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HSBC Savings ceases operations

HSBC SAVINGS Bank, (Philippines), Inc. has received approval from monetary authorities to surrender its banking license to the Bangko Sentral ng Pilipinas (BSP).

HSBC Savings Bank has stopped operating effective Oct. 2, BSP Deputy Governor Chuchi G. Fonacier said in a circular letter dated Oct. 9.

“The Monetary Board, in its Resolution No. 1274 dated Sept. 28, 2023, approved the voluntary surrender by HSBC Savings Bank (Philippines), Inc. of its banking license to the BSP,” the central bank said.

HSBC Savings Bank is a wholly owned subsidiary of the Hongkong and Shanghai Banking Corp. Ltd. (HSBC) group and is classified as a thrift bank in the Philippines.

HSBC Philippines said in December that it is simplifying its banking structure in the country to support the growth of its retail banking customer base and has combined the retail operations of HSBC Savings Bank and HSBC Philippines under the latter.

This involved opening new accounts in HSBC Philippines for all clients of its thrift arm. The lender also rebranded the HSBC Savings Bank branch in Alabang, Muntinlupa City and closed branches in San Juan City and Makati City.

Services related to investment and insurance were centralized through the bank’s wealth management business, HSBC Investment and Insurance Brokerage, Philippines, Inc., which was established in September 2022.

“The restructuring and addition of the HSBC Savings Bank branches will fit in with HSBC’s plan to enhance its retail banking business in the Philippines, where the Group has been expanding and upgrading its branches across the Philippines over the past two year,” HSBC earlier said. 

HSBC has branches in Metro Manila, Cebu and Davao. — KBT

Author Arundhati Roy faces prosecution in India over 2010 speech — local media

DELHI  — The Booker prize-winning author Arundhati Roy faces prosecution in India for a speech about Kashmir she gave 13 years ago after a top official approved the move, local media reported on Wednesday.

A social activist from Kashmir filed a police complaint in 2010 following speeches by Ms. Roy and three others at a conference organized by a rights group, the reports said.

Ms. Roy, a fierce critic of India’s policy in Kashmir, is accused of saying at the conference that the disputed Himalayan territory was not an integral part of India.

Under Indian laws, the state government’s permission is needed for prosecution of certain crimes, including hate speech, sedition, and promoting enmity.

Vinai Kumar Saxena, the federally-appointed lieutenant-governor (LG), has allowed Delhi Police to prosecute Ms. Roy and Central University of Kashmir professor Sheikh Showkat Hussain under laws relating to promoting enmity, making assertions prejudicial to national integration and causing public mischief, the reports said.

Another professor and a hardline Kashmiri separatist leader named in the complaint have since died.

The reports did not say why Saxena approved the prosecution after 13 years.

His office did not respond to calls and emails from Reuters requesting comment.

Ms. Roy, 61, won the Booker Prize for fiction in 1997. She is also an outspoken political and rights activist and regularly writes in Indian and foreign publications.

There was no reaction from her to the developments and she could not be reached for comment.

Although the case was registered before Prime Minister Narendra Modi’s nationalist Bharatiya Janata Party government came to power in 2014, the sanction has once again stoked concerns about freedom of speech under Mr. Modi’s government.

Opposition leaders and writers came out in support of Ms. Roy.

“It is obvious that the LG (and his masters) have no place in their regime for tolerance or forbearance; or for that matter the essentials of democracy,” P. Chidambaram, a senior leader of the main opposition Congress party who was India’s home (interior) minister in 2010, posted on X.  Reuters

Don’t believe climate activists. Fossil fuels are good

MARKUS SPISKE-UNSPLASH

The road to hell is said to be paved with good intentions. In the case of climate activists, their good intentions paved, painted, and furnished it as well. It wouldn’t have been so bad if their annoying earnestness were limited to gluing themselves in public places. But the truth is that their alarmism can destroy lives and livelihood as well.

It also proceeds from bad premises: thus, the claim is made that climate change costs the Philippines around 1.2% of GDP growth, amounting to something like P506.1 billion from climate-related hazards in a 10-year span. The problem here is that climate activists are essentially resorting to a causal chain argument: not only are such losses allegedly caused by climate change but that such arise from man-made causes.

The point then is that — contrary to what has been normally touted by climate activists — the science is “not settled” as to the causes of climate change and, as such, the remedies to it cannot be definitively applied when ranged against the possible foreseen and unforeseen consequences that such measures could bring.

Thus, the fact previously given here in this column (“Climate change, climate fraud,” September 2023), considering that the Philippines contributes merely 0.35% share in fossil CO2 emissions (as of 2016), that “even if the Paris Agreement targets are met, it still wouldn’t mean much in terms of climate effects but humongously so in terms of economics. There is really no point in bankrupting Philippine business when doing so won’t even save the planet.”

Again, the biggest casualty, if the climate activists are to be followed, is our transportation sector, which has been dubbed as “the largest source of air pollution and energy-related Greenhouse gases (GHG) (34% of total GHG emissions) in the Philippines, whereby road transport is the largest contributor (with over 80%). In October 2015, the Philippines submitted their official conditional GHG mitigation target to the United Nations Framework Convention on Climate Change (UNFCCC) as Intended Nationally Determined Contribution (INDC), in which the Government stated an emission reduction target of 70% until 2030 with international support” (see transferproject.org).

However, note that the “Philippines, like many countries around the world, is facing skyrocketing food inflation due to supply issues and high fuel costs.” Furthermore, “Filipinos pay some of the highest electricity rates in Asia, behind only Japan and Singapore. Compared to its ASEAN neighbors, the country’s electricity is between 25% and 87.5% more expensive. And the rates keep increasing. For example, January 2023 marked the third consecutive month of electricity rate hikes. The trend continued throughout the year, with September being the latest month when electricity prices increased” (see “Why the Philippines is so vulnerable to food inflation,” Carnegie Endowment, July 2022; also “The Environmental Issues Surrounding San Miguel Corp. Are Deterring Investors,” energytracker.asia, Sept. 27, 2023).

The foregoing should thus make the demonization of fossil fuels highly eccentric. Inasmuch as energy plays a crucial role in keeping the Philippine economy afloat, to impose drastic changes without a viable and practical alternative is utterly imprudent.

Take the case, for example, of SMCGP. “SMC Global Power (SMCGP), SMC’s power generation business arm, [which] has a total capacity of 4.7 GW. Fossil fuels make up 87%, with hydropower at 12% and battery energy storage and peaking points at 1%.” Despite the obvious necessity of its operations, “over the years, SMC has faced opposition in many of its projects from frontline communities, civil society organizations, environmentalists and faith-based organizations. From the 2017 Break Free campaign against coal projects to protests from fisherfolk and farming communities in June 2023, SMC’s brand has been consistently associated with environmental disasters, facing strong public opposition and even violent protests.”

Which is precisely what energy commentator Alex Epstein, in his 2014 book, The Moral Case for Fossil Fuels, would likely label as misguided: “fossil fuels are easy to misunderstand and demonize, but they are absolutely good to use. And they absolutely need to be championed … Mankind’s use of fossil fuels is supremely virtuous — because human life is the standard of value and because using fossil fuels transforms our environment to make it wonderful for human life.”

Epstein addresses three myths: that fossil fuels are “dirty,” that fossil fuels are unsustainable and thus require a change to “renewable” solar and wind, and that fossil fuels are hurting the developing world.

But the truth, as Epstein points out, is that the environmental benefits of using fossil fuels far outweigh the risks. Fossil fuels don’t take a naturally clean environment and make it dirty; they take a naturally dirty environment and make it clean. They don’t take a naturally safe climate and make it dangerous; they take a naturally dangerous climate and make it safer.

Regarding so-called “renewable” energy, Epstein illustrates the intermittent nature of energy derived from the sun and wind, necessitating backup from a reliable (and cheaper) source of energy — usually fossil fuels.

And, finally, Epstein cogently argues that fossil fuels are the key to improving the quality of life for billions of people in the developing world. Withholding them would see access to clean water plummeting, critical medical machines like incubators becoming impossible to operate, and life expectancy dropping significantly. Thus, a call to “get off fossil fuels” is essentially a call to degrade the lives of innocent developing country people that merely want the same opportunities enjoyed in the West.

 

Jemy Gatdula read international law at the University of Cambridge and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

Marcos wants poultry farm in Bangsamoro region

ARTEM BELIAIKIN-UNSPLASH

PRESIDENT Ferdinand R. Marcos, Jr. on Thursday urged San Miguel Corp. (SMC) to consider establishing a poultry farm in the Bangsamoro region, as the company expands its food operations in the country.

“That will help the stability in the BARMM (Bangsamoro Autonomous Region in Muslim Mindanao),” he said as he led the inauguration of San Miguel Food’s poultry farm in Davao del Sur.

San Miguel Foods is a unit of SMC.

The poultry farm is equipped with controlled climate technology and biosecurity measures. It has an automated feeding and watering system, an air quality monitoring system, and an automated harvesting system.

It is one of the 12 massive facilities that will be constructed across the country.

“This facility is also expected to provide jobs to more than 1,000 Filipinos and [generate] multiple opportunities for our micro, small and medium enterprises, our farmers, their families, as well as other sectors in Hagonoy and the nearby areas,” he added.

SMC President and Chief Executive Officer Ramon S. Ang, in a speech, said the Davao del Sur poultry farm would give local corn and cassava producers a “big opportunity” as the company seeks to tap them for raw materials for feed production.

“This means they benefit from having a steady market for their goods, and at better selling prices compared to what they would get from middlemen,” he said.

In a press release, the company said it is “taking care not to impact small growers, by carefully selecting areas where farms will be built, and producing mostly dressed chickens for value-added poultry products and institutional customers.”

SMC said the Magnolia Poultry Farm in Hagonoy town could produce up to 80 million birds annually, equivalent to 200 million kilograms in terms of live weight.

“Food security is one of the most important issues of our time. Today, we reinforce our support for the Marcos administration in ensuring a food-secure Philippines. Our goal is to provide every Filipino with access to high-quality food at prices within their means. Poultry, one of the most economical source of protein, is vital to achieving this,” Mr. Ang said.

SMC said the new poultry farm also has an integrated rainwater harvesting and a comprehensive waste management system.

“Manure produced by the birds will be utilized as fertilizer for cultivating corn and cassava, essential raw materials in the production of chicken feeds,” it said.

Meanwhile, Mr. Marcos said the Philippines will soon acquire an anti-bird flu vaccine, which he said is one of the timely interventions to mitigate the adverse effects of diseases on the poultry sector.

“There is a vaccine for Avian Influenza now. So, we will acquire the Avian Influenza vaccine,” he said in Filipino.

“The vaccine for Avian Flu looks effective — we will buy to reduce the number of those being culled due to Avian Flu),” he added.

Mr. Marcos noted that the vaccine for swine flu has yet to be rolled out.

On Thursday, SMC shares at the local bourse dropped P1.20 or 1.14% to P103.80 apiece.— Kyle Aristophere Atienza and Revin Mikhael Ochave

The problem with suggestion boxes

I’m a newly hired human resources (HR) manager. One thing that I noticed with my new employer is an old-fashioned belief in the suggestion box. We have around 10 wooden boxes distributed inside the cafeteria, hallway and office entrance near the attendance biometric machine. I told the chief executive officer (CEO) that the suggestion box is ineffective, judging from the average of two ideas a month that we’re getting from more than 1,000 workers. The CEO is not convinced. He says it’s better than nothing. How do I deal with this issue? — Banana Boat.

Is “better than nothing” the only argument of the CEO? Is he happy with two ideas a month? Why? If you’re not happy with it, present a better option. What did you have in mind? Chances are you want to make a splash with accomplishments in the first few months of your employment.

If that’s the case, I imagine that your new employer lacks a proactive two-way communication system that’s being observed on a regular basis — such as employee birthdays during town hall meeting. The point is to hit two birds with one stone. Read more about this in my Oct. 6, 2023 piece in this space.

Beyond celebrating birthdays, you must come up with a strategic bottom-up communication system designed to get maximum worker participation in problem-solving and decision-making. It’s not a new idea. Industrial democracy has been around for some time now.

Today, it’s known as participative management, where the workers are given the chance to voice their position or opposition to matters affecting their job security, health and safety, compensation and many more. This puts workers in a position to increase their productivity and reduce product or service defects.

EMPOWERMENT
Also known as employee empowerment and engagement, the system assists management in reducing employee turnover and absenteeism, among other advantages. By and large, there are three approaches toward this — the annual employee morale survey, problem-solving teams and the suggestion system which may not be limited to a standalone suggestion box.

If you want to influence worker behavior and motivate them at the same time, you must come to understand why the suggestion box is wrong. Let me count the ways:

One, the suggestion box is a reactive tool. It’s always available, but it’s not enough to encourage people to submit their ideas, suggestions and concerns in writing. Its passive nature, and the fact that submissions are protected by lock and key, tends to attract poison pen letters rather than good ideas.

Two, workers are not encouraged to contribute their ideas. When I say “encouraged,” I mean, the line leaders, supervisors and managers are not trained to coach their workers on how to come forward with their suggestions and how to polish them to make them acceptable to management.

Three, the absence of a formal system explaining the mechanics. Related to number two above, this happens all the time in the absence of a simple template or form to make it easy for workers to summarize their ideas or concerns. In many cases, HR managers believe there’s no point in coming out with a formal mechanism and form because of the following:

Four, coming up with ideas is not among the performance targets. This is the downside when you allow anonymous ideas, even complaints to flourish in an environment where employees are instructed to follow the dictates of their job description. Also, the workers would rather not give their ideas for fear of revealing their ignorance or committing mistakes.

Five, possible loss of ownership. When an excellent idea comes along, the anonymity gives license to line leaders, supervisors and managers to steal ideas from their own people. If this is perpetuated, there could come a time when the flow of ideas come to a full stop.

Six, management takes time to respond. That is, if it cares to reply at all. Management sometimes justifies it by saying that all concerned stakeholders must be consulted from the line leader up to the department head, regardless of the nature of the idea, even when the suggestion addresses trivial concerns. If the employee idea needs to be rejected, some managers would rather keep silent than explain the reasons behind the disapproval.

Last, lack of reward and recognition. Some organizations give token gifts like coffee mugs, t-shirts, or umbrellas with the company logo. Would this encourage people to give their excellent ideas? Maybe. Maybe not. The trouble is that the suggestion box is rooted in a system where anonymous ideas are acceptable. So, who are you going to recognize?

BEST OPTION
Do you want to prod workers to give their best in helping to solve problems? There’s no better way for management but to throw away the old-fashioned suggestion box. Allow people to come out into the open with their well-meaning ideas, suggestions, even complaints. That way, the concerned boss may get the chance to review them all.

Management can always preach empowerment and engagement. But in nearly every case that I’ve encountered, incentives are what makes things move. They include monetary or non-monetary perks. In most cases, it takes giving special treatment to deserving employees. These include merit increases and promotions.

 

Chat your workplace concerns with Rey Elbo on Facebook, LinkedIn or X (Twitter) or e-mail your feedback to elbonomics@gmail.com or via https://reyelbo.com

Is the Philippines serious about mining?

The Philippines is rich in mineral resources and is estimated have more than $1 trillion worth of mineral reserves but still undeveloped. Only about 3% of the land area is covered by mining claims or leases. In 2021, the estimated value produced for gold was at P72 billion, P90 billion for nickel, and P17 billion for copper. Mining’s contribution to the national economy was at 1.3%, very small relative to its potential. Economist Alvin Arogo, head of PNB’s Research Division, gave a “back of the envelope calculation” showing that if the $1 trillion or P56.8 trillion worth of mining reserves is correct, every 1% conversion of such reserves to mining and quarrying gross value added (GVA) is equivalent to P568 billion or roughly an additional 2.6% to the gross domestic product (GDP) growth. So, if we assume a GDP growth of 6% with 1% mining reserves conversion, the incremental 2.6% means GDP growth of 8.6%! Wow!

The first International Mining Conference and Exhibition after the pandemic was held on Sept. 19-20 at EDSA Shangri-La with the theme “Seeing Green: Shaping a Sustainable Minerals Development Industry.”  Keynote speakers were Environment Secretary Maria Antonia Loyzaga, who was ably represented by licensed geologist Undersecretary Carlos David, and Trade Secretary Fred Pascual. Both said the government supports the mining industry as a key driver for the Philippines’ growth. Many relevant and updated topics were discussed by mining experts, such as the outlook for the industry, opportunities, and leveraging environment, social and governance, among others.

Australian Ambassador Hae Kyong Yu saw for herself first-hand how small towns were sustained by mining, such as the construction of roads, schools, hospitals, the improved skills of people, and the upliftment of their lives. She was enthusiastic about the strategic partnership between Australia and the Philippines on mining. Canadian Ambassador David Hartman also talked about their unwavering support for the mining sector.

Eon President Malyn Molina expounded on the importance of communications and perceptions. in overcoming negative sentiments against mining. People associate mining with destruction caused by climate change, with the industry’s positive contributions falling behind in terms of awareness. Nickel Asia’s Sustainability Officer Jose Baylon passionately talked about the critics, challenges and misconceptions faced by the industry. He gave a practical solution in opening the mines to tours, especially to younger generations, saying that “seeing is believing.”

Have you experienced renovating or constructing a new house? It’s like a junkyard and is unsightly while construction is ongoing. But when finished, it is nice and serves a purpose. Mining is a “temporary junkyard” while extraction is in progress. Don’t limit mining to only the time of extraction. Mining is not permanent land use. After extracting the minerals, the land can be a repurposed area — a park, forest, or botanical garden, among others. We need to see the complete picture and not just a partial view.

To allay fears, the Philippine’s Mining Law, Republic Act 7942 passed in 1995 with its environment and social programs comparable to those in developed countries. There are now enough safeguards and rules to ensure responsible mining and environmental protection. Implementation is key.

Finance Assistant Secretary Karlo Adriano presented the government’s mining tax reforms. He concluded that the government is open to negotiation. Thus, Chamber of Mines President Mike Toledo refrained from asking any more questions. Former Ambassador Delia Albert of DIWATA (Women in Resource Development) found “negotiation” as the most welcome word in the conference. She hopes that dialogue with the government can go beyond the fiscal regime and include regular sessions on current and anticipated issues.

The mining scenario reminds me of the Parable of the Talents. The master gave talents to his three servants to take care of. The third servant, being fearful, hid the talent and returned the talent as is. The two others used the talents and grew them, and the master was pleased and gave them more talents.

Will the Philippines keep its $1-trillion mineral resources hidden under the ground? Finance Secretary Ben Diokno assured that “the Marcos administration commits to create an enabling environment for mining to flourish in the country.” The government looks serious about mining now. The Tampakan project in Cotabato of Sagittarius Mines finally got regulatory approvals and is expected to be operational by 2026.

Let’s not waste the gifts God has blessed us with. Let’s mine our natural resources responsibly and uplift the lives of our people. God is good indeed!

 

Flor G. Tarriela is former PNB chairman. She is lead independent director of Nickel Asia, director of LTG and FINEX.  A gardener and an environmentalist, she founded Flors’ Garden in Antipolo which practices natural farming technology.

Global Hunger Index: Hunger situation in the Philippines improves in 2023

The Philippines’ rank rose six notches* to 66th out of 125 countries in the latest edition of the Global Hunger Index (GHI) by Concern Worldwide and Welthungerhilfe. In a scale ranging from 0 (no hunger) to 100 (worst), the country scored 14.8, a 19.1% improvement** from 18.3 in 2015, and categorized with a “moderate” level of hunger. This was better than the global average of 18.3, but worse than the regional average of 8.3. The GHI combines the scores that capture the multidimensional nature of hunger: undernourishment, child stunting, child wasting, and child mortality.

 

Global Hunger Index: Hunger Situation in the Philippines Improves in 2023

How PSEi member stocks performed — October 12, 2023

Here’s a quick glance at how PSEi stocks fared on Thursday, October 12, 2023.


PSEi inches up on dovish Fed ahead of US data

REUTERS

THE BENCHMARK INDEX rose on Thursday, but last-minute selling trimmed gains as investors were cautious before the release of US inflation data and amid dovish comments from US Federal Reserve officials.

The Philippine Stock Exchange index (PSEi) went up by 9.10 points or 0.14% to end at 6,263.06 on Thursday. Meanwhile, the broader all shares index dropped by 1.04 points or 0.03% to 3,383.41.

“The trading session opened in the red before going green for the rest of the day. Heavy selling at the last minute trimmed gains before the session’s close as investors took caution ahead of the release of the US’ September inflation figures,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said.

September US consumer price index (CPI) data were set to be released overnight.

In August, US CPI stood at 0.6% month on month and at 3.7% annually.

“Stocks inched upward as some Federal Reserve officials offered dovish remarks overnight. Some of these officials expressed the view that further rate hikes might not be necessary given that rates are already too high,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

Fed officials pointed to uncertainties around the economy, oil prices and financial markets as supporting “the case for proceeding carefully in determining the extent of additional policy firming that may be appropriate,” the minutes of its September meeting showed, Reuters reported.

“The market seems to be shrugging off recent BSP’s (Bangko Sentral ng Pilipinas) statements of a potential rate hike this November as this is likely priced in already following the hotter-than-expected Philippine inflation report last week,” Mr. Vistan.

BSP Governor Eli M. Remolona, Jr. on Wednesday said the Monetary Board is open to hiking borrowing costs by 25 bps in their Nov. 16 review following the release of data showing faster-than-expected September inflation.

The Monetary Board has kept the benchmark interest rate at 6.25% for four straight meetings after it hiked borrowing costs by 425 basis points from May 2022 to March 2023 to help tame inflation.

Most of the sectoral indices dropped on Thursday. Services fell by 2.86 points or 0.18% to 1,515.78; mining and oil declined by 18.85 points or 0.17% to 10,964.98; industrials slipped by 13.50 points or 0.15% to 8,856.45; and financials decreased by 1.64 points or 0.09% to 1,806.47.

Meanwhile, property rose by 20.87 points or 0.79% to 2,642.81 and holding firms went up by 16.03 points or 0.27% to 5,959.

Value turnover went down to P3.21 billion on Thursday with 886.88 million shares changing hands from the P10.70 billion with 2.02 billion issues on Wednesday.

Advancers narrowly outnumbered decliners, 89 versus 86, while 49 shares closed unchanged.

Net foreign buying stood at P19.62 billion on Thursday versus the P160.31 million in net selling on Wednesday. — SJT with Reuters

Peso strengthens on dovish Fed minutes

BW FILE PHOTO

THE PESO appreciated further against the dollar on Thursday following dovish signals from minutes of the US Federal Reserve’s meeting last month.

The local currency closed at P56.66 versus the dollar on Thursday, strengthening by 9.5 centavos from Wednesday’s P56.755 finish, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Thursday’s session stronger at P56.70 per dollar. Its intraday best was at P56.66, while its weakest showing was at P56.80 against the greenback.

Dollars traded went up to $1.25 billion on Thursday from the $1.19 billion on Wednesday.

The peso strengthened on Thursday amid dovish signals from the US central bank, as seen in the minutes of its Sept. 19-20 meeting, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A growing sense of uncertainty around the path of the US economy, with volatile data and tightening financial markets posing risks to growth, pushed Federal Reserve policy makers into a newly cautious stance last month, a position reaffirmed by top US central bank officials in a series of statements this week, Reuters reported.

Minutes of the Fed’s Sept. 19-20 meeting showed policy makers wrestling with risks they agreed were no longer just about inflation, with world energy and food markets perhaps threatening a new surge in prices, but slowing global growth, labor strikes and tightening financial markets possibly clamping down on the economy in unexpected, and job-killing ways.

The point was amplified by comments this week from top Fed officials who noted that the recent rise in US Treasury yields may well take the place of further increases in the policy rate, serving to slow the economy, and inflation, beyond any further central bank action.

The US central bank agreed at its meeting last month to hold rates steady even as a 12-7 majority indicated in new projections that one more hike might be needed by the end of the year to ensure inflation returns to the Fed’s 2% goal.

Investors since that meeting have steadily discounted the likelihood of any further hikes. After the release of the minutes on Wednesday, they gave a less than 10% chance of an increase in the policy rate at the Oct. 31-Nov. 1 meeting and a roughly 26% chance at the Dec. 12-13 session, according to CME Group’s FedWatch Tool.

The peso was also supported by the continued easing of global crude oil prices on Thursday, Mr. Ricafort said.

For Friday, Mr. Ricafort sees the peso ranging from P56.55 to P56.75 per dollar. — with Reuters

Imported sugar release delayed in relief to farmers

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE Sugar Regulatory Administration (SRA) said it will delay the release of imported sugar brought in under Sugar Order No. 7 to stabilize declining farmgate prices.

Administrator Pablo Luis S. Azcona said on Thursday that the SRA needs “to regulate supply and ensure a fair price for farmers and consumers.”

Sugar Order No. 7 series of 2022-2023, authorized shipments of 150,000 metric tons of raw sugar which arrived on Sept. 15.

In a resolution signed by Mr. Azcona, the SRA said “it was deemed necessary to hold in abeyance” all applications of conversion and maintain the classification of all imported sugar as reserve.

The SRA said that it will hold on to the reserve sugar to form a two-month buffer stock.

Mr. Azcona said applications for reclassification will be suspended until farmgate prices stabilize.

Under the resolution, sugar traders were given one month or until Oct. 15 to distribute their stock and show proof of compliance.

“What is more important to us if the farmgate prices decrease (is that) we should also see a decrease in the retail price,” he added.

He said that farmgate prices of raw sugar were currently below the regulators’ projections of P3,000 per bag.

During the first two weeks of the sugar trading period the SRA reported that farmgate prices continued to decline “to the detriment of sugar farmers.” Oversupply was blamed for the easing prices.

“We had farmers who weren’t able to sell at P3,000 which was our target price; at the same time (there were) farmers groups who sold at P2,550, (equivalent to) P50+ per kilo,” he said.

He added that trading has been abnormal with prices fluctuating by P100 or more on a weekly basis.

“Our thrust is expansion of local supply to avoid imports altogether; (Imports) discourage farmers from planting and without the farmers our mills will suffer as well,” he said. “We have to ensure (more) local supply (than) we have seen past seven months.” — Adrian H. Halili

Mindanao-Visayas grid link expected to be complete by end of 2023 — NGCP

THE National Grid Corp. of the Philippines (NGCP) said it expects the completion of the Mindanao-Visayas Interconnection Project (MVIP) before the end of the year.

“There are still remaining works for certain components that we expect to finish this month. For the final component that needs to be energized, we’re targeting (completion) before the end of the year,” NGCP Spokesperson Cynthia P. Alabanza told reporters.

Through the MVIP, the Mindanao grid will be linked to the Visayas grid via a 184-circuit-kilometer (ckm) high voltage direct current system with a 450-megawatt (MW) initial capacity, expandable to as much as 900 MW.

The project also includes converter stations on both ends and more than 500 ckm of overhead lines.

“The MVIP was partially energized as early as April, so the power flow from Mindanao to Visayas has started; in June, we finished another component, Kauswagan-Lala 230 kV (kilovolt),” Ms. Alabanza said.

When asked about the percentage of transfer capacity currently operational, she said: “Last time we checked, we were at 50% of the 450 MW, but I’ll double check.”

The NGCP started to energize the MVIP with an initial load of 22.5 MW being transferred from Mindanao to Visayas. The P52-billion transmission project will result in the connection of the three main grids, allowing the transfer of power surpluses to regions experiencing deficits.

In 2022, parts of the MVIP that had been completed include the Lala-Aurora 138-kV transmission line, the 350-kV submarine cable, and cable terminal stations in Santander, Cebu, and Dapitan, Zamboanga del Norte. — Sheldeen Joy Talavera