AbotizPower sharpens safety skills in observance of Fire Prevention Month

March 3, 2023 | 2:00 pm

In support of Fire Prevention Month this March, Aboitiz Power Corporation (AboitizPower) underscores the importance of mitigating fire hazards and risks in its workplaces and power plants for the safety of its most valuable asset: its team members.

“With our purpose of transforming energy for a better world, our decisions and strategies begin close to home — making a better world for our team members by ensuring first and foremost their safety while they work,” said Chief Corporate Services Officer Carlos Aboitiz.

AboitizPower will synergize its safety, health, and environment (SHE) offices to instill fire safety among its team members and within the places it operates in.

“There will be seminars and information campaigns to encourage best practices in fire prevention, not just in workspaces, but also in our respective homes and communities,” Aboitiz added.

AboitizPower is one with the country in its observance of Fire Prevention Month, especially since electrical safety and fire safety are linked. The Philippines observes Fire Prevention Month in March every year since it is when most fire incidents in the country occur. Faulty electrical connections are among the top causes of fire incidents, according to the Bureau of Fire Protection (BFP).

AboitizPower’s distribution utilities — Cotabato Light, Davao Light, Visayan Electric, and the Enerzone Group —, with over one million customers within its franchise areas, are leading the company’s on-the-ground support for Fire Prevention Month via information dissemination campaigns to its customers and collaborations with local government units (LGUs). The company’s power generation business also has regular initiatives related to fire safety.

Therma South, Inc. (TSI), which houses the country’s first coal dome, is set to participate in fire exit drills and Fire Prevention Month programs of the LGUs of Davao City and Sta. Cruz in Davao del Sur. These programs include the display and circulation of relevant material, motorcades, and speaking engagements with the local BFP. TSI, with its contractors, will also conduct fire safety and emergency preparedness awareness sessions.

Therma Power-Visayas, Inc. (TPVI) in Naga City will also be in constant coordination with its local BFP, involving partnerships for a fire drill and a fire safety training for team members. Previously, TPVI donated construction materials to BFP Naga for the rehabilitation of its facility that was affected by Typhoon Odette.

Similarly, Cebu Private Power Corporation (CPPC) will conduct a fire drill with BFP San Nicholas, which will also be complemented by team member training on fire prevention procedures. Earlier, CPPC also donated new hose fittings to the Fire Brigade of Barangay Ermita in Cebu City for the improvement of its fire truck and firefighting pump. In addition, CPPC also gave aircon units, a refrigerator, and a water dispenser to BFP-San Nicolas’ Fire Substation.

Meanwhile, East Asia Utilities Corporation (EAUC), located within the Mactan Export Processing Zone I in Lapu-Lapu City, Cebu, will also organize a fire drill and a fire safety training along with its local BFP. The latter will also be a recipient of a motorboat, courtesy of EAUC, which can be used for its coastal area emergency response.

Therma Mobile, Inc. (TMO) Navotas and Malabon will also conduct their respective fire drills, as well as participate in the annual BFP fire drill in their corresponding locality.

By the end of the month, Therma Marine Inc. in Maco, Davao de Oro, in a joint effort with BFP Maco, will also take part in the municipality’s first inter-barangay fire fighting competition as a participant and event sponsor.

“Fire safety is everyone’s responsibility. In AboitizPower, we are happy to partner with the BFP and other local fire brigades to spread awareness and education about fire prevention,” said AboitizPower President and Chief Executive Officer Emmanuel “Manny” Rubio.

“Whether it’s fire safety specifically or safety in general, this matter is a team effort, and it’s up to all of us — from the government, private sector, and community organizations — to do our part in preventing fires and protecting lives,” he added.

AboitizPower believes that transforming energy for a better world begins at the individual level. Propagating its best practices in safety out to society starts with its team members embracing safety as a mindset and culture.

10 years, the company will significantly expand its Cleanergy portfolio, in support of the government’s efforts to promote renewable energy in the country. AboitizPower will build an additional 3,700 MW of renewable energy, growing its existing Cleanergy capacity threefold by 2030.

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Expanded US access to Philippines bases “not for aggression”, defence chief says

March 3, 2023 | 12:55 pm

MANILA – A decision by the Philippines to grant the United States greater access to its military bases was “not for engaging in war” but meant to enhance its ability to defend itself against external threats, its defense chief said on Thursday.

“The geopolitical situation is becoming more precarious by the day,” Carlito Galvez, office-in-charge of the defense ministry, said in a statement.

“We are not preparing for war, rather we are aiming to develop our defense capabilities against eventualities and threats to our security,” he added.

His statement came a day after some senators and a provincial governor raised concerns and opposition to President Ferdinand Marcos Jr’s decision to give the United States access to four more sites, on top of five locations under a 2014 Enhanced Defense Cooperation Agreement, or EDCA.

EDCA allows US access to Philippine bases for joint training, pre-positioning of equipment and building of facilities such as runways, fuel storage and military housing, but not a permanent presence.

Mr. Marcos’ decision, announced during last month’s visit by US Defense Secretary Lloyd Austin, came amid concern over China’s assertiveness in the South China Sea and tension over self-ruled Taiwan.

Mr. Galvez has not publicly identified the sites that would be opened to US access.

A former Philippine military chief had said the United States had asked for access to bases in Isabela, Zambales and Cagayan, all on the island of Luzon, facing north towards Taiwan, and on Palawan in the southwest, near the disputed Spratly Islands in the South China Sea.

Cagayan Governor Manuel Mamba has opposed the addition of new sites and told a senate hearing that he did not want EDCA to create problems with China.

“Do not let us tell them that they are our enemies because of the US,” said Mr. Mamba. “Let them have their own war.”

China has said greater US access to Philippine military bases undermined regional stability and raised tensions.

Mr. Galvez said EDCA and its defense partnerships “are not intended for aggression.” – Reuters

Philippines’ central bank governor sees 50 bps rate hike if inflation exceeds 9%

March 3, 2023 | 12:42 pm

PHILIPPINE CENTRAL BANK Governor Felipe M. Medalla said on Friday that in the “worst-case scenario” of inflation rising above 9%, interest rates might be hiked by 50 basis points.

Bangko Sentral ng Pilipinas’ (BSP) next rate hike could be 25 or 50 basis points depending on the latest economic data, he said.

“Worst-case scenario is (inflation) above 9%. If that’s the case, clearly we have to do something,” Mr. Medalla told reporters.

Inflation in January hit a 14-year high of 8.7%, prompting BSP to say it was likely to raise its benchmark interest rate one more time this year, after having hiked by 50 basis points on Feb. 16.

February’s inflation data is due out on March 7, with analysts set to closely watch the number ahead of the central bank’s next rate-setting meeting on March 23.

“Another month…of upside surprise for inflation could prod the BSP to hike more aggressively,” said Nicholas Antonio T. Mapa, senior economist at ING.

BSP has raised rates eight times for a total of 400 basis points since last year.

Mr. Medalla said on Friday that he still expected inflation to return to within a target range by the fourth quarter of this year.—Reuters

Biden, Scholz to ‘get into the weeds’ on Ukraine war, China concerns in Washington

March 3, 2023 | 12:00 pm

BERLIN/WASHINGTON – German Chancellor Olaf Scholz will hold confidential talks on Friday in Washington with US President Joe Biden about Russia’s war in Ukraine, China and other matters amid signs of strains between the transatlantic partners.

Mr. Scholz set off on the one-day trip, which unusually will not include a press delegation, late on Thursday. His visit comes days after Biden‘s security adviser, Jake Sullivan, said that Biden only sent Abrams tanks to Ukraine because Scholz made it a pre-condition for sending German Leopards.

Mr. Biden‘s decision came against his military’s advice, Mr. Sullivan told US broadcaster ABC. Berlin has insisted that Mr. Biden came to see it was necessary and so the decision was consensual.

The two men are due to meet for an hour, including a significant “one-on-one component,” a senior US official said, adding that it would give them a chance to “exchange notes” on their respective recent meetings with Ukrainian President Volodymyr Zelenskiy and the state of the war, now in its second year.

“Both of the leaders wanted this to be a working-level meeting, wanted it to be very much a get down into the weeds, focused on the issues of Ukraine,” the official said.

Mr. Scholz‘s visit comes as the United States sounds out close allies about the possibility of imposing sanctions on China if Beijing provides military support to Russia for its war in Ukraine, according to four US officials and other sources.

Neither Washington nor Berlin says they have seen evidence of Beijing’s providing weapons to Moscow, but US officials say they are monitoring the situation closely.

Germany, which has typically taken a much less hawkish stance on China, its top trading partner, than the United States, has suggested China could play a role in bringing about peace – a prospect many China observers view with skepticism.

The US official underscored close coordination between Berlin and Washington, and welcomed Mr. Scholz‘s speech to parliament on Thursday, in which he urged China not to provide weapons to Moscow and asked Beijing to exert pressure on Russia to pull back its forces.

“US policymakers have a chronic concern that industrial European powerhouses like Germany will allow their commercial interests in China to temper their willingness to take tough positions on security and geopolitical issues,” said Daniel Russel, who served as the top US diplomat for East Asia under President Barack Obama and is now with the Asia Society.

“The Biden administration will use the Scholz visit to try to shift Germany’s balance in the direction of stronger pushback.”

“OPPORTUNITY TO TAKE STOCK”

The White House said last month that Mr. Scholz‘s visit was an opportunity to “reaffirm the deep bonds of friendship between the United States and our NATO ally Germany.”

Mr. Scholz and Mr. Biden would discuss ongoing support for Ukraine, the upcoming NATO summit, and cooperation on the challenges posed by China and cooperation in the Indo-Pacific, US officials said.

Last month, a vast delegation of US officials including Vice President Kamala Harris and Secretary of State Antony Blinken attended an annual security gathering in Munich, with many praising Germany for its support of Ukraine, which required an overhaul of its approach to defense and foreign policy.

“The setting is not a sign of crisis. It is an opportunity to deepen the personal relationship between both leaders,” said Sudha David-Wilp, head of the Berlin bureau of the German Marshall Fund think tank.

“Washington is still looking to Berlin as the lead military power in Europe. It is an opportunity to take stock,” Ms. David-Wilp said.

US officials say Mr. Scholz could well raise concerns about US subsidies for climate-friendly technologies under the Inflation Reduction Act (IRA), which Germany argues could put its companies at a disadvantage and contribute to luring firms away.

Critics say the IRA was a slap in the face to Europe from its biggest ally at a time when Europe was already struggling with sharply higher energy prices due to the Ukraine war.

A US-EU task force is continuing to meet on the issue, but Washington insists the tax credits will drive down costs for clean energy globally.

“The government should expressly push for fair competitive conditions in the talks,” said Peter Adrian, president of the German Chambers of Industry and Commerce (DIHK).

The IRA is already attracting Germany companies to the United States, a DIHK survey showed on Wednesday.

“Both sides should ensure we do not end up in a trade conflict,” the head of Germany’s BDI Industry Association Siegfried Russwurm said. – Reuters

Malaysia’s Anwar says ASEAN must be tougher in bid to resolve Myanmar crisis

March 3, 2023 | 11:30 am

MANILA – Malaysian Prime Minister Anwar Ibrahim said during a visit to the Philippines that the Association of Southeast Asian Nations (ASEAN) must prove it is “relevant” in helping to resolve the crisis in Myanmar.

In a pre-recorded interview with Philippine news channel ANC aired on Friday, Anwar said that ASEAN, which is leading diplomatic efforts to bring peace, needed to be more assertive and noted that his country was shouldering 200,000 displaced people from Myanmar.

“We can’t see this as a purely internal issue, so I have appealed to friends in ASEAN to say, look we have to be tougher,” Anwar said. “If necessary engage with the armed forces of this country because sometimes the military junta do not understand the civilian narrative.”

Myanmar has been beset by social, political and economic chaos since its military overthrew an elected government in 2021.

Human rights groups and the United Nations have accused Myanmar‘s military of carrying out atrocities as part of a crackdown on its opponents. The junta labels its opponents “terrorists” seeking to destroy the country.

“The atrocities, we cannot condone,” Mr. Anwar said. “We have to find an amicable solution which is difficult. We have tried all. ASEAN has to prove it is relevant and able to ease some of problems.”

Some members of ASEAN, which has a long-held principle of staying out of its members’ sovereign affairs, have grown increasingly frustrated at the junta’s failure to honor a peace plan agreed with the generals shortly after the coup.

While the 10-member bloc has barred Myanmar‘s generals from attending its high-level meetings, Malaysia, a vocal critic of the junta, has called for tougher action. Myanmar’s military rulers have reacted angrily to what they call interference by ASEAN members. – Reuters

SpaceX rocket carries multinational crew toward space station

March 3, 2023 | 11:00 am

LOS ANGELES – Two US astronauts, a Russian cosmonaut and a United Arab Emirates astronaut were safely on their way to the International Space Station (ISS) on Thursday, as their SpaceX ship neared a planned rendezvous with the orbiting laboratory, NASA said.

The autonomously flying SpaceX Crew Dragon capsule was due to reach the space station and dock to the platform shortly after 1:15 a.m. EST (0615 GMT) on Friday, nearly 25 hours after launching from NASA’s Kennedy Space Center in Cape Canaveral, Florida.

Control over the spacecraft will be handed off from SpaceX mission control near Los Angeles to NASA’s Johnson Space Center in Houston once the Crew Dragon is ready to dock with the ISS.

The four-man team is expected to spend six months aboard the ISS conducting more than 200 experiments and technology demonstrations, ranging from research on human cell growth in space to controlling combustible materials in microgravity.

Some of the research will help pave the way for future long-duration human expeditions to the Moon and beyond under NASA’s Artemis program, its successor to Apollo, the US space agency said.

The mission, designated Crew 6, is the sixth long-duration ISS team SpaceX has flown for NASA since the private rocket venture founded by billionaire Elon Musk began sending American astronauts to orbit in May 2020. Musk is CEO of electric car maker Tesla and social media platform Twitter.

SUBMARINER AND ENGINEERS

The latest crew was led by Stephen Bowen, 59, a onetime U.S. Navy submarine officer who has logged more than 40 days in orbit as a veteran of three Space Shuttle flights and seven spacewalks. Fellow NASA astronaut Warren “Woody” Hoburg, 37, an electrical engineer, computer science expert and commercial aviator designated, was making his first spaceflight.

The Crew 6 mission also was notable for its inclusion of UAE astronaut Sultan Alneyadi, 41, only the second person from his country to fly to space and the first to launch from U.S. soil as part of a long-duration space station team.

Rounding out the four-man Crew 6 was Russian cosmonaut Andrey Fedyaev, 42, who like Alneyadi is an engineer and spaceflight rookie designated as a mission specialist for the team.

Fedyaev is the second cosmonaut to fly aboard an American spacecraft under a renewed ride-sharing deal signed in July by NASA and the Russian space agency Roscosmos, despite heightened tensions between Washington and Moscow over Russia’s invasion of Ukraine.

The Crew 6 team will be welcomed aboard the space station by seven current ISS occupants – three NASA crew members, including commander Nicole Aunapu Mann, the first Native American woman to fly to space, along with three Russians and a Japanese astronaut.

Those seven are expected to end their mission and depart the space station this month. Four will return in the SpaceX Dragon they rode to orbit in October, and three others will ride home in a Russian Soyuz spacecraft flown empty to the ISS last week to replace one that sprang a coolant leak while docked to the station in December.

The Crew 6 launch came 72 hours after an initial liftoff attempt was scrubbed in the final minutes of countdown early on Monday due to an irregular flow of engine-ignition fluid. NASA said the system worked perfectly after a clogged filter was replaced and the lines purged.

The launch ultimately unfolded with hardly a hiccup. But a faulty sensor was also detected on one of 36 switches connected to a dozen grappling hooks used to latch the nose of the crew capsule to the ISS, but there is enough redundancy in that system that no problems with docking or closing the nose cone are anticipated, NASA and SpaceX officials said.

The launch and rendezvous fell exactly on the four-year anniversary of SpaceX‘s first uncrewed “Demo-1” test flight of a Dragon spacecraft to the ISS and back in 2019. – Reuters

Several countries ban Brazilian beef as mad-cow probe goes on

March 3, 2023 | 10:44 am

beef-3464 — STOCK PHOTO | Image by PDPhotos from Pixabay

SAO PAULO – The Brazilian Agriculture Ministry said on Thursday that Thailand, Iran and Jordan have temporarily suspended imports of beef from Brazil while authorities investigate a case of mad–cow disease in an animal from Para State, according to a statement sent to Reuters.

The ministry also confirmed that Russia has halted imports from Para state after the discovery of a mad cow disease case there.

Thailand, Iran and Jordan “have temporarily suspended beef imports from all over Brazil and Russia has introduced an embargo on beef exported from Para,” the ministry said. In addition, Brazil has suspended beef exports to China to fulfill terms of a trade agreement.

There is only one meatpacking plant in Para authorized to sell beef products to Russia, it added.

Brazil is investigating a case of bovine spongiform encephalopathy (BSE) on a nine-year old male animal from Para state. Discovery of the case, communicated on Feb. 20, triggered a self-imposed ban on Brazilian beef sales to China.

The animal was destroyed, and tests are pending to determine whether it developed the classic form of the disease or was an atypical case, which can occur spontaneously in all cattle populations and does not depend on ingestion of prion-contaminated feed.

Classic BSE is considered more serious because it involves contamination by the prion protein, and could trigger wide trade bans.

Russia’s suspension had been previously reported by local newspaper Valor Economico, which said the ban was enforced on Wednesday and covers live animals, fresh and processed meat and by-products.

Andrey Yurkov, Russia’s agricultural attaché in Brazil, declined to say whether the Russian ban may be lifted if the Brazilian government confirms the case is atypical, according to the Valor report.

Brazilian beef trade groups Abiec and Abrafrigo did not immediately respond to requests for comment. – Reuters

Two firms to build data centers in Luzon after talk with Marcos

March 3, 2023 | 10:03 am

Philippine President Ferdinand R. Marcos, Jr. has welcomed plans to build two hyperscale data centers in Luzon.

The proposed establishment of the two data centers in Tarlac province and New Clark City by ENDEC Development Corp. and Diode Ventures, LLC was “a result” of Mr. Marcos’ roundtable discussion with businessmen in New York in September last year, the Presidential Communications Office said in a press release on Thursday.

“This is important for us. We’re left behind when it comes to digitalization. That’s why the push for data centers, fiber optics and satellite is one of our priorities,” Mr. Marcos told ENDECGROUP, Inc. Managing Director William Johnson in a meeting at the presidential palace.

The president said the projects would enable the Philippines to catch up with other countries in terms of digitalization.

According to the Palace, ENDEC committed to starting the project in the first quarter of 2024.

The company will work with a local renewable energy firm for the project’s electricity requirements, the Palace said.

The company vowed to use 100% renewable energy sourced from solar, wind and hydro to sustain the projected 700 MW monthly power consumption of its data centers.

“According to ENDEC, it would secure separate energy sources to ensure that the country’s power grids will not be affected by its operation,” the PCO said.

Hyperscale data centers are massive business-critical facilities built by companies with vast data processing and storage needs.

In September, ENDECGROUP, Inc. and Diode Ventures, LLC joined a roundtable meeting on digital infrastructure during Mr. Marcos’ visit to New York.

ENDEC Development Corp., a subsidiary of ENDECGROUP, Inc., is the main developer of the projects, the Palace said.

It added that Diode Ventures, LLC, a subsidiary of the global company Black & Veatch (BV), is the development partner of ENDEC Development Corp. — Kyle Aristophere T. Atienza

PHL slumps in economic freedom index

March 3, 2023 | 12:33 am

The Philippine economy slipped nine spots to 89th out of 176 countries in the economic freedom index by The Heritage Foundation. — PHILIPPINE STAR/EDD GUMBAN

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINE ECONOMY is now considered “mostly unfree” as it dropped nine spots in the latest economic freedom ranking by US-based think tank The Heritage Foundation.

In the 2023 Index of Economic Freedom report, the Philippines slumped to 89^th out of 176 countries with a score of 59.3, 1.8 points lower than a year ago. Its economic freedom score is approximately the world average.

Last year, the Philippines ranked 80^th out of 177 countries with a score of 61.1.

The country’s latest ranking is now equivalent to an economic freedom status of “mostly unfree,” after being “moderately free” for nine straight years.

The Philippines’ economic freedom ranking has declined for a third straight year, after placing 73^rd in 2021 and 80^th in 2022. It stood at 70^th place in 2019 and 2020.

Singapore was the world’s freest economy, followed by Switzerland, Ireland, Taiwan, and New Zealand.

Among 39 Asia-Pacific countries, the Philippines ranked 18^th, lagging behind Malaysia (42^th), Indonesia (60^th), Vietnam (72^nd) and Thailand (80^th).

The Heritage Foundation said the Philippine government pushed for legislative reforms to improve the entrepreneurial environment and generate more jobs.

“Overall progress has been gradual. There are institutional challenges that need to be overcome. Despite some progress, corruption continues to undermine long-term economic development,” it said.

The index analyzes economies using four key aspects: rule of law, government size, regulatory efficiency, and market openness.

“The overall rule of law is weak in the Philippines. The country’s property rights score is below the world average; its judicial effectiveness score is below the world average; and its government integrity score is below the world average,” the Heritage Foundation said.

Under the regulatory efficiency, the Philippines improved its score for business freedom but saw a decline in scores for labor and monetary freedom.

The Heritage Foundation noted that the Philippine business regulatory environment has generally been streamlined.

“The time and cost involved in dealing with licensing requirements have been reduced. The labor market remains structurally rigid, but regulations are not particularly burdensome,” it added.

For market openness, the Philippines logged a higher score for trade freedom, while scores for investment and financial freedom were unchanged.

“The financial sector is dominated by banking and relatively stable, but capital markets are underdeveloped,” The Heritage Foundation said.

Sought for comment, University of Asia and the Pacific (UA&P) Senior Economist Cid L. Terosa said the country’s economic freedom ranking could be improved by addressing the rule of law concerns.

“The Philippines is woefully below the world average. Although judicial effectiveness has improved, property rights and government integrity fared poorly. This means that a clearly specified and well-enforced structure of property rights continues to be a challenge for the country, and that wavering public trust in government continues to erode the legitimacy and credibility of the government,” Mr. Terosa told BusinessWorld in an e-mail interview.

The government’s efforts to pursue digitalization will also help improve transparency and reduce corruption, he added.

Mr. Terosa said the Philippines should improve its scores in regulatory efficiency and open markets after the passage of key economic reforms such as the amendments to the Foreign Investment Act, Retail Trade Liberalization Act, Public Service Act, and the Corporate Recovery and Tax Incentives for Enterprises Act.

He said participation in the Regional Comprehensive Economic Partnership (RCEP) trade deal will improve the country’s economic freedom ranking as it is “an indication of the government’s desire to strengthen and facilitate trade and investment, research and development, technology transfer, and public-private partnerships.”

Touted as the world’s largest free trade agreement, the RCEP is set to take effect for the Philippines around May. It includes Australia, China, Japan, South Korea, New Zealand and members of the Association of Southeast Asian Nations.

Ebb Hinchliffe, American Chamber of Commerce of the Philippines (AmCham) executive director, said that the country’s ranking was not a surprise due to economic challenges.

“This news is saddening but not surprising since our economy has been badly affected by the coronavirus disease 2019 (COVID-19) pandemic, high foreign debt and regional disturbances. However, the chamber remains optimistic about the future of the Philippines,” Mr. Hinchliffe said in a Viber message.

Mr. Hinchliffe said digitalization of government processes would address corruption and mitigate bribery.

“We recognize that corruption seems to be a mainstay in the Philippines — but so is the world, and it can surely be discouraging for potential investors. AmCham firmly supports measures that would strengthen accountability, transparency, and promote checks and balances in all public offices,” he said.

The passage of laws on ease of doing business, freedom of information and the creation of the Anti-Red Tape Authority “signifies that the government is serious about eliminating corruption,” Mr. Hinchliffe said.

Calixto V. Chikiamco, Foundation for Economic Freedom president, told BusinessWorld in a Viber message that the Philippines’ economic freedom ranking would improve if it amends some provisions of the 1987 Constitution.

“Remove the Filipino First and Filipino Only provisions in the (1987) Constitution because it will improve fair competition and enhance choice,” Mr. Chikiamco said.

On Feb. 28, a bill containing the procedures for Charter change via a hybrid constitutional convention passed on second reading at the House of Representatives.

Resilient consumption seen to drive growth

March 3, 2023 | 12:32 am

Boxes of sweet rice cake are displayed at a store in Binondo, Manila, Jan. 17. — PHILIPPINE STAR/WALTER BOLLOZOS

THE PHILIPPINE ECONOMY is expected to expand by 5.8% this year as consumer spending remains resilient, ANZ Research said.

In a note on Thursday, ANZ Research said it raised its gross domestic product (GDP) forecast for 2023 “because the strength in private consumption will be partially offset by weaker fiscal spending and global demand.”

ANZ Research’s 5.8% GDP growth projection is higher than its previous estimate of 5%, but still below the government’s 6-7% full-year target.

“The improved outlook for private consumption growth raises the bar for Philippine growth in 2023, considering that it accounts for around 73% of the overall GDP,” it said.

Private consumption jumped by 8.3% year on year in 2022, helping fuel GDP growth of 7.6%.

In the fourth quarter of 2022, domestic consumption rose by 7%, slower than 8% in the third quarter and 7.5% a year earlier. While private consumption growth eased in the last three quarters, ANZ Research said this was still faster than the average run-rate of 6.2% between 2016 and 2019.

“Our analysis shows that private consumption is still hovering below its pre-pandemic trend, with further room for expansion. The underlying drivers of private consumption can likely delay the impact of rising price pressures and even aggressive monetary policy tightening by a few quarters,” it said.

Inflation quickened to a 14-year high of 8.7% in January, from 8.1% in December. The Bangko Sentral ng Pilipinas (BSP) sees inflation averaging 6.1% this year, faster than the 5.8% average in 2022.

Since May 2022, the BSP has raised borrowing costs by 400 basis points (bps), bringing the benchmark rate to a near 16-year high of 6%.

However, higher economic growth may reinforce risks to inflation, prompting ANZ Research to hike its forecast to 5.9% this year from 5.1% previously.

“A stronger growth-inflation mix, however, could prolong the monetary policy tightening cycle more than currently anticipated,” it said.

ANZ Research said it expects two 25-bp hikes at the BSP’s next two meetings in March and May.

“However, any surprise in the inflation data for February could prompt a higher hike of 50 bps by the central bank at their next policy meeting.”

Earlier this week, the BSP said inflation likely settled within the 8.5% to 9.3% range in February.

If realized, February would mark the 11^th straight month that inflation would exceed the BSP’s 2-4% target range. The upper end of the forecast or 9.3% would be the fastest pace recorded in more than 14 years or since the 9.7% recorded in October 2008.

The Philippine Statistics Authority is scheduled to release the February inflation data on March 7, while the Monetary Board is set to review policy on March 23.

SLOWDOWN TO TAKE TIME
ANZ Research said some consumption indicators showed consumer spending has already weakened, but it expects the actual slowdown to take some time.

For instance, the BSP consumer expectations survey showed the consumer confidence index slipped to 21.7 in the fourth quarter of 2022 from 33.4 in the previous quarter. The survey also showed buying intentions have dropped to multi-year lows.

“However, it may take a few more quarters before such intentions are actualized, in our view. As long as households’ financial conditions remain healthy, monetary policy transmission will likely be less effective than desired, despite the BSP’s aggressive rate hikes,” ANZ Research said.

It also noted that consumer loan growth remained stable, despite rising interest rates.

“Generous wage hikes in 2022 more than offset the increase in inflation, boosting purchasing power… The increase in household income has enabled consumers to replenish savings without cutting back on consumption,” it said.

Central bank data showed outstanding loans by big banks rose by 10.4% year on year to P10.71 trillion in January. However, the pace of growth was the slowest in nine months.

Household debt also remained manageable despite strong demand for bank loans.

“According to our estimates, households’ debt-to-GDP ratio likely edged up to 12.1% in the fourth quarter of 2022, from 10.1% in the third quarter. This figure is among the lowest compared with other economies in the region and does not appear to be a source of immediate concern for consumers,” ANZ Research said.

“In short, Filipino household finances are sufficiently healthy for a step-up in consumption this year.” — Keisha B. Ta-asan

BSP sets June 30 deadline for full adoption of QR Ph

March 3, 2023 | 12:31 am

Maya-e-payment — A vendor accepts payment from a customer using Maya QR at a public market in Tagbilaran City, Bohol. The Bangko Sentral ng Pilipinas (BSP) launched the Paleng-QR Ph initiative to help public market vendors accept cashless payments using the QR Ph, the country’s standard for QR payments. — COMPANY HANDOUT

THE BANGKO SENTRAL ng Pilipinas (BSP) gave banks and financial institutions until June 30 to fully adopt the national quick response (QR) code standard, also known as QR Ph, in a bid to accelerate digitalization.

In a memorandum signed by BSP Deputy Governor Mamerto E. Tangonan on Feb. 23, the central bank said all BSP-supervised financial institutions (BSFIs) and payment service providers (PSP) are required to fully adopt QR Ph.

“All PSPs deploying non-QR Ph codes, which is also referred to as proprietary QR codes, for payment services shall be allowed to transition to the QR Ph until 30 June 2023,” the BSP said.

“Beginning 01 July 2023, all proprietary QR codes for payments services shall be disabled and shall no longer be available to the public,” it added.

QR Ph is the country’s QR code standard, which gives customers of banks and nonbank electronic money issuers a quick and secure way to pay, as well as transfer and receive funds.

The BSP said payment service providers on the receiving end should disable any transactions via non-QR Ph codes. Appropriate notification should be used to inform payors of an unsuccessful transfer.

Meanwhile, internet platforms and mobile apps of PSPs will no longer support scanning of non-QR Ph codes.

The BSP said this in line with its mandate to ensure safe, efficient, and reliable operations of payment systems in the country, pursuant to Republic Act (RA) No. 11127 or the National Payment Systems Act.

In 2019, the BSP and the Philippine Payments Management, Inc. (PPMI) launched the QR Ph, which is used for digital person-to-person (P2P) transfers and person-to-merchant (P2M) payments through the InstaPay rail.

“All PSPs deploying QR Ph-enabled payment services to merchants or businesses shall require such merchants or businesses to display and utilize the QR Ph codes in their payment acceptance,” the BSP said.

PSPs were also required to provide product training for their client merchants, specifically the features and benefits of QR Ph. This is to ensure that store cashiers and managers will be able to guide customers on the use of the national standard code and enable clients to maximize its benefits, the BSP said.

All participating PSPs in the InstaPay rail were also required to submit a notarized certification of deployment of QR-enabled payment services. They are required to submit the certification to the BSP not later than 30 days from the date of the memorandum.

The BSP said it may take regulatory action to ensure compliance of BSFIs and PSPs. If any certificates submitted to the BSP were found untrue, the firm concerned may face sanctions.

As of end-January, there were 36 and 18 financial institutions participating in the P2P and P2M facilities, respectively.

Latest data from the central bank showed the value of transactions done through InstaPay grew by 37.3% year on year to P347.96 billion as of end-January.

In 2022, the volume of InstaPay transactions jumped by 27.7% to 51.55 million from 40.37 million in 2022.

InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is most useful for remittances and e-commerce. It is one of the automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System, together with PESONet.

The central bank has been encouraging the use of QR technology as a convenient and safe payment solution, as it aims to turn half of the volume and value of payments into digital form this year.

The BSP launched a Paleng-QR program in key cities around the country to help public market vendors accept cashless payments using the QR Ph. — Keisha B. Ta-asan

Bloomberry turns around with P5-billion income

March 3, 2023 | 12:11 am

SOLAIRE operator Bloomberry Resorts Corp. posted an attributable net income of P5.17 billion for 2022, a reversal of the past two year’s losses, as its gaming business bounced back strongly.

“2022 was a positive year of recovery for Bloomberry as Solaire benefited from a strong rebound in local demand across all business segments,” Enrique K. Razon, Jr., Bloomberry chairman and chief executive officer, said in a press release on Thursday.

In 2021 and 2020, the company suffered a net loss of P4.22 billion and P8.31 billion, respectively.

Based on the casino-resort operator’s financial report, its topline last year reached P38.81 billion, an increase of 76.5% from P21.97 billion in the previous year, mostly contributed by its gaming business.

“Our gaming revenues hit 84% of pre-pandemic levels, propelled by the domestic-focused mass table games and EGM (electronic gaming machines) segments where revenues have already reached 100% of 2019 pre-pandemic levels,” Mr. Razon said.

Bloomberry’s gaming revenue increased by 72% to P32.21 billion from P18.73 billion in the previous year. Its gross gaming revenues (GGR) increased by 80.1% to P50.11 billion from P27.63 billion previously.

“Solaire’s VIP rolling chip volume, mass table drop, and slot coin-in were P481.7 billion, P38 billion, and P307.9 billion, representing year-over-year increases of 96%, 54%, and 91%, respectively,” the company said.

Meanwhile, revenues for non-gaming businesses — hotel, food and beverages — contributed P3.26 billion, while retail and other businesses made up P3.34 billion.

Its consolidated operating costs and expenses were also higher by 32.95% to P28.12 billion from the P21.15 billion of the previous year.

The company, reported consolidated earnings before, interest, tax depreciation, and amortization (EBITDA) of P14.31 billion, or more than double of the previous year’s P5.21 billion.

Additionally, the company’s Korean business trimmed its net loss to P544 million from P1.32 billion in 2021 when it was closed.

For the fourth quarter of 2022, the company earned P1.1 billion, reversing the previous year’s P1.3-billion net loss. Its consolidated year-on-year net revenue increased by 75% to P11.6 billion.

GGR for Solaire grew by 84% to P14.7 billion, contributed by VIP tables at P4.7 billion, mass tables at P4.4 billion, and EGM GGR at P5.6 billion.

The company’s EBITDA grew to P3.9 billion from P1.9 billion in the previous year.

“While we celebrate our success in 2022, we keep our eyes on the future as we ramp up construction activity at Solaire Resort North in Quezon City. We are excited to launch this new offering by the first quarter of 2024,” Mr. Razon said.

On the stock market on Monday, shares in Bloomberry declined by 0.32% or P0.03 to P9.40 apiece. — Adrian H. Halili