The Philippines went down by 10 notches to 63rd out of 119 countries in the 2023 edition of the Index of Public Integrity (IPI) by the European Center for Anti-Corruption and State-Building. It scored 6.03 out of possible 10. The report assesses a society’s capacity to control corruption and ensure that public resources are spent without corrupt practices using the index’s six components.
Here’s a quick glance at how PSEi stocks fared on Monday, May 27, 2024.
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
JUNE 26, 2024 / 2:00 P.M.
DEAR STOCKHOLDERS:
Please be advised that the Annual Meeting of Stockholders of NATIONAL REINSURANCE CORPORATION OF THE PHILIPPINES (the “Company”) will be held on June 26, 2024, Wednesday, at 2:00 p.m., at the Carlos P. Romulo Auditorium, Podium 4, Tower II, RCBC Plaza, 6819 Ayala Avenue, Makati City, with the following agenda:
Only stockholders of record at the close of business on May 13, 2024 are entitled to notice of, to attend, and to participate in this year’s Annual Meeting. Stockholders who are unable to attend the Annual Meeting in person may execute a proxy or vote in absentia.
Proxy
Proxies must be submitted and addressed to the attention of the Corporate Secretary at the 31st Floor BPI-Philam Life Makati, 6811 Ayala Avenue, Makati City, Philippines or via email at asm@nat-re.com not later than 3:00 p.m. on or before June 14, 2024.
A proxy executed by a corporation shall be in the form of a board resolution duly certified by the Corporate Secretary or in a proxy form executed by a duly authorized corporate officer accompanied by a Corporate Secretary’s Certificate quoting the board resolution authorizing the said corporate officer to execute the proxy. Validation of proxies shall be held on June 21, 2024, at 2:00 p.m. at the principal office of the Corporation.
Voting in Absentia
Stockholders who intend to vote in absentia must submit the requirements by email at asm@nat-re.com or at the registration portal. Please refer to this link for the list of requirements – https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#rvj.
The link for the online voting facility will be emailed to the concerned stockholders after the Company has validated the submitted requirements. Stockholders may cast their votes in absentia from May 28, 2024, until 11:00 a.m. of June 26, 2024.
On-site Registration
To avoid any inconvenience in registering your attendance at the meeting, you or your duly designated proxy, are required to bring this Notice, and any identification documents containing a photograph and signature, such as a passport, driver’s license, or any government-issued identification. Registration starts at exactly 1:00 p.m. and will close at 2:00 p.m. on June 26, 2024.
Copies of the Notice of the Meeting, Definitive Information Statement, and other related documents in connection with the annual meeting may be accessed through the company’s website and through the PSE Edge portal at https://edge.pse.com.ph.
For any concerns, please reach us through asm@nat-re.com.
For complete information on the Company’s annual meeting, please visit www.nat-re.com/investor-relations/annual-stockholders-meeting.
May 23, 2024, Makati City, Metro Manila.
Access to Notice of Meeting, Agenda Items and Explanation of Agenda Items, Proxy Form, Sample Secretary Certificate, Definitive Information Statement, Management Report, Financial Statements, SEC Form 17A and Minutes of Stockholders’ Meeting dated July 5, 2023 can be downloaded by scanning the QR code provided herewith.
Likewise, you may also download it from the Company’s website by clicking this link https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#files.
Electronic copies of the same documents are also available at the PSE Edge.
For the Board of Directors,
(Original Signed)
NOEL A. LAMAN
Corporate Secretary
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THE Joint Foreign Chambers (JFC) declared support Monday for legislative action that will overhaul the governance framework for Philippine airports following flight delays at the Manila gateway.
In a statement, the JFC said it sent a letter to the Senate callings for the approval of “crucial” amendments to the Civil Aviation Authority Act, citing the need for changes after flights at Manila airport were delayed due to technical issues.
“These reforms are essential to enhancing the safety, efficiency, and overall quality of both domestic and international airports in the Philippines,” the JFC said.
The group, in particular, said that the amendments aimed to enhance Civil Aviation Authority of the Philippines’ (CAAP) safety oversight by enhancing its human resource development, fortifying its board and aligning the agency to global standards.
The JFC also called for the creation of the Philippine Airports Authority to separate the regulator and operator functions of the CAAP.
The JFC also backed the creation of the Philippine Transportation Safety Board, which will investigate accidents and improve safety.
“The letter comes after numerous flights in and out of the Ninoy Aquino International Airport last week were delayed due to technical issues with the navigation air traffic management system,” the JFC added.
The chambers said reforms were also recommended last year following the legislative inquiry into the air traffic management glitch at the airport.
The JFC is a coalition of the American, Australia-New Zealand, Canadian, European, Japanese, and South Korean chambers and the Philippine Association of Multinational Companies Regional Headquarters, Inc.
The group comprises 3,000 members currently engaged in $100 billion worth of trade and $30 billion worth of investment in the Philippines. — Justine Irish D. Tabile
THE Transportation department is considering the realignment proposal for the Bulacan segment of the Metro Rail Transit 7 (MRT-7).
“The Department of Transportation (DoTr) is studying the best possible alignment for San Jose City,” Jeremy S. Regino, undersecretary for railways, said in a Viber message to BusinessWorld.
The DoTr has said that the MRT-7 project is experiencing delays due to the right-of-way issues particularly in San Jose del Monte, Bulacan.
Last week, Bulacan province said the possible realignment of MRT-7 went through the required consultation process.
According to the Bulacan government, it has proposed to divert the Quirino highway route as it is considered a key thoroughfare in the area.
The MRT-7 has a total of 14 stations. It will run from Quezon City to San Jose del Monte, Bulacan, and is expected to carry 300,000 passengers daily in its first year, and up to 850,000 passengers a day in its 12th year.
The commuter rail line’s stations are Quezon North Avenue Joint Station, Quezon Memorial Circle, University Avenue, Tandang Sora, Don Antonio, Batasan, Manggahan, Doña Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala, and San Jose del Monte.
The project is run by San Miguel Corp., with the company financing the construction and set to operate the 23-kilometer commuter rail system under a 25-year concession agreement with the government.
The Transportation department has said it is looking at opening the Quezon North Avenue Joint Station to Lagro by the first quarter of 2025.
The full completion of the MRT-7 Bulacan segment is facing some right-of-way issues particularly in its Bulacan segment, the DoTr said, noting that oppositors are saying that the construction will cause heavy traffic flow in the area.
The Bulacan leg of the MRT-7 will not be completed by 2025 as only 12 stations of the commuter rail line will be operating by then, the DoTr said, adding that the new target for the line’s full operations is between 2027 and 2028. — Ashley Erika O. Jose
By Kyle Aristophere T. Atienza, Reporter
THE PHILIPPINES needs to do more business with new markets to diversify its economy away from China, whose companies have been willing to invest in areas where other foreign entities have not, raising security concerns, analysts said.
The Philippines also needs to solidify its industrial base to climb the global value chain in response to Chinese moves to invest in strategic industries here, they added.
Brian Poe-Llamanzares, a political scientist and chief of staff to Senator Mary Grace Natividad S. Poe-Llamanzares, said China has made “significant investments” in key Philippine industries like electricity, telecommunications, and water, enabled by the absence of competing foreign investors.
“There are only a few investors who are looking at the Philippines, and many of us would question what China’s intention is in investing in these industries,” he said, speaking at a forum organized by WR Numero Research (WRN).
The National Grid Corp. of the Philippines, in which the State Grid Corp. of China has a 40% stake, has been flagged in various Senate inquiries as a possible national security threat.
China claims the South China Sea almost in its entirety, including areas that are well within the Philippines’ exclusive economic zone. Its Coast Guard has been performing dangerous maneuvers and deploying water cannon to block Philippine resupply missions to its outposts in disputed waters.
Under the previous administration, the Philippines welcomed DITO Telecommunity, in which China Telecom has a 40% stake, as a the third player in the telecommunications market.
“In the spirit of a free-market economy and with the lack of competitors, it became necessary to bring in a third telco player that was willing to go through congressional scrutiny and service the unserved and underserved areas,” he said.
“It’s not like DITO was our first choice. It was our only option,” he added. “We were yet to see a serious attempt by any American or European player in the telco market.”
In 2019, DITO and the Armed Forces of the Philippines (AFP) signed a deal allowing the company to build facilities in military camps supposedly to help improve the AFP’s ICT infrastructure.
While the Philippines has been touting interest from other countries in helping build the Philippines’ telco and ICT infrastructure, “very few of them actually have put a bet on the table,” he said.
“A lot of them talk about building relations economically with the Philippines but we are yet to see the fruits of those economic (pledges),” he added, “and this becomes a problem for us because we’re a free market; anyone can come in.”
Mr. Poe noted that under the Duterte administration, China effectively entered the water industry by financing a dam.
He was referring to a $283.2-million loan secured by the past administration from China to build a dam to support Metro Manila’s water needs. Chinese contractor China Energy Engineering Corp. Ltd was selected to build the dam on the Kaliwa River, which straddles Rizal and Quezon provinces.
“We are facing an impending water crisis. And so we’re pushed against the wall and who comes to save the day? China,” he said.
“See if there’s anyone else willing to offer us a loan. No one. And so what happens is, China ends up entering the bid and they get the loan,” he added. “And you can’t fault them for doing it. It’s a free market. They can do it. They can provide it.”
Mr. Poe said Manila needs to harness the potential of its amended Public Service Act, which allows full foreign ownership in key domestic industries, by conducting more road shows overseas.
“It’s really important that we continue to expose ourselves to the international community because we were closed off for six years,” he said. “Next thing is we must create a competitive business climate.”
He noted that red tape continues to be a major concern among investors, limiting the sources of foreign investments. “We need more options,” he said.
He said the Philippines also needs to build industry and make its educational system competitive by “removing the stigma of vocational work.”
Bernardo M. Villegas, one of the founders of the University of Asia and the Pacific and a framer of the 1987 Constitution, said at the WRN forum that the Philippines can only make critical utilities independent from China if it embarks on road shows in more countries including Spain, South Korea, Taiwan, and Japan.
“The only way we can make sure that we declare our independence from China with regard to water and electricity is for us in the private sector to have dozens of road shows,” he said.
Mr. Villegas said he expects the planned establishment of a Luzon economic corridor to help the Philippines bag investments from companies seeking to diversify away from China or do business with friendly nations.
The US announced its plan to help establish a Luzon corridor with the help of Japan in April.
The proposed corridor seeks to boost connectivity between Manila, Batangas, and two former US military bases such as Subic Bay and Clark, with a focus on “high-impact” infrastructure such as rails and ports and strategic investments involving semiconductors, clean energy, and supply chains.
China is the Philippines’ largest source of imports and the second-biggest market for exports. The US, on the other hand, is the largest destination of Philippine products and the fifth-largest source of imports.
Mr. Poe said a potential escalation of tensions between the Philippines and China would have little to no impact on the Chinese economy because “what we’re providing them is not critical to China.”
“If they decided to stop trading and buying our fresh fruits and products, then it’s not going to hurt their economy too much.”
“But if we were to develop something more critical — like Taiwan did — an industry that’s indispensable not just to China but also the international community, then suddenly we’re on negotiating terms.”
THE RETAIL PRICE of rice is expected to drop by September by as much as 20% due to the impact of improved domestic production and the relaxation of import procedures and tariffs, the Department of Finance said.
“We expect rice prices to go down by 20%, maybe by September. This would entail one, increasing production, and second, reducing tariffs,” Finance Secretary Ralph G. Recto said during the Philippine Economic Briefing on Monday.
The average retail price of well milled rice was P56.52 per kilogram as of early May, according to the Philippine Statistics Authority. A kilo of regular milled rice averaged P51.24 during the period.
“I think we have a game plan as far as that is concerned,” Mr. Recto added.
National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said that the domestic price of rice has been a challenge for the past few months.
“The forecast on global rice prices by the second half of the year, particularly by September, is going down… It’s past El Niño and the election in India is over,” he added.
Mr. Balisacan said that by September, all restrictions on exports by major producing countries will have been lifted.
“Domestic prices simply reflect the trends in global prices, particularly for rice. So, as global prices come down, provided our exchange rate does not sharply depreciate, which I don’t expect, then we should see domestic prices coming down,” he added.
Separately, Agriculture Undersecretary Asis G. Perez said the decline in rice prices will require not just an increase in rice production, but also imports.
“That’s a common aspiration. That’s been discussed, and 20% is around P10 less in price. (We are) looking at whether we can increase our production,” Mr. Perez said on the sidelines of the briefing.
He added that rice prices could still be influenced by external factors like global price surges.
The Department of Agriculture (DA) downgraded its palay (unmilled rice) target to 20.4 million metric tons (MT) this year, citing the impact of El Niño on domestic production.
Its initial target had been 20.8 million MT. It had hoped to exceed the 20.06 million MT recorded in 2023.
The reduced tariffs on rice imports were extended until December. Rates for rice imports were kept at 35%, regardless of the minimum access volume and country of origin.
Rice imports have totaled 1.89 million MT as of May 9, according to the Bureau of Plant Industry. — Adrian H. Halili
DOMESTIC mineral processing will be critical to attracting more investment in electric vehicles (EVs) and batteries, according to Secretary Frederick D. Go, the Palace’s chief investment adviser
Mr. Go, who heads the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), said mineral processing will enable Philippine ambitions to become a hub for the manufacturing of electric vehicles and components.
“Instead of just focusing on exploration, or the exploitation of the minerals, we should really be looking at attracting investment in the downstream process,” he said during the Philippine Economic Briefing on Monday.
“In a perfect world, the dream, I suppose, of the Department of Trade and Industry (DTI) and the whole government is that we move up from raw nickel to processed nickel to electric batteries and then electric vehicles,” Mr. Go said.
He noted that the Philippines has yet to fully utilize its mineral reserves. “We are now the largest exporter of raw nickel ore to the world. And we supposedly have the largest mine by copper deposits here in the Philippines, and this can increase the value of our exports by perhaps 10 times.”
The Mines and Geosciences Bureau reported that Philippine metal production by value rose 4.8% to P249.05 billion in 2023.
The Department of Environment and Natural Resources is completing its geomapping of the country’s natural resources as well as streamlining the approval of mining permits, according to Mr. Go.
“A lot of the mining investors, when they come in, are taking a huge risk not knowing what minerals they can find underneath the soil,” he said.
Mr. Go also cited the need to shorten the approval of mining permits to two to three years from the current five to seven years.
The proposed rationalization of the mining fiscal regime was approved at the House of Representatives on third and final reading in September.
The proposal seeks to impose margin-based royalties and a windfall profit tax on mining companies. — Beatriz Marie D. Cruz
THE Philippines’ plan to attract investment from artificial intelligence (AI), data center, and cloud companies will have to contend with the fact that such investors will thoroughly evaluate the country’s talent base and cyber-security infrastructure, analysts said.
Dominic Vincent D. Ligot, founder of Cirrolytix and AI, technology, and research consultant for the IT and Business Process Association of the Philippines, said that the Philippines will have to improve its value proposition as a tech hub.
“We do not project a strong IT workforce. So, that is probably a deciding factor in their decision to invest,” Mr. Ligot told BusinessWorld, citing the recent investments of Microsoft in Thailand and Indonesia.
“I think we also need to manage our optics in cybersecurity. The recent government hacks don’t paint a mature picture of our resilience,” he added.
He said that AI is based on big data, so the Philippines will have to demonstrate that it is actually capable of keeping data secure.
In a report by Reuters last month, Microsoft said that it will invest $1.7 billion over the next four years in cloud services and AI in Indonesia, with the possibility of building data centers.
Meanwhile, Microsoft announced plans to invest $2.2 billion in Malaysia, which will cover the building of cloud and AI infrastructure, AI skilling opportunities, and the establishment of a National AI Centre of Excellence.
For its part, the Philippines received a commitment from Microsoft involving training for one million Department of Education learners and 100,000 Technical Education and Skills Development Authority female learners in AI and cyber-security skills.
Ronald C. Gustilo, national campaigner for Digital Pinoys, said that the Philippines could be missing out on such investment due to the country’s poor performance in handling internet-based crime.
“The government needs to create an environment more conducive for businesses, such as safe locations, cheaper utility rates, and a stable market,” Mr. Gustilo said.
“The government also needs to resolve or at least implement a clear plan to eradicate or reduce the use of pirated products by tech companies so that the Philippines will become an enticing market for these companies,” he added.
To improve cyber-security, Mr. Ligot said the government should focus on education, engineering, and enforcement.
He called for special education in AI and cyber, on the scale of how Finland trained 1% of its population in AI, and investments in infrastructure and connectivity, which will connect the Philippine islands and improve internet speeds.
He said that the government must enforce progressive laws on AI, which will police abuse and incentivize research and innovation.
Mr. Gustilo concurred, adding that “tech companies like Microsoft would rather prioritize countries that already have a policy on the emerging AI technology.”
Despite the challenges, he said that the Philippines can still be considered for future investments because of the number of tech consumers in the country.
“But the government needs to implement a strong work plan to educate the public on the dangers, risks, and opportunities presented by technology,” he added. — Justine Irish D. Tabile
THE government should limit the sugar and salt content of food products marketed to children as an anti-obesity measure, the United Nations Children’s Fund (UNICEF) said.
In a statement, UNICEF cited the need to crack down on “misleading and deceptive labeling” of food products targeted at the very young.
As a result, the number of overweight Filipino children has tripled since 2003, considered “high” under global standards, it said.
“Children have a right to good nutrition. Without updated and enforced food regulations to protect children, they will consume more unhealthy foods that have high sugar content and sweeteners,” UNICEF Representative to the Philippines Oyunsaikhan Dendevnorov was quoted as saying in the statement.
“This can displace needed essential nutrients, harm their dental health, and cause them to prefer unhealthy food later in life, leading to obesity and non-communicable diseases such as diabetes and heart diseases,” she said.
The government should monitor and enforce national regulations on sugar and salt content and enforce the proper labeling of commercially produced complementary food, the UNICEF said.
A recent study by the UNICEF and Complementary Foods in Southeast Asia (COMMIT) found that a third of food products marketed for Filipino babies and young children have added sugars and sweeteners.
It also found that unhealthy products were promoted for children up to three years old.
Nutrition labels did not come in Filipino languages, making it difficult for parents and caregivers to understand nutritional information in food products, according to the study.
Labels were seen focusing on claims on product composition or nutrient content, like “no artificial colors” and “100% natural,” but only 2% of product labels note the importance of continued breastfeeding.
While most of the products are under the recommended sodium thresholds, fortification levels for nearly all dry or instant cereal products do not meet standards. — Beatriz Marie D. Cruz
THE Department of Budget and Management (DBM) said early procurement and a bigger push for digitalization projects will help ensure the timely spending of this year’s budget.
“For this year, what’s important to note is that the 2024 budget (has all of the Secretaries) priority projects and programs,” Budget Secretary Amenah F. Pangandaman said during the Philippine Economic Briefing on Monday.
Republic Act No. 11975 or the 2024 General Appropriations Act includes a provision for early procurement, enabling government agencies and offices to bid out their projects on time, Ms. Pangandaman said.
Early procurement is also a feature of the proposed New Government Procurement Reform Act, which is awaiting the signature of President Ferdinand R. Marcos, Jr.
If changes to the procurement law are enacted, “agencies can bid out their projects by the time we issue the national expenditure program to Congress,” Ms. Pangandaman said.
“That will give them time to actually bid out their projects and by the time we have the General Appropriations Act,” the procurement process will be further along, she said.
Ms. Pangandaman also noted the available funding to digitize most government transactions.
“We expect those will increase efficiency in terms of government spending and implementation of their projects,” she said.
The government’s cash utilization rate hit 99% at the end of the first quarter, the DBM said.
Meanwhile, Ms. Pangandaman asked Congress to approve the Budget Modernization bill, the proposed Public Financial Management measure, and the rightsizing bill to ensure efficient spending and financial management. — Beatriz Marie D. Cruz
THE Food and Agriculture Organization (FAO) of the United Nations (UN) said it distributed cash to rice and corn farmers in Isabela that have been affected by El Niño.
“With El Niño forecast to persist until late May with its effects to be felt until August, it is important to act early to reduce the risks posed to the country’s food security,” FAO Country Representative to the Philippines Lionel Henri Valentin Dabbadie said in a statement Monday.
The FAO said about 964 rice and corn farming households in the province were given a one-time distribution of multipurpose cash.
“Beneficiaries used the funds to buy food, cover school-related expenses and even pay debts. Others used the funds to engage in vegetable trading as drought conditions peaked in the province,” the FAO said.
The fund distribution under its Anticipatory Action program is designed to act ahead of predicted hazards to prevent or reduce acute humanitarian impacts before they fully unfold.
Agricultural damage due to El Niño has been estimated at P9.5 billion, with rice and corn the most affected crops, according to the Department of Agriculture (DA).
“Anticipatory actions against drought, linked with shock-responsive social protection, can help build resilience in the agriculture sector,” Mr. Dabbadie added.
“This is of urgent concern because globally, more severe and frequent disasters are producing unprecedented levels of damage and loss in the sector, and the Philippines is among the countries most vulnerable to climate and human-induced hazards,” he said. — Adrian H. Halili
