BEIJING – China is ready to fully cooperate with the Philippines to deal with illegal offshore gambling in the Philippines, the Chinese embassy in Manila said on Wednesday.
China helped Manila shut three illegal gambling zones and repatriated nearly 400 Chinese citizens, the embassy said, also urging the Philippines to take strong measures to crack down on such activities.
Offshore gambling emerged in the Philippines in 2016 and grew exponentially, as operators capitalised on the country’s liberal gaming laws to target customers in China, where gambling is banned. — Reuters
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The Philippines posted a trade deficit of $4.13 billion for August, data from the Philippine Statistics Authority showed. — BW FILE PHOTO
THE PHILIPPINES’ trade-in-goods deficit for August narrowed to its lowest level in two months, as an increase in exports offset the continued decline in imports.
Preliminary data from the Philippine Statistics Authority (PSA) showed the trade-in-goods balance — the difference between exports and imports — stood at a $4.13-billion deficit in August, narrower than the $4.2-billion gap in the previous month and the $6.03-billion deficit in August last year.
This was the narrowest trade gap in two months or since the $3.94-billion deficit in June.
For the first eight months, the trade deficit slimmed down to $36.31 billion from the $41.86-billion gap during the same period a year ago.
Total sales of outbound goods jumped by 4.2% year on year to $6.7 billion in August, a turnaround from the revised 1.7% contraction in the same month in 2022. The 4.2% export growth was the fastest in nine months or since 13.1% in November 2022.
By value, export receipts in August marked the highest level in two months or since $6.703 billion in June.
In the eight months to August, exports fell by 6.6% to $47.81 billion.
Meanwhile, the country’s merchandise imports contracted by 13.1% year on year to $10.83 billion in August, a reversal from the 26.4% growth in August 2022.
The import bill in August was at the highest level in three months or since $10.92 billion in May this year.
In the January-to-August period, imports dropped by 9.6% to $84.12 billion.
“The main drivers of August exports were manufacturing goods including electronics as well as minerals. We estimate they also improved sequentially, signaling some improvement in external demand for the Philippines’ goods,” Makoto Tsuchiya, assistant economist at Oxford Economics, said in an e-mail.
Mr. Tsuchiya noted the decline in imports is still broad-based, reflecting the softness in domestic demand.
“The seasonally adjusted trend shows imports are declining but less intensely compared to the year-on-year growth, which means the imports might be close to bottoming out soon at least in the sequential term,” he added.
Manufactured goods, which accounted for 81.8% of total August exports, rose by 3.6% to $5.48 billion.
Electronic products, which made up more than half of the total exports in August, jumped by 6.1% to $3.88 billion.
Almost half of total exports came from semiconductors, which jumped by 14% to $3.12 billion.
The United States remained as the main destination of local goods in August, with export value reaching $1.1 billion or a 16.4% share of the total export receipts. Exports to Japan were valued at $918 million, followed by Hong Kong with $871 million and China with $838 million.
Meanwhile, imports of raw materials and intermediate goods, which made up 35.6% of the total imports in August, declined by 18.9% to $3.86 billion.
Imports of capital goods, likewise, contracted by 19.3% to $2.73 billion in August.
On the other hand, mineral fuels, lubricants and related materials, increased by 18.2% to $1.97 billion, while consumer goods grew by 20.6% to $2.24 billion.
China was the main source of imported goods in August with a 22.4% share or $2.43 billion of the total bill. Imports from Indonesia reached $977 million, followed by Japan with $787 million, South Korea with $777 million and United States with $752 million.
ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa expects the conflict between Israel and Palestinian Islamist group Hamas to send global energy prices soaring, which would drive up the country’s import bill.
“Global growth could also slow, which would slow demand for Philippine exports, either directly or indirectly,” he said in an e-mail.
Despite the exports growth, Mr. Mapa said he does not expect a sustained pickup in exports in the coming months.
“Exports will be hard pressed to hit the -4% target for this year given that year-to-date (YTD) exports are down by more than 6%,” he said.
“Meanwhile, imports will also not likely hit the forecast of -3% this year given the YTD drop of 9.6% for inbound shipments and our expectations that imports will remain soft on contracting demand for capital goods and raw materials given fast fading capital formation due to elevated borrowing costs.”
Mr. Mapa was referring to the Bangko Sentral ng Pilipinas’ forecasts for exports and imports.
Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said improvements in the supply chain helped drive export growth in August.
“[Export] orders increased slightly because of the improved supply chain… [the growth of orders] is continuous, not on a big level but it will improve,” he said in a phone interview.
The Development Budget Coordination Committee is projecting a 1% growth for exports and 2% for imports this year. — Mariedel Irish U. Catilogo
Net inflows of foreign direct investments rose by 35.7% to $753 million in July. — REUTERS
NET INFLOWS of foreign direct investments (FDI) rose to its highest level in three months in July, amid improved investor sentiment.
Data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed FDI net inflows jumped by 35.7% to $753 million in July from $555 million in the same month a year earlier. It also rose by 55.6% from the $484-million inflows seen in June.
The July FDI inflows were the highest in three months or since $877 million in April.
“The jump in FDI inflows was likely due to positive risk sentiment which encouraged investments in emerging markets like the Philippines,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.
Ms. Velasquez said market players had expected the US Federal Reserve to be nearing the end of its tightening cycle in July due to weaker US inflation and US jobs data.
The US Federal Reserve hiked its own policy rates by 25 basis points (bps) to 5.25-5.5% at its July 25-26 meeting. It has raised borrowing costs by a total of 525 bps since March 2022.
“Additionally, the launch of green lanes for strategic investments and the signing of the Maharlika Investment Fund could have also encouraged inflows,” she said.
President Ferdinand R. Marcos, Jr. signed Executive Order No. 18 in February, which aims to expedite, streamline, and automate government processes for strategic investments to attract more foreign investors.
In July, Mr. Marcos signed into law Republic Act No. 11954, which created the Philippines’ first sovereign wealth fund. The MIF is expected to be operational by yearend.
The BSP attributed the increase in FDI net inflows in July to nonresidents’ net investments in debt instruments more than doubling to $575 million from $276 million a year earlier.
However, equity and investment fund shares fell by 36.1% to $179 million in July from $279 million in the same month last year.
In July, reinvestment of earnings slid by 20.1% to $114 million from $142 million a year ago.
Equity inflows other than reinvestment of earnings dropped by 52.6% year on year to $65 million. This, as placements plummeted by 47.6% to $81 million, while withdrawals went down by 9.1% to $16 million.
For the first seven months of 2023, FDI inflows decreased by 14.7% to $4.66 billion from $5.47 billion in the same period last year.
Broken down, investments in debt instruments dropped by 15.2% to $3.28 billion in the January-to-July period.
Equity and investment fund shares went down by 13.6% to $1.38 billion as of July. Reinvestment of earnings declined by 13.1% to $573 million in the seven-month period.
Investments in equity capital other than reinvestment of earnings slipped by 14% to $808 million. Placements dipped by 4% to $1.004 billion, while withdrawals surged by 83% to $196 million.
“In the near term, the prevailing risk-off sentiment may dissuade investments in the Philippines. On a positive note, enacted legislations and reforms should help improve investor sentiment in the country,” Ms. Velasquez said.
She cited recent laws such as the Retail Trade Liberalization Act, the Public Service Act, and the Regional Comprehensive Economic Partnership.
“We expect FDI inflows to be better in 2024 in line with a global economic recovery,” she added.
Last month, the BSP lowered its full-year projection for FDI net inflows to $8 billion from $9 billion previously. FDI net inflows are also projected to reach $10.5 billion in 2024. — Keisha B. Ta-asan
A man arranges Christmas lanterns for sale in Las Piñas City. The International Monetary Fund projects 5.3% gross domestic product growth for the Philippines this year. — PHILIPPINE STAR/EDD GUMBAN
THE INTERNATIONAL MonetaryFund (IMF) expects the Philippine economy to remain one of the strongest performers in the region this year, despite its outlook of slower global economic growth
In its latest World Economic Outlook (WEO), the IMF expects the Philippines’ gross domestic product (GDP) to grow by 5.3% this year, below the 6-7% target of the government. This is also slower than the 7.6% GDP expansion in 2022.
The multilateral lender’s 2023 growth outlook for the Philippines is the second fastest among emerging and developing Asia, just behind India (6.3%).
It is ahead of China and Indonesia (both at 5%), Vietnam (4.7%), Malaysia (4%), and Thailand (2.7%).
Emerging and developing Asia’s growth is expected to average 5.2% this year from 5.3% previously. The region’s growth is seen to slow to 4.8% in 2024 from 5% previously.
The IMF said that growth prospects for emerging markets and developing economies will remain weak this year.
“Global activity bottomed out at the end of last year while inflation — both headline and underlying (core) — is gradually being brought under control,” the IMF said.
“But a full recovery toward pre-pandemic trends appears increasingly out of reach, especially in emerging markets and developing economies,” it added.
The IMF’s 5.3% forecast for the Philippines this year also makes it the fastest among five Association of Southeast Asian Nations (ASEAN) member countries.
The ASEAN-5 region is projected to grow by 4.2% this year and 4.5% next year.
Based on the WEO, the IMF projects 5.9% GDP growth for the Philippines in 2024, although this was already revised to 6% last week after the conclusion of the Article IV consultation mission to Manila.
This would still make the Philippines the second-fastest growing economy in emerging and developing Asia, after India (6.3%). The Philippines is also seen to be the fastest in ASEAN-5 next year, followed by Indonesia (5%) and Malaysia (4.3%).
IMF Representative to the Philippines Ragnar Gudmundsson said the multilateral lender’s latest projections for the Philippines were finalized during the Article IV mission, as the forecasts in the WEO update were done before the consultations.
“Our views on monetary policy are still in line with those shared last week,” he said in an e-mail. “Essentially, we made small adjustments to our projections based on our discussions and the latest data we received in the context of the mission.”
IMF Mission Chief to the Philippines Shanaka Jayanath Peiris earlier said the main downside risk to the IMF’s growth outlook for the Philippines is persistent inflation, which could prompt the central bank to resume monetary tightening.
The IMF expects Philippine inflation to rise to about 6% this year before declining to 3.5% in 2024. The BSP sees inflation averaging 5.8% this year and 3.5% in 2024.
The BSP has kept the key interest rate at a near 16-year high of 6.25% since March.
Mr. Peiris had said that a “higher-for-longer” policy rate path may be necessary until inflation falls within the target range.
The IMF projects Philippine inflation to return to the 2-4% target by the first quarter of next year.
“Yet growth remains slow and uneven, with growing global divergences. The global economy is limping along, not sprinting,” the IMF said.
The IMF expects global inflation to rise to 6.9% this year, but ease to 5.8% in 2024. Inflation is not expected to return to target until 2025 in most economies around the world. — Keisha B. Ta-asan
SOURED LOANS held by Philippine banks declined year on year as of end-August, bringing the nonperforming loan (NPL) ratio to a four-month low despite elevated borrowing costs.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the banking sector’s gross NPL ratio slipped to 3.42% from 3.43% as of end-July and from 3.53% in the same month last year.
The NPL ratio in August was the lowest in four months or since 3.41% in April.
Bad loans declined by 5.9% year on year to P442.9 billion as of end-August. However, it was 0.6% higher than P440.1 billion seen at end-July.
Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. They are deemed as risk assets given borrowers are unlikely to settle such loans.
“The NPL ratio continued to edge lower as improved income streams allow borrowers to service debt requirements,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail on Tuesday.
BSP data showed banks’ gross loan portfolio jumped by 9.4% to P12.96 trillion in August from P11.84 trillion a year ago. It also went up by 1.09% from P12.82 trillion in July.
Meanwhile, past due loans climbed by 8.4% year on year to P538.19 billion in August, but the ratio dropped to 4.15% from 4.19% a year ago.
Restructured loans declined by 4.3% to P306.05 billion as of end-August. This accounted for 2.36% of banks’ loan portfolio, slightly lower than 2.7% in the same month in 2022.
Banks continued to beef up their loan loss reserves by 9.14% to P456.27 billion as of end-August from P418.05 billion a year ago. This brought the loan loss reserves ratio to 3.52% from 3.53% a year earlier.
The industry’s NPL coverage ratio also improved to 85.98% from 83.65% in 2022.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the lower August NPL ratio to the continued growth in loans that broadened the base.
Separate data from the BSP showed outstanding loans issued by big banks expanded by 7.2% year on year to P11.06 trillion in August. However, the growth in August eased from the 7.7% print in July and was the slowest in 20 months or since 4.8% in December 2021.
The economic reopening also boosted the incomes and livelihood of borrowers, which improved their ability to repay loans, Mr. Ricafort said.
However, consumers may be burdened by elevated prices and higher borrowing costs, he added.
“Going forward, sustained growth for the economy should help keep the NPL ratio on the downward path although the weight of elevated borrowing costs could eventually lead to the sustained increase in NPLs in the coming months,” Mr. Mapa said.
The Monetary Board has kept the benchmark interest rate at 6.25% since March. This was after hiking borrowing costs by 425 basis points from May 2022 to March 2023 to tame inflation.
The NPL ratio stood at 3.16% as of end-December 2022, lower than 3.99% recorded as of end-2021.
THE hotel unit of DoubleDragon Corp. has opened its “global” corporate office and sales hub in Singapore, stepping up the Sia-led group’s overseas foray.
In a regulatory filing, DoubleDragon said Hotel101 Global Pte. Ltd. launched its operations on Tuesday at the PLUS Building along Cecil Street.
“The Hotel101 global corporate office functions as the hub for our team members that are based in different countries as we form the right mix of experienced team members that will efficiently lead the expansion of the Hotel101 unique and asset-light business model simultaneously in various countries,” Hotel101 Global Chief Executive Officer Hannah Yulo-Luccini said.
Hotel101’s corporate office is located on the 4th floor of the PLUS Building while the sales hub is on the ground floor.
DoubleDragon said the Hotel101 sales hub features the newest version of the hotel’s 21-square-meter HappyRoom, which comes with a queen bed and single bed using Emma Sleep mattresses, Internet of Things (IoT) app operable smart lighting using a single type of bulb, 55-inch smart television, and work desk.
The other features of the HappyRoom include universal power outlets, electronic device charger ports, a kitchenette with refrigerator and microwave, and a modern prefabricated bathroom.
“Hotel101 is expected to become known as one of the most technologically advanced hotel chains across all parts of its value chain,” DoubleDragon said, adding that the next version of the Hotel101 app will integrate an automated self-check-in system with IoT capability.
Hotel101 opted for the banig or the Philippine traditional handwoven mat for its signature look.
“The banig symbolizes home, and that’s how we want you to feel when you are staying at Hotel101. The Hotel101 banig colors were carefully chosen to radiate happiness and intended to evoke a Filipino touch in all Hotel101 projects across different countries worldwide,” DoubleDragon said.
The first three overseas Hotel101 projects are in Hokkaido, Japan, Madrid, Spain, and California, USA.
Hotel101’s near-term expansion roadmap is to have a presence by 2026 in the Philippines, Japan, Spain, United States, United Kingdom, United Arab Emirates, India, Thailand, Malaysia, Vietnam, Indonesia, Saudi Arabia, Singapore, Cambodia, Bangladesh, Mexico, South Korea, Australia, Canada, Switzerland, Turkey, Italy, Germany, France, and China.
“If there is one hotel chain that can optimize the use of modern technology in the global hospitality space, we believe it will be Hotel101,” DoubleDragon Chairman Edgar J. Sia II said, citing the hotel’s “pioneering standardized” HappyRooms and “asset-light concept globally.”
“Eventually, when you stay in any Hotel101, no matter what country you are in, for the first time you will know exactly what to expect,” Mr. Sia added.
On Tuesday, DoubleDragon shares at the local bourse dropped five centavos or 0.71% to P7 apiece. — Revin Mikhael D. Ochave
ENERGY COMPANIES are expected to experience challenges in terms of oil input costs amid the conflict in the Middle East, according to analysts, who also said the situation may also present opportunities for exploration firms.
Luis A. Limlingan, head of sales of Regina Capital Development Corp., said in a Viber message that local energy and oil companies might face challenges due to increased input costs, which could hit their profitability.
“However, companies involved in oil exploration and production could benefit from higher prices, offsetting the cost impact on their operations,” he said.
Oil prices rose by 4% on Monday following the military clashes between Israel and the Palestinian Islamist group Hamas over the weekend which drove fears that it could influence oil supply tightening from the Middle East, Reuters reported.
Brent crude inched up by $3.57 or 4.2% to $88.15 a barrel, while US West Texas Intermediate crude rose by $3.59 or 4.3% to $86.38 a barrel. Both benchmarks spiked by more than $4 or over 5%.
“Since the Philippines is a net oil importing country, conservation [is] still a prudent measure amid geopolitical uncertainties that could lead to some uptick in world oil/fuel prices,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a separate interview.
“The situation is still uncertain if other Middle Eastern countries that are major oil producers especially Iran will be dragged into the conflict, so far, none of that yet,” Mr. Ricafort said.
In 2022, the Philippines imported a total of 6,892 million liters of crude oil, up 46% from 4,721 million liters in 2021 — which were 100% sourced from the Middle East, data from the Department of Energy (DoE) showed.
DoE Oil Industry Management Bureau Assistant Director Rodela I. Romero said uncertainties could drive up oil prices but may not have a long-term impact.
“Oil prices spike Sunday after the attack but experts say, do not expect a long-term impact on oil and gas prices unless the conflict itself continues to escalate,” she said in a Viber message.
Ms. Romero said the Philippines does not usually source oil from Israel but from the countries that surround it.
“US and [Saudi Arabia] is the biggest [oil producer] so if [the situation] escalates, it could really affect us because fear and uncertainties in the market can drive up prices,” she said in a televised briefing in Filipino.
Carlos Angelo O. Temporal, senior equity research analyst at Unicapital Securities, Inc., likewise said that the impact on global oil supply is expected to be minimal “as long as the conflict remains confined to the two parties.”
Local oil firms implemented rollbacks in the pump prices of petroleum products effective on Tuesday.
In separate advisories, the companies announced a decrease of P2.45 per liter for diesel, P3.05 per liter for gasoline, and P3 per liter for kerosene.
This marks the third consecutive week of rollbacks for gasoline and kerosene, ending 11 consecutive weeks of increases.
“DoE will continue to monitor the developments in the international oil market and whatever the adjustments in the domestic pump price is just reflective of the said international oil market situation,” Ms. Romero said.
Analysts said that local oil producers could benefit from any uptick in world oil prices but present challenges to other industries that are heavily reliant on oil such as transportation and manufacturing ,which could cause increased operating expenses.
“The immediate casualties of higher oil prices would be the logistics sector, particularly airline companies with jet fuel accounting for a large portion of its expenses,” Mr. Temporal said, adding that the consumer sector will also be hit “as higher prices of goods and services may tighten the spending capacity of consumers while higher input costs may lead to margin erosion.”
Meanwhile, investors are expected to stay on the sidelines to gauge the geopolitical risks that may affect investments in energy companies but are advised to closely monitor the developments.
“Immediately, there is a flight to safe havens for investors in times of potential geopolitical risks. Flight-to-quality until the situation stabilizes, just to be sure/safe,” Mr. Ricafort said.
“Investors should closely monitor developments in the Middle East and their potential impact on oil prices. A surge in oil prices could present investment opportunities for companies in the energy sector, especially those involved in exploration and production,” Mr. Limlingan said.
LISTED property developer Kepwealth Property Phils., Inc. is looking to acquire new properties in the near term as the company is aiming to bolster its portfolio.
“The board projects that we will most likely look into acquiring new properties sometime in the second semester of 2023 or first term of 2024,” Kepwealth said in a regulatory filing on Tuesday.
The company’s disclosure comes as it bought two contiguous floors and 18 parking spaces at One San Miguel Ave. in Pasig City in line with its plan to acquire more leasable office spaces.
The acquisition was partly funded by proceeds from the company’s initial public offering (IPO) in 2019 when it sold 67.03 million common shares and generated P384.8 million in gross proceeds.
Kepwealth updated the Philippine Stock Exchange on the use of proceeds as of end-September from its IPO.
“In the meantime, all unused [IPO] proceeds were invested in low-risk investment instruments with the highest returns as possible,” Kepwealth said.
The company previously said that the proceeds would be spent to acquire about 3,500 square meters of leasable office space. About P245 million will be used for office spaces in Quezon City, Pasig City, and Makati City, while the rest will be used for office spaces in Davao.
According to Kepwealth, it is continuing to focus its business development effort, which was tapered by the current business environment.
“After reassessing our plans and timeline with regard to the use of the IPO proceeds for the acquisition of additional units that we can lease out, we believe that the most prudent stance would be to continue to proceed cautiously as we evaluate the available properties and weight that against the demand for office spaces,” the company said.
“Originally, the company has projected to complete the acquisition until the end of the second quarter of 2020. As has been our stance since the beginning of the pandemic, we still believe that our shareholders interest would be best served by being conservative in our capital investments,” it added.
Shares of Kepwealth at the local bourse rose five centavos or 3.03% to P1.70 apiece. — Revin Mikhael D. Ochave
MFPI lays out plans to enrich PHL arts and culture
THE TWO-YEAR hiatus on in-person events due to the pandemic is long over, and everyone has been showing up in full force to support Philippine arts and culture, according to the Museum Foundation of the Philippines, Inc. (MFPI).
This renewed passion is the main reason that the foundation’s flagship fundraising project, the MaArte Fair at The Peninsula Manila, saw great success this year.
“In terms of foot traffic, we had about 10,000 people, or about 3,500 a day, over the course of the three-day fair. The revenue generated was more than double of last year,” said Max Ventura, a trustee of MFPI, in an interview with BusinessWorld.
“We had 120 exhibitors this year compared to the 94 previously,” he added. The fair, held in August, allowed artisans and sellers of local and sustainable goods — from gourmet chocolates and home and personal care products to handmade clothes and handcrafted jewelry — to occupy three floors of The Pen, including the Rigodon Ballroom.
“Artisan exhibitors really had a bigger space to display and sell their works,” Mr. Ventura said.
Moving forward, the MFPI expects the enthusiasm from this event to carry over to upcoming endeavors, from lectures and tours to art fairs that they sponsor.
SUPPORT FOR MUSEUMS The Museum Foundation is a non-stock, not-for-profit membership and volunteer organization that provides funding support for the special projects of museums in the Philippines, with the National Museum being its primary focus.
Danny Jacinto, president of MFPI, told BusinessWorld in an interview that the successful fundraising from the MaArte Fair provides a big share for the various projects lined up.
In July, they were able to provide a scholarship grant for a National Museum employee to study for their Master’s in Heritage and Exhibit Design at the Edinburgh Napier University in Scotland. This is in addition to the employee they previously sent to study Conservation Science in Melbourne.
“The scholarship program is a major project. We’re actually seeking out partnerships with different embassies to see if they can co-sponsor scholars with us,” said Mr. Jacinto.
He added that this project helps the National Museum and other local museums in the long run since the scholars can disseminate what they’ve learned to their peers once they return.
Every February, the organization also provides assistance to the Cultural Center of the Philippines’ Pasinaya Festival, in the form of shuttles that enable audiences to visit 13 museums and galleries in a hop-on, hop-off tour around the cities of Pasay and Manila.
SPONSORING ART FAIRS, PROJECTS So far, 2023 “is a good year for Philippine arts and culture” based on the various events that MFPI mounts.
Aside from mounting the MaArte Fair, the foundation also serves as a sponsor and education partner for Art Fair Philippines which is held in February and Art in the Park which is held in March.
This year, they extended support for the production of Threaded Traditions: The Inabal of the Bagobo-Tagabawa, a 30-minute documentary whose main goal is to help preserve weaving traditions and honor the late Salinta Monon, a weaving virtuoso.
The documentary is slated to be completed next month and was filmed entirely in Bansalan, Davao.
“Though our focus is on the National Museum since that’s our mandate, the rest of the donations and grants we use for efforts that help preserve culture and the arts,” Mr. Jacinto said.
He noted that they are currently working on getting accredited by the Philippine Council for NGO Certification (PCNC), which will allow them to properly align their grants as standardized in the NGO sector.
MFPI is also always open to donations, according to the board. Though they rely on MaArte at The Pen and Art in the Park as their two major fundraisers, the foundation is happy to collaborate with other NGOs and corporations, whether it be through monetary donations, services, or manpower.
Tanya Pico, executive director of MFPI added that making arts and culture accessible to the mass market is one of their goals.
“With more support for our projects, we hope we can do our part in enriching our arts and culture and bringing it to more Filipino audiences, reaching not just people of a certain class, but really everyone,” she said. — Brontë H. Lacsamana
LISTED food and beverage manufacturer RFM Corp. will not implement price increases for its items sold across supermarkets during the holiday season, its top official said.
“We’re prepared for Christmas. We don’t want to increase prices, especially ice cream and pasta, which are the big items during Christmas. We’ve hedged our prices so we are protected. Hopefully, we want to see more consumers spend this coming Christmas,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III said during ANC’s Market Edge on Tuesday.
“We started loading the supermarkets. We want the momentum to really continue and wipe out our entire inventory this coming quarter. I’m very positive moving towards even next year,” he added.
Mr. Concepcion said that RFM is optimistic about the upcoming holiday season on the back of increased consumer spending as well as lower prices of raw materials.
“We have already adjusted our prices. During Christmas, we already started pre-selling and loading the distributors. One thing for sure is they are not going to see any price increases. It is a very competitive environment right now, even with ice cream. We have a lot of competitors wanting to grab our market share,” Mr. Concepcion said.
“We want consumers to spend. If the products are more affordable, then they can afford to buy more. I think everybody is bullish that this Christmas will be pretty good. I expect that because Filipinos will always eat,” he added.
Meanwhile, Mr. Concepcion said the company’s margins are “well protected” as it has secured the supply of raw materials until June next year.
“From the high of what commodity prices were early this year and to where it is now, the margins are well protected. That’s why we have hedged as far as next year June, we’ve secured our raw materials at prevailing prices. We have been able to hedge so that in case there are any further upticks towards next year,” Mr. Concepcion said.
“We should be fine,” he added.
RFM logged a 19% decline in its first-half net income to P558 million despite the 8% increase in its net revenue to P9.2 billion. The company’s products include ice cream, flour-based goods, milk, and juices.
On Tuesday, shares of RFM at the local bourse closed unchanged at P3.05 apiece. — Revin Mikhael D. Ochave
ALTERNERGY HOLDINGS Corp. said its subsidiary inked a lease contract, including a revenue-sharing agreement, with the provincial government of Rizal for a 100-megawatt (MW) onshore wind project.
In a stock exchange disclosure on Tuesday, the listed energy company said it signed the contract on behalf of Alternergy Tanay Wind Corp. (ATWC) on Monday.
The company said the deal is “in respect of ATWC’s utilization of parcels of land” that is registered in the name of the provincial government for the development and implementation of the onshore wind project in Tanay, Rizal.
“The signing of our lease agreement from the Rizal Provincial Government is a positive development for our Tanay Wind Power Project,” Alternergy Chairman Vicente S. Pérez, Jr. said in a media release. “This will allow us to proceed with the construction of the project by 2024.”
ATWC was awarded a wind energy service contract by the Department of Energy in 2015, giving the company 25-year concession rights to develop wind resources on provincial properties in barangays San Andres and Cuyambay in Tanay.
The renewable energy company placed the elevation of the wind power project at 300 to 600 meters above sea level.
“We are delighted to once again partner with Alternergy and deepen the ties built when Alternergy’s Pililla Wind Farm was constructed in 2015 to establish the Rizal Province as the new capital for wind projects in the country,” Rizal Province Governor Nina Ricci A. Ynares said.
The provincial government had signed a lease in September 2012 for one of its properties to Alternergy’s 54-MW Pililla wind farm, which started operations in 2015.
Alternergy is targeting to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower projects.
On Tuesday, shares of the company closed unchanged at P0.83 apiece. — Sheldeen Joy Talavera
