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Pacific islanders head to Australia for jobs as climate fears grow

REUTERS

SYDNEY — Over the years, Claire Anterea has waved goodbye to numerous friends and family members as they left the Pacific island nation of Kiribati for jobs in regional powerhouse Australia. She had never considered joining them – until now.

Australia will introduce a permanent residency option for Pacific islanders this year, and has also expanded its short-term labor program – part of the country’s wider efforts to counter China’s growing influence in the region.

Anterea, 43, a climate activist, said the residency offer had led her to consider a permanent move to Australia as she grows increasingly concerned about her country’s long-term future due to rising seas caused by climate change.

“If our people are affected by sea level rise, we don’t have a place to go,” Anterea told the Thomson Reuters Foundation by phone from her home in Kiribati’s capital, Tarawa.

“This life for me is good, but what about my daughter? For the sake of my child, I want to migrate and to get a job and contribute to a new home,” she added.

Sea level rise could cover more than half of the low-lying Tarawa atoll’s land by 2100, threatening more than 60% of its population, according to the Intergovernmental Panel on Climate Change (IPCC).

While such forecasts raise the specter of a wave of climate migration in decades to come, for the meantime policymakers in island nations fear Australia’s efforts to court migrant workers could fuel a “brain drain” of skilled people.

Pacific workers can earn up to four times as much in Australia or New Zealand, said Richard Curtain, a leading Pacific labour mobility researcher.

That makes the offer of even temporary work an attractive prospect in countries like Fiji where youth unemployment surged to 37% in 2020, according to the Asian Development Bank (ADB).

SKILLED PROFESSIONALS
The mass departure of skilled professionals, especially digital workers, is a worrying trend, Fiji’s Deputy Prime Minister Manoa Kamikamica said earlier this month.

“This is a matter of great concern to our nation, as the loss of highly skilled professionals in the IT sector can have serious implications for our economic growth and competitiveness,” he told a conference.

Samoa’s industry and labour minister, Leatinu’u Faumuina Wayne So’oialo, voiced similar concerns in November.

Almost a quarter of Fiji’s population lived abroad in 2019, while about 12% of Samoa’s workforce participated in labour schemes in Australia or New Zealand last year, according to an ADB report in December.

Many are highly qualified workers seeking better job opportunities overseas, posing a problem for small island countries that have been struggling for years to retain a skilled workforce, said Curtain, who has researched brain drain in the Pacific region at the Australian National University.

Remittance payments sent home from migrant workers on the short-term Pacific Australia Labour Mobility (PALM) scheme are the upside, he added.

Some 35,000 Pacific migrant workers on the PALM program – many of them seasonal laborers such as fruit pickers – sent more than $64 million in remittances to the region last year, according to Australian government figures.

In both Tonga and Samoa, remittances were the equivalent of about 40% of each country’s gross domestic product (GDP) in 2022, ADB research showed.

Australia’s Department of Foreign Affairs and Trade (DFAT), which runs the PALM scheme, said workers gain experience, skills and savings that can help boost the economy of their home countries.

“We do not want to deprive the Pacific of its workforce and will ensure the scheme delivers a skills dividend for our region,” a DFAT spokesperson said in emailed comments.

CLIMATE MIGRATION PATHWAY?
Aiming to “strengthen Australia’s ties with the Pacific family”, the new Labor government pledged in 2022 to increase PALM workers to 35,000 by June, a target already hit, and launch a ballot for the new Pacific Engagement Visa (PEV) in July to let 3,000 Pacific Islanders become permanent residents annually.

Like New Zealand’s visa ballot, which was introduced in 2002, Australia’s PEV will only be open to Pacific Islanders with a formal job offer in Australia.

Some experts say the PEV program should also be treated as a climate migration pathway, with priority given to people from the most vulnerable island nations such as Kiribati and Tuvalu.

“This is quite urgent. We see Australia as the leader in our Pacific region so they should focus on improving the pathways for our people in climate-threatened communities,” said Akka Rimon, who was Kiribati’s foreign affairs secretary in 2013 and researches labour migration and climate displacement at the Australian National University.

The DFAT spokesperson said the government would prioritize “countries with limited permanent migration opportunities to Australia”, and the number of visas available for each Pacific island was still being determined.

Without serious and rapid action to tackle climate change, about 216 million people globally could be forced to move within their own countries by 2050, according to the World Bank.

But for people from small, low-lying island nations relocating overseas may be their only option.

For islanders like Anterea, such concerns mean moving abroad sooner – rather than later – appears increasingly tempting.

“People are really fighting to get their opportunity to go and work overseas because it’s a good income. They are thinking about the future of their children. They want their family to have a better life,” she said. — Reuters

G7 finance chiefs to meet on Feb 23 to discuss measures against Russia

G7 LEADERS (from left) Australia’s Prime Minister Scott Morrison, German Chancellor Angela Merkel, South Africa’s President Cyril Ramaphosa, South Korea’s President Moon Jae-in, British Prime Minister Boris Johnson, US President Joseph R. Biden, France’s President Emmanuel Macron, and Canadian Prime Minister Justin Trudeau attend a working session during G7 summit in Carbis Bay, Cornwall, Britain, June 12. — LEON NEAL/POOL VIA REUTERS

TOKYO — Financial leaders of the Group of Seven (G7) will meet on Feb. 23 to discuss measures against Russia that will put pressure on it to end the Ukraine war, Japan’s Finance Minister Shunichi Suzuki said on Tuesday.

Japan will chair the meeting of finance ministers and central bank governors from the G7 nations in the Indian city of Bengaluru. The meeting will come almost a year since Russia invaded Ukraine, calling it a “special military operation”.

The war has raged on despite a slew of punitive measures G7 and other countries have taken against Russia.

“Support for Ukraine and sanctions against Russia will be the main topics of discussion,” Suzuki told a news conference. “We will continue to closely coordinate with G7 and the international community to enhance the effect of sanctions to achieve the ultimate goal of prompting Russia to withdraw.”

Japan chairs G7 ministerial meetings this year in the run-up to the May 19-21 summit meeting of G7 leaders in Hiroshima. The G7 comprises Britain, Canada, France, Germany, Italy, Japan, and the United States.

The G7 meeting will be followed later in the week by a broader gathering of G20 financial leaders from the world’s major economies, which will be hosted in Bengaluru by India, which has the G20 presidency.

The Ukraine war and the global economy are expected to be the focus of the G20 talks.

It will discuss inflation that has been heightened by Russia’s war, energy and food prices, and support for emerging market economies facing debt problems. A failure to tackle emerging market debt could lead to a financial crisis, a senior Japanese official said earlier.

“By contributing to discussions on these problems, we are hoping to produce significant results that will lead to stable and sustainable global growth,” Suzuki said. — Reuters

Belarus to form 100,000-150,000 strong volunteer military force

JAY REMBERT-UNSPLASH

Belarusian President Alexander Lukashenko said on Monday he had ordered the formation of a new volunteer territorial defense so everyone knows how to “handle weapons” and be ready to respond to an act of aggression and keep public order in peacetime.

“The situation is not easy. I have said more than once: every man – and not only a man – should be able to at least handle weapons,” Lukashenko said at the meeting of his Security Council.

“At least in order to protect his family, if needed, his home, his own piece of land and – if necessary – his country.”

Lukashenko, who allowed Russia to use Belarus to send troops into Ukraine a year ago, has often said his army would fight only if Belarus was attacked. He has also said the “experience” in Ukraine necessitates additional defense.

“In case of an act of aggression, the response will be fast, harsh and appropriate,” Lukashenko said on Monday.

Defence Minister Viktor Khrenin said the territorial defense force will have 100,000-150,000 volunteers, or more if needed. The paramilitary formation will be ideally in every village and town.

The country’s professional army has about 48,000 troops and some 12,000 state border troops, according to the 2022 International Institute for Strategic Studies’ Military Balance.

A pariah in the West, Lukashenko, Europe’s longest-serving ruler who has led Belarus for 28 years, depends on Russia politically and economically, and Russian President Vladimir Putin’s support helped him survive mass pro-democracy protests in 2020.

The dependence has fanned fears in Kyiv that Putin would pressure Lukashenko to join a fresh ground offensive and open a new front in Russia’s invasion of Ukraine.

“The elements of the Cold War: arms race and nuclear blackmail by the leaders of individual Western states have returned to the contemporary international agenda,” Lukashenko said on Monday.

The European Union, the United States and others have imposed billions of dollars’ worth of sanctions on the ex-Soviet state over its support for Russia’s war against Ukraine.

On Monday, US President Joe Biden made a surprise visit to Kyiv to send a message of “enduring support” for Ukraine and announce further military aid for the army of Ukrainian President Volodymyr Zelenskiy. — Reuters

The Junior Philippine Institute of Accountants – De La Salle University brings back ‘EXCEED2023’

Ready for a momentous chapter in EXCEED history?

EXCEED2023 brings with it the comeback of the much-awaited hybrid setup. Hailed as the nation’s biggest business and accounting convention, EXCEED2023 is anchored on the theme “Empowering Business Visionaries, Defying Socio-Economic Uncertainties.” It acknowledges deeply-seated lulls in the nation’s systems and sets forth a collective defiance of conscious effort that is sure to open doors to future emerging industries. 

Participants from De La Salle University (DLSU) will be able to attend the Plenary and Symposium on March 11, 2023 at the Teresa Yuchengco Auditorium by purchasing a ticket worth P200, while Non-DLSU participants can gain access to the event by purchasing a ticket worth P320. Both tickets are inclusive of the convention kit and lunch for non-DLSU participants.

Meanwhile, the Simultaneous Classes will be held on March 18, 2023 via Zoom. Access for this event will be FREE for both DLSU and Non-DLSU participants.

Join us in defying limits by accessing these links:

Application Kit: bit.ly/EXCEED2023ConventionApplicationKit

Application Form for DLSU Participants: bit.ly/EXCEED2023InternalAppForm

Application Form for Non-DLSU Participants: bit.ly/EXCEED2023ExternalAppForm

See you there, future business leaders!

BoP posts $3-billion surplus in Jan.

US dollar banknotes are seen in this illustration taken July 17, 2022. — REUTERS

THE PHILIPPINES’ balance of payments (BoP) position swung to a surplus in January from a deficit a year ago, reflecting the proceeds of the government’s global bond issuance, the Bangko Sentral ng Pilipinas (BSP) said on Monday.   

Data released by the BSP showed a BoP surplus of $3.08 billion in January, a reversal of the $102-million deficit in January 2022. The January figure was also significantly higher than the $612-million surplus in December 2022.

This was also the largest BoP surplus in 26 months or since the $4.24-billion surfeit in December 2020.

Philippines: Balance of payments position“The BoP surplus in January 2023 reflected inflows arising mainly from the National Government’s net foreign currency deposits with the BSP, which include proceeds from its issuance of ROP (Republic of the Philippines) Global Bonds, and net income from the BSP’s investments abroad,” the central bank said in a statement.

In January, the Philippines raised $3 billion from the Marcos administration’s second US dollar bond issuance. The government sold $500 million worth of the 5.5-year notes, $1.25 billion worth of the 10.5-year papers, and $1.25 billion worth of the 25-year sustainability bonds.

Security Bank Corp. Chief Economist Robert Dan J. Roces said the higher inflows of remittances from overseas Filipino workers (OFWs) was also a key factor in the higher BoP surplus.

“OFW remittances are a significant source of foreign exchange for the Philippines and have been relatively resilient despite the pandemic,” Mr. Roces said.

Cash remittances coursed through banks jumped by 3.6% to a record high of $32.54 billion last year, latest BSP data showed. It exceeded the $31.42 billion recorded in 2021.

“Another possible factor is some recovery in exports. As global trade recovers from the pandemic and China reopens, demand for Philippine-made goods may have increased, leading to higher export revenues and inflows of foreign exchange,” Mr. Roces said.   

In December, the value of merchandise exports fell by 9.7% to $5.67 billion, while imports also declined by 9.9% to $10.26 billion. This brought the trade-in-goods deficit to $4.6 billion in December, narrower than the $5.12-billion gap a year earlier.

Mr. Roces said the resumption of international and local tourism also contributed to the surplus, as there could be an increase in foreign exchange earnings from tourism-related activities.   

At its end-January level, the BoP surplus reflects a final gross international reserve of $100.7 billion, up by 4.8% from $96.1 billion a month earlier.

The country’s dollar reserves are enough to cover 6.2 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity. It is also equivalent to 7.6 months’ worth of imports of goods and payments of services and primary income.

The BoP gives a glimpse into the country’s transactions with the rest of the world. A deficit means more funds left the country, while a surplus shows that more money came in.

“Looking ahead, FDI (foreign direct investment) inflows may also contribute to the BoP as the Philippines continues to offer investment incentives and maintain a relatively open investment environment, based on the pledges gathered by our businessmen and the National Government as well, so this could lead to inflows of foreign exchange,” Mr. Roces said.   

FDI inflows into the Philippines plunged 43.6% year on year to $793 million in November.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the country’s BoP position could be supported by the continued growth in dollar inflows such as remittances, business process outsourcing revenues, FDI, foreign tourism receipts, among others.   

The BSP projects the BoP position to reach a $5.4-billion deficit by the end of 2023, which is equivalent to -1.3% of the gross domestic product. The BoP position ended 2022 at a $7.26-billion deficit. — Keisha B. Ta-asan

BSP may continue rate hikes amid stubborn inflation

REUTERS

THE PHILIPPINE central bank may continue hiking interest rates to a peak of 6.5% in the first half as inflationary pressures persist, analysts said.

“At Fitch Solutions, we now think that interest rates in the Philippines will peak at 6.5%, upwardly revised from our previous forecast of 6%,” Fitch Solutions Country Risk & Industry Research said in a report on Monday.

Last week, the Monetary Board raised the key interest rate by 50 basis points (bps) to a near 16-year high of 6%. The rates on the overnight deposit and lending facilities were also increased to 5.5% and 6.5% respectively.

“The latest decisions were mainly driven by concerns over persistently high inflation, and we think that the BSP’s tightening cycle will continue into the first half to tame inflationary pressures,” Fitch Solutions said.

In a note, Nomura Global Markets Research Chief ASEAN (Association of Southeast Asian Nations) Economist Euben Paracuelles and analyst Rangga Cipta said they now expect the BSP to deliver two 25-bp hikes at its March and May meetings, to bring the terminal rate to 6.5%.

Nomura also pushed back the timing of BSP rate cuts to the first quarter of 2024, from fourth quarter of 2023 previously.

“This implies, in our view, that BSP will look to ensure inflation has become further entrenched within its 2-4% target, and so it will take longer to unwind some of its policy rate hikes. We therefore now revise our policy rate forecast to 6.50% by end-2023 (from 5.50%) and to 5.50% by end-2024 (from 4.50%), which implies we now expect only 100 bps of total rate cuts (from 150 bps),” Nomura said.

The BSP’s latest rate hike came after inflation quickened to a 14-year high of 8.7% in January, from 8.1% in December. It marked the 10th straight month inflation was above the BSP’s 2-4% target range.

In a separate note, MUFG Global Markets Research said it expects the BSP to hike to “at least” 6.5% in 2023 “with some chance of more rate hikes in the coming months.”

“The central bank sent out a ‘higher for longer’ message due to runaway inflation, seeing broad pressures and upside risks to upwardly adjusted forecasts,” it added.

Due to the unexpectedly high January print, the BSP revised its full-year inflation outlook to 6.1% in 2023 from 4.5% previously; and 3.1% in 2024, from 2.8% previously.

Fitch Solutions also revised its average inflation forecast to 6.5% this year, from 5.4% previously, as price pressures are taking longer to peak.

“Looking ahead, second-round effects from utilities price hikes will remain a key source of upside price pressure. Additionally, food inflation could rise even further still. The impact of food supply disruptions caused by adverse weather conditions may have yet to run its cost,” Fitch Solutions said.

“(We) now think that inflation will remain above the BSP upper target celling of 4% throughout 2023.”

According to Nomura, inflation may decline in the coming months and may only average 5.6% this year, below the BSP’s 6.1% forecast.

“This is premised on our view that the same month-on-month pickup in headline inflation in January is unlikely to be exceeded or even repeated, given that this has exceeded the month-on-month increases since the start of the Russia/Ukraine conflict,” Nomura said.

Month on month, inflation climbed to 1.7% in January from 0.3% in December. Stripping out seasonality factors, month-on-month inflation rose by 1%.

However, Nomura warned that “if inflation momentum accelerates, it could mean more sizeable rate hikes by BSP.”

Once the key rate hits 6.5% in the first half, Fitch Solutions said the BSP will likely keep interest rates on hold throughout the rest of the year due to an eventual stabilization of global monetary conditions and a shift to supporting the economy.

“An eventual stabilization of global monetary conditions will set the stage for BSP to leave rates on hold… We think that the US Fed is likely near the end of its tightening cycle… This will help reduce the need for the BSP to lean towards aggressive rate hikes to defend the peso going forward,” it said.

The think tank said the BSP will eventually shift to supporting the economy, as it sees gross domestic product (GDP) growing by 5.9% this year, slower than the 7.6% in 2022.  

Fitch Solutions’ 5.9% Philippine GDP projection is slightly below the government’s 6-7% full-year target.

Meanwhile, Nomura sees the Philippine economy growing by 5.5% in 2023, before expanding by 6.3% in 2024.

“We believe GDP growth is likely to moderate, given export growth is slowing amid the global downturn, while domestic demand is also looking less resilient than last year, in our view, given price pressures remain high, which ultimately hurts household purchasing power and therefore consumer spending,” Nomura said. — K.B.Ta-asan

Philippines counts cost of teenage pregnancies

Pregnant teenagers wait in line for a free pre-natal checkup at a clinic in Tondo, Manila, Aug. 31, 2012. — REUTERS

By Kyle Aristophere T. Atienza, Reporter

TACLOBAN CITY — Christine Homeres Villanueva, 16, and her 19-year-old husband were among the hundreds of thousands of young Filipinos who had to drop out of school due to early teenage pregnancy.

Ms. Villanueva, who lives in the central Philippine province of Southern Leyte, got pregnant last year and is expected to give birth in March.

“I almost lost hope when we found out that I was pregnant,” she said by telephone. “I was thinking of my future and the challenges of raising my child.”

Teenage pregnancy poses serious threats to Philippine economic growth particularly on its labor force, according to experts from the World Health Organization (WHO) and the United Nations (UN).

One out of 10 births in the Southeast Asian nation are from mothers under the age of 19, Leila Joudane, country representative of the UN Population Fund, said at the launch of a campaign against teen pregnancy in the central Philippine city of Tacloban on Monday.

The Philippines is estimated to lose P33 billion a year due to adolescent pregnancy, which the Philippine government considers a national priority, she told a news briefing. Foregone income of teenage girls who get pregnant is P83,000 a year.

“When she gets pregnant early, she would earn much less than people who continue to study,” Ms. Joudane said. “The issue of adolescent pregnancy  affects her potential future.”

The Philippine Health department, WHO, UN and Korea International Cooperation Agency launched a campaign against teen pregnancy in Samar and Southern Leyte — two poor provinces in Eastern Visayas, which has one of the highest teenage pregnancy rates in the country.

The $1-million program targets 275,538 adolescents and will train 150 health service providers, 150 public school teachers and 360 local government units in 20 towns in these provinces.

The Philippines faces a learning crisis that experts say threatens the Filipino labor force, which is struggling to compete in the global market.

“Adolescent pregnancy is not only a health and education problem but also an economic development issue,” UN Philippine Resident Coordinator Gustavo Gonzalez told the briefing.

He said adolescent pregnancy is a combination of trauma, costs and losses.

“From a health perspective, adolescent pregnancy brings up complications. It is costing the health system,” he said. “There are economic losses because [they are] an important part of the human capital of the Philippines that cannot be fully integrated into the labor market.”

Mr. Gonzalez said teen pregnancy is among the major factors why the Philippines’ female labor force participation rate is among the lowest in Southeast Asia.

He said a massive campaign against teen pregnancy is a development investment because it can improve human capital.

Health department officer-in-charge Maria Rosario S. Vergeire said adolescent pregnancy could result in poor social and economic outcomes “for both the adolescent mother and her child.”

Adolescent mothers are more likely not to finish high school or college and are likely to be unemployed, she told the briefing, citing a UN Population Fund study.

“More importantly, the poor outcomes also extend to their children, who are also more likely to have poor nutrition and education outcomes,” she said. “This has effects not just on the individual, but on society as a whole.”

The UN body said the Philippines would benefit from its younger demographic structure — one of three Filipinos are below 18 years.

But the window opportunity that the demographic dividend brings may be lost if Filipinos are not able to care for their sexual and reproductive health and their families, it said.

DATA PROBLEM
“Those who have been previously pregnant as teenagers are more likely to become pregnant again as teenagers, making them less likely to join the labor force,” Education Assistant Secretary Dexter A. Gablan said.

Live births among those aged 10 to 14 between 2016 and 2021 increased by 11%, according to the Philippine Statistics Authority. 

There were 2,299 births from the age group in 2021, higher than 2,113 in the previous year.

Teenage pregnancies fell to 5.4% in 2022 from 8.6% in 2017, according to a 2022 survey by the local statistics agency.

Among teens aged 15 to 19 years who have been pregnant as of 2022, the highest percentage was recorded among those aged 19 years at 13.3%, it said. “This was followed by women aged 18 years at 5.9% and women aged 17 years at 5.6%.”

Ms. Vergeire said there might be a problem with the data since the country has struggled with COVID-19 for almost three years now.

“A lot could have been detected if we were in normal times,” she said. “But we were in abnormal times.”

She said authorities should verify the accuracy of the data, adding that the government should find out whether the pandemic had an impact on the reporting of teenage pregnancies in recent years.

Ex-President Rodrigo R. Duterte issued an executive order in 2021 to make the fight against teenage pregnancy a national priority.

He ordered all government agencies to identify and implement “practicable” interventions to ease adolescent pregnancies, including sex education, employment opportunities for young people and health promotion through media.

Mr. Gablan said the Education department has been enforcing sex education in public schools, which requires “upskilling teachers” and making the program appropriate for various regions.

He said the agency is looking at hiring more guidance counselors and health workers to boost access of young mothers to health services in schools.

The Department of Health and its partner agencies the UN and WHO seek to expand their pilot program in Eastern Visayas to other parts of the country.

Ms. Villanueva, the expectant mother, said she plans to study again after giving birth.

“We want them to complete their basic education because this will enable them to once again regain confidence,” Mr. Gablan said. Alternative modes of learning will give young parents the opportunity to continue their education, he added.

Government losing P500 billion to tax evasion — BIR

The Bureau of Internal Revenue (BIR) is encouraging Filipinos to file their annual income tax returns ahead of the April 17 deadline. — PHILIPPINE STAR/EDD GUMBAN

THE GOVERNMENT loses around P500 billion annually to tax evasion, according to a top Bureau of Internal Revenue (BIR) official.

“There is a lot, especially if we include those involved in illicit trade. In cigarettes alone, there’s around P100 billion,” BIR Commissioner Romeo D. Lumagui, Jr. said, when asked about revenue losses from tax evasion.

“Leakages aren’t part of that yet, like petroleum or vape products that aren’t registered, as well as fake receipts. I think it won’t go below P500 billion if you add everything up,” he added.

Mr. Lumagui said the BIR will have an easier time achieving its collection targets if it addresses tax evasion.

Earlier this month, the BIR filed 74 tax evasion complaints worth P3.5 billion against several companies.

“We will tailor efforts to improve digital services so businesses will leave the shadow economy and join the tax net. We will now focus on enforcement activities against tax evaders, put emphasis on tapping uncollected taxes through illegal activities,” Mr. Lumagui said.

The BIR is currently monitoring and investigating a number of suspected tax evaders.

“The most important right now is the selling of fake receipts and we know who (they are). We are investigating so we can file a case against those involved,” Mr. Lumagui said.

The BIR is targeting to collect P2.6 trillion in revenues this year.

“With all our activities and efforts we are making, we will be able to achieve the tax collection target,” he said.

In 2022, the agency collected a total of P2.34 trillion, surpassing its P2.1-trillion target.

Meanwhile, Mr. Lumagui said the agency will also review its policies after the Supreme Court declared void its regulations that require firms to disclose the personal information of investors.

“We must respect the privacy (of these investors) but when it comes to the correct amount of taxes, the BIR has auditing power. There is still a need to pay taxes and the compliance of these businesses needs to be monitored. When it comes to determining the correct amount of taxes, we can investigate that,” he added.

The Supreme Court declared that the BIR Revenue Regulations No. 1-2014 and Revenue Memorandum Circular (RMC) No. 5-2014 “void for being unconstitutional” as it violated the right to privacy.

The regulations require businesses to disclose investor information such as addresses, tax identification number (TIN), and birthdays, among others.

“The Court holds that the collection of information pursuant to the questioned regulations is not necessary for the BIR to carry out its functions. To reiterate, there was no showing that there was a problem or inefficacy with the system prior to the issuance of the questioned regulations,” according to the ruling.

“While creating a tax database may be considered as part of the BIR’s function of tax collection, it would still be futile to state that the information sought are necessary for the BIR to effectively and efficiently perform its statutorily mandated functions,” it added. — Luisa Maria Jacinta C. Jocson

Metro Pacific earmarks P1B for Bulacan greenhouse

From L to R: MPAV Chief Commercial Officer Toby Gatchalian, San Rafael Bulacan Mayor Mark Cholo I. Violago, Ambassador of Israel to the Philippines Ilan Fluss, LR Group Founder and Chairman Ami Lustig, MPIC Chairman, President and Chief Executive Officer Manuel V. Pangilinan, MPAV President and Chief Executive Officer Jovy I. Hernandez, LR Group Director and Head of the Agriculture Division Doron Retter, and PLDT, Inc. First Vice President Catherine Y. Yang. — PHOTO BY JUSTINE IRISH D. TABILE

By Justine Irish D. Tabile, Reporter

THE agribusiness arm of Metro Pacific Investments Corp. (MPIC) in partnership with Israel-based LR Group will be investing around P800 million to P1 billion in a vegetable greenhouse facility.

During the fresh farm’s groundbreaking ceremony on Monday, Metro Pacific Agro Ventures, Inc. (MPAV) President and Chief Executive Officer Jovy I. Hernandez said the facility will be able to supply 1,600 metric tons of vegetables a year.

The greenhouse facility, Metro Pacific Fresh Farms (MPFF), is said to be the largest in the country. In 12 months, it will rise on a 22-hectare lot in San Rafael, Bulacan.

“It is time to take advantage of the available technology and leverage against the traditional bottlenecks that we have encountered in the past. It is time to think closely of the type of food that we bring to the table and how it can be improved at a granular level,” MPAV Chief Commercial Officer Toby Gatchalian said.

“This greenhouse project in Bulacan is only the first step of launching and building a platform for a much larger advocacy. MPFF is but a part of a larger ecosystem that is set to fundamentally change how Filipinos eat,” he added.

Up to 15 hectares of the property will be used for MPAV’s irrigation centers, logistics warehouse, packing facility and energy facilities, while the remaining 7 hectares will be used for two greenhouses.

MPFF will be serving Metro Manila and neighboring provinces to provide farm-to-fork produce.

“The vegetable market in Metro Manila alone is so big, even this facility will only be able to cater [to] a small one,” Mr. Hernandez told reporters, adding that the facility is just the beginning.

“I think we need more of this in the future. And part of the objective is to teach the local farmers how to do it themselves,” he said.

Manuel V. Pangilinan, MPIC chairman, president and chief executive officer, said: “We’ll make sure the prices are affordable and we’ll make sure that we are able to increase the supply of vegetables in Metro Manila.”

With its modern farming technology, called nutrient film technique hydroponics and drip irrigation system, MPFF is expected to use 90% less water and land and 90-99% lesser fertilizers and pesticides, which is said to lessen the cost of producing vegetables.

MPIC through MPAV has been investing in various agricultural ventures beginning with its acquisition of dairy company Carmen’s Best Group and the recent purchase of an almost 35% stake in coconut products maker Axelum Resources Corp.

For the group’s next venture, Mr. Pangilinan said he is eyeing to get into large-scale farming, especially for farm produce that cannot be planted in a greenhouse facility.

“The real challenge is to get into large-scale farming, which means you need plenty of hectares to achieve the kind of scale and kind of cost that you worry about,” Mr. Pangilinan said. “Certain plants are just not capable of being planted in greenhouses like sugarcane.”

“That’s the next challenge for the group, [if] we should get into large-scale farming. But that’s what you need to address the rice situation and the sugar situation,” he added.

SM Prime profit rises 38% as full rental fees resume

SM PRIME HOLDINGS, INC reported a 38.1% growth in its consolidated net income to P30.1 billion last year from P21.8 billion a year earlier as it resumed collecting full rental fees in malls.

“We are pleased to report that we ended 2022 on a positive note despite the challenges faced for the most of the year, owing to the robust consumer spending particularly in the last quarter,” said SM Prime President Jeffrey C. Lim in a press release.

Meanwhile, the listed holding firm’s consolidated revenues increased by 28.6% to P105.8 billion last year from the P82.3 billion recorded in 2021. The increase largely came from its mall business, which posted  P49.8 billion in revenues or more than double the P24.1 billion recorded in the previous year and made up 47% of SM Prime’s topline.

Full rental fees resumed in the second half of last year, resulting in a 91.7% rise in local mall rental income to P44.1 billion from P23 billion. Other revenues, including those coming from cinema and event ticket sales, increased more than five times to P5.7 billion from P1.1 billion.

“As of December 2022, SM Prime has 82 malls in the Philippines, consisting of 58 malls in the provincial areas, and 24 malls in Metro Manila,” the company said.

SM Prime’s consolidated operating income rose by 51.9% to P49.2 billion from P32.4 billion in the previous year.

The company’s residential arm led by SM Development Corp. posted a 12.6% revenue decline to P40.1 billion from P45.9 billion previously.

Other business segments, including offices, hotels, and convention centers, reported a 59.1% increase in revenues to P10.5 billion from P6.6 billion in 2021.

On Monday, shares in SM Prime declined by 0.27% or P0.10 to close at P36.90 each. — Adrian H. Halili

Alternergy secures water permit for mini hydropower project in Ifugao province

RENEWABLE energy company Alternergy Holdings Corp. said its unit has secured a water permit from the National Water Resources Board for the Ibulao run-of-river hydropower project.

Eduardo M. Miranda, president and chief executive officer of Alternergy subsidiary Ibulao Mini Hydro Corp., said in a media release that the award of the water permit is a “significant milestone” in the development of the project.

Ibulao 2 hydropower plant forms part of the group’s portfolio of projects in Ifugao province.

Mr. Miranda said the 17.4-megawatt (MW) Asin-Hungduan and Ibulao 1 projects located in the municipality of Kiangan in Ifugao are now under construction. Alternergy’s 6.8-MW project in Ifugao’s Lamut and Asipulo towns is being readied for construction

“In the coming months, we will commence the conduct of the activities to obtain the Free and Prior Informed Consent (FPIC) of our host indigenous cultural communities. This is a long and tedious process but we already gained experience from our other projects. We are confident in due course we will have the consent of the communities,” Mr. Miranda said.

Ibulao 2 run-of-river hydropower project will involve the construction, and operation of a 7.4-MW hydropower plant in Brgy. Bolog in Kiangan and Brgy. Caba in Lagawe.

Ibulao 2 is part of Alternergy’s plan to expand its portfolio in five years. The renewable energy company aims to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar and run-of-river hydropower projects.

Alternergy targets to hold on March 24 an initial public offering of shares to raise up to P1.87 billion. Proceeds from the offering will fund the pre-development stage of its projects currently in the pipeline, including the Ibulao 2 hydropower project. — Ashley Erika O. Jose

iPeople awaits more signups after new educational offering  

LISTED education company iPeople, Inc. expects more students to sign up in August this year on the back of a new education offering under a partnership between its Mapua schools and Arizona State University (ASU).

“The official signing was in May [last year], then we announced it publicly in June. The first classes were in August [last year]. But then we’ve not really had the chance to market or discuss it much,” iPeople President Alfredo I. Ayala told reporters on the sidelines of a press conference in Makati City on Monday.

“This coming year, we’re hoping to see significant signups,” he said, citing the collaboration with ASU.

Mr. Ayala said the company is sharing “more proactively everything there is to offer.”

“We also wanted to get off the ground and run a few courses. Make sure that we are doing everything properly,” he added.

In 2022, iPeople’s Mapua University and daughter schools Mapua Malayan Colleges Laguna and Mapua Malayan Colleges Mindanao entered into a collaboration with ASU to improve and focus on the business and health sciences programs.

The partnership allowed Mapua schools to be members of global network ASU-Cintana Alliance, which consists of 15 higher education institutions in the Americas, Europe, and Asia. Some of the alliance’s other members are Galala University in Egypt, The NorthCap University in India, and Universidad Internacional del Ecuador in Ecuador.

Under the collaboration, students will have access to ASU’s content in all enhanced courses, participate in the global signature courses from professors at member universities of the alliance via virtual classrooms, and interact with foreign classmates without leaving the Philippines.

Students could also participate in classes co-lectured by ASU faculty and gain opportunities to participate in student exchange and summer immersion programs at ASU-Cintana schools.

“Our collaboration with global leader ASU and being part of the ASU-Cintana Alliance enable us to take these to a higher level for our students, by giving them numerous opportunities to learn with a top-ranked US university, and other leading education institutions around the world,” iPeople Chairman and Mapua University President Reynaldo B. Vea said.

iPeople owns seven educational institutions consisting of Malayan Education System, Inc. operating as Mapua University, Mapua Malayan Colleges Laguna, Mapua Malayan Colleges Mindanao, and Malayan High School of Science in Manila; the University of Nueva Caceres in Bicol; National Teachers College; and APEC Schools.

iPeople is an education company under Ayala Corp. and the House of Investments of the Yuchengco group of companies, which hold a stake of 33.5% and 51%, respectively.

On Monday, shares of iPeople at the local bourse dropped 13 centavos or 1.71% to end at P7.49 apiece. — Revin Mikhael D. Ochave