‘Halalan 2022’ tops Google searches in the PHL

December 8, 2022 | 11:14 am

Google-mobile-phone — SOLEN FEYISSA-UNSPLASH

Presidential elections drove this year’s Google searches in the Philippines as “Halalan 2022” topped the overall list of trending searches and “precinct finder” landed in third.

“The first and third spots show that Filipinos needed information about the May 9 national elections: how to find their precincts, voting resources, and the results,” said Mervin Wenke, communications and public affairs head at Google Philippines, at a Dec. 7 announcement of the country’s top Google searches.

Meanwhile, “VaxCertPH” was the second most Googled term, jumping up from fourth in 2021. “Its rise to second place this year shows our acceleration into a post-pandemic era,” Mr. Wenke said.

Due to the popularity of basketball among Filipinos, the most searched male personality was Filipino basketball player Ricci Rivero while the sixth most searched was Spanish basketball player Juancho Hernangomez.

Another athlete that caught the nation’s eye was Filipino volleyball player Deanna Wong, the third most searched female personality.

Google also picked up on the country’s interest in controversy, with celebrity Amber Heard topping the most searched female personalities after the defamation trial between her and Johnny Depp, who was the second most searched male personality.

Chris Rock is another example, garnering the third spot in the male personalities list, presumably after he was slapped by Will Smith at the 2022 Academy Awards.

In the world of movies, Disney-related titles dominated the lists. Animated musical fantasy Encanto was number one among the movies, followed by Marvel superhero flicks Eternals, Thor: Love and Thunder, Doctor Strange in the Multiverse of Madness, and Spider-Man: No Way Home also in the top ten.

The top series showed a clear bias towards Hallyu (referring to this decade’s wave of Korean entertainment), with Netflix’s zombie series All of Us Are Dead at number one.

The rest of the Korean placers are in the romance genre, with Extraordinary Attorney Woo, Business Proposal, Alchemy of Souls, and Twenty-Five Twenty-One ranking second, third, fourth, and sixth, respectively.

“The latest e-Conomy SEA Report said that streaming and consuming online content is the third biggest digital activity of Filipinos after e-commerce and food delivery. The study found that 58% of Filipinos regularly watch video-on-demand shows and movies,” Mr. Wenke said.

Globally, Google’s Year in Search 2022 was topped by Wordle, an online word game whose popularity peaked in February.

— Brontë H. Lacsamana

Jobless rate back to pre-pandemic level

December 8, 2022 | 12:34 am

Men and women line up during a job fair held inside a covered court in Tondo, Manila, Nov. 21. — PHILIPPINE STAR/EDD GUMBAN

THE UNEMPLOYMENT RATE eased to 4.5% in October, returning to the record-low level last seen in October 2019 before the coronavirus pandemic hit, the Philippine Statistics Authority (PSA) said.

Preliminary results from the PSA’s Labor Force Survey (LFS) showed the unemployment rate stood at 4.5% in October, lower than the 5% in September and 7.4% a year earlier.

“So we are back to the 2019 level. The last time that we experienced this was in October 2019 wherein we had an unemployment rate of 4.5% also,” PSA Undersecretary and National Statistician Claire Dennis S. Mapa said during a press briefing on Wednesday.

The PSA said this translated to 2.241 million unemployed Filipinos in October, lower than the 2.497 million in September and the 3.504 million in the same month last year. This was also the lowest number of jobless Filipinos since October 2019.

For the first 10 months of the year, the unemployment rate averaged 5.6%, lower compared with the 7.8% average in 2021.

“The country’s sustained recovery of the labor market backs our confidence that our policies and interventions to reinvigorate our economy are working,” Socioeconomic Planning Secretary Arsenio M. Balisacan said in a statement.

Meanwhile, the job quality continued to improve in October as the underemployment rate eased to 14.2% from 15.4% in September, and 16.1% a year ago.

The October underemployment rate, or the rate of employed Filipinos looking for more work, was the slowest since the 13.8% posted in July.

For the January-to-October period, the underemployment rate averaged 14.4%, down from the 16% last year.

In absolute terms, the number of underemployed Filipinos fell to 6.673 million in October, from 7.326 million in September and 7.044 million in the same month in 2021.

Mr. Mapa said sectors that benefited from the uptick in economic activity saw lower underemployment. These included agriculture and forestry, retail trade, manufacturing, accommodation, and food services, he said.

However, the size of the total labor force shrank to 49.348 million in October, from 50.080 million in September. This is slightly higher than the 47.325 million seen in October 2021.

This translated to a labor force participation rate (LFPR) — or the share of labor force to the total population 15 years old and over — of 64.2%. The October rate is lower than the 65.2% in September but higher than the 62.6% a year ago.

Mr. Mapa said the dip in LFPR may have been due to seasonality, as young people aged between 15-24 may have returned to school during this time.

In October, the employment rate rose to 95.5%, slightly up from 95% in September and 92.6% in the same period a year ago.

This translates to 47.106 million employed Filipinos, lower than the 47.583 million in the previous month, but higher than the 43.822 million in October 2021.

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On average, an employed Filipino worked 40.2 hours a week in October, up from 39.6 hours in September and 39.7 hours in October last year.

“On the 40 hours… this is a factor due to the holiday season. So we have a lot of extended hours in the malls and even shops,” Mr. Mapa said.

The service sector remained the top employer during the month, accounting for 59.2% of the total. This was followed by agriculture and industry with 22.5% and 18.3%, respectively.

The number of employed Filipinos in agriculture reached 10.605 million, 102,000 lower than the 10.707 million in September and 163,000 less than 10.768 million a year ago.

The industry sector employed 8.635 million Filipinos, adding 214,000 jobs to the 8.849 million in the previous month. This was also 823,000 higher than the 7.812 million last year.

Services, however, saw a 159,000 drop in month-on-month employment to 27.867 million in October. However, it was higher by 2.626 million from the 25.241 million in the same month in 2021.

Lower employment was seen in agriculture and forestry (down 367,000 to 9.219 million in October); manufacturing (down 785,000 to 3.667 million); water supply; sewerage, waste management and remediation activities (down 7,000 to 53,000); transportation and storage (down 73,000 to 3.389 million); wholesale and retail trade; and repair of motor vehicles and motorcycles (down 333,000 to 10.376 million), among others.

Meanwhile, there was a significant increase for jobs in fishing and aquaculture (up 265,000 to 1.386 million); mining and quarrying (up 30,000 to 237,000); electricity, gas, steam and air-conditioning supply (up 38,000 to 101,000); and construction (up 510,000 to 4.577 million) among others.

ING Bank NV Manila Senior Economist Nicholas Antonio T. Mapa attributed the decline in the number of unemployed Filipinos to improving economic activity as the economy reopened.

“However, if we look at the actual number of employed, we can see that this number actually fell (to 47.11 million from 47.58 million), with the participation rate dipping. This suggests that although there have been gains, a part of the dip in the unemployment rate can be traced to less workers looking for work,” he said in an e-mail.

Sentro ng mga Nagkakaisa at Progresibong Manggagawa Secretary-General Josua T. Mata said employment figures usually increase in the fourth quarter, when economic activities rise ahead of the holidays.

“But despite some possible improvements in the quality of jobs as measured by underemployment, underutilization of labor still hovers close to 20% of the labor force. That means that almost one out of five Filipino workers are unproductive due to unemployment and underemployment. This is the usual level of structural unemployment that we have had before the pandemic,” Mr. Mata said in a text message.

However, he noted jobs growth may slow in 2023 amid global headwinds.

“Once the demand surge in the 4th quarter is gone when we enter next year, we might see slower growth in employment. It’s really hard to stay optimistic especially when we cannot see concrete actions taken by the government to guarantee jobs,” Mr. Mata said.

Asian Institute of Management economist John Paolo R. Rivera is optimistic more jobs will be created in the next few months.

“Assuming prices stabilize and the economy is able to welcome more FDIs (foreign direct investments), facilitate new business and employment opportunities, more Filipinos will be able to secure job opportunities,” Mr. Rivera said in an e-mail.

Headline inflation surged to 8% in November from 7.7% in October, the highest in 14 years or since the 9.1% in November 2008. — Mariedel Irish U. Catilogo

NG debt hits record P13.6 trillion as of end-Oct.

December 8, 2022 | 12:33 am

THE NATIONAL GOVERNMENT’S (NG) outstanding debt hit a record high of P13.64 trillion as of end-October, driven by more domestic and foreign borrowings, the Bureau of the Treasury (BTr) said on Wednesday.

In a statement, the BTr said outstanding debt rose 0.9% or P123.92 billion from the end-September level mainly due to the net availment of local and external loans.

Debt stock increased 13.95% from P11.97 trillion a year ago.

The country’s debt level jumped 16.31% from the P11.73 trillion seen at end-December 2021.

More than half or 68.58% of the total outstanding debt was from domestic sources, while the rest was from foreign creditors.

Domestic debt went up 10.47% to P9.36 trillion as of end-October from P8.47 trillion during the same period a year ago. Month on month, it inched up by 0.59% from the P9.3 trillion in end-September.

“For October, the increment to domestic debt was primarily due to the net issuance of government securities amounting to P55.83 billion while local currency appreciation against the US dollar trimmed P1.25 billion,” the BTr said.

Domestic debt increased since the beginning of the year due to the government’s continued preference for domestic financing to mitigate foreign currency risk.

Meanwhile, external debt climbed 22.34% to P4.29 trillion as of end-October, from P3.5 trillion a year ago.

Month on month, it went up 1.64% from P4.22 trillion “due to the P118.71-billion net availment of foreign financing.”

“This was partly offset by the favorable net impact of both local- and third-currency fluctuations against the US dollar amounting to P43.07 billion and P6.30 billion, respectively,” the BTr said.

Broken down, external debt consisted of P1.87 trillion in loans and P2.42 trillion in global bonds.

Year to date, external debt rose 20.45% “primarily due to local- and third-currency fluctuations that increase the peso value of foreign denominated obligations.”

The peso closed at P57.97 against the US dollar on Oct. 28, appreciating by 1.77% from its close of P59 on Oct. 3.

NG’s overall guaranteed obligations declined by 2.69% month on month to P386.53 billion. Year on year, it also fell 9.36% from P426.46 billion.

“For October, the lower level of guaranteed debt was due to the net repayment of domestic guarantees amounting to P7.30 billion and the impact of currency fluctuation on both local- and third-currency denominated guarantees amounting to P2.20 billion and P1.79 billion, respectively. These were slightly tempered by the net issuance of external guarantees amounting to P0.60 billion,” the BTr added.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said foreign currency fluctuations during the month tempered the rise of overall national debt.

“Nevertheless, I still expect the government to ramp up its expenditures as the year ends. Expenditures for projects slated for 2022 have to be spent and fiscal momentum has to continue as the global economy is expected to slow down,” Mr. Asuncion said in a Viber message.

“This can act as an appropriate buffer and help support the country’s economic recovery efforts from the still ongoing pandemic and the challenging global economic environment,” he added.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a Viber message that the Philippines will likely see debt levels rise “as we still run a deficit.”

The National Government’s budget deficit rose 54.08% to P99.1 billion in October, driven by state spending. In the 10-month period, the fiscal deficit narrowed by 7.61% to P1.11 trillion.

“The important thing is to ensure that growth outstrips the rise in debt so that the debt-to-gross domestic product (GDP) ratio can fall,” Mr. Mapa added.

The government’s debt as a share to the GDP stood at 63.7% at end-September, still above the 60% threshold prescribed by multilateral lenders.

The government is aiming to bring down the debt-to-GDP ratio to 61.8% by yearend and 52.5% by 2028. — Luisa Maria Jacinta C. Jocson

Factory output rises for 5^th month in a row

December 8, 2022 | 12:32 am

assembly-line-factory-Kinpo-Electronics-050620 — REUTERS

MANUFACTURING rose for a fifth straight month in October, reflecting the continued reopening of the Philippine economy, analysts said.

Preliminary results of the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries (MISSI) on Wednesday showed the volume of production index (VoPI) went up by 5.1% year on year in October, from the revised 4.1% in September. It was the sector’s fifth consecutive month of growth after the 0.5% decline in May.

However, the October growth was slower than the 27% expansion seen in October 2021.

In the 10 months to October, factory output averaged 17.4%.

“This yearly increase is consistent with the reopening theme and the continued return of the economy to pre-pandemic levels,” Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines in Manila said in an e-mail interview.

He noted the double-digit growth seen in October 2021 may have been due to base effects.

“The most recent MISSI data point to demand recovery so far outweighing headwinds from higher prices, cost of borrowing, and weaker external demand. This is consistent with the last GDP (gross domestic product) figure, which surprised on the upside,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

The economy expanded by 7.6% in the third quarter, bringing the nine-month average to 7.7%.

According to the statistics agency, 14 out of 22 industry divisions contributed to the growth, led by manufacturing of machinery and equipment (except electrical) with 81.8% in October, slower than September’s 88.9% but faster than the 25.7% a year ago.

Manufacturing of beverages expanded by 61.7% in October, a turnaround from the 6.4% contraction in September. Manufacturing of chemical and chemical products grew by 39.5% in October, slowing from 74.6% in the prior month, while fabricated metal products (except machinery and equipment) jumped by 35.7% from 23.7% in September.

“Industries that contributed to faster manufacturing output growth are related to the re-opening of the economy. These are food and beverages, accommodations and transportation, construction-related, and other discretionary products,” Mr. Asuncion said.

Electrical equipment manufacturing declined 56.9% in October, worsening from -55% in September, a reversal from the 42.3% growth in October 2021.

Other industries that contracted in October included manufacturing of basic metals (-23.4%), furniture (-21.6%), and printing and reproduction of recorded media (-17.3%).

IHS Markit’s Philippines Manufacturing Purchasing Managers’ Index (PMI) expanded at a slower pace in October, with a 52.6 reading in October from 52.9 in September. A reading above 50 marks improvement for the manufacturing sector while anything below indicates deterioration.

“IHS Markit alluded to in their [October] report a sharpest contraction of new work volumes from abroad, which my suspicion is due to [COVID-19] restriction challenges in China and the general cautiousness brought about anticipated global economic slowdown in the medium term,” Mr. Asuncion said.

PSA data also showed the capacity utilization rate averaged 72.4% in October, up from 71.5% in September and 67.4% in the same month a year ago. All 22 sectors had an average capacity utilization rate of at least 50%.

Analysts said that the weaker peso would impact the factory sector on its higher input prices with profit return to take time.

The peso depreciated to a record low of P59 versus the US dollar three times in October.

Analysts are looking forward to better manufacturing output in November and December as demand is expected to rise ahead of the holidays.

“However, as inflation remains elevated, business expansion and consumer sentiment will likely weaken. We have observed this in some countries in Asia. Moving forward, the government’s ability to curtail price increases is vital in ensuring continued output expansion,” Ms. Velasquez said.

She also said that the weaker output data will likely show up in 2023, after holiday inventory production ceases.

“In our forecast assumptions for major macroeconomic variables such as GDP, we expect PMI outlook to remain expansive between 51-52 in the last two months of 2022. This will bode well for the manufacturing sector despite the current environment that can curtail economic growth next year,” Mr. Asuncion said. — Bernadette Therese M. Gadon

LGUs urged to prioritize agriculture spending

December 8, 2022 | 12:31 am

rice field-farmer — A farmer works at a rice field in Pinamalayan, Oriental Mindoro, Philippines, March 27, 2018. — REUTERS

LOCAL GOVERNMENT UNITS (LGUs) are urged to spend more efficiently, particularly for agriculture, the World Bank said, adding this will help improve growth and productivity in the sector.

“It’s about helping LGUs to spend effectively. If you look at farm-to-market roads, irrigation, research and development — those have been undervalued and that’s where you need sufficient funding to raise productivity. Those areas could receive much more resources,” World Bank Country Director for the Philippines Ndiame Diop said at a briefing on Wednesday.

World Bank Senior Agriculture Economist Anuja Kar said LGUs should prioritize agriculture spending.

“Agriculture has remained a very important source of livelihood in the country, especially during the pandemic, where it absorbed the retrenched workers. It has a profound importance in livelihood, food security, and jobs,” she said.

In 2021, the agriculture sector employed about 24% of the country’s total workforce.

Ms. Kar noted that despite an increase in nominal terms, agriculture’s share in the national budget has been steadily declining to 1.3% in 2019 from 2.6% in 2015.

The sector has put a lot of emphasis in “commodity-based banner programs” such as rice, which has not yielded the desired results, Ms. Kar said.

“Rice hasn’t really picked up, overall, we are seeing the amount of spending going into the sector is not generating the result,” she said.

According to the World Bank’s Philippine Economic Update report, the effectiveness of the Mandanas-Garcia Ruling could be transformational for local service delivery if managed properly.

“Though such devolution presents an opportunity to make agriculture service delivery more client-driven and accountable, there remain significant risks if it is not managed well,” the World Bank said.

Ms. Kar said that the LGUs’ allocation for agriculture is “mismatched.”

“LGUs’ spending allocation for agriculture is small relative to the Department of Agriculture. There has to be a clear prioritization of agriculture. The devolution transition plan can be a very effective tool in terms of correcting these discrepancies in the subnational level spending,” Ms. Kar said.

The World Bank recommended that agricultural public expenditure policies should improve sectoral competitiveness and resilience to ensure food security; boost effectiveness of the current spending; and address public expenditure issues related to devolution.

Ms. Kar said there should be a “greater balance in sectoral priority-setting and budget allocation to support agricultural diversification.”

“It has to come out of the single commodity focus and look at a more holistic level,” she said.

The government should also scale up climate smart policies and programs to foster increased resilience of the food system. “Agriculture has remained a victim of climate change but it can become a solution to climate change,” Ms. Kar added.

In terms of devolution, the World Bank said that ensuring procedural improvements on government budgeting institutions will be critical.

“We have to understand that a one-size-fits-all solution will not help. There are LGUs that have great potential, some need more hand holding,” Ms. Kar said.

The World Bank also cited improving evidence-and results-based monitoring and evaluation through enhanced and targeted capacity development for LGUs and investing on extension services to improve capacity development.

“The Philippines can play a phenomenal role. It can play an important role in transforming the sector by putting money in the right place. there has to be more research and development, infrastructure, investment in developing the extension system, all that can lead to improving the efficiency of the budget and productivity,” Ms. Kar added. — Luisa Maria Jacinta C. Jocson

Higher power rates seen on ceased 670-MW supply

December 8, 2022 | 12:07 am

Meralco-lineman — PHILIPPINE STAR/ MICHAEL VARCAS

MANILA ELECTRIC Co. (Meralco) is negotiating with power generation companies to source 670 megawatts (MW) that a unit of San Miguel Global Power Holdings Corp. stopped supplying in a move that could raise electricity rates starting in January.

The Energy Regulatory Commission (ERC), however, was left out of the discussion as it claims to have not been informed by the power distributor of the reported cessation of supply.

Joe R. Zaldarriaga, Meralco spokesperson and head of corporate communications, confirmed on Wednesday that San Miguel Global Power subsidiary South Premiere Power Corp. (SPPC) had terminated their power supply contract.

“We are confirming the receipt of the notice of cessation of SMC Global Power’s supply. This covers 670 MW of our power supply agreement (PSA) with [SPPC],” Mr. Zaldarriaga said.

On Tuesday, SMC Global Power said in a statement that it was terminating SPPC’s PSA with Meralco effective Dec. 7.

“Unfortunately, despite being shown that granting our petition would have been the cheapest option for consumers, the ERC still denied our petition,” SMC Global Power President and Chief Executive Officer Ramon S. Ang said.

Mr. Zaldarriaga said that Meralco is now sourcing power from the Wholesale Electricity Spot Market (WESM), while negotiating with generation companies to secure power supply.

“Our priority is to ensure continuity of stable and reliable power supply, we are exhausting all efforts to mitigate any impact of these recent developments,” he said.

Meralco Vice-President and Head of Utility Economics Lawrence S. Fernandez said that SPPC’s power supply covers about 12% of Meralco’s supply last month.

“The spot market prices based on the IEMOP’s report from Monday and Tuesday, they ranged from P7 to P9 per kilowatt-hour (kWh) compared to SPPC’s P4 per kWH,” Mr. Fernandez said, referring to Independent Electricity Market Operator of the Philippines.

“We still need to see the other factors that will come into play. To assume higher bills for customers, well in terms of the bills of the customers, that is a possibility, but still remains to be seen,” Mr. Zaldarriaga said.

Last month, the Court of Appeals (CA) issued a temporary restraining order (TRO) in favor of SMC Global Power, suspending the implementation of SPPC’s PSA with Meralco.

The 60-day TRO was sought by the company after the ERC denied a joint petition for a rate increase filed by SMC Global Power and Meralco. The rate increase was meant to partially recover the losses incurred by SMC Global Power units SPPC and San Miguel Energy Corp. (SMEC), the administrators of the natural gas-fired power plant in Ilijan, Batangas, and the coal power plant in Sual, Pangasinan, respectively.

SMC Global Power is seeking to recover losses amounting to P5 billion while absorbing P10 billion. It claims to have lost P15 billion because of extraordinary circumstances, including soaring fuel costs, which were way higher than when its units forged the PSAs.

Meanwhile, the ERC said on Wednesday that it has yet to receive an official notice from Meralco on the cessation of SPPC’s supply.

“It is not yet clear to us at this point, if SPPC served a notice of PSA termination or merely a suspension of supply considering that the case before the CA filed by SPPC involving the said PSA is still for final resolution,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.

The ERC said it is also waiting for the guidance of the Office of the Solicitor General for its next step, “after the matter was referred for undertaking the appropriate legal remedy.”

It said that based on ERC records of Meralco billings for November 2022, the 670-MW contract with SPPC accounted for 13.4% of the utility’s supply and was priced at P4.2455 per kWh. It said the average WESM price for the same period was P8.47 per kWh.

The regulator said the cessation of supply from a bilateral contract or PSA does not excuse the distribution utility from its obligation under Section 23 of Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001 “to supply electricity in the least cost manner to its captive market…”

On Monday, Meralco said it had secured a certificate from the Department of Energy (DoE) exempting the 670-MW emergency power supply agreement from going through a competitive selection process.

Jose Ronald V. Valles, Meralco’s first vice-president and head of its regulatory management, said on Monday that so far, the company had negotiated with Aboitiz Power Corp., which only offered 300 MW capacity and only for a period of two months until Jan. 25.

Mr. Zaldarriaga said that despite SMC Global Power’s move to terminate its PSA, the power distributor is still considering the offer of SMC Global Power’s 1,200-MW capacity of its Ilijan plant.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

SEC warns public against OTCJKE, APower

December 8, 2022 | 12:06 am

THE Securities and Exchange Commission (SEC) has warned the public against the illegal solicitation of two investment-taking entities — OTCJKE and APower Power Bank Sharing Solution, OPC (APower).

In an advisory on Wednesday, the SEC said that APower — which also uses the names APower Pro, APower PH and APower Power Bank — has been enticing the public through social media and websites to invest in the company.

Invited investors must first register and choose from 15 advertising charging stations that range from P500 to P1 million. Investors are promised to earn P12.50 to P120,000 daily or P375.12 to P3.6 million monthly.

“Investors can earn 10% from recharge commission and 10% up to 30% from product commission,” the SEC said.

In a separate advisory, the SEC said that OTCJKE, which also operates as OTC Automated Trading Platform and JKE International Ltd., has been representing itself as a high-frequency trading encryption platform.

Investors of OTCJKE are promised 3% to 8% daily earnings, which can supposedly be withdrawn anytime through a cryptocurrency wallet or GCash.

Interested individuals are required to download OTCJKE’s application to register and create an account. They will then be asked to deposit money in US dollars through Binance or GCash.

Once done, investors will be able to start using the company’s mining bot on which their income would depend. Investors can deposit $10 to $2,000 and earn $0.36 to $120 a day. New accounts were also told to receive an extra two dollars after three days.

According to the SEC, although APower is registered as a one-person corporation, it is still not authorized to solicit investments from the public under the Securities and Regulation Code.

Meanwhile, the regulator said OTCJKE is not registered with the commission either as a corporation or a partnership and is also not authorized to solicit investments.

“Hence, the public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” the commission said. — Justine Irish D. Tabile

ADB extends $40-M loan to build telco towers for southern areas

December 8, 2022 | 12:05 am

TIGER Infrastructure Philippines, Inc. has secured a $40-million loan from the Asian Development Bank (ADB) to fund the construction of telecommunications towers that will cater to underserved areas in the Visayas and Mindanao.

“This project will improve access to the digital economy in the underserved regions of Visayas and Mindanao and have a tangible impact on the quality of life for local communities,” said Suzanne Gaboury, ADB’s private sector operations department director, said in a press release on Wednesday.

The loan will fund 380 telecommunications towers in the southern regions to support rural connectivity, the bank said, adding that the project will support common tower sharing, which will allow multiple mobile network operators to lease the same location.

“We are confident that by working with ADB, Tiger can strengthen our digital infrastructure portfolio as we continue to respond to demand for reliable mobile network connectivity in Asia,” said Simon Skouboe, the Tiger Infrastructure group’s executive chairman.

Tiger Infrastructure is jointly owned by Cell Tower Services Pte. Ltd. and Daily Life Renewable Energy Pte. Ltd., which are both incorporated in Singapore.

Cell Tower Services is said to be well established in the telecommunications towers business with projects around the world, while its partner is in customized design, engineering, procurement, construction, installation, and commissioning services for renewable energy systems across Asia and the Pacific.

Of the loan extended by ADB, $25 million will come from its ordinary capital resources, while $15 million will be from Leading Asia’s Private Infrastructure Fund — or LEAP — which is administered by the bank.

According to the press release, the project will support common tower sharing, allowing several mobile network operators to lease the same location. Tiger Infrastructure will handle construction, land leasing, operation, and maintenance. Telecommunication equipment installed on the towers will belong to the tenants, it added.

Established in 2016, LEAP is capitalized with a $1.5 billion commitment by the Japan International Cooperation Agency and is focused on the delivery of private sector infrastructure projects.

ADB said that as of 2021, the Philippines had 27,000 telecom towers, or 164 towers per one million people, which it described as one of the lowest coverage rates in the region. Citing the government, it said an estimated 60,000 more towers are needed by 2031 in unserved and underserved areas. — Aaron Michael C. Sy

Being green comes naturally to Glenfiddich

December 8, 2022 | 12:04 am

Whisky brand backs sustainability projects

WHEN your product takes years to create and is dependent on such ingredients as crystal clear water, sustainability is assuredly part of that company’s ethos. So, it comes as no surprise that a whisky brand is recognizing three sustainability “mavericks” as part of a global campaign, with a culminating activity to be held next year. The top project to be recognized by Glenfiddich will receive funding.

Glenfiddich, a brand by William Grant & Sons, came out with its “Where Next” campaign in Quezon City on Nov. 15, when the mavericks were introduced.

First on the list is Gil Bien, with Cuboid, a production designer, artist, and innovator. Mr. Bien created a budget-friendly, easy-constructed, and typhoon-resilient housing for the challenged Filipino community. Ma. Leonelle De Leon-Sandoval, is the brain behind EveGrocer, a startup that pushes sustainability through a zero-waste online grocery. Reginald Phelps Laguna, meanwhile, is behind Cleenvent, a solar-powered ventilation system. Bernadette De Los Santos, a social entrepreneur, farmer, and environmentalist, formed Bidibidi Enterprises, which teaches local women to weave bags and other accessories using indigenous fabrics and natural textiles.

“We’re not looking at this as a competition. It shouldn’t be,” said Brett Bayly, Regional Brand Ambassador for Glenfiddich in Southeast Asia, in an interview. “We want to see all of them do well. The idea is for us to build a platform that highlights, but then also, financially supports the one that is sort of deemed to be in need of finance.”

The top project will be judged next year (date pending, though Mr. Bayly estimates it at February; “We don’t know what will happen to the world at the moment.”).

The campaign began in 2020 in South Africa as a podcast, then moved on to being an auction, which became a fundraiser for like-minded projects.

The culminating activity next year will have a similar flow: an auction, the proceeds of which will be going to funding a project. Mr. Bayly points out that the William Grant & Sons distillery is still owned and operated by members of the Grant family. “The family itself is very generous with their CSR. They tend to do quite a lot,” he said.

TYING SUSTAINABILITY TO WHISKY
Perhaps it is this spirit of legacy that urges the family to be active in sustainability. The company was established in 1887, and it is one of a few distilleries in Scotland still owned by its founding family. “We’re never looking at the current generation, we’re always looking into the future,” said Mr. Bayly. “When we’re talking about tying sustainability to whisky, our youngest whisky, sitting next to me, is 12 years old. We’re not looking at something we’ll produce tomorrow; we’re looking at at least 12 years, if not 50 years.”

He points out the natural resources that go into making whisky, all possibly endangered through a pollution or climate crisis. “We use wood for all of our barrels, we use the water source, which is direct from streams carrying off from the hills. If we don’t take care of the environment we’re in, we’re not going to have that environment for a sustainable future,” he said.

Accordingly, he discusses the sustainability measures the company itself has taken. Around the 1980s (years before all this sustainability talk was even a seed), they had taken remnant material from their stills to be converted in a bio-conversion facility. More than 30% of the power they produce has been deemed surplus and is sold back to a power distributor in the region. Meanwhile, 100% of their trucking operations in the UK is powered by biofuels.

“The family doesn’t talk about our green presence. It frustrates our marketing teams, because it’s an amazing thing for us to be able to illustrate,” he said in jest. “For them, it’s truly about just doing the right thing.” — Joseph L. Garcia

Aboitiz Equity Ventures’ P2-B retail bonds secure PDEx nod

December 8, 2022 | 12:04 am

ABOITIZ Equity Ventures, Inc. (AEV) received the approval of the Philippine Dealing and Exchange Corp. or PDEx to list its P20-billion fixed-rate retail bonds, the firm said on Tuesday.

“The PDEx approval paves the way for the secondary market trading of the Series A bonds, with a fixed interest rate of 6.8725% per annum maturing in 2026, and the Series B bonds with a fixed interest rate of 7.5321%% per annum maturing in 2029,” the company said in a disclosure.

The offer will have a base amount of P8 billion, which comprises P7.45 billion from the final tranche of the company’s P30 billion shelf registration in 2019, and P550 million from the first tranche of its P30-billion shelf registration in 2022.

The holding firm will also offer an oversubscription of up to P12 billion, which is part of the 2022 shelf-registration program.

The P20-billion retail bonds are set for issuance on Dec. 7. The offer period was scheduled from Nov. 22 to 28.

According to a press release from the Securities and Exchange Commission, the company expects proceeds from the offer to amount to P19.76 billion if the oversubscription option is fully exercised.

The company intends to use the funds for the acquisition of GMR-Megawide Cebu Airport Corp. by its subsidiary Aboitiz InfraCapital, Inc. A portion of the proceeds will refinance maturing debt.

Philippine Rating Services Corp. previously gave the bond issuance the highest issue credit rating of PRS Aaa with a stable outlook. The rating means the issuance is of the highest quality, has minimal credit risk, and the obligor can meet its financial commitment. A stable outlook means the rating is likely to be maintained in the next 12 months.

On the stock market on Wednesday, shares in AEV declined by P1.65 or 2.98% to P53.80 apiece. — Justine Irish D. Tabile

Blue notes

December 8, 2022 | 12:03 am

The 3 single malts that go into a Johnnie Walker Blue Label

“FOR many years, I have been moved by the blue at the far edge of what can be seen, that color of horizons, of remote mountain ranges, of anything far away. The color of that distance is the color of an emotion, the color of solitude and of desire, the color of there seen from here, the color of where you are not,” said Rebecca Solnit in A Field Guide to Getting Lost. In the case of Johnnie Walker Blue Label (which costs upwards of P8,000, depending on the website), a bottle of it is a sign that you’ve gotten somewhere.

The journey begins in the blending, and on Nov. 24 we were treated to an afternoon finding out what goes inside a bottle of Blue Label, one of the whisky blends by Johnnie Walker, owned by Diageo.

Local Diageo Ambassador Rian Asiddao introduced us to three of the single-malts that go into Blue Label, namely Cardhu, Mortlach, and Talisker, at the Johnnie Walker Luxury Boutique, located in BGC, Taguig. The small boutique, decorated in plush blue, is open from 11 a.m. to 10 p.m. every day until Jan. 14. Bottles of Blue Label can be had here, and can be customized with an engraved bottle or a blue leather tag stamped with one’s initials.

Mr. Asiddao estimates that about 20 whiskies go into a bottle of Blue Label (as opposed to the 30 to 35 that go into a Red or Black).

A little bit of history: when Johnnie Walker first started blending whiskies in the 19^th century, customers found it hard to read the labels on the blends. They then began pointing out what they wanted by pointing at the actual color of the labels. Blue Label, however, was a fairly recent make, first blended by Johnnie Walker Master Blender Jim Beveridge, OBE in the 1990s (he has since been followed by Diageo’s first female master blender, Emma Walker, no relation).

In numbers, Mr. Asiddao lists down what goes into a bottle of Blue Label: There are 21 million casks of whisky in Scotland (more than there are people; a 2019 census counts the population of Scotland at 5.454 million). Meanwhile, according to celebrity Nico Bolzico, also conducting the whisky tasting that day, only one out of every 10,000 casks are approved for adding to the Blue Label blend.

Mr. Asiddao made us sip the Cardhu, the first distillery acquired by Diageo to be part of Johnnie Walker’s blend. This one has fruit and honey notes, and has prominent notes of prunes, grapes, and raisins. The Mortlach, dubbed by whisky writer Michael Jackson as The Beast of Dufftown (where their distillery is) tastes almost like a stew. Finally, Mr. Asiddao brought out his personal favorite, the Talisker, which tasted like bacon on toast. The distillery is the only one in the Isle of Skye, and is located near the sea (which would explain its rather unorthodox flavor).

Mr. Asiddao pointed out the difference between tasting blends and single-malts. “These are musical instruments,” he said, motioning towards the single-malts. “This is the orchestra,” he said, gesturing to the bottle of Blue Label.

The Johnnie Walker Luxury Boutique is located near M Bakery and Zara at One Bonifacio High Street, BGC, Taguig. — J.L. Garcia

DMCI Power plans solar in its energy mix

December 8, 2022 | 12:03 am

solar-panels — AMERICAN PUBLIC POWER ASSOCIATION-UNSPLASH

DMCI Power Corp. targets to include solar energy in its energy mix in 2023, the power generation arm of DMCI Holdings, Inc. announced on Wednesday.

“Next year, we are targeting to include solar energy in our mix. We have a four megawatts (MW) solar plant that’s set to operate in Masbate by the fourth quarter of 2023,” Antonino E. Gatdula, Jr., president of DMCI Power, said in a media release.

DMCI Power has also invested P745 million to expand its installed capacity in Masbate. The off-grid energy provider said it had installed an additional 11 MW of generation capacity in the province, increasing its installed capacity by 21%.

“One plant is already operational while the other is set to run within the month. These investments are in line with our commitment to provide adequate, reliable and dependable power supply in missionary areas,” Mr. Gatdula said.

For the January-to-September period, energy sales in Masbate rose by 11% to 111 gigawatt-hours (GWh) from 100 GWh driven by strong energy demand, the company said.

Last month, the power generation company said it had deployed and operated a three-MW diesel plant in Pio V. Corpuz town in Masbate.

Meanwhile, the company is also targeting the operation of the eight-MW diesel power plant in Cataingan town this month, while the plant’s final testing and commissioning go on.

In August, DMCI Power said that the company was planning to explore hybrid systems with the possibility of using biomass and coal to energize off-grid areas.

DMCI Power has a combined capacity of 148 MW in Masbate, Palawan, and Oriental Mindoro.

Established in 2006, the company is primarily engaged in energizing off-grid small and remote islands. Its portfolio includes diesel, bunker, and thermal energy.

On Wednesday, shares in DMCI Holdings closed 0.61% higher to end at P9.93 each. — Ashley Erika O. Jose

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