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Keppel Philippines board OK’s unit’s land sale in Batangas for P1.5B

KEPPELLAND.COM.PH

THE BOARD of Keppel Philippines Holdings, Inc. has approved the sale of land owned by its subsidiary in Bauan, Batangas amounting to P1.5 billion, the listed company announced on Tuesday.

The board authorized the sale of a 24.9-hectare land owned by its unit, Goodsoil Marine Realty, Inc., to LS Shipping Management Corp., Keppel Philippines said in a stock exchange disclosure.

The land is located in Barangays San Miguel and San Roque. Keppel Philippines has a 51% stake in Goodsoil Marine Realty.

“The sale will improve the financial conditions of the issuer (Keppel Philippines) and Goodsoil Marine Realty,” Keppel Philippines said.

“The sale comes after a strategic review of investments and the opportunity to sell the land at valuation,” it added.

Keppel Philippines has business interests in investment holdings and real estate, while Goodsoil Marine Realty is engaged in the construction and repair of all types and classes of vessels together with the related services and operations of a shipyard.

On Tuesday, Keppel Philippines “A” shares fell by 29.73% or P2.20 to P5.20 apiece while Keppel Philippines “B” shares were last traded on March 7 at P7.46 per share. — Revin Mikhael D. Ochave

Billionaire shipping clan gives ‘exceptional’ donation to Louvre

THE MUSÉE DU LOUVRE announces the CMA CGM Group’s exceptional support for the creation of a new department — PRESSE.LOUVRE.FR

FRANCE’S billionaire Saade family has made a major donation to the Louvre museum through its shipping line, a further step by the clan to raise its business and philanthropic profile.

The “pivotal” backing will allow the country’s biggest art repository to move ahead with a plan for a new department dedicated to Byzantine and Christian art of the Orient, according to a statement released on Tuesday. Neither the company the family controls, container line CMA CGM SA, nor the museum would specify the size of the donation, saying only that it is “exceptional” enough to support creating a new department.

The project is for a collection of 20,000 objects that the Louvre already owns or is in the process of acquiring to be displayed on a rotating basis in a series of rooms starting in 2027, according to a museum spokesperson.

The donation reflects the family’s deep Mediterranean roots, said Tanya Saade Zeenny, daughter of the company’s late founder, Jacques. Her father immigrated to France from war-torn Lebanon and started the line in 1978 in Marseille with one leased vessel.

Her brother, Rodolphe Saade, has led closely held CMA CGM through an aggressive expansion plan in recent years, raising the group’s public profile. As chief executive officer, he’s regularly been part of the business delegations accompanying President Emmanuel Macron on foreign trips or when heads of state visit France.

On the cultural front, the company has sponsored work in France such as the restoration of the Apollo basin in the gardens of the Versailles Palace and the renovation of the Musee National de la Marine.

The Saade family is worth about $22 billion, according to the Bloomberg Billionaires Index. — Bloomberg

Ride-hailing, delivery services to help boost PHL economy — analysts

KSENIIA ILINYKH-UNSPLASH

THE RIDE-HAILING and on-demand delivery services industry is expected to make a notable contribution to the Philippine economy, analysts from the University of Asia and the Pacific (UA&P) said on Tuesday, citing a study on one of the service providers.

Gregorio Mabbagu, a professor at the UA&P-School of Management, said that for every peso spent on the Grab Philippines platform, an additional P3.42 is injected into the national economy.

“If you go home using Grab and it’s let say P100, then you just multiply it to P3.42, so in effect, you are contributing to the economy of about P342,” he said during a briefing on Tuesday.

The result was among the key findings in the study conducted by the UA&P-Center for Research and Communications (CRC) titled “The Impact of Ride-Hailing and On-Demand Delivery Services on the Philippine Economy: A Focus on Grab Philippines.”

The study, commissioned by a third-party consultancy firm, found that consumer patronage of Grab services accounts for 0.07 to 0.3% of the national gross domestic product. 

From 2019 to 2021, Grab’s total economic contribution ranged from P37 billion to P165.6 billion, according to the study.

The scope of the study was limited to key regions: National Capital Region, Central Luzon, Cebu, and Davao City. It also considered only the transport services, including four-wheel transport services and two-wheeled services for food and items.

Grab Philippines’ business underwent assessment in terms of national multiplier output, national household income, and the national average of unemployed persons.

“The basis of a multiplier study rests on the assumption that an increase in spending translates into spillover increases in the performance of other sectors of the economy,” the study said.

The multiplier output for Grab Philippines’ services is higher compared to other heavy industries in the country, such as mining, according to the UA&P-CRC.

“We would say substantial as a tech company, especially when it comes to spurring a generation of income,” Mr. Mabbagu said.

Meanwhile, a peso increase in spending on Grab Philippines’ services generates an additional P0.44 in the household income of employees and partners, accounting for 0.10-0.17% of the total family income from 2019 to 2021.

During the period covered in the study, the platform’s services contributed to an equivalent of between P23.8 billion and P40.3 billion.

The Philippine economy grew by 5.6% in 2023, slower than the 7.6% expansion in 2022.

“The prospects of the industry would definitely be tied to, among others, the increase in the buying power of households,” Cid L. Terosa, an associate professor and senior economist at the UA&P said. 

”The increase in buying power of households will definitely push the industry forward and if you’re looking at the better economic performance this year, I would say that the performance of ride-hailing and on-demand delivery services will also improve,” he added.

Mr. Terosa said that the services depend a lot on road works and transport networks. “Income would really drive this industry further, aside from the technological developments,” he added.

Thomas G. Aquino, a senior fellow at the UA&P-CRC, said that the prospects in the ride-hailing and on-demand delivery services are “quite high” and are projected to expand.

“I’m not just looking at the Philippines, but the entire ASEAN as well, and other parts of the world,” Mr. Aquino said. “I think we have to always understand that this is a new economic activity… that is technology-based, and it is a platform on transportation.”

The Philippines’ transportation agencies need to collaborate with other digitally concerned agencies to enable the industry to grow further, he also said.

“Grab remains firm and focused in its commitment to being an active partner of the government in their growth and development agenda — and we are humbled to see this solidified in concrete economic outcomes,” Grab Philippines Country Head Grace Vera Cruz said in a statement.

“We understand that much work needs to be done in further driving the nation forward, and we are eager and prepared to help usher in a new phase of inclusive growth and prosperity — with the support of our partners in the government and public sector, and our regulators,” she added. — Sheldeen Joy Talavera

Practical solutions to the education crisis: The role of the principal

FREEPIK

(Part 6)

A good teacher is formed within a whole community (beyond technical competence), in human virtues, especially fortitude, temperance, and prudence — the cardinal virtues. These are the personal virtues that should be the objects of personal formation.

Then there are the social virtues: the members of the academic community, at each one’s pace and in accordance with one’s work relationship with the students, are deliberately formed in human virtues, particularly justice and the spirit of solidarity. The teachers have to set the right example to the students on the responsible use of freedom in their day-to-day lives and dealings with one another. There must also be the setting of high standards of human conduct by helping the teachers “breathe” norms, ideals, and noble targets. In private schools which are denominational, there is a need for doctrinal and ascetical formation through ample opportunities for one’s growth in faith and religious practice.

As regards other school concerns, the following have to be kept in mind:

1.) Custody of the school spirit or corporate culture — that the members of the academic community feel a collegial obligation towards preserving the corporate culture of the school through their private and public conduct.

2.) School representation — that the leaders consciously upgrade the school public image and representation, in appearance, words, and deeds.

3.) Vertical and horizontal unity — that the school leaders strive with determination to attain unqualified unity of criteria and spirit between superiors and subordinates and among peers.

4.) Day-to-day governance — that the managers of the school are aware of their leadership and goal execution function in the daily operations of the school.

5.) Administration of the school — that the members of the academic community contribute to the efficiency with which the details of administration are carried out.

6.) Management of financials — that everyone works towards the continued viability of the school in his or her own big and small ways and in accordance with his or her particular office.

Dr. Antonio Torralba makes a special reference to the Principal as being the teacher par excellence. Although their main role is that of an administrator, the principal must set the tone, which would be difficult to do unless they are also an excellent teacher. For them to have an eye for what is good teaching, the principal must first of all be a good teacher. The principal must also be a cultured person, knowledgeable in many fields of learning and human endeavor. Otherwise, they cannot effectively lead teachers towards the level of culture all schools worth their name should strive for. As an administrator, the principal must be a sensitive soul, especially as regards human motivations and aspirations, strengths and weaknesses, and reality in general. The Principal holds a most potent office that can transform the school they lead into a dynamic, vibrant, and intense community — or a stale, downbeat, amorphous collection of frustrated, uninspired individuals wrongly called “teachers.” The quality of teaching in the school ultimately rests on the inspired leadership of the principal.

To end this series of articles on practical solutions to the education crisis, let me quote from the writings of another outstanding educator who has devoted a great part of her professional life to values education for teachers, especially in the public schools. She is my sister, Dr. Severina Villegas, who has influenced the lives of literally hundreds of teachers from all over the Philippines who took the Master in Values Education Program (MAVE) in the University of Asia and the Pacific (and its predecessor institute, the Center for Research and Communication).

Rina collected letters she received from graduates of this program through the years in a book she authored entitled Human Connection: A Professional Journey of Hope. The contents of these letters indicate that no matter how underpaid and deprived of physical resources Philippine teachers have been through the years, they could still be motivated to strive for excellence in their profession as educators. The letters came from all over the archipelago.

From Luzon: “Not only did I become more assertive, but I was able to reason for what I believe in.” This was a recurring line in the letters. “The conferences in values formation that I have attended with you have helped me a lot in tightening the noose and turning around hundreds of misguided souls each day. Every year, the going gets rough as more incidents of misbehavior occur. I consider a day without a student sent to my office a very lucky day. The offences might be trivial, but I know, if left uncorrected, these could blow up into serious cases and this, I cannot allow.”

From the Visayas: “In school I assure you that I always give priority to holding classes for the good of my pupils among other activities outside the class, which always come second. Human as I am, I experienced doing what some teachers were doing, having the ‘I don’t care attitude’ toward their pupils. Then the MAVE idea which instilled in us the value of giving justice to children under our care makes me strong to overcome my weakness. I am guided by what is expected of me as a teacher. This made me the favorite topic in ‘gossips’ among teachers who indulge in such past times.”

From Mindanao: “My advisory class is the favorite section for transferees and repeaters. The Guidance Coordinator assigned these students to my class because she considered me a good caretaker. There was even a school year when I had 96 students in my advisory class. This did not depress me because of so much work. Instead, it challenged me to really take good care of the beautiful souls.” To this teacher, Rina gave the following advice: “Your advisory classes are natural channels for mentoring of students. The number of students in every advisory class is overwhelming. Because of the hectic class schedules, you will not be able to mentor all. You can mentor the student leaders who can then help in building the culture of diligence, respect, responsibility, and kindness. The student leaders can be the catalysts. The hidden curriculum in the advisory class is composed of a series of teaching moments. As you model care, the student leaders will absorb the culture of care which has a lasting effect in their lives.”

A letter from a MAVE graduate that was especially moving was that of a school principal who has since passed away in Toledo, Cebu. It was a letter of gratitude:

“There were many attempts to send you a letter, but my tears kept pouring as if they were competing with my pen. Whoever could forget people who have touched my life, who exalted and elevated my soul, prepared and groomed me to become a lamb to be sent to the world, of wolves, ‘taming the lions,’ ‘reprimanding with a balsam of affection.’ But there are times when I stood steadfast amidst contradiction when the truth was being distorted. The legacies of those who have gone ahead were sealed by their personal integrity. From this flowed fidelity to their faith and family, work excellence and social responsibility.”

These letters reflect real-life stories of public school teachers who were able to overcome the many adverse circumstances they encountered in carrying out their duty of imparting quality education to their pupils. It may take some time before we can effectively address the challenges facing our educational system, e.g., lack of funding, overworked teachers, undernourishment of children, etc. It is possible, however, to still rely on the inherent nobility of soul and love for their pupils of many of them to look for practical solutions to our ongoing educational crisis even in the short run, during the remaining years of this present administration.

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

As Wall Street titans gather, finance museum searches for a home

MUSEUM OF AMERICAN FINANCE — MOAF.ORG

NEW YORK — Financial industry heavyweights convened in New York last week to raise funds for a finance museum that has lost its iconic Wall Street address.

At the Museum of American Finance gala, billionaire Ken Griffin welcomed attendees on enormous video screens in Manhattan’s art deco-style Ziegfeld Ballroom. Mark Carney, chair of Brookfield Asset Management and ex-Bank of England governor, honored former Federal Reserve Vice-Chairman Richard Clarida. JPMorgan Chase and Wells Fargo bought tables.

“The philosopher Santayana said: those who are ignorant of history are doomed to repeat it,” Howard Marks, billionaire co-founder of Oaktree Capital Management, told Reuters before he received an award. “This is equally true in the investment business: those who are ignorant of history are doomed to lose money and/or miss opportunity.”

The 455 attendees raised $1.5 million for the museum. Yet its collection — which includes a bond signed by George Washington, a ticker tape from the 1929 stock market crash, and early examples of US currency — languishes in temporary storage in Georgia after spending several years in the Queens borough of New York City.

At the gala, guests dined on burrata and braised beef short rib. They murmured in appreciation when a bond for the Louisiana purchase — which doubled the size of the US — was projected onto the jumbo screens. A reference to President Ronald Reagan got a smattering of applause.

Mr. Carney shared a lesson from his time at Goldman Sachs.

“If someone in our industry explains something to you… and that explanation doesn’t make sense to you, ask them to repeat it — and if it still doesn’t make sense, walk away,” he said. “When feigned knowledge masks real ignorance, that leads to panic.”

Mr. Clarida, who serves as a professor at Columbia University and advises asset manager PIMCO, expressed pride in the Fed’s pandemic response as he received an award.

“The Fed acted decisively and expansively in the spring of that year to prevent what could well have spiraled downwards into an economic depression and financial crisis,” he said. “The Fed’s nimble and creative response to the pandemic collapse represents the Fed at its best.”

Like many other businesses, the finance museum suffered during the COVID-19 pandemic after facing other setbacks.

Its previous home at 48 Wall Street was itself a part of financial history, serving as the original headquarters of the Bank of New York founded by Alexander Hamilton. The museum opened in 2008 on the eve of the global financial crisis.

Since then, its objects and documents have had a long journey. In 2018, they were displaced when a burst pipe damaged the museum’s three floors, including its grand exhibition hall. Last summer, the collection was loaded into a tractor trailer and transported from Queens to the Georgia archive.

“We haven’t lost sight of the value of a physical location for our museum,” finance museum President and chief executive officer  David Cowen told attendees. “We’re in conversations about discounted or donated space, but it’s not too late — if you’d like to house this incredible museum, come and talk to us.”

The museum still publishes a magazine, holds virtual lectures, and organizes events hosted in other spaces. It has an eight-case traveling exhibition that can be rented to bring in revenue.

While it awaits a permanent space, the museum has digitized 500 boxes containing 300,000 pages, while 835 of its objects have also been processed by archivists.

Lina Lin, a freshman at Yale University who received a scholarship from the museum, has never seen the exhibits in person. Her interest in economics was sparked by taking the museum’s virtual personal finance course as a high school student.

“My most surprising takeaway was the amount of people who don’t have access to financial education,” Ms. Lin said. “I would prefer a physical location just because it’s more centralized… it’s more like a gathering place.” — Reuters

RLC connects Metro East mall to LRT-2 station

ROBINSONS Land Corp. (RLC) announced on Tuesday that Robinsons Metro East-The Link, which directly connects the mall to the Pasig-Marikina station of the Light Rail Transit Line-2 (LRT-2), is expected to be fully leasable in the next few months.

“Malling in transport hubs is something that air travelers are quite familiar with. Frequent flyers typically identify airports with duty free shops… The Pasig-Marikina Station of the LRT-2 provides a similar experience as it becomes more than just a major train hub,” RLC said in a statement. 

The Link, an expansion of RLC Metro East in Marcos Highway, Pasig City, encompasses an additional 4,000 square meters of space directly connecting the mall to the LRT-2 station, Joel S. Lumanlan, RLC vice-president for operations and marketing, said, adding that it was launched in 2022.

“We officially opened it to the public last May 2022. We had some fixes over time. We evaluated how it is going to be directly linked to the mall and now it is in full bloom,” Mr. Lumanlan told reporters.

RLC is also planning to launch more transport hubs directly connecting its malls to stations of LRT-2, he said.

“Our hope is to be able to replicate this kind of model also in some other malls,” Mr. Lumanlan said.

“There will be additional malls that will also [be connected],” he added.

On Tuesday, RLC and the Light Rail Transit Authority signed a memorandum of agreement to address right-of-way issues and other logistical implications of the project. — Ashley Erika O. Jose

A comprehensive vision for security cooperation: the PHL-Australia experience

PPA-NOEL B. PABALATE

President Ferdinand Marcos, Jr.’s visit to Australia was a success in all measures. I refer here not only to the warm reception to President Marcos Jr. by the Australian public and leaders. During the trip, commitments were renewed and solidified, tangible pledges were made, and a much clearer picture of the relationship between the two countries emerged.

Addressing the Australian Parliament and acknowledging the multi-faceted challenges in various fronts and domains, the president articulated a comprehensive vision for security cooperation. His talk centered on the pressing issue of security in the West Philippine Sea and underscored the importance of upholding international law and safeguarding freedom of navigation.

He outlined a forward-looking vision for defense and security cooperation between the Philippines and Australia, highlighting the importance of strategic partnership and bilateral cooperation in addressing common security concerns. Throughout his speech, he reiterated the shared commitment of both nations to a rules-based order and regional stability, underscoring the critical role of collective action in confronting geopolitical threats and ensuring peace and prosperity in the Indo-Pacific region.

Four main topics fall under this broad scope: the West Philippine Sea, strategic partnership and bilateral cooperation, energy security, and economic partnership.

The South China Sea is a vital global waterway for regional and global peace. It is thus concerning that Chinese warships continue to be present in the West Philippine Sea, serving to highlight ongoing tensions in the region.

Seventy-eight years: this is how long the Philippines and Australia have had diplomatic ties. They collaborated during World War II. The two countries’ special relationship is shown by the fact that Australia is one of the few countries with a Visiting Forces Agreement (VFA) with the Philippines, aside from the US.

With regard to energy security, President Marcos Jr. praised Prime Minister Anthony Albanese for his commitment to a world without nuclear weapons. Important treaties in promoting nuclear disarmament were highlighted such as those of Bangkok and Rarotonga. The president also expressed concerns about the proliferation of nuclear weapons, citing the buildup of global weapon stockpiles, particularly in North Korea, and the war between Russia and Ukraine.

The Philippines is situated in a region where tensions involving nuclear-armed states, such as North Korea, can have direct implications for its security. Marcos Jr.’ advocacy for nuclear disarmament aligns with the country’s interests in promoting regional stability and reducing the risk of conflict. By championing nuclear disarmament and advocating for nuclear risk reduction, the Philippines under Marcos Jr. demonstrates its commitment to international peace and security.

This strengthens our country’s position in global diplomacy and aligns it with other nations striving for a world free of nuclear weapons. The Philippines’ significance in global affairs is growing, boosting its stature on the international stage and fostering closer relationships with key allies. This also means vast potential: economic opportunities, technological exchanges, and cultural cooperation, benefiting Filipinos through potential job creation and economic growth.

Most tangibly, President Marcos, Jr. secured $1.53 billion, or P86 billion, in investments, from 12 business deals signed during the Philippine Business Forum on the sidelines of his participation in the ASEAN-Australia Special Summit in Melbourne on Monday.

Filipino and Australian business leaders inked 12 business deals consisting of 10 memoranda of understandings (MoUs) and two letters of intent (LoIs) to invest in the Philippines. Among the projects are the design, development, commissioning, and funding of a Tier-3 Data Center with a capacity of 30 megawatts (MW) to 40 MW in the Poro Point Freeport Zone, and the building of Next-Generation Battery Manufacturing plants in the Philippines.

Recent global challenges present an opportunity for the Philippines to enhance its participation in regional and global value chains. Marcos Jr. also highlighted the country’s commitment to purposeful reforms, which is evident in key legislative amendments such as the Public Service Act, Foreign Investments Act, Retail Trade Liberalization Act and the Renewable Energy Act. Other legislative amendments include the streamlined business registration, infrastructure development, and the Comprehensive Tax Reform Program (Corporate Recovery and Tax Incentives for Enterprises Act), and the overhaul of fiscal incentive structures and responsive policies, including those facilitating public-private partnerships (PPP). He also highlighted the establishment of the Maharlika Investment Fund, which is the country’s sovereign wealth fund that underscores a dedication to financing priority projects and driving socioeconomic impact.

President Marcos Jr. has underlined the positive role of Australia in ensuring peace and stability in the Indo-Pacific region, specifically its way of deepening its engagement with its neighbors to promote their economic welfare.

Strengthening defense cooperation with Australia responds to the evolving security concerns in the West Philippine Sea. This commitment to enhancing bilateral ties not only promises economic and cultural benefits but also reinforces a rules-based order for regional stability. Central to these efforts is the safeguarding of Philippine sovereignty, the promotion of regional peace, and the pursuit of opportunities that ensure the prosperity and well-being of Filipino citizens.

Indeed, we share many things with Australia — above all a commitment to a rules-based order reflects a shared interest in upholding international laws and norms, offering a pathway to stability amidst geopolitical tensions. The strength and unity of such friendships hold great strategic value to our country and our people.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Gov’t makes full award of 10-year Treasury bonds

RJ JOQUICO-UNSPLASH

THE GOVERNMENT fully awarded the reissued bonds it offered on Tuesday amid strong demand for the papers and expectations of slower US consumer inflation last month.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 10-year bonds it offered on Tuesday as total bids reached P96.071 billion, or more than three times the amount on the auction block.

The bonds, which have a remaining life of nine years and 10 months, were awarded at an average rate of 6.227%, with accepted yields ranging from 6.198% to 6.24%.

The average rate of the reissued bonds inched up by 0.9 basis point (bp) from the 6.218% quoted for the papers when they were first offered on Jan. 23.

Still, this was 2.3 bps lower than the 6.25% coupon for the issue, which was also the yield seen for the same bond series at the secondary market on Tuesday before the auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury. The average yield was likewise 2.6 bps below the 6.253% quoted for the 10-year tenor at the secondary market.

The BTr made a full award of its T-bond offer at a lower average yield as the auction was met with strong demand amid increased liquidity in the market after P700 billion in retail Treasury bonds (RTB) matured, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

One RTB issue matured on March 9 and another on March 12, he said. Both bond series were part of the exchange offer program for the 30th tranche of RTBs issued last month.

The government raised P584.86 billion from the 30th RTB issue, with P243.45 billion coming from the bond exchange component.

“The lower T-bond awarded rate today tracked the movement during this week’s Treasury bill (T-bill) auction as market participants continue to anticipate a potential decline in US consumer inflation for February,” a trader said in an e-mail on Tuesday.

On Monday, the government raised P15 billion as planned from its T-bill offer as rates mostly fell, with total bids reaching P50.708 billion or more than thrice the amount on the auction block.

The average rates for the 91- and 364-day T-bills went down by 0.66 bp to 5.772% and 1.3 bps to 6.087%, respectively. Meanwhile, the 182-day paper saw its average yield rise by 2.9 bps to 5.966%.

Meanwhile, the February US consumer price index (CPI) report was set to be released overnight, with expectations for a monthly increase of 0.4% and 3.1% on an annual basis, Reuters reported. Core inflation is seen rising 0.3%, which would nudge the annual pace down to 3.7%.

Markets expect the CPI data to affect the US Federal Reserve’s next policy decision.

Markets are all but certain that the US central bank will not cut rates when it meets next week but have priced in more than a 70% chance of a rate cut in June, CME FedWatch Tool showed.

A stronger majority of economists in the latest Reuters poll also expect the Fed to start cutting rates in June. The survey showed respondents saw it more likely that if Fed policy makers changed their rate projections at the March meeting, the median view would signal fewer cuts this year, not more.

Last week, comments from Fed Chair Jerome H. Powell and European Central Bank policy makers buoyed expectations that rate cuts will begin this summer. Expectations for a cut of at least 25 bps at the June meeting are currently above 70%.

US CPI increased 0.3% in January after gaining 0.2% in December. In the 12 months through January, the CPI increased 3.1% after rising by 3.4% in December.

The Treasury is looking to raise P180 billion from the domestic market this month, or P60 billion from T-bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 5.1% of gross domestic product this year. — A.M.C. Sy with Reuters

Patagonia cave paintings are earliest found in South America

NEUQUEN, Argentina — Archaeologists have discovered the earliest dated cave paintings in South America in Argentine Patagonia, dating back 8,200 years.

The 895 paintings were found by Argentine and Chilean archaeologists in the Huenul 1 cave, a 630 square meter rock shelter located in the province of Neuquen, some 1,100 kilometers southwest of the capital Buenos Aires.

“We were able to date four black peniform patterns that were drawn in charcoal. These proved to be the earliest direct dating of cave paintings in South America,” said Dr. Guadalupe Romero Villanueva, author of the research published in the Science Advances journal.

The Argentinean archaeologist said the discovery indicates that the production of cave art began in the Huenul cave about 8,000 years ago and that the practice of painting the particular pattern seen in the cave was sustained for a period of at least 3,000 years.

The discovery provides evidence of the artistic ability and cultural transmission of the hunter-gatherer societies which inhabited the region during the middle Holocene, a period roughly from 7,000 to 5,000 years ago, and reveals the socioecological resilience to climate, as well as serving as a means of communication between scattered populations.

“We believe these images in particular were part of a resilient response of the mobile hunter-gatherer groups that occupied this cave and the desert environments of northern Patagonia to the climatic challenge of a period of extreme dryness that occurred during the middle Holocene,” said Romero Villanueva, a researcher at the National Council for Scientific and Technical Research of Argentina.

Villanueva said there are other places in South America that could have older cave paintings, but which only have relative dating, like Argentina’s Cueva de las Manos, with cave paintings dating back 9,500 years. — Reuters

Red tape, over-regulation biggest hurdles for PHL mom care industry

By Patricia B. Mirasol, Multimedia Producer

RED TAPE and too much regulation are blocking the growth of the mother and baby care industry in the Philippines, adding to the problem of logistics and traffic, according to an industry player.

“The regulatory work is very tedious and the lead time is quite long,” Gray Erh, Mama’s Choice’s regional head of operations and marketplaces for the Philippines, Malaysia and Singapore, said in a Zoom interview on March 11. “That stops us from growing.”

Contrast that from Singapore, which has clearcut guidelines, he said.

“As long as you meet those guidelines… as long as your ingredient list is not banned, it’s pretty easy with Singapore Customs and regulations,” Mr. Erh told BusinessWorld.

Mama’s Choice sells toxin-free and halal pregnancy products from wet wipes, baby food containers and toothbrush to pillows, baby carriers and cosmetic products.

The Philippines, on the other hand, views every cosmetic product as a potential drug.

“Fair enough,” he said. “If you consider the product a drug, you need to be strict about it, but with the level of strictness, you can tell it’s going to take much longer.”

Logistical considerations such as traffic also weigh the industry, he said.

“Sometimes, it takes way longer than expected to bring the parcel to our customers, and that kind of shows bad customer service.”

The Philippine Food and Drug Administration’s cosmetic product registration process takes six to eight weeks, according to Emerhub, which offers company registration services.

Barely a third of the Philippines’ mother and baby care market has been tapped, according to Mr. Erh.

He added that while most of the company’s business is in Metro Manila because of its e-commerce reach, Mama’s Choice is looking into the logistics of reaching the bigger market outside the capital with shorter lead times.

Mama’s Choice’s revenue from its Indonesian operations is six to seven times bigger than in the  Philippines, he said.

“We are ambitious, just because we see the potential here,” he said. “The growth rate remains high, and moms are getting well-educated. They know what they need for their pregnancy journey and what to get their kids.”

The global mother care product market was valued at $12 billion in 2023. It is projected to post a compound annual growth rate of more than 5.3% between 2024 and 2032, according to a  report by Global Market Insights.

About three babies are born per minute in the Philippines, according to the local statistics agency.

“We know that [the Philippines] is a good market, so we plan to be aggressive here,” Mr. Erh said.

The company’s most popular products among Filipino mothers include stretch cream, which helps mothers cope with postpartum stretch marks, as well as wearable breast pumps that offer women a hands-free way to extract breastmilk.

Its Philippine arm averages 7,000-8,000 orders per month, generating about P7-8 million in sales.

Mama’s Choice was founded in 2018 to address the gap it saw in mother and baby care products.

The company seeks to “achieve the best online and offline coverage” because to focus solely on either is not the best strategy, Mr. Erh said.

“You can boost your online marketing with TikTok and Facebook… and get people to have brand recall, so when they see the product in the stores, that impulse buy is faster,” he said.

The fast-moving consumer goods market leverages volume, and that — apart from educating people about its products’ credibility — is what Mama’s Choice is doing, Mr. Erh said.

“This market will always exist,” he said. “Mama’s Choice is now also branching to babies’ [needs,] so this will help us make our market bigger, stronger and widely applicable.”

OPMC secures permit for exploration of nickel, associated metals in Dinagat Islands

ORIENTAL Petroleum and Minerals Corp. (OPMC) said on Tuesday that it obtained an exploration permit from the Mines and Geosciences Bureau (MGB) covering an area in Loreto, Dinagat Islands.

The Department of Environment and Natural Resources has granted clearance to MGB-Central Office to approve and convert its application to an exploration permit covering an area spanning 358 hectares, the company told the local bourse.

OPMC formally accepted and signed the exploration permit at the MGB Central Office in Quezon City on Tuesday. 

The company intends to explore for nickel and other associated metals in the area.

In 2022, OPMC submitted applications to MGB’s regional office in the Central Luzon for five areas in Zambales covering around 13,816 hectares and two areas in Dinagat Islands covering around 863 hectares.

Incorporated in 1969, OPMC is a local exploration and production company engaged in upstream petroleum activities in the country.

OPMC has three wholly owned subsidiaries namely, Oriental Mahogany Woodworks, Inc., Linapacan Oil Gas and Power Corp., and Oriental Land Corp.

On Tuesday, shares of the company fell by P0.0001 or 1.23% to close at P0.0080 each. — Sheldeen Joy Talavera

IC increases benefit claim limits for third-party vehicle liability insurance

BW FILE PHOTO

THE INSURANCE COMMISSION (IC) has raised the caps on benefits that may be claimed by third parties under the compulsory motor vehicle liability insurance (CMVLI), it said on Tuesday, even as there will be no increase in premiums.

The IC, through Insurance Memorandum Circular 2024-01, has doubled the limit for third-party liability that can be claimed under CMVLI to P200,000 from P100,000, it said in a statement.

The caps for death indemnity and burial and funeral expense indemnity were also increased to P200,000 from P70,000 and P30,000, respectively.

No-fault indemnity was also doubled to P30,000 from P15,000 for claims of death or bodily injury sustained by a passenger without the need to prove fault or negligence.

Insurers will also cover a maximum of P10,000 in claims for other incidental expenses not provided under the indemnities for bodily injury or death.

The new circular does not prescribe an increase in premiums to be paid for CMVLI, with the rates set in 2006 to remain in effect, the regulator said.

However, “premium adjustments arising from the above-mentioned increase in indemnities shall be subject to further study,” the IC said.

“The CMVLI policy is a requirement under the law for the registration of a motor vehicle. The purpose of this insurance is to ensure that the owners or operators of motor vehicles can indemnify third parties or passengers for accidents resulting in death or bodily injury,” the regulator added.

Philippine Insurers and Reinsurers Association, Inc. Executive Director Michael F. Rellosa earlier said the IC was able to raise the benefit claim caps for CMVLI without increasing premium rates as the business remains profitable for insurers.

The higher benefit limits were also implemented to account for the increased cost of treatment and medical care, he said in an e-mail.

“Over the years, we noticed that the losses haven’t been that bad and that line of business remains profitable, and we wanted to give something back. It shouldn’t affect nonlife insurance companies’ performances… It shaves off the profitability a bit, but based on the studies, we can handle it,” Mr. Rellosa said.

“Obviously, profit margins will thin, but computations show that there is a bit of room to wiggle still. Any more increases may have to come with an increase in premiums,” he added,

The nonlife insurance sector’s total net premiums written rose by 15.56% to P48.21 billion in the nine months ended September 2023, data from the IC’s website showed. Its net income grew by 14.99% to P5.48 billion in the period. — A.M.C. Sy

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