankyu and JICA will harness their respective strengths and expertise to make LRT-1 even safer and more convenient, thereby contributing to reinforcing the transportation network of Metro Manila,” Sumitomo Corp. said. — Beatriz Marie D. Cruz