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Dead Space franchise is officially on hold at Electronic Arts

ELECTRONIC Arts, Inc. put the Dead Space series on ice for the second time, despite the release of a critically acclaimed remake last year that appeared to give new life to the troubled video-game franchise.

Although news that the sci-fi horror series was shelved came out this week, Electronic Arts made the decision as early as last spring, according to people familiar with the project. Hopes for a new Dead Space game at EA were derailed after sales of the remake missed the company’s expectations, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

After finishing the Dead Space remake, which was released in January 2023, a small team at the Electronic Arts (EA) subsidiary Motive spent a few months conceiving ideas for a new entry in the series, said the people. But those plans were never given a greenlight and fizzled before they could get very far. Since last summer, that team has instead been exploring other ideas while the bulk of the developers who worked on Dead Space moved to different projects.

The Giant Bomb YouTube channel suggested Wednesday that Motive had been developing a remake of Dead Space 2 that was shelved. Electronic Arts, based in Redwood City, California, denied the report of that work, telling the gaming site IGN, “We don’t normally comment on rumors but there is no validity to this story.” An EA spokesperson declined to comment further to Bloomberg.

The series, introduced in 2008, was received well by fans but never turned into the blockbuster that management envisioned. Following the disappointing 2013 release of Dead Space 3, the company shelved the series for a decade before bringing it back last year with a high-end remake of the first entry that received top review scores.

Motive said this week it is working on two games — a previously announced Iron Man project and a new Battlefield, which left the fate of the sci-fi horror series in question. — Bloomberg

Asset liability management for nonbanks

Banks are designed to allocate capital to business and consumers efficiently.  This is done by managing the risk of transforming short-term debt into long-term loans.  However, the financial crisis of 2007 revealed unbridled credit extension and wealth destruction.  Consequently, we saw massive failure in the banking industry.

Because of this, regulations have doubled up on financial institutions. Banks were required to hold higher levels of quality capital to absorb potential losses and mitigate risks. The liquidity of banks’ balance sheets is being regulated more intensely. Metrics on various facets of bank operations are now regularly monitored. Stricter capital requirements, liquidity standards, risk management guidelines, and stress tests rules were imposed.

A key tool used by financial institutions to manage their financial risk is Asset Liability Management (ALM). It is a mechanism to address the risk faced by a bank due to mismatch between assets and liabilities either due to liquidity or change in interest rates.  By maintaining equilibrium between assets and liabilities, financial institutions ensure ample liquidity to fulfill obligations and simultaneously invest in assets that yield long-term productivity.

Today, ALM is a required discipline for banks.  It aims to manage the volume, mix, maturity rate sensitivity, quality and liquidity of assets and liabilities to attain predetermined acceptable risk/reward ratios. The overall goal is to stabilize short-term profits, long-term earnings, and long-term substance of the bank. Banks use real time information system to review the maturity matching of assets and liabilities across various time horizons.

A good ALM system reviews the interconnectedness of several basic risk categories.  Liquidity risk pertains to the potential risks in meeting current and future cash flow commitments. Interest rate risk encompasses the uncertainties stemming from fluctuations in interest rates and their impact on forthcoming cash flows.  Deposit and loan products are primarily vulnerable and fluctuations in market interest rates can lead to imbalance between assets and liabilities.

Credit risk management involves assessing and reducing risks in lending activities to address potential losses. The aim is to ensure well-informed decision making by lenders.  The bank must satisfy a specified reserve position in relation to expected losses out of the loaned amounts. Operational risk management imposes robust internal controls.  The bank is required to implement sound corporate governance practices that ensures compliance to regulatory standards. The integrity, efficiency and resilience of an organization’s operations must be safeguarded.

While ALM is traditionally associated with banks and financial institutions, its principles and methodologies can also be applied to nonfinance firms to enhance strategic decision making, manage risk and optimize resource allocation.  Firms should monitor and manage risks associated with mismatches between the company’s assets and liabilities.

Nonfinance firms can use ALM principle to strategically allocate their resources, such as capital, human resources, and physical assets, in alignment with their long-term goals and objectives.  Just like banks, these firms face various risks, including market risk, liquidity risk, interest rate risk, credit risk, and operational risk.  The company should identify, measure, monitor and mitigate these risks effectively.

By analyzing the timing and magnitude of cash inflows and outflows, firms can ensure its liquidity position meets operational needs and financial obligations.  This involves managing working capital efficiently, forecasting cash flows accurately, and providing adequate liquidity buffers.

Nonfinance firms can adopt ALM principles related to long term planning and forecasting, including developing a financial model and doing scenario analysis that incorporate macroeconomic factors, including trends and business uncertainties.  The idea is to make informed business decisions and to be flexible in adapting to changing market conditions.

ALM principles require constant review of capital structure, finding the right balance between debt and equity that will minimize cost of capital and maximize shareholders’ wealth.  The company should identify its risk tolerance levels, quantify its cost of capital, and make sure it has adequate capital adequacy.

Finally, ALM helps with regulatory compliance and industry standards related to financial reporting. It forces management to implement robust risk frameworks, strengthen internal control and put in place good governance mechanisms to achieve firm transparency and accountability.

The lessons applied in the finance and banking industry can find its applications in nonfinance firms. The rigor of ALM is worth emulating. By leveraging in these practices, nonfinance firms can achieve greater financial stability, resilience, and sustainable growth.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

Benel Dela Paz Lagua was previously EVP and chief development officer at the Development Bank of the Philippines.  He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.

Cocolife redefines customer service with Just Ask Live (JAL)

Customer service is one of the cornerstones of success in the vast landscape of business operations. Every interaction — whether face-to-face, over the phone, or virtually — shapes the perception of a company in the eyes of its target market. Through enduring customer relationships, customer service can foster loyalty, advocacy, and sustained growth.

In line with its digital transformation journey, the biggest Filipino-owned stock life insurance company Cocolife is doubling down on its exceptional customer service by providing accessible customer support digitally with the unveiling of the Just Ask Live (JAL) Virtual Assistant.

At its core, the JAL Virtual Assistant serves as a reliable companion for Cocolife stakeholders, offering a direct channel for clients to seek assistance, interact with the company’s customer experience (CX) representatives, and promptly resolve their concerns.

“JAL was created to continuously let customers have a great customer journey virtually. JAL gives them personalized service and omnichannel customer experience. Providing video chat service is an essential step in creating seamless experience customers are looking for that results in customer satisfaction”, remarked Ms. Teresa R. Bose, assistant vice president and head of customer experience at Cocolife.

As the first-ever system of its kind in the country, JAL’s user-friendly interface and intuitive features offer maximum convenience to its users and add a human touch to its digital support system by giving concerned clients the option to video call or voice call one of Cocolife’s customer experience representatives.

The features enable Cocolife to foster authentic relationships and foster customer loyalty. By empowering their customer experience representatives through these interactions, Cocolife can establish genuine rapport and greater emotional connections with their clients.

“Our customer experience representatives are willing and ready to assist and give you a great customer experience,” Ms. Bose affirms.

The face-to-face dynamic in video calls, as well as direct interactions in voice chats, facilitates better communication between participants leading to a faster and more efficient way to address customer concerns.

“JAL is a technology that enables users to engage in a real-time conversation through the internet live,” Ms. Bose explained. “It can easily connect the customer and CX representative in real-time. It is a video chat that combines the power of visual and audio communication to create a more reliable interactive experience in real time.”

Moreover, JAL’s accessibility is a testament to Cocolife’s dedication to serving clients across diverse demographics. JAL is compatible with Google Chrome and needs only a minimum internet speed of 5MPBS, ensuring that customers can access support seamlessly, regardless of their location or device.

Furthermore, JAL’s webchat and video chat features require users to hold their phones or tablets horizontally to allow them to video chat, send messages, and attach files at the same time.

As Cocolife continues to blaze a trail in the Filipino insurance industry, its investment in pioneering technologies like JAL underscores its commitment to innovation, customer-centricity, and continuous improvement.

“In Cocolife, we are people-focused — both with how we service our customers and value our employees. We make it a point to provide the best possible servicing in the industry. From the time a customer purchases any of our products up to the time a claim has to be paid, we make it as convenient and efficient for them. Of course, they put their trust in us, so it is our mission to repay them for that trust,” Atty. Jose Martin A. Loon, President and CEO of Cocolife told BusinessWorld.

Through initiatives that prioritize customer satisfaction and engagement, Cocolife reaffirms its position as a leader in delivering unparalleled service experiences that resonate with clients on a personal level.

Just Ask Live (JAL) Virtual Assistant can be accessed through Cocolife’s website at https://crm.cocolife.com/webchat/customer/chat.

 


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Coaching poor performers

Last month, I started coaching all my 10 direct reports one-by-one and in private, with no significant improvement after three weeks. Am I doing it wrong? Please help. — Blue Star.

You need to tell me in detail how you’re doing it, except that we don’t have time for that. Whatever you’re doing, I’m sure you’ve communicated your expectations in clear terms. If not, that’s the first red flag.

Before I continue, let me tell you the experience of Mario (not his real name), a department manager in a medium-sized corporation.

Mario’s preferred coaching method was barking orders, frequently embellished with four-letter words. Mario was always in an agitated state even when taking a 30-minute nap during lunch. You could hear him snoring loudly in his well-lighted small room facing the glass windows where everyone would silently laugh at his facial distortions.

Given Mario’s style, do you think the workers listened to him? Obviously not. The workers would perform according to their perceived understanding of Mario’s instructions and expectations. The results were often disastrous. Why?

One reasonable guess is Mario’s combative and loud personality. His workers would often reject his direction due to his insecurities and lack of trust in the workers’ abilities. People also simply vary by learning style.

LEARNING STYLES
Some individuals are experiential learners who do not require close supervision. They can do the work independently and thrive on the opportunity to discover better ways of doing things. Others are bookish and must be guided by written policy and procedures. The rest are best guided by work instructions with cartoon illustrations showing the best result and also possible bad results.

If you can cater to individual training needs, you can adjust your coaching style to suit their orientation. Let us explore what adjustments you can make:

Self-discovery. People who prefer this type of learning are rare. They are independent-minded and like unbridled freedom to experiment. They prefer to challenge the status quo and thrive on “aha” moments. As long as you describe to them the issues, parameters, standards, and timelines, they will surely deliver superior results.

Regular feedback. Giving performance feedback is a tricky approach. Many don’t want to be judged wrongly. However, they tend to accept negative feedback if the work expectations are clearly communicated and objective. Frequency of delivering feedback can be an issue. Some people prefer to be told every week while others like it monthly.

Engagement learning. You can’t do engagement without motivation. You could start with a casual engagement dialogue to explore possible answers to the following questions: What are the difficulties of the job? What kind of resources are needed? How does this job help achieve career goals?

Facilitated learning. People learn on their own if their boss acts like a training facilitator. This can be frustrating to some managers who don’t have the patience for training. However, in the long run, this approach becomes effective as people become accustomed to a facilitated learning environment.

REWARD AND RECOGNITION
Poor performers will respect you if you give them reasonable recognition, which may not be limited to material rewards. This presupposes agreeing with your direct reports on clear targets and expectations at the beginning of the process. Obviously, we can’t measure performance against standards that have not been mutually agreed.

It is in the measurement of performance and proper rewards that we often find managers failing their people. You may have experienced it before. How many times have you labored long and hard over certain regular tasks and special projects that go unnoticed by your own boss?

This is happening every day. When you got no feedback on the quality of your work, you’re not sure if you did well or how you can improve your failings. If this has happened to you, chances are, it will happen again. The cycle goes on and on, until you break it with a reasonable reward system appropriate to the performance level of your workers.

 

Bring Rey Elbo’s leadership program called “Superior Subordinate Supervision” to your management team. Contact him on Facebook, LinkedIn, X or e-mail elbonomics@gmail.com or via https://reyelbo.com

Philippine Merchandise Trade Performance

THE PHILIPPINES posted a trade deficit of $3.65 billion in February, the slimmest in five months, as exports and imports both grew at the fastest pace in 16 months, data from the statistics office showed. Read the full story.

Philippine Merchandise Trade Performance

Measures implemented to address exam cheating, says Deloitte PHL

DELOITTE Philippines said it has implemented corrective actions following the US Public Company Accounting Oversight Board’s (PCAOB) order to fine the professional services firm for exam cheating.

“With regard to the PCAOB decision, Deloitte sets the highest expectations for the conduct of its professionals. Answer sharing on learning assessments is unacceptable and a breach of our ethical code of conduct,” Deloitte Philippines said in an e-mail.

 “Deloitte Philippines self-reported these matters to the PCAOB, implemented comprehensive corrective actions, and continues to serve clients with high quality and in accordance with applicable professional standards,” it added.

 On Thursday, Reuters reported that PCAOB imposed $2 million in fines on Deloitte Touche Tohmatsu Ltd.’s affiliates in the Philippines and Indonesia. The fines were for “violating the regulator’s rules and quality control standards due to widespread answer sharing on internal training tests.”

 It said that the regulator also sanctioned a former national professional practice director at Deloitte Philippines.

 In a statement on Wednesday, PCAOB said that it settled three disciplinary orders concerning the three entities as their “quality control deficiencies resulted in widespread answer sharing on internal training tests.”

 Since 2021, the PCAOB has sanctioned nine firms for inappropriate sharing of answers on internal training exams.

 In the PCAOB order, the regulator said that Deloitte Philippines failed to establish appropriate policies for administering and overseeing internal training tests.

By failing to establish such procedures, the firm was unable to identify that nearly all of its audit partners engaged in improper answer sharing from at least 2017 until early 2019, PCAOB said.

 PCAOB also said that the audit professionals either provided answers or received answers in online tests for mandatory internal training courses without reporting them.

 However, the regulator said that since the firm has implemented remedial and corrective measures aimed at ending the misdeed, the civil money penalty imposed has been lowered.

 These corrective actions include changing quality control policies and ensuring that its personnel don’t engage in improper answer sharing while obtaining degrees of technical training and proficiency.

 “Absent this extraordinary cooperation, the civil money penalty imposed would have been significantly larger, and the Board may have imposed additional sanctions,” PCAOB said.

The PCAOB imposed a $1 million penalty on Deloitte Philippines, which must be paid within 10 days of the issuance of the order dated April 10, while it barred the former national professional practice director from being an “associated person of a registered public accounting firm” and required him to pay $10,000. — Justine Irish DP. Tabile

Hail to the Minilateral Chiefs Biden, Kishida, and Marcos Jr.

KAMRANAYDINOV-FREEPIK

THE pageantry unfolding in Washington this week, and again this summer, will speak volumes about the US and its changing role in the world, as telegraphed through its alliances. It signals what’s worked best about American leadership since World War II, but also how that model must be updated for a new century, and how all American-led alliances must be proofed in case an isolationist should ever enter the White House, perhaps even next year.

This week US President Joe Biden is hosting a historic summit with the leaders of Japan and the Philippines, Fumio Kishida and Ferdinand “Bongbong” Marcos, Jr. Each country is a long-time bilateral treaty ally of the US, and both are now also converging into a new trilateral arrangement. It’s one of several “minilateral” partnerships that Biden is building in the Indo-Pacific. And all of those are intended to form a “lattice” of interwoven relations, meant to deter Beijing from trying to isolate or attack any nation in the region.

Then, in July, Biden will host the 31 other members of NATO (the North Atlantic Treaty Organization), now including Sweden for the first time. That’ll be an occasion to celebrate 75 years of deterring the Kremlin. (The alliance’s mutual-defense clause has been invoked only once, after the US was attacked by Al-Qaeda on Sept. 11, 2001.) But the 32 leaders will also have some hard conversations about their alliance’s design flaws, in particular the problem of burden-sharing.

If Biden has his way — and that remains to be seen — he’ll be able to keep what’s best in the transatlantic alliance, namely deterrence, and extend it to the Indo-Pacific region, while gradually fixing what’s worst in NATO, namely the free-riding by some allies, and making sure it doesn’t happen again in the emerging Asian lattice.

The free-riding problem within NATO has annoyed US administrations at least since the 1990s. It’s also a pet peeve of former president Donald Trump, who feels that tightwads such as Germany fleece American taxpayers by implicitly outsourcing their security to the US. But the wrong response — Trump’s — is to cast doubt on the US commitment to mutual defense, thus undermining deterrence. The right policy is to prod allies to spend their fair share. That’s been the approach since a NATO summit in 2014, when the allies agreed to spend 2% of GDP or more on defense. Back then only three members did; this year 18 will. Obviously, there’s work left to be done.

Security arrangements in the Indo-Pacific region evolved differently after World War II, even if the challenges are similar. There was an early attempt to build a multilateral alliance analogous to NATO (called SEATO, the Southeast Asia Treaty Organization), but it foundered over diverging interests in the region (and, not least, America’s war in Vietnam). What emerged instead is what Rahm Emanuel, the US ambassador to Japan, calls a hub-and-spokes system.

In this model Washington (the hub) has discrete bilateral treaties (spokes): one with Japan, another with South Korea, others with Thailand, the Philippines, Australia, and New Zealand. The goal was and is still to deter adversaries (Pyongyang for Tokyo and Seoul, Beijing for all). But the model, unlike NATO’s, didn’t envision the various allies also cooperating with, much less protecting, one another. Some preferred to loathe each other, notably South Korea and Japan.

That’s what Biden set out to change. In a landmark agreement last summer at Camp David, he brought together South Korea and Japan for a new trilateral entente. This week’s summit adds a second trilateral, between Washington, Tokyo, and Manila. There’s also a quadrilateral security “dialogue,” imaginatively called the Quad, which includes the US, India, Australia, and Japan. And there’s a third tri (with all the quads and tris, wonks increasingly just say “mini”), called Aukus; it includes the US, UK, and Australia.

Each partnership is different, but Biden hopes that they’ll all point in the same general direction: tighter cooperation, stronger deterrence and better burden-sharing than NATO has offered. Washington is especially enthusiastic about developing Aukus, and perhaps extending it to partners such as Japan. (Diplomats need lighthearted relief too, so the race is on to coin the acronym, with Jaukus in an early lead.) Canberra, however, first wants Aukus to work properly, before thinking about enlarging it.

The bigger idea is actually about elaborating on just one aspect of Aukus. The partnership has two parts. The first aims to supply nuclear-powered (but conventionally armed) submarines to Australia. The second, called Pillar 2, is much broader and envisions the three countries jointly developing the tools of future warfare, from electronic weapons to artificial intelligence, undersea robots, quantum technologies and more.

This is where Japan could join in, and eventually other allies. The difficulty is that such collaboration requires the utmost mutual trust in keeping information secure. The Aukus countries, along with Canada and New Zealand, have practice with each other, because they already share intelligence in a grouping called the Five Eyes. Japan still has to adopt some of the protocols.

But then it could bring vast resources to joint lattice defense. Go back to that old NATO problem of burden-sharing. It’s been an issue in the Indo-Pacific too. South Korea spends more than 2% of its GDP on defense, and Australia about that much, but Japan, the Philippines, and others less. Now, though, Japan has accepted the challenge, and plans to double its military budgets to 2%. If it and other allies coordinate these investments with Washington and one another, everyone would have skin in the game, and all would be stronger together.

That’s an idea so good it should be also be re-exported back to NATO. The American side, in principle, is ready. In the past, the US wanted to dominate and hog military technology, says Kurt Campbell, a top diplomat, whereas it’s now open to sharing with its friends, as long as they do their part. I can’t wait to see how that goes down in Berlin, Madrid, and Rome.

As the various leaders file through Washington this week and in July, the pomp and circumstance may be distracting — Kishida will address a joint session of Congress, among other events. But it’s good to keep grand strategy in mind, especially as naysayers in the US and the partner nations cavil about costs and affordability.

All this military kit and summitry are certainly expensive. But it’s all meant to persuade potential aggressors — in Moscow, Beijing, Pyongyang, and beyond — that they would be foolish ever to test any alliance the US leads. As long as Washington, under Biden, Trump, or any president, can send that message credibly, it can deter a major war. And that suddenly makes the bill look rather cheap.

BLOOMBERG OPINION

How PSEi member stocks performed — April 11, 2024

Here’s a quick glance at how PSEi stocks fared on Thursday, April 11, 2024.


Peso inches down vs dollar on US inflation data

BW FILE PHOTO

THE PESO inched lower against the dollar on Thursday following faster-than-expected US consumer inflation data that raised fears of a delay in the start of the US Federal Reserve’s planned policy easing.

The local unit closed at P56.50 against the dollar on Thursday, weakening by less than a centavo from its P56.491 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session weaker at P56.53 versus the greenback. Its worst showing was at P56.58, while its intraday best was at P56.42 per dollar.

Dollars exchanged went up to $1.31 billion from $1.22 billion on Monday.

The peso weakened as faster-than-expected US inflation could push back the Fed’s rate cut cycle,  Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

US consumer prices increased more than expected in March as Americans continued to pay more for gasoline and rental housing, leading financial markets to anticipate that the Federal Reserve would delay cutting interest rates until September, Reuters reported.

The third straight month of strong consumer price readings reported by the Labor department on Wednesday also suggested that the pickup in inflation in January and February could not be solely attributed to businesses raising prices at the start of the year as economists had argued.

The consumer price index (CPI) rose 0.4% last month after advancing by the same margin in February, the Labor department’s Bureau of Labor Statistics said.

In the 12 months through March, the CPI increased 3.5%, the most since September. The CPI was also boosted by last year’s low reading dropping out of the calculation. It rose 3.2% in February. Economists polled by Reuters had forecast the CPI gaining 0.3% on the month and advancing 3.4% year on year.

Shortly after the data, financial markets pushed back their expectations for the first rate cut to September from June, according to CME’s FedWatch Tool. They now expect only two rate cuts instead of the three envisaged by Fed officials last month. A minority of economists see the window for rate cuts closing.

The central bank has kept its policy rate in the 5.25%-5.5% range since July. It has raised the benchmark overnight interest rate by 525 basis points since March 2022.

For Friday, the Mr. Ricafort said that he expects the peso to move from P56.40 to P56.60 versus the dollar. — L.M.J.C. Jocson with Reuters

PHL stocks drop further as March US CPI picks up

REUTERS

PHILIPPINE STOCKS closed lower on Thursday following faster-than-expected US consumer inflation last month, which could lead to delayed policy easing by the US Federal Reserve.

The bellwether Philippine Stock Exchange index (PSEi) dropped by 0.94% or 63.42 points to end at 6,677.65 on Thursday, while the broader all shares index retreated by 0.94% or 33.72 points to close at 3,525.87.

“Philippine shares took another plunge as investors assessed a hot US March consumer price index (CPI) reading that fueled worries the Federal Reserve may implement fewer rate cuts than expected,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Negative spillovers from Wall Street driven by the higher-than-expected US inflation for March clouded investors’ sentiment. The bourse was in the red territory for the whole session,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

US consumer prices increased more than expected in March as Americans continued to pay more for gasoline and rental housing, leading financial markets to anticipate that the Federal Reserve would delay cutting interest rates until September, Reuters reported.

The third straight month of strong consumer price readings reported by the Labor department on Wednesday also suggested that the pickup in inflation in January and February could not be solely attributed to businesses raising prices at the start of the year as economists had argued.

The consumer price index rose 0.4% last month after advancing by the same margin in February, the Labor department’s Bureau of Labor Statistics said.

In the 12 months through March, the CPI increased 3.5%, the most since September. It rose 3.2% in February. Economists polled by Reuters had forecast the CPI gaining 0.3% on the month and advancing 3.4% year on year.

“This Thursday, the local market dropped by 63.42 points (-0.94%) to 6,677.65 as investors took cues from the hawkish pause of the Bangko Sentral ng Pilipinas (BSP) in its recent policy meeting. BSP rate cut hopes were tempered amid mounting inflationary risks at home,” Mr. Plopenio added.

Majority of sectoral indices closed lower. Property went down by 3.54% or 95.33 points to 2,595.55; industrials dropped by 1.19% or 105.18 to 8,697.41; holding firms inched down by 0.95% or 59.86 points to 6,233.91; and services decreased by 0.37% or 6.91 points to 1,855.67.

Meanwhile, financials climbed by 1.09% or 22.15 points to 2,040.69, and mining and oil rose by 1.03% or 84.20 points to 8,223.17.

Value turnover rose to P6.72 billion on Thursday with 747.92 million issues changing hands from the P4.26 billion with 571.46 million shares traded on Monday.

Decliners outnumbered advancers, 134 against 57, while 50 names closed unchanged.

Net foreign selling dropped to P222.65 million on Thursday from P930.83 million on Monday. — R.M.D. Ochave with Reuters

NFA approves palay buying prices topping out at P30/kg

A farmer threshes newly harvested palay grains at a ricefield in Mogpog, Marinduque in central Philippines, March 22, 2016. — REUTERS

THE National Food Authority (NFA) Council said on Thursday that it approved buying prices for palay, or unmilled rice, that top out at P30 per kilogram (kg), depending on how the grain is graded and with price variations by location.

“What the (NFA) Council approved is a range for dry and clean palay of between P23 to P30 (per kg). For fresh, it is about P17 to P23 (per kg),” Agriculture Assistant Secretary and Spokesman Arnel V. de Mesa told reporters.

Last year, the NFA set the purchase price for dry and wet palay at P19-P23 and P16-P19 per kg, respectively.

The NFA is tasked with purchasing domestically grown rice and hold it in reserve in the event of shortages or calamities.

Traders are buying dry palay from farmers at P27 to P30 per kg.

“If the NFA’s buying price is P23 per kilo, (they) really can’t buy anything — minimal amounts at best. So, it was hiked a little so that the NFA can catch up with the price offered by traders at the moment,” he said.

Additionally, Mr. De Mesa said that rice held by NFA warehouses will now be disposed of through auction.

Stocks held for less than six months will be about 20% cheaper than the monitored prices of the Philippine Statistics Authority (PSA), while rice kept for longer than six months will be sold at a discount of about 30% from the PSA monitored price. 

NFA OIC Administrator Larry Lacson said that the agency will begin drafting guidelines on the new purchasing price, which will vary by province.

He added that the NFA is expecting to implement the new price scheme next week.

“There is no uniform price nationwide… It’s on a per province basis. ’Yun ang isang bago ngayon (that’s what is new now). We will issue a price bulletin for each province,” Mr. Lacson said.

Asked to comment, Raul Q. Montemayor, Federation of Free Farmers national manager, said that few farmers can comply with the NFA’s quality standards due to lack of access to drying, storage and trucking facilities.  

“Still, it will be a good opportunity for some farmers to sell to the NFA rather than to traders who are currently buying at between P25 to P27 per kilo,” Mr. Montemayor said in a Viber message.

Bantay Bigas spokesperson Cathy L. Estavillo said that the government should increase the procurement budget of the NFA so that a “significant volume” of rice can be purchased from domestic farmers.

“At the same time, the NFA should also relaxing the requirement for the types of rice they buy. Ordinary farmers cannot meet the 100% clean and 14% dry standard due to the lack of post-harvest facilities,” Ms. Estavillo said in a Viber message.

As of March 1, the national inventory of rice declined 3% to 1.37 million metric tons (MT), the PSA reported.

Stocks held by NFA facilities declined 59.9% to 41,290 MT compared with a year earlier. — Adrian H. Halili 

Rice imports hit 1.18 million MT

PHILSTAR FILE PHOTO

THE PHILIPPINES imported 1.18 million metric tons (MT) of rice as of April 4, the Bureau of Plant Industry (BPI) reported.

The BPI said rice imports in April so far amounted to 23,539.92 MT.

As of the first quarter, shipments had totaled 1.15 million MT, up 43.6% from a year earlier.

The BPI reported that Vietnam remained the country’s top supplier of rice as of early April, accounting for 62.4% of all imports in the year to date, or 734,583.07 MT.

In January, the Philippines and Vietnam signed an agreement giving the Philippines a quota of 1.5 million to 2 million MT of rice annually for five years.

Thailand supplied 251,738.43 MT during the period, or 21.4% of the total, followed by Pakistan with 124,038.5 MT, or 10.5%.

Rounding out the top five were Myanmar and China which shipped 58,080 MT and 4,680 MT of rice, respectively.

The US Department of Agriculture (USDA) has estimated that Philippine rice imports will increase to 4 million MT this year. The estimate, if borne out, would be 11.7% higher than the 3.58 million MT imported in 2023.

However, the Department of Agriculture (DA) said that the imports are unlikely to hit USDA forecast levels due to better-than-expected domestic production. The DA is targeting a palay (unmilled rice) harvest of above 20 million MT.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the USDA import estimate was a “worst-case scenario” should domestic rice output be severely affected by El Niño. — Adrian H. Halili