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Philippines tells China to stop provocative actions in South China Sea

PHILIPPINE COAST GUARD PHOTO

The Philippines repeated its call for China to stop its “provocative actions”, warning that its continued attempts to block Manila’s resupply missions to a disputed atoll in the South China Sea could have “disastrous results”.

Jonathan E. Malaya, spokesperson at the National Security Council, said in a press conference on Monday that China’s move to interfere with a resupply mission on Sunday resulted in damage to one of Manila’s boats but no one was harmed.

In the incident early on Sunday, China’s coastguard said there had been a “slight collision” between one of its ships and the Philippine boat while the coastguard was “lawfully” blocking the boat from transporting “illegal construction materials” to the warship.

Manila responded by condemning “in the strongest degree” the “dangerous blocking maneuvers” of the Chinese vessel.

“We are relieved and thankful that no Filipino personnel were harmed. But we are concerned by the escalation and provocations by Chinese vessels who have no business being in the West Philippine Sea,” Mr. Malaya said. — Reuters

Saving more lives through breast cancer awareness

Photo by MARCOJEAN20 / Pixabay

Breast cancer occurs when abnormal breast cells expand and form tumors uncontrollably. It can cause breast lumps, a change in shape or size, or even nipple discharge. According to World Health Organization (WHO), “breast cancer cells begin inside the milk ducts and/or the milk-producing lobules of the breast. Cancer cells can spread into nearby breast tissue and this creates tumors that cause lumps or thickening.”

Males and females are both prone to breast cancer, but females are usually at a higher risk of developing breast cancer, such as those with a family history of breast cancer, those with a history of radiation exposure, those who have reproductive history, and those who have undergone hormonal therapy or improper use of tobacco and birth control, among others. 

Globally, millions of people suffer from breast cancer. It remains the second most common disease affecting women, resulting in 2.3 million diagnosed women and 685,000 deaths worldwide. WHO added that in 95% of the countries worldwide, breast cancer is leading cause as the most fatal cancer among women, and 80% of breast cancer deaths comes from low- and middle-income countries.

Moreover, as a 2020 study by the International Agency for Research on Cancer suggests 4.4 million women died of cancer that year and over one million children became orphan because of cancer. Children who lost their mothers due to breast cancer have suffered a lot, making breast cancer a cause of horrific impact on future generations.

“Countries with weaker health systems are least able to manage the increasing burden of breast cancer. It places a tremendous strain on individuals, families, communities, health systems, and economies, so it must be a priority for ministries of health and governments everywhere,” WHO Director-General Dr. Tedros Adhanom Ghebreyesus said in an article.

In the Philippines, breast cancer is a common type of cancer that can affect women of all ages. According to the Philippine Institute for Development Studies (PIDS), there are 25,000 new cases of breast cancer reported every year, 9,000 of which have led to death. Moreover, 70% of them belong to the lower socio-economic class.

“Previous data by the Department of Health (DoH) showed that 3 in every 100 women in the country will be diagnosed with breast cancer in their lifetime. While women have a higher risk, the Philippine Cancer Society noted that the disease does not spare men — at least one in 1,000 men will have breast cancer in their lifetime,” PIDS reported.

Photo by JCOMP / Freepik

In recent years, a wide variety of cancer treatments have been developed and made available for cancer patients throughout the country. For instance, the most common types of treatments include therapies (i.e. targeted therapy, chemotherapy, and radiation therapy), surgeries, and medication. 

Since breast cancer remains a large battle for the world to fight, it is important that more people become more aware of the risk factors, diagnosis, and treatments for breast cancer. Such knowledge can be key to preventing this disease or treating it immediately upon diagnosis before it becomes more fatal.

Through increased awareness, education, and proper access to healthcare services, the incidence of breast cancer disease can decrease.

“By providing public health education to improve awareness among women of the signs and symptoms of breast cancer and, together with their families, understand the importance of early detection and treatment, more women would consult medical practitioners when breast cancer is first suspected, and before any cancer present is advanced,” WHO said.

According to a recent study entitled “Impact and opportunity: the case for investing in women’s cancers in Asia Pacific,” the Philippines is found to be among the countries that are leading with breast cancer awareness and prevention. The country, noted the study, is committed to implementing many programs and campaigns that are focused on screening, preventing, as well as raising awareness about the disease.

For instance, the Philippines celebrates Breast Cancer Awareness Month every October to promote public awareness and implement educational programs that support communities, as well as breast cancer screening and health consultations for early prevention of the disease. 

However, the study also found that the country has poor performance in terms of healthcare access, diagnosis, policy and planning, and resource capacity.

In addition, citing a study published in the open-access journal Preventive Medicine Reports, the report noted that due to the inaccessible and unaffordable breast cancer screening in the Philippines, 53% of breast cancer patients are diagnosed without mammographic screening, resulting in late-stage diagnosis, which can be fatal for those patients. 

In addition, according to a study by PIDS’ senior research fellow Valerie Ulep, the country’s screening rates for breast and cervical cancer are lower than those of middle and high-income countries. Ms. Ulep claimed that despite the development of advanced treatments, many Filipino women still lack access to preventive screening for breast and cervical cancers.

Given this situation, calls for better funding for cancer programs have recently been raised.  For instance, an increase of P1 billion in funding for DoH’s cancer programs has been recommended to the Congress by advocacy groups like the Cancer Coalition and Citizen’s Watch. An additional P5 billion in funding to the DoH is also suggested to help reduce unnecessary cancer deaths each year.

More recently, a member of the House of Representatives has filed a resolution for purposes of increasing breast cancer awareness.

“With the alarming growth of breast cancer cases in the Philippines, there is a need to strengthen dedicated programs against breast cancer and to allocate adequate budgetary support for programs involving early detection in hospitals and at the local level,” House Deputy Speaker Camille Vilar said in a statement.

“There is a seeming absence of comprehensive screening programs especially in far-flung areas, thereby depriving women to seek immediate early screening or medical help,” Ms. Villar added.

“Considering that one of the goals of the national economy is more equitable distribution of opportunities and raising the quality of life for all, especially the underprivileged, it is high time that those who are less in life be given the lifeline to fight cancer despite their lack of resources,” she continued.Angela Kiara S. Brillantes

New vehicle sales up 9.5% in Sept.

A general view of the traffic along EDSA. — PHILIPPINE STAR/MICHAEL VARCAS

NEW VEHICLE SALES grew by an annual 9.5% in September, the slowest pace in 19 months, according to the joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

The CAMPI-TMA report showed new vehicle sales increased to 38,628 units in September from 35,282 units in the same month a year ago.

“We recorded the highest monthly sales performance in September and we hope that a positive consumer outlook will be sustained in (the fourth quarter),” CAMPI President Rommel R. Gutierrez said in a statement.

Auto SalesAuto Sales (September 2023)However, September saw the end of 18 straight months of double-digit growth. At 9.5%, this was the weakest expansion in 19 months or since the 7.3% contraction in February 2022.

Month on month, vehicle sales went up by 5.2%.

Mr. Gutierrez said vehicle sales were driven by “promotional campaigns and new model launches in August.”

Data showed commercial vehicles accounted for two-thirds of the sales in September. Commercial vehicle sales rose by 6.5% to 29,070 units in September from 27,306 units in the same month last year.

Month on month, commercial vehicle sales went up by 9.2% from 26,620 units in August.

Broken down, light commercial vehicle sales inched up by 4.6% to 23,098 units, while sales of Asian utility vehicles went up by 14.9% to 4,955 units in September.

Sales of light trucks increased by 21.7% to 611 units in September, but sales of medium and heavy trucks declined by 2.4% and 5.8% to 325 and 81 units, respectively.

Meanwhile, passenger car sales jumped by 19.8% to 9,558 units in September from 7,976 units a year ago.

Month on month, sales of passenger cars dropped by 5.31% from 10,094 units in August.

Despite the slower growth in September, CAMPI-TMA members sold 314,843 units in the nine-month period, up by 26.9% from 248,154 units a year ago.

Mr. Gutierrez said the nine-month tally puts the industry on track to fully recover this year.

“The automotive market has remained resilient since 2021 and the current trend indicates that we will breach the highest pre-pandemic sales performance and achieve full industry recovery in 2023,” said Mr. Gutierrez.

CAMPI revised its 2023 sales target last month to 423,000 units from 395,000 units previously. If realized, this would be 20% higher than the 352,596 sales in 2022.

For the January-to-September period, commercial vehicle sales increased by 24.8% to 234,834 units, while passenger car sales rose by 33.2% to 80,009 units.

Toyota Motor Philippines Corp. remained the market leader with a 45.81% share as nine-month sales rose by 15.5% to 144,232 units.

Mitsubishi Motors Philippines Corp. came in second spot with a 65.2% increase in sales to 58,065 units in the first three quarters.

In third spot was Ford Motor Co. Phils., Inc. as sales jumped by 42.2% to 23,091 units.

Rounding out the top five were Nissan Philippines, Inc., which saw a 24.7% increase in sales to 20,037 units, and Suzuki Phils., Inc. whose sales fell by 6.8% to 13,490 units. — Justine Irish D. Tabile

Another rate hike may be needed to fight inflation

By Keisha B. Ta-asan, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) may be compelled to resume monetary tightening next month to mitigate inflationary pressures, although a likely pause by the US Federal Reserve could ease the pressure on the BSP to hike further, analysts said. 

Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said there are more upside risks to inflation such as rising oil prices due to heightened geopolitical tensions in the Middle East.

“(We) may need more (rate) hikes to suppress inflation,” he said in a Viber message.   

GlobalSource Partners Country Analyst Diwa C. Guinigundo said inflation’s upward trend may continue after the spike seen in August and September, as well as higher electricity rates, transport fares, and wages.

“On top of that, the latest forecasts of the BSP for the next two years are uncomfortably above the midpoint of the official (2-4%) inflation target, something that could upset inflation expectations,” he said in a Viber message.

“With the BSP’s suggestive forward guidance, it looks like the BSP is set to resume tightening monetary policy. To me, that is most appropriate,” he added.

BSP Governor Eli M. Remolona, Jr. earlier said he is not ruling out a 25-basis-point (bp) rate hike at its Nov. 16 meeting, after inflation accelerated for a second straight month in September to 6.1%.

September marked the 18th straight month that inflation exceeded the central bank’s 2-4% target. Year to date, inflation averaged 6.6%.   

The BSP sees average inflation at 5.8% this year, before declining to 3.5% in 2024 and 3.4% in 2025.   

Mr. Remolona has also hinted at the possibility of an off-cycle rate hike, but the BSP still needs to review the latest data before making a policy decision.

China Banking Corp. Chief Economist Domini S. Velasquez said they have raised their average inflation forecast to 5.9% for 2023, slightly higher than the BSP’s projection.

“We do think there is an increasing chance that BSP will hike its policy rate if the Fed hikes once more to keep interest rate differentials stable,” Ms. Velasquez said.   

The US Federal Reserve’s next policy meeting is scheduled for Nov. 2. The Fed earlier signaled it would keep rates higher for longer, even as it kept the target Fed fund rate unchanged at 5.25-5.5% last month.   

“However, we maintain our base scenario that there is less of a need to hike interest rates further given that the BSP has probably done enough with the cumulative rate hikes previously. Moreover, most of the recent shocks are supply side in nature,” Ms. Velasquez said.   

The Monetary Board has kept the key interest rate unchanged at a near 16-year high of 6.25%. This was after hiking borrowing costs by 425 basis points from May 2022 to March 2023.   

University of the Philippines Los Baños Senior Lecturer of Economics Enrico P. Villanueva said the BSP would consider a rate hike if the October inflation is considerably faster.

“The BSP is also conscious of growth impact and should consider lags in impact of previous rate hikes,” he said in a text message.   

The statistics agency will release the October inflation data on Nov. 7, and the third-quarter GDP data on Nov. 9.   

To mitigate the volatility in the foreign exchange market and manage dollar reserves more efficiently, Mr. Ravelas said the BSP can use advanced data analytics and artificial intelligence. This would help reduce currency risks and stabilize exchange rates.   

At a press briefing on Friday, Richard Yorke, head of global corporate and investment banking for Asia Pacific at MUFG Bank, said it may be the end of the tightening cycle in the United States.

“We are waiting for the light at the end of the tunnel in terms of how far interest rates will rise. It looks like we’re getting to the end of the rising cycle. So, we are seeing a slow pick up in terms of confidence (from our clients) in making (investment) decisions,” he said.   

However, Marie Diana Lynn Coronel-Singson, deputy country head at MUFG in Manila, said growth and inflation remain major concerns in the Philippines.   

“Historically, the BSP has somehow followed more or less how the Fed moves. But the BSP will have to look at a lot of factors in the Philippines,” she said.   

But despite a tighter interest rate environment, the MUFG executives said they still see strong economic growth in the Philippines amid new investment initiatives and business opportunities in the country.   

Mr. Guinigundo said that resuming monetary tightening could compromise economic growth.   

“Monetary policy can manage demand pressure which remains strong as the economy continues to grow. This is indicated by the elevated reading on core inflation,” he said.   

Core inflation, which excludes volatile prices of food and fuel, further eased to 5.9% year on year in September, lower than 6.1% seen in August. Year to date, core inflation averaged 7.2%.   

Meanwhile, the Philippine economy grew by 4.3% in the second quarter, much weaker than 6.4% in the first quarter and 7.5% in the second quarter a year ago.

In the first half, GDP growth averaged 5.3%, still below the government’s 6-7% target for 2023.

MIF’s governance structure needs improvement — analysts

President Ferdinand R. Marcos, Jr. said Saudi Arabia and other Gulf nations are keen on the Philippines’ first sovereign wealth fund. Mr. Marcos attended the ASEAN-Gulf Cooperation Council (GCC) Summit in Riyadh, Saudi Arabia. — RENE DILAN/PPA POOL

By Luisa Maria Jacinta C.Jocson, Reporter

IMPROVING the governance structure of the Maharlika Investment Fund (MIF) and ensuring the financial stability of the contributing state banks should be among the top priorities of the government’s review of the law’s implementing rules and regulations (IRR), analysts said.

“One clear provision that needs to be considered is the insulation of the MIF from government interference,” Ateneo de Manila University economics professor Leonardo A. Lanzona said in an e-mail.

He noted a crucial element of the Santiago principles on sovereign wealth funds (SWFs) is the independence of the board, “ensuring that investment vehicles can operate independently, and investment decisions are based on financial considerations rather than political or short-term interests.”

“The very act of the President suspending the MIF implementation because of its organizational structure, specifically the composition of the board members, of the fund is itself a violation of this principle,” Mr. Lanzona said.

President Ferdinand R. Marcos, Jr. last week suspended the MIF law’s IRR in order to improve its organization structure and make it as close to “perfect and ideal as possible.”

Mr. Marcos also clarified the suspension would not impact on the MIF’s target to begin operations by the end of the year.

The economic team said they are working with the Office of the President to review the MIF rules. However, the government has yet to specify which exact provisions from the IRR need revision.

“The suspension of the Maharlika fund IRR is only the latest stain on the Marcos Jr. administration’s ill-conceived pet economic project. It doesn’t help that the purported reason for improving its organizational structure is so vague,” Sonny A. Africa, executive director of think tank Ibon Foundation, said in a Viber message.

“Astute investors will note that the fund’s very conception is reflective of the poor standards of governance in the country, which in turn does not give confidence that fund management will not be similarly afflicted,” he added.

Under the MIF law, the Maharlika Investment Corp. (MIC) is tasked to manage the wealth fund. The board will consist of the president and chief executive officer (CEO) of the MIC, the president and CEO of the Landbank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP), as well as the two regular directors and three independent directors from the private sector. The Finance secretary will serve as the board chairperson in ex-officio capacity.

Mr. Africa said that the board of directors should consist of less government officials and include more private sector representatives. He recommended that only two to three of the nine-member board should come from the government.

“The extremely politicized internal governance structure is a glaring problem. If the government has any seriousness in removing doubts about the fund’s independence, transparency and accountability, it should err on the side of overcompensating,” he added.

Mr. Africa also said private firms should be in charge of the headhunting and that appointments can be made by the government, just not by the President alone.

“The President has so much political and economic power as it is and appointments to the board and its officers, risk management committee and advisory body can be made by someone else. Even the choice of officials can be made by private executive search firms,” he said.

The deadline for the nomination and application of the MIC president and CEO, independent directors, and regular directors closed on Sept. 27. Under the law, Mr. Marcos will then make an appointment based on the shortlisted candidates.

Mr. Lanzona said that allowing the government to design the MIC’s organization structure “creates the risk of political pressure influencing financial decisions, rather than allowing the fund to operate independently based on financial considerations.”

“While the funds are public in nature, the government’s role should only be limited to providing a clear roadmap for the operations of the MIF and ensuring that it aligns with the government’s intentions and the interests of the public,” he added.

Mr. Lanzona also called for more transparency on how the fund will be managed.

“The public needs to see the financial statements as well as the assets and liabilities of these banks to judge whether the operations and integrity of these banks are being compromised by its remittances to the MIF,” he added.

Mr. Africa also noted that much of the MIF’s capital is coming at the  expense of weakening government financial institutions (GFIs).

“GFIs should not be made to contribute to begin with and regulations should not be tweaked to stop MIF contributions from undermining capital adequacy ratios,” he said.

The LANDBANK and DBP are required to contribute P50 billion and P25 billion, respectively, for the MIC’s P125-billion initial funding.

After they made the remittances, the DBP and LANDBANK sought regulatory relief from the Bangko Sentral ng Pilipinas (BSP) from its minimum capital requirements.

The Department of Finance (DoF) on Sunday reiterated that both banks “maintain their solid financial positions” despite their contributions to the fund.

“We are continuously talking to all stakeholders involved in order to ensure the best possible outcome for the Fund. Both LANDBANK and DBP are resolute in their commitment to responsible financial management and shall have proper representation in the board,” DoF Secretary Benjamin E. Diokno said in a statement.

Mr. Diokno also clarified the banks’ contributions to the fund are taken from their investible funds and not from the loanable funds to farmers and other sectors.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said that the suspension of the IRR will allow the government to study the actual impact on the state banks.

“This is critical as the nation cannot afford both the LANDBANK and DBP facing viability concerns at this time of limited fiscal space. However, as soon as the banks’ financial situation becomes clearer in the next few months, the government can dive right ahead towards focusing on MIF investing in its priority areas,” he said in an e-mail.

The DoF on Sunday also said that there has been “robust interest” in the MIF from Saudi Arabia investors.

Mr. Diokno met with Saudi businessmen to promote the MIF on Oct. 19 in Riyadh, Saudi Arabia on the sidelines of the Southeast Asian Nations – Gulf Cooperation Council Summit.

“Maharlika seeks to work with other sovereign wealth funds, both as an investment partner and peer in the global sovereign wealth fund community. We look forward to exchanging views and learning from the best practices of top-of-class funds, such as those here in Saudi Arabia,” Mr. Diokno was quoted saying in the statement.

Gross borrowings fall in August

BW FILE PHOTO

THE NATIONAL GOVERNMENT’S (NG) gross borrowings dropped by 6.96% to P124.056 billion in August, the Bureau of the Treasury (BTr) said.     

Data from the BTr showed that gross borrowings in August were lower than P133.338 billion in the same month in 2022.

Month on month, gross borrowings slipped by 5.97% from P131.937 billion in July.

In August, domestic borrowings accounted for almost all or 94.6% of total gross borrowings.

Gross domestic debt declined by 11.09% to P117.374 billion during the month from P132.021 billion a year ago.

Broken down, this was made up of P110.235 billion in fixed-rate Treasury bonds and P7.139 billion in Treasury bills.

Meanwhile, gross external debt grew fivefold to P6.682 billion in August from P1.317 billion in the previous year. External borrowings were entirely composed of new project loans.

In the January-to-August period, the NG’s gross debt jumped by 21.76% to P1.68 trillion from P1.38 trillion in the same period last year.

Domestic debt accounted for the bulk or 76.5% of total gross borrowings in the first eight months. Gross domestic borrowings increased by 23.37% to P1.28 trillion from P1.04 trillion.

This consisted of P904.76 billion in fixed-rate Treasury bonds, P283.763 billion in retail Treasury bonds, and P95.842 billion in Treasury bills.

As of end-August, external debt stood at P394.562 billion, up by 16.81% from P337.794 billion in the same period a year ago.

This was composed of P163.607 billion in global bonds, P145.059 billion in program loans, and P85.869 billion in new project loans.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa in a Viber message said that the lower gross borrowings in August was due to “less pressure” to borrow amid normalizing revenue streams.  

“As the economic reopening narrative fundamentally increased, the government tax revenue collections helped narrow the budget deficit and reduced the need for additional borrowings,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

However, Mr. Ricafort noted risk factors such as elevated interest rates could drive up borrowing costs.

The Bangko Sentral ng Pilipinas (BSP) has raised its policy rate by 425 basis points (bps) from May 2022 to March 2023. This brought the key interest rate to a near 16-year high of 6.25%.

BSP Governor Eli M. Remolona, Jr. has given a signal of the possibility of another 25-bp rate hike at its November meeting, which would bring the benchmark rate to 6.5%.

This year, the National Government has set its borrowing program at P2.207 trillion, consisting of P1.654 trillion from domestic sources and P553.5 billion from foreign creditors. — Luisa Maria Jacinta C. Jocson

SEC warns of more entities with characteristics of Ponzi scheme

THE Securities and Exchange Commission (SEC) flagged three entities for soliciting investments from the public without the necessary registration.

In three separate advisories, the corporate regulator said that 888 Partners Corp. Budgetarian Online Shop, Integrated Digital Success, and Hailey & Hollyn Spa are unauthorized to solicit investments from the public.

According to the SEC, 888 Partners Corp. Budgetarian Online Shop claims to be the largest e-commerce intermediary in the Philippines and that its main partner sellers are from Amazon, Lazada, and Shopee.

888 Partners recruits online part-timers to purchase store products from the e-commerce platforms, supposedly helping merchants improve their so-called store ranking and translating to more opportunities and customers. 

The entity offers investments at a minimum of P500 and promises investors 5% earnings from direct referral and a P500 minimum daily salary. The corporate regulator flagged the entity, saying its investment plan “has the characteristics of a Ponzi scheme” where money from new investors is used in paying fake profits to prior investors.

“Its merchants pay a commission for each order, after that, the platform will charge a 10% service fee and the remaining commission will be returned to members. More members will get more benefits from the platform,” it added.

For Integrated Digital Success, the SEC said the entity allegedly entices the public to invest online in two programs called “starter” and “elite.”

The starter plan promises a 20% guaranteed profit after seven days with an investment ranging from P500 to P200,000 while the elite plan assures a 50% guaranteed profit after 15 days from a P1,000 to P500,000 investment.

The entity claims that the investment is managed by professional traders and asset managers. It was flagged after showing characteristics of a Ponzi scheme.

“Integrated Digital Success likewise offers an affiliate bonus and leadership bonus equivalent to a total of 10% of the investment received by the entity from the referrals made by its members,” the SEC said.

Meanwhile, the SEC said Hailey & Hollyn Spa is soliciting investments for a minimum of P50,000, which would be used for branch expansion.   

It added that the entity is promising a guaranteed profit of 5% to 10% monthly interest and a return on investment in 12 months.

The SEC said the entity is not registered with the commission as a corporation, one-person corporation, or a partnership “and has not been issued by the commission any license or permit to sell or offer securities to the public or to conduct any activities regulated by the commission.” — Revin Mikhael D. Ochave

SEC warns at least 298,000 firms at risk of being on delinquent list

STOCK PHOTO | Image by Charles Forerunner from Unsplash

THE Securities and Exchange Commission (SEC) has renewed its call for entities under its watch to avail of the agency’s amnesty program as it named more than 298,000 ordinary corporations that risk being classified as delinquent.

In a notice posted on its website, the SEC told 298,335 corporations to apply for amnesty after they failed to submit their general information sheet (GIS) as required under Republic Act No. 11232 or the Revised Corporation Code of the Philippines (RCC).

The SEC previously announced that the deadline for its amnesty program had been extended until Nov. 6 from Sept. 30.

“Based on the records of the Commission as of Oct. 12, the corporations appearing in the attached list have failed to submit their GIS for three times consecutively or intermittently within a five-year period. In this light, they are advised to avail of the SEC amnesty program before they are placed under delinquent status pursuant to Section 177 of the RCC,” the SEC said. 

“Section 177 of the RCC provides that every corporation, domestic or foreign, doing business in the Philippines shall submit to the SEC annual financial statements and a GIS, among other reportorial requirements, annually and within such period as may be prescribed by the Commission,” the corporate regulator added. 

The SEC said that the corporations included in the list could avail of the amnesty program by filing an online expression of interest to avail of amnesty on or before Nov. 6, and the latest due annual financial statement and GIS on or before Dec. 4.

Recently, the SEC issued a list covering 22,403 ordinary corporations that are in danger of having their certificates of incorporation revoked after failing to submit their GIS within five years from the date of their incorporation. 

Under Section 21 of the RCC, if a corporation does not formally organize and commence its business within five years from the date of its incorporation, its certificate of incorporation is deemed revoked as of the day after the fifth year.

“We reiterate our reminder to corporations to avail of the SEC amnesty program now, to avoid getting their certificates of incorporation revoked, or to avoid being placed under delinquent status,” SEC Chairperson Emilio B. Aquino said in a statement.

“Corporations’ timely submission of their annual financial statement, GIS, and other reportorial requirements is vital in maintaining a healthy and vibrant corporate sector, as this helps us identify active versus inactive corporations, enhance and organize the commission’s digital database, and protect the public from fraud,” he added.

Launched in March, the SEC’s amnesty program gives a reprieve for companies from the fines and penalties imposed due to the late or non-filing of their GIS and annual financial statements, and noncompliance with Memorandum Circular No. 28, Series of 2020.

Corporations that fail to avail of the amnesty program will also face higher fines, which will be implemented starting Nov. 7. — Revin Mikhael D. Ochave

Honda targets bigger market share by yearend

BW FILE PHOTO

HONDA Cars Philippines, Inc. (HCPI) is targeting to increase its market share to 5% from the current 4% by yearend, its sales official said.

“We are targeting about a 5% market share, I hope that by the end of the calendar year, we will be able to achieve that,” Louie C. Soriano, vice-president and sales division general manager at HCPI, told reporters on Friday.

Data from a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed that HPCI’s total vehicle sales in nine months to September reached 12,587, or a 4% share of the vehicle market.

As of the third quarter, the company registered a growth of 20.6% from the 10,440 units sold in the same period last year.

The company is currently in the seventh spot in terms of vehicle sales for the year, despite a 5.6% decline in its month-on-month sales.

Aside from growing its market share, the company is also targeting to grow its sales by at least 25% or as much as 30% before the year ends.

“With the models that we have, the promotions that we have, the availability of supplies that we have, I think we are going to achieve a growth that is more than the industry,” Mr. Soriano said.

He said that the company is no longer facing supply issues and had already served the back order for HR-V units, which previously faced a difficult supply situation.

“Now we have to make noise again. We need to inform the public that there is no more supply issue on the HR-V regardless of the variant,” he added.

CAMPI-TMA members sold a total of 314,843 units in the January-to-September period, booking a 26.9% increase from 248,154 last year.

CAMPI previously upwardly revised its sales forecast for the year to reach 423,000 from the previous target of 395,000. Last year, CAMPI-TMA members sold a total of 352,596 units. — Justine Irish D. Tabile

Weaving with Dina Bonnevie

By Joseph L. Garcia, Senior Reporter

IN HANGGANG SAAN, Hanggang Kailan, famous actress Dina Bonnevie played a villainous tobacco plantation heiress in Ilocos who throws out her half-sisters Esther and Jocelyn (played by Alice Dixson and Vina Morales) from the estate. In real life, Ms. Bonnevie (Geraldyn Bonnevie-Savellano since 2012) has been parlaying her efforts into helping build a lively weaving tradition in Ilocos Sur.

At this month’s Likhang Habi Fair in Glorietta, we caught up with Ms. Bonnevie manning the booth of her indigenous textiles brand, La Bonne Vie (“the good life” in French, just like the actress’ last name). The brand’s roots are a project of her third husband, former Ilocos Sur governor, vice-governor, and now Department of Agriculture undersecretary Deogracias Victor Savellano. “It’s not like I intentionally entered into indigenous textiles. This thing came to me as a surprise, actually,” she told BusinessWorld during an interview on Oct. 15.

The brand started in 2013. Before that, Mr. Savellano had a project to look for all of the artisans in Ilocos Sur, group them together and fund their weaving efforts. “He looked for the best weavers in the land, and he found them, made looms for them, and gave them thread so they could continue weaving,” she said. The province of Ilocos Sur is known for their weaving traditions, the result of which is known as abel iloko.

The management of the project was passed on to her after their marriage. She does have some experience: her father, Honesto Bonnevie, traded in abaca, and finished products had her name attached to it. “I made it popular,” she said of her father’s products. She recalled her husband saying, “Lend your name to inabel weaving para sumikat (so it would get famous/popular).”

NOT JUST A SHOPKEEPER
“I became a tindera in American Women’s Club [bazaar],” said Ms. Bonnevie of when she first started selling inabel. “Of course, I saw my classmates from Ateneo saying ‘Naging tindera ka na lang (you became just a shopkeeper)!’. I said, ‘Uy, akin naman ang binebenta ko (Hey, what I’m selling is mine). Hindi ako tindera, this is an advocacy, I’m a humanitarian, ano ka ba (what’s wrong with you)?,” she said in jest. “‘You married a politician tapos naging ano ka na lang, tindera? What happened?’ Nilait-lait pa ako [they teased me].”

It was during these bazaars that she met clients from SM’s Kultura, Rustan’s, and Tesoro’s, who now order from her in bulk. To ease transactions between these entities and the weavers, Ms. Bonnevie built La Bonne Vie as a formal brand, herself representing the weavers.

“They’re not our employees to begin with. You will never be able to employ any weaver,” she noted. “I offered a salary to them, and nobody would accept because they were landed people.” According to her, weavers pause their work during the harvest season to focus on their farms. What she does instead is to give them thread for free, then let them give her a price for their textiles. Asked how much this arrangement has changed the lives of the weavers, she said, “By a lot.”

She told about visiting farms and noting the dirt floors of many of the houses. After the weavers had begun working with her (not under her, as she makes clear), she noted improvements. Some families have been able to buy multiple tricycles, cars, and delivery trucks for their products. Some of them have branched out from La Bonne Vie, building their own brands, but still happy to help Ms. Bonnevie with her own orders.

Asked how she feels that some of them don’t seem to need her help anymore, she said, “I didn’t do that for them to be my slaves, or to be my employees. I’m empowering them. I want to make them entrepreneurs in the future. The common denominator for them and for me is for abel iloko to be known,” she said in English and Filipino. In one case, she visited the home of one of her blanket weavers, noting that the manang (an Ilocano term of endearment for an older sister) had earned enough to build a storeroom even bigger than her own. “Shelves and shelves of blankets,” Ms. Bonnevie said with some pride.

“I’d like to say I have a passion for empowering artisans. I believe in the craftsmanship of the Ilocano people. I believe in this art. The patterns [they weave] are not patterns that have a template or blueprint. The blueprint is in their brain,” she said.

PROUDLY LOCAL
Some of La Bonne Vie’s products have gone on to Australia and China (with the actress and entrepreneur noting that Chinese factories have since come out with pale imitations). She also notes that changing Filipino consuming attitudes are a huge help for businesses like hers. “Being proud of local is already one thing. There was a time when people were so Western-crazy,” she said. “Now the Filipino people have changed. They’re thinking now is to buy local, to support Filipinos. Together… you promote what’s Asian, you promote what you’re proud of.”

For her, she said that the more people wear inabel, the more successful her efforts would be. “True success is, hindi lang Titas of Manila ang makakabili ng textile mo [Not just the wealth matrons can buy your textiles]. Even average people can buy it, because that’s a treasure that people should be proud of.”

It’s not always roses for weaving, of course.

Ms. Bonnevie, for example, began the business in 2013 with just 10 to 12 weavers, all of them old women, signifying the danger of the craft dying along with her weavers. In time, she was able to entice younger people to begin weaving, but the pandemic hit their interests hard. Not only did some of the older weavers die of COVID-19, but the younger weavers moved on to jobs in caregiving and business process outsourcing. “They didn’t see weaving as a lucrative profession anymore,” she said. “It’s in a very fragile state, actually,” she said, while expressing a wish for the government to step in with nationwide projects to entice younger people to become weavers.

“It is an art, a language, our culture. Through the designs — these designs have stories! They speak!”

She pointed out the designs under her line: there’s kibin-kibin, a textile embossed with two figures holding hands, used to propose marriage. “Through thick and thin, we grow old hand-in-hand,” she said about the cloth’s promise. Another one was tokak, named after the frog rising out from it, and another with a fisherman.

In another instance, she talked about studying different ratios of thread to improve the product. She settled on a 70% polyester and 30% cotton blend, with the base in polyester and the raised designs in cotton. “This way, even if you wash it, or put it in the dryer, the shape will never change. The color will never change.” She did this in response to customers returning their items due to warping, or bleeding.

WHAT IS FAME FOR?
That leads us to ask: are the people there for her, or for the weaves and the weavers? “The young ones? Hindi nila ako kilala (they don’t know me).” She recounts one encounter where a younger shopper had to be reminded by her mother: “Hindi mo ba kilala? Si Dina Bonnevie ‘iyan! Noong bata ako, fan ako niyan! [Don’t you recognize her? That’s Dina Bonnevie! When I was young, I was her fan!]

Eh, iyong bata pinanganak, 2002. Or 1996. Anong malay niya [The kid was born in 2002. Or 1996. What would she know?],” she said.

There were many other younger customers that day. “They never knew who Dina Bonnevie was. Who the hell is Dina Bonnevie?,” she said, noting that she was only recognized after an older relative (usually female) would point her out to them. “Success iyong pumunta sila. Hindi naman nila alam kung sikat ka eh. Pero binibili nila iyong fabric ko eh. [I deem it a success that they come. They don’t know if you are famous. But they buy my fabrics.]”

She does know she still has some pull. “An advantage I have is, when I get into a business, before I even promote it, it’s already sikat,” she said. “Even before you make any marketing efforts, you’re already known.” She makes an example of people posting about seeing her on their social media accounts. “Punta iyong mga tao. [Other people go.]”

“The downside there is, one mistake, and the whole world knows. You have to be really be sure about the quality, and you have to walk your talk.”

DIFFERENT ROLES
What is it like to work in a business so far away from showbiz? (Though she still acts, with her most recent credits being the ongoing TV series Abot-kamay na Pangarap). Apparently, fellow actress Carmina Villaroel had asked her the same thing. “Well, if it’s God-given — I didn’t ask for it — it just fell into my lap. It came to me. When it’s God-given, it comes with a responsibility. You have a mission.”

For practical matters though, she brings her computer on the set to answer e-mails, take client calls, and even review their inventory, all in between takes. She discusses how previous experiences in acting help her now with a textile business. “Show business is all about giving life to a role you’re playing. Giving it character. It’s the same with the textiles. How do you give it character, life? Wear it.”

She’s juggling several roles now: there are her private roles as wife, mother, grandmother (from her children with host Vic Sotto), and stepmother (to her husband’s children); and then her public roles as actress, celebrity, entrepreneur, and political spouse. She credits the energy she has for all these things to passion.

“You have to have passion for everything. When you work, do it with passion. Sometimes I see T-shirts that say, ‘It’s going to be a dumb day,’ or ‘I hate Mondays.’ That’s so negative.”  She points out the brand’s own T-shirts. “Every single T-shirt that I sell here? The ones with a patch? I made that,” she said proudly.

“You have to have a passion for your work. You have to love what you do. If you love what you do, you put your heart and soul into it,” she said. “When you have a passion for everything, everything turns out well.”

Ms. Bonnevie isn’t just playing a role: she’s in inabel for the long haul.

T-bill, bond rates may climb to track secondary mart, US yields

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RATES of Treasury bills and bonds on offer this week could climb further due to an increase in US yields following hawkish signals from the US Federal Reserve.

The government will auction off P15 billion in Treasury bills (T-bills) on Monday, or P5 billion each in 91-, 182- and 364-day papers.

On Tuesday, it will offer P30 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and 10 months.

T-bill and bond yields may track the increases seen at the secondary market on Friday amid elevated global crude oil prices due to worries that the Israel-Palestine war may escalate, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills went up by 13.93 basis points (bps), 1.96 bps, and 15.33 bps week on week to end at 6.0104%, 6.1654%, and 6.4618%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website.

The 10-year bond rose by 6.42 bps week on week to yield 6.6170%.

Yields rose last week following the increase in benchmark US Treasury rates due to hawkish signals from US Federal Reserve Chair Jerome H. Powell, Mr. Ricafort added.

On Thursday, the 10-year US Treasury yield briefly crossed 5% following hawkish remarks by Mr. Powell, while the Middle East conflict kept investors jittery, Reuters reported.

Speaking at the Economic Club of New York on Thursday, Mr. Powell said the US economy’s strength and continued tight labor markets could require tougher borrowing conditions to control inflation.

The Fed kept its key rate unchanged at the 5.25% to 5.5% range at its meeting last month.

It has hiked rates by a cumulative 525 bps since it began its tightening cycle in March last year.

The Federal Open Market Committee will next meet on Oct. 31 to Nov. 1 to review policy.

T-bill and T-bond rates could rise due to expectations that inflation could remain above the central bank’s 2-4% target next year, a trader said in an e-mail. The trader sees the 10-year bond’s yield ranging from 6.875% to 7.0%.

Minutes of the Bangko Sentral ng Pilipinas’ Sept. 21 meeting released last week said the Philippines may miss its 2-4% annual inflation target for a third straight year in 2024.

Last week, the Bureau of the Treasury (BTr) raised just P11.947 billion via its offering of T-bills, short of the P15-billion program, even as total bids reached P19.371 billion.

Broken down, the Treasury borrowed only P3.637 billion via the 91-day T-bills, below the P5-billion offer, even as tenders for the tenor reached P5.137 billion. The average rate of the three-month paper rose by 18.4 bps to 5.99%. Accepted rates ranged from 5.85% to 6.10%

The government raised just P3.31 billion from the 182-day securities, short of the P5-billion program, despite bids for the tenor reaching P6.52 billion. The average rate for the six-month T-bill was at 6.207%, up by 9.2 bps, with accepted rates at 6.125% to 6.25%.

Meanwhile, the BTr made a full P5-billion award of the 364-day debt papers as demand for the tenor reached P7.714 billion. The average rate of the one-year T-bill rose by 8.3 bps to 6.388%. Accepted yields were from 6.325% to 6.438%.

On the other hand, the reissued 10-year bonds to be offered on Tuesday were last auctioned off on Sept. 19, where the government raised the planned P30 billion, with the papers fetching an average rate of 6.42%.

The BTr wants to raise P150 billion from the domestic market this month, or P60 billion via T-bills and P90 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — Aaron Michael C. Sy with Reuters

More private sector investments seen needed in hotels to sustain Philippine tourism growth

THE private sector needs to invest more in hotel accommodations to support the growth of the country’s tourism industry, according to real estate brokerage company Leechiu Property Consultants, Inc. (LPC).

“To sustain the growth in the Philippine tourism industry, there’s a pressing need for greater private sector investment in additional hotel accommodations. Initiating these investments within the next year is critical to fortify international tourism beyond 2027,” the company said in a statement over the weekend.

According to LPC, about 15,000 new hotel rooms are expected to be delivered within the next five years, primarily located in Metro Manila.

It added that more hotel projects are likely to be announced in the coming months or years in line with the Department of Tourism’s (DoT) target of 12 million international arrivals by 2028.

DoT figures showed that the country logged 4.005 million international arrivals as of Sept. 29, nearing its full-year 2023 target of 4.8 million foreign visitors.

Of the total international arrivals, 91.58% or 3.67 million were foreign visitors while the remaining 8.42% or 337,426 were overseas Filipinos.

Meanwhile, LPC projected that Panglao Island in Bohol could surpass Boracay Island as the country’s premier tourism destination.

“In 2019, Panglao reached an impressive 1,581,904 visitors, coming close to Boracay’s 2,034,599 arrivals during the same period. Given these promising figures, it’s becoming increasingly likely that Panglao Island could surpass Boracay Island as the Philippines’ premier tourism destination,” LPC said.

Alfred Lay, Leechiu director for hotel, tourism, and leisure, said one advantage that Panglao has over Boracay is its larger size and capacity limits.

He added that ongoing developments in Panglao could increase land values in the area. Some of these are the proposed 50-hectare Panglao Shores project, the upcoming JW Marriott Hotel, the Cebu-Bohol bridge, and large-scale energy initiatives aimed at meeting Bohol’s surging energy requirements.

“These developments have had a significant impact on land values, with Alona Beachfront properties now priced at approximately P80,000 to P120,000 per square meter, approaching the land values in Boracay’s white beach area,” Mr. Lay said.

LPC projected that tourist arrivals, flight capacity, and hotel occupancy rates across the global tourism industry could return to pre-pandemic levels by next year.

“Industry stakeholders should look out for certain trends that can greatly impact the Philippines in the coming year, including the relaxation of visa restrictions, persistent high airfares driven by escalating aviation fuel costs, ongoing inflation, a high-interest rate environment that may leave consumers with diminished purchasing power, and the return of business travel and MICE (meetings, incentives, conferences, and exhibitions) events,” LPC said. — Revin Mikhael D. Ochave