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Brazil central bank plans year-end proposal for crypto regulation

PIXABAY

BRASILIA – Brazil’s central bank announced on Monday that it has decided to divide the process of regulating crypto-assets and virtual asset service providers into phases, with regulatory proposals expected by the end of this year.

The decision effectively delays the completion of the process following a 2022 law on the subject, which paved the way for subsequent regulation by the central bank.

In a congressional hearing last year, the bank’s director of regulation, Otavio Damaso, had projected regulation to be wrapped up by June 2024.

After launching a public consultation on the matter in December 2023, which concluded in January, the central bank said it would now open a new consultation in the second half of this year.

The central bank told Reuters that the first public consultation aimed to gather input from society, also addressing issues not covered by the 2022 law, such as the asset segregation of virtual asset service providers.

This required “reasonable dedication from the teams involved in the regulatory work,” it said, adding that the diversity of activities conducted by entities in the virtual assets sector and the various structures of these entities necessitated this preliminary effort.

“The second public consultation, now focused on regulatory texts, aims to use the initial input to, once again with broad support from society, establish a robust regulatory framework,” said the central bank. – Reuters

Microsoft debuts ‘Copilot+’ PCs with AI features

REUTERS

SEATTLE – Microsoft on Monday debuted a new category of personal computers with AI features as it rushes to build the emerging technology into products across its business and compete with Alphabet and Apple.

At an event on its campus in Redmond, Washington, Chief Executive Satya Nadella introduced what Microsoft calls “Copilot+” PCs, saying that it and a range of manufacturers would sell them, including Acer and Asustek Computer.

Microsoft launched the laptops as its shares trade near record highs following a Wall Street rally driven by expectations that AI will fuel strong profit growth for the company and its Big Tech rivals.

Able to handle more artificial-intelligence tasks without calling on cloud data centers, the new computers will start at $1,000 and begin shipping on June 18.

The ability to crunch AI data directly on the computer lets Copilot+ include a feature called “Recall.” “Recall” tracks everything done on the computer, from Web browsing to voice chats, creating a history stored on the computer that the user can search when they need to remember something they did, even months later.

The company also demonstrated its Copilot voice assistant acting as a real-time virtual coach to a user playing the “Minecraft” video game.

Yusuf Mehdi, who heads up consumer marketing for Microsoft, said the company expects that 50 million AI PCs will be purchased over the next year. At the press event, he said faster AI assistants that run directly on a PC will be “the most compelling reason to upgrade your PC in a long time.”

Global PC shipments dipped about 15% to 242 million last year, according to research firm Gartner, which suggests Microsoft expects the new category of computers to account for around one-fifth of all PCs sold.

“People just need to be convinced that the device experience alone justifies this entirely new category of Copilot+ machines,” said analyst Ben Bajarin of Creative Strategies.

Microsoft’s new “Copilot+” computer marketing category that highlights AI features is reminiscent of the “Ultrabook” category of thin-form Windows laptops that Intel promoted with PC manufacturers in 2011 to compete against Apple’s MacBook Air.

Microsoft executives also said that GPT-4o, the latest technology from ChatGPT maker OpenAI, will “soon” be available as part of Copilot.

Microsoft also introduced a new generation of its own Surface Pro tablet and Surface Laptop that feature Qualcomm chips based on Arm Holdings’ architecture. It also introduced a technology called Prism that will help software written for Intel and AMD chips run on chips made with Arm technology.

Microsoft showed its new devices in action against an Apple device, showing photo editing software from Adobe running faster on the Microsoft device. Apple earlier this month showed a new AI-focused chip that analysts expect to be used in future laptops.

After Intel’s processors dominated the PC market for decades, Qualcomm and other makers of lower-power Arm components have tried to compete in the Windows-PC market.

The Qualcomm Snapdragon X Elite chips include a so-called neural processing unit designed to accelerate AI-focused applications, such as Microsoft’s Copilot software.

Microsoft held the product event a day before its annual developer conference.

Microsoft aims to extend its early advantage in the race to produce AI tools that consumers are willing to pay for. Its partnership with OpenAI allowed it to jump ahead of Alphabet as they race to dominate the field.

Last week, OpenAI and Alphabet’s Google showcased dueling AI technologies that can respond via voice in real time and be interrupted, both hallmarks of realistic voice conversations that AI voice assistants have found challenging. Google also announced it was rolling out several generative AI features to its lucrative search engine.

Windows PC makers have been under increasing pressure from Apple since the company launched its custom chips based on designs from Arm and ditched Intel’s processors. The Apple-designed processors have given Mac computers superior battery life and speedier performance than rivals’ chips.

Microsoft tapped Qualcomm to lead the effort to move the Windows operating system to Arm’s chip designs in 2016. Qualcomm has exclusivity on Microsoft Windows devices that expires this year. Other chip designers such as Nvidia have efforts under way to make their own Arm-based PC chips, Reuters has previously reported. – Reuters

GSK whistleblower claims drugmaker cheated US government over Zantac cancer risk

FREEPIK

GSK has been sued by an independent Connecticut laboratory that accused the drugmaker of defrauding the US government and taxpayers by concealing cancer risks in Zantac, once a blockbuster heartburn drug.

In a whistleblower complaint filed on Monday, Valisure said GSK violated the federal False Claims Act by hiding the risks for nearly four decades while Medicare, Medicaid and other health programs covered billions of dollars of prescriptions.

The New Haven-based lab said its testing in 2019 revealed that Zantac, also known as ranitidine, could form a cancer-causing carcinogen known as NMDA and was therefore “unfit for human consumption.”

It said GSK concealed the same result from the U.S. Food and Drug Administration, which approved Zantac in 1983.

Valisure is seeking billions of dollars in damages from GSK, including civil fines of up to $11,000 per violation, in a complaint filed in Philadelphia, where some of the British drugmaker’s operations are based.

Its lawyers also represent thousands of plaintiffs in personal injury lawsuits against GSK and other companies that have sold ranitidine.

In a statement, GSK said it will defend against Valisure’s meritless lawsuit, and that the FDA has found the lab’s tests “scientifically flawed and unreliable.”

GSK also said there remains no consistent or reliable evidence that ranitidine increases cancer risks.

The False Claims Act lets whistleblowers sue on behalf of the federal government, and share in recoveries.

Valisure first sued GSK on behalf of the United States and more than two dozen states in 2019, in a case filed under seal.

The federal government declined to join the lawsuit in March, leaving Valisure to sue on its own.

Zantac became the world’s best selling medicine in 1988, and was one of the first drugs to top $1 billion in annual sales.

The FDA asked drugmakers in April 2020 to pull Zantac and generic equivalents off store shelves after finding NDMA in samples, citing what Valisure said was its testing.

Two years later, a federal judge dismissed about 50,000 Zantac claims after rejecting the plaintiffs’ scientific experts. Some of those cases are being appealed.

More than 70,000 private lawsuits over Zantac remained pending this month in U.S. courts. Most are in a Delaware state court, where a judge is weighing whether the cases can proceed.

The first trial over Zantac’s link to cancer began this month in Chicago, and may end this week.

The case is US ex rel Valisure LLC v GlaxoSmithKline Plc et al, US District Court, Eastern District of Pennsylvania, No. 19-04239. – Reuters

ICC’s Khan puts his office back on collision course with Washington

ICC-CPI.INT

THE HAGUE – The British lawyer and prosecutor who helped end a US policy against the International Criminal Court on Monday requested an arrest warrant for Israeli Prime Minister Benjamin Netanyahu, putting his office back on a collision course with Washington.

Karim Khan, who became chief prosecutor of the world’s first permanent war crimes court in 2021, asked pre-trial judges to order the arrest of Netanyahu, Israeli Defense Minister Yoav Gallant and three top Hamas leaders.

Just months after being appointed to a nine-year term in The Hague, Mr. Khan shifted the ICC’s investigation in Afghanistan away from US forces to focus on the alleged crimes of the Taliban and local ISIS militants. The move drew criticism from human rights organizations and was seen by some as an attempt to win over Washington.

Opposition to the ICC came to a head during the administration of former President Donald Trump, when the United States sanctioned members of the court and blocked the bank accounts of Khan’s predecessor.

In a sign of improved relations, the sanctions were dropped under President Joe Biden.

In June last year, the US attorney general made the first ever visit to the ICC in the court’s 22-year history. Merrick Garland met Khan and supported his investigation in the Russian-Ukraine war and the court’s arrest warrant for Russian President Vladimir Putin.

But the improved relationship with the US was set to take a turn for the worse on Monday after Mr. Khan went on CNN to announce his next legal step in the Israel-Gaza conflict.

US President Joe Biden quickly slammed Mr. Khan’s move to seek warrants for senior Israeli officials as “outrageous”.

His top diplomat, Secretary of State Antony Blinken, called out Mr. Khan saying the prosecutor had been scheduled to visit Israel as early as next week to speak about cooperation with the court. Instead, the prosecutor went on a cable television to announce the charges, Mr. Blinken said.

“These and other circumstances call into question the legitimacy and credibility of this investigation,” Mr. Blinken said.

Republican US House Speaker Mike Johnson called Mr. Khan’s decision to seek warrants “baseless and illegitimate”.

 

DEFENDER OF WOMEN AND CHILDREN

Mr. Khan, a 54-year-old barrister, made his name as an international defense attorney. He was seen as an ICC outsider who was appointed to the top job in a vote by the court’s member states after intense political jostling.

Mr. Khan and his office have been under intense scrutiny for his investigation of the Israel-Hamas conflict, with political pressure promoting a rare public statement earlier this month.

Mr. Khan said all attempts to impede, intimidate or improperly influence ICC officials must cease immediately.

Mr. Khan has traveled frequently to countries where the ICC is investigating. He became the first ICC prosecutor to visit an active war zone when he visited Ukraine in March of 2021.

In December, Mr. Khan also made a high profile visit to Israel and the occupied Palestinian territories on the West Bank, also the first ever trip of its kind by an ICC prosecutor.

A graduate of King’s College in London, Mr. Khan has stressed his dedication to going after perpetrators of sexual crimes and defending the rights of children.

He identified himself as a member of the minority Ahmadiyya Muslim Community from Pakistan and has quoted the Quran, the Muslim holy book, in several ICC statements.

In a legal career of more than three decades, Khan has worked for almost every international criminal tribunal in roles in prosecution, defense and as counsel for victims.

Mr. Khan started his international law career as a legal advisor for the office of the prosecutor for the United Nations ad hoc war crimes tribunal for both the former Yugoslavia and Rwanda between 1997 and 2001.

His first turn in the limelight was as the lead defense attorney for former Liberian president Charles Taylor who was on trial for war crimes before the Special Court for Sierra Leone, seated in The Hague for the Taylor trial.

On the opening day of the trial in 2007 Khan dramatically walked out of the courtroom against judges’ orders after announcing Charles Taylor had fired him.

Mr. Khan subsequently worked on ICC cases on Kenya, Sudan and Libya before being appointed in 2018 as the head of Unitad, UNITAD, the U.N. team investigating Islamic State crimes in Iraq. – Reuters

Keppel Philippines Holdings to hold annual stockholders’ meeting remotely on June 14

 

 

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Senate OKs VAT on digital services

PACKAGES are seen from e-commerce giant Shein. — IMAGO/ONE MORE PICTURE VIA REUTERS CONNECT

THE PHILIPPINE Senate on Monday approved on third and final reading a bill that seeks to impose a 12% value-added tax (VAT) on digital services provided by companies with no physical presence in the Philippines.

All 23 senators voted in favor of Senate Bill No. 2528, which requires nonresident digital service providers to collect and remit VAT on all digital transactions of customers in the Philippines.

Under the measure, nonresident digital service providers and electronic marketplaces must register with the Bureau of Internal Revenue (BIR) for the remittance of VAT on their services.

Digital services refer to those provided over the internet or other electronic networks using information technology. These include online search engines, online marketplaces, cloud services, online media and advertising, online platforms and digital goods.

If signed into law, the measure may cover e-commerce firms such as Amazon, Shein, Rakuten, Taobao, AliExpress and Temu, which do not have physical presence in the Philippines.

The BIR commissioner can order the blocking or suspension of the services of digital providers if they fail to withhold and remit the 12% VAT.   

The bill exempts online courses, seminars and training programs offered by private educational institutions accredited by the Department of Education and Commission on Higher Education from remitting the tax.

The services of banks and nonbank financial intermediaries including those delivering services through digital platforms are also exempt from remitting the VAT, according to a copy of the bill sponsored by Senator Sherwin T. Gatchalian.

The measure also has a reverse charge mechanism that will require a VAT-registered taxpayer who receives the digital services from these nonresident foreign businesses and marketplaces to withhold and remit the VAT to the BIR.

“This (measure) would level the playing field with local market players in terms of taxation and on top of principles in terms of taxation, this would also increase the government’s source of recurring revenues,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Department of Finance expects the bill to bring in P83.8 billion in revenue from 2024 to 2028.

The House of Representatives approved a similar measure in November 2022.

“This will increase tax revenues but may be detrimental to businesses as this is an additional burden that they may pass to consumers, making products more expensive,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said in a Viber message.

Meanwhile, the Senate also approved on third and final reading a bill seeking to set tougher penalties on those who use financial accounts to commit crimes.

All 23 senators voted in favor of Senate Bill No. 2560, or the proposed Anti-Financial Account Scamming Act (AFASA), which sets jail time of at least six years and a fine of as much as P500,000 against those behind money mule schemes.

People found guilty of fraud may face as long as 12 years in jail and a fine of at least P1 million, according to a copy of the measure sponsored by Senator Mark A. Villar.

The bill also punishes those committing economic sabotage — deliberately disrupting a country’s economy, with life imprisonment and a fine of at least P1 million but not more than P5 million.

Both measures approved on Monday are part of the Legislative-Executive Development Advisory Council’s priority bills. — John Victor D. Ordoñez

Oil firms told to hike biodiesel blend by October

An attendant fills up a vehicle at a gasoline station in Manila, Sept. 18, 2023. — PHILIPPINE STAR/EDD GUMBAN

By Sheldeen Joy Talavera, Reporter

THE DEPARTMENT of Energy (DoE) directed oil companies to increase the coco biodiesel blend starting October, in a bid to help reduce pump prices and support the local industry.

In a circular, the DoE said all diesel fuel sold in the country should contain a biodiesel blend of 3% starting Oct. 1, from 2% now.

Oil firms should increase the coco biodiesel blend to 4% by Oct. 1, 2025, and to 5% by Oct. 1, 2026.

The Biofuels Act of 2006 mandates that all liquid fuels for motors and engines contain locally sourced biofuel components.

Since February 2009, oil companies have been required to implement a 2% biodiesel blend by volume in all diesel fuel sold and distributed in the country.

“Following the drastic increase in the cost of fuel over the past years as a consequence of the Ukraine-Russia conflict, production cuts by the Organization of the Petroleum Exporting Countries (OPEC) Plus and global inflation, the National Biofuels Board (NBB) has determined that an increase in the bioethanol blend will reduce pump price of diesel and gasoline fuel and help alleviate the burden of rising prices on consumers,” according to the circular.

The increase in the coco methyl ester (CME) blend from 2% to 5% was supposed to have been implemented in 2020 but was delayed due to the coronavirus pandemic. At that time, there was a lack of assurance on the sufficiency of biodiesel supply, as well as logistical limitations.

Under the circular, the DoE said oil companies can also offer gasoline fuel containing 20% bioethanol blend on a voluntary basis. At present, the DoE has mandated a 10% bioethanol blend by volume into all gasoline fuel sold locally.

In a statement, the DoE said increasing the bioethanol blend to 20% could result in a P3.21 per liter reduction in gasoline pump prices.

“Implementing the higher biofuel blend is a win-win solution as we promote economic growth, uphold environmental stewardship and strive for cleaner energy utilization. It is also about investing in a future where sustainability drives progress,” Energy Secretary Raphael P.M. Lotilla said.

The DoE said in the circular that the downstream oil industry should implement measures to ensure that all requirements for the transition to the higher biofuel blend are in place before the deadline.

Oil firms should ensure there is sufficient storage capacity, blending facilities and transport systems to accommodate an expected increase in biofuel supply.

Fuel retailers that implement the 20% bioethanol blend are also directed to provide a dedicated storage tank and dispensing pump. Vehicle owners should be informed before dispensing gasoline.

Meanwhile, biofuel producers should ensure there is ample feedstock and production to meet the demand for higher biofuel blend.

“The proposed increase in the ethanol blend in gasoline and the CME blend in diesel is part of the country’s efforts to reduce reliance on imported fossil fuels, lower greenhouse gas emissions, and support the local bioethanol and biodiesel industries,” Rodela I. Romero, assistant director of the DoE Oil Industry Management Bureau, said in a Viber message.

She said the new policy is part of government efforts to comply with environmental regulations, promote the use of “cleaner fuels” and support local industries.

However, Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said the new policy “should have included a suspension mechanism in the event of unreasonable surges in global biodiesel and bioethanol prices.”

He said allowing a price surge would defeat the government’s objective to mandate biofuels to ensure lower pump prices.

“[The] government should focus on using local biofuel supply instead of relying heavily on importation for our blending requirements,” he said in a Viber message.

Dean A. Lao, Jr., president of Chemrez Technologies, Inc., said the higher biodiesel blend is “long-time coming and much needed” by the agriculture industry.

“There is so much local value adding to coconut oil and even more CO2 (carbon dioxide) displacement for the country. I am glad the biodiesel industry can be credited with such inclusive benefits for the Philippines,” he said.

Chemrez, a subsidiary of publicly listed D&L Industries, Inc., operates the country’s first continuous-process biodiesel plant, according to its website.

The United States Department of Agriculture (USDA) expects biofuel consumption to recover in 2024 as fuel ethanol demand is seen to grow by 8% to 682 million liters, while biodiesel demand is expected to inch up by 0.8% to 240 million liters.

“The primary driver of this growth will be increases in the fuel pool, with potential for greater growth if higher blending standards are fully adopted,” the USDA said in its report.

DBCC set to review revenue targets

PHILIPPINE STAR/RUSSELL PALMA

THE GOVERNMENT is keeping its revenue targets for now, although a review by the Development Budget Coordination Committee (DBCC) is scheduled next month.

“We’re keeping the targets. [We] will make a review [by the] end of June,” Finance Secretary Ralph G. Recto told reporters in a Viber message on Monday.

This comes as the Department of Finance (DoF) reiterated that it would not push new tax measures to avoid fanning inflation.

Finance Undersecretary and Chief Economist Domini S. Velasquez over the weekend said the DoF would rely on nontax revenue to meet collection targets.

“Nontax revenue is actually a short-term solution… We were expecting that this year. I think the intent is not to impose new taxes,” she said during a forum organized by the Economic Journalists Association of the Philippines and San Miguel Corp. at the weekend. 

The DoF has been looking for ways to generate much-needed revenue as Mr. Recto earlier said he does not plan to introduce any new taxes this year.

Ms. Velasquez said the DoF is not planning to push “inflation-inducing” taxes.

“We do recognize that (the targets are) challenging. That’s why we have in place the nontax revenues,” she added.

Nontax revenues refer to collections from government services, including regular fees and service charges, the privatization of state assets and dividends from government-owned and -controlled corporations (GOCC).   

Latest data from the DoF showed that nontax revenues stood at P206.4 billion as of April.

The agency has been proposing initiatives to boost nontax revenues. Last week, Mr. Recto suggested selling the government’s stake in the Subic-Clark-Tarlac Expressway (SCTEx) to state pension funds.

The DoF also raised the mandatory dividend remittances of GOCCs to the National Government to 75% of their annual net income in 2023 from 50%.

Ms. Velasquez said the focus on nontax revenues would “buy time” for the department to ensure that its revenue-generating agencies can improve their collections.

The Bureau of Internal Revenue (BIR) is tasked to collect P3.055 trillion, while the Bureau of Customs’ (BoC) revenue target is at nearly P1 trillion.

In the first four months of the year, the government collected P1.4 trillion in revenues or nearly a third of the full-year target, data from the Finance department showed.

The BIR had collected P912.9 billion as of end-April, falling short of its P1.03-trillion goal for the period.

On the other hand, the BoC collected P229.67-billion, exceeding its P288.53-billion target by 3.86%.

Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion welcomed the DoF’s plan not to introduce new taxes.

“New taxes are unpopular. People wouldn’t want to have new taxes especially that inflation and interest rates are high and impact spending of almost everyone,” he said in a Viber message.

P&A Grant Thornton tax principal Eleanor L. Roque said the government’s ability to generate enough revenues without imposing new taxes would depend on its collection efficiency.

“If there are untaxed sectors or inefficiencies in the collection efforts, the government can concentrate on plugging the loopholes and increased collection,” she said in a Viber message.

“The government should also consider global tax developments such as BEPS (base erosion and profit shifting) to ensure that the taxes that should be paid in the Philippines is not paid to other jurisdictions just because we are late in adopting BEPS,” she added.

To improve tax collection, Ms. Roque said the BIR should ensure that it has enough personnel or infrastructure to help taxpayers and improve tax collection.

Meanwhile, the Finance department is also studying ways to improve tax collection in electronic commerce platforms, citing best practices in other Asian economies.

“There could be missed [revenues] in e-commerce, especially those who moved from brick-and-mortar shops and now sell online,” Ms. Velasquez said in mixed English and Filipino.

In a statement, the department said it is working to adopt best practices in digitalization from South Korea, Singapore and Japan to improve tax collection.

The DoF will also meet with the Securities and Exchange Commission  and Bureau of Local Government Finance to “establish a comprehensive data-sharing agreement.” — Beatriz Marie D. Cruz

Muted remittance growth seen to further dampen consumption

PHILIPPINE STAR/MIGUEL DE GUZMAN

MUTED REMITTANCE growth in the coming months will continue to dampen household spending in the Philippines, Pantheon Macroeconomics said.

“The support remittances are providing to private consumption in the Philippines remains sub-par,” it said in its weekly Emerging Asia economic monitor.

Pantheon Macroeconomics noted that the growth of remittance inflows  in peso terms slowed to 4.6% year on year in March from 5.3% in February.

However, average growth rose to 4.9% in the first quarter from 0.9% in the fourth quarter.

“But this was down solely due to currency effects rather than an actual improvement in US dollar transfers, a year-over-year lift that is more likely to wane than grow in the second half,” Pantheon Macroeconomics said.

It noted that remittance growth in peso terms is “now below the historical average for a 10th consecutive month.”

“This underperformance is likely only to worsen, looking at the lackluster momentum since the start of the year,” it added.

Data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances rose by 2.5% to $2.74 billion in March from $2.67 billion a year ago. It was the slowest growth since 2.1% in June 2023.

In the first quarter, cash remittances grew by 2.7% to $8.22 billion from $8 billion a year earlier.

The BSP expects cash remittances to grow by 3% this year.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said it is still possible to meet the central bank’s remittance target this year.

“The higher US dollar-peso exchange rate by more than 4% since the start of 2024 and more than 13% over the past two years or since the Russia-Ukraine conflict started in February 2022 could help reduce the need to send more remittances, with more peso equivalent, that are also needed to cope with higher prices locally from the point of view of overseas Filipino worker (OFW) families,” he said. 

Cash remittances that fuel household spending, account for about three-fourths of the economy.

Private consumption grew by 4.6% in the first quarter, slower than 5.3% in the previous quarter and 6.4% a year ago. This was the slowest since the 4.8% drop in the first quarter of 2021. — L.M.J.C.Jocson

Philippines in talks for sustainable aviation fuel plant

STOCK PHOTO

THE Department of Transportation said it is in talks with some groups to put up a sustainable aviation fuel (SAF) plant in the country. “We are encouraging the private sector because it is not the government that will put up the plant, it is the private sector. In fact we have some groups, encouraging them to get involved in the production of SAF,” Transportation Secretary Jaime J. Bautista told reporters on the sidelines of a forum last week. 

Mr. Bautista did not identify the groups involved.

“There are many materials from the Philippines (used for SAF) and these are being exported to Singapore to use for SAF. Although we cannot identify these groups yet, we have discussions with them and they will look at it,” he said. 

In March, President Ferdinand R. Marcos, Jr. said that the Philippines secured a commitment from Airbus, an aerospace company, to collaborate with the Transportation department on sourcing energy from landfills for biofuels and its eventual use in the aviation sector.

The Department of Energy said it is still working on the draft regulations governing SAF to help accelerate the adoption of green fuel.

SAF can help reduce emissions from air transportation, being made from nonpetroleum feedstock like agricultural waste and used vegetable oil.

The International Air Transport Association has estimated that SAF will contribute around 65% of the reduction in carbon emissions needed by the aviation sector to reach net zero by 2050.

In the Philippines, only Cebu Pacific currently operates SAF-powered flights. The budget airline has expressed its aspiration to integrate SAF across its network by 2030.

Meanwhile, flag carrier Philippine Airlines said it is working to secure a green fuel supply deal as it aims to operate SAF-powered flights to Singapore by 2026. — Ashley Erika O. Jose

KFC targets to open over 50 stores in PHL this year

PIXABAY

RAMCAR Food Group’s KFC Philippines said it plans to open over 50 stores this year to bring the brand closer to more provincial markets.

“In 2023, we ended with 382 stores, and we are bound to open more than 50 stores this year because our thrust is to bring KFC closer to our market,” said Charmaine Pamintuan, chief marketing officer of KFC, on the sidelines of the KFC Kentucky Town Music and Arts Festival on Saturday.

“These will be located in the National Capital Region, and some will be opened in provincial areas too,” she added.

To date, the company has already opened about ten stores. Last Friday, it opened a new store at SM Caloocan.

“One of our biggest strengths is actually in malls, and we know that SM is one of our biggest mall partners,” she said.

Ms. Pamintuan also said the Ramcar group plans to expand its farm in Bulacan to support the expansion of the company’s store portfolio.

“We are vertically integrated so that we can assure that from farm to table, it is actually monitored at the highest quality,” she said.

“There are plans, especially as we open more businesses in the Visayas and Mindanao areas. It’s part of something that we are looking at because expansion is one of our thrusts,” she added.

Last year, she said that the company was able to hit its target growth rate, which it aims to replicate this year.

“Coming from the two-year pandemic, we can still see people being excited to go out. So we still see revenge eating and revenge get-together,” Ms. Pamintuan said.

“We know that every time Filipinos get together, it is always with a meal, and we are fortunate that they enjoy having a meal together because KFC has offerings like our bucket meals,” she added.

Other brands under the Ramcar group are Mister Donut, Malcolm’s Place, and Tokyo Tokyo, among others. — Justine Irish D. Tabile

Metro Retail profit falls 16% with decreased general merchandise sales

METRORETAIL.COM.PH

LISTED Metro Retail Stores Group, Inc. saw a 16% decline in its first-quarter net income to P50.3 million, attributed to narrower profit margins resulting from a reduced contribution from the general merchandise segment.

 Net sales rose by 4.8% to P8.7 billion, the highest recorded first-quarter sales since Metro Retail’s public listing in 2015, Metro Retail said in a statement to the stock exchange on Monday.

Comparable sales during the period were also up by 2.8%.

 Among sectors, food retail climbed by 7.9% on strong sales of basic groceries while general merchandise dropped by 2.9% amid spending constraint on discretionary items due to persistent high inflation.

 With the reduced share to business of general merchandise, Metro Retail’s first-quarter blended gross margin fell to 20.8% from 21.9% last year.

 Earnings before interest, taxes, depreciation, and amortization declined by 5.1% to P389.2 million from P410.2 million on lower margins.

 In January, Metro Retail opened a Metro Value Mart in Lapu-Lapu City, Cebu, bringing its current network to 64 stores. It also had the groundbreaking of five supermarkets in Cebu and Leyte to boost its presence in Visayas.

 Metro Retail recently launched its 10-hectare Metro Distribution Center in Sta. Rosa, Laguna that seeks to strengthen the company’s logistics system and lays the foundation for the expansion pipeline throughout Luzon in the next few years.

 “Looking ahead to 2024, we are poised for growth with cautious optimism,” Metro Retail President and Chief Operating Officer Manuel C. Alberto said.

 “Our strategic plans are geared towards calibrated expansion, enhancing our online presence, and continuing to modernize our stores,” he added.

 Metro Retail operates various store formats such as Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.

 On Monday, Metro Retail shares were unchanged at P1.30 apiece. — Revin Mikhael D. Ochave

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