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Smart is still PHL’s fastest mobile network for Android and Apple devices — Ookla Q3 report

With speed as the key metric of customer experience in an increasingly digital world, PLDT mobile services arm Smart Communications, Inc. (Smart) remains as the fastest mobile network for Apple, Samsung, and Android devices, according to the latest figures by Ookla®, the global leader in internet testing and analytics.

Based on Ookla’s analysis of Speedtest Intelligence® data for Q3 2022*, Android, Apple, and Samsung users in the Philippines experienced between 35% to 75% faster speeds while connected to Smart — whether 5G, LTE, and across all network technologies — compared to the next top mobile provider.

Game-changing advantage for customers

“Speed has always been the key metric of customer experience especially now that all urban areas in the country have mobile coverage. Having the fastest speeds gives Smart subscribers the best customer experience and game-changing advantage as they go about their work or school, grow their business, or enjoy their daily dose of entertainment,” said Francis E. Flores, SVP and head of Consumer Wireless Business-Individual at Smart.

“The latest Ookla figures reaffirm Smart as the Philippines’ superior mobile network, which puts us in the best position to empower Filipinos to live more in an increasingly digital age,” he added.

Fastest speeds on the Smart network

Ookla figures show that Android devices performed 59% faster on the Smart network (all technologies), and up to 35% faster on Smart LTE — compared to the next top competitor network.

On the other hand, Apple devices were 75% faster on the Smart network (all technologies), 57% faster on Smart 5G, and 56% faster on Smart 4G/LTE. Meanwhile, iPhones recorded speeds that were 75% faster on the Smart network (all technologies), 57% faster on Smart 5G and 4G/LTE.

Lastly, Samsung devices were 69% faster on the Smart network (all technologies), 58% faster on Smart 4G/LTE, and 45% faster on Smart 5G.

Truly rely on the Philippines’ Best Mobile Network

The latest Ookla data comes on the heels of Smart’s milestone recognition as the Philippines’ Best Mobile Network** — the first and only local mobile operator to clinch the award from Ookla since its Speedtest Awards™ started in 2017.

To earn this elusive recognition, Smart had to top two crucial Ookla Speedtest Awards categories, namely “Fastest Mobile Network” and “Best Mobile Coverage,” from Q1-Q2 2022. Smart emerged as the ‘Fastest Mobile Network’ with a Speed Score of 62.22, while its closest competitor posted a Speed Score of 32.48. Smart also dominated the ‘Best Mobile Coverage’ category with a Coverage 794, surpassing its closest competitor’s Coverage Score of 732.

“Being declared the Philippines’ Best Mobile Network means that Filipinos can truly rely on Smart for the best user experience — from making video calls to loved ones and friends, uploading heavy files at work, attending online classes, sharing your passion projects on social media, streaming videos and music on the go, and so much more,” said Mr. Flores.

As of end-June 2022, Smart had around 77,100 total base stations nationwide, including around 7,300 5G base stations, to support the growing mobile data needs of 3G, 4G/LTE and 5G customers from Batanes to Tawi-Tawi.

Non-Smart subscribers can switch and experience the power of Smart without changing their number through Mobile Number Portability, a service that can be conveniently booked via https://smart.com.ph/Pages/mobilenumberportability and at Smart Stores nationwide.

 

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The Medical City honors Breast Cancer Awareness Month

RISE art exhibit

Breast cancer is the most diagnosed cancer among women globally. This year, it is estimated that about 30% of newly diagnosed cancers in women will be breast cancers.

In line with Breast Cancer Awareness Month, The Medical City (TMC) lined up several activities to raise breast cancer awareness and rally in support of breast cancer patients and survivors. As the leading institute in Breast Cancer prevention, diagnosis, and treatment, TMC aims to make the advocacy for early detection louder with the campaign “Make the Rounds Against Breast Cancer.”

TMC kicked off the campaign by opening the art exhibit titled RISE on Oct. 4. RISE art exhibit encourages the public to Reach out, Include, Support, and Empower everyone with more information on breast cancer and RISE together above it. The art gallery features artworks of Lydia Velasco and Galerie Artes that are inspired by powerful women and nature. The exhibit wrapped up on Oct. 15 and part of the proceeds went to the Divine Mercy Outpatient Clinic fund for Breast Cancer Patients.

Breast Friends

Further, as part of the partnership with Marco Polo Ortigas, the hotel hosted the 15th anniversary celebration of EMBREACE (Eliciting Meaning in Breast Cancer Experience), TMC’s Breast Cancer Support Group, on Oct. 8. The meeting, which was attended by breast cancer patients, survivors, and volunteers — or collectively called Breast Friends, was led by Ms. Rose Anne Ambrocio, RN, Nurse Supervisor at TMC, Head of EMBREACE, and a breast cancer survivor herself. Dr. Gia Sison and Ms. Gina Jose — both breast cancer survivors — also graced the event and shared their respective journeys. Dr. Maria Fidelis Manalo gave a message of hope to the group, highlighting empathy and compassion for others. Ms. Elizabeth Bravo-Bustamante led the art therapy session.

TMC Breast Center doctors have also organized a pop-up store called Segunda Mammo where preloved designer bags were sold on Oct. 11-13. Anchored in the principle of ‘patient partnership,’ TMC also partnered with Watsons to bring Look Good, Feel Great — a two-day free makeover drive that aims to empower patients with boosted confidence so they can go about their day feeling more powerful to take on any challenge. Marissa, a BRCA patient, who supervised the Segunda Mammo booth was given a makeover by volunteer makeup artists.

To make the season of sharing more meaningful, The Medical City also held a hair donation drive called Share a Hair on Oct. 14 and 15. A total number of 112 ‘Superhairoes’ donated their locks for the benefit of cancer patients needing wigs. One of them is a first-time donor who lost her mom to cervical cancer 5 years ago and the other one is a cancer patient about to start chemotherapy. Gentlemen and toddlers, as young as 3 years old, also came in support, proving that generosity knows no age or gender. The longest hair donated was 34 inches!

The Medical City’s Breast Center

TMC Augusto P. Sarmiento Cancer Institute (APSCI) adopts a unique multidisciplinary team approach to cancer prevention, early detection, diagnosis, and management. It applies innovative molecular technologies in diagnosis and treatment for truly customized care.

TMC’s Breast Center, under the auspices of APSCI, is the center for ambulatory care of women at risk for developing breast cancer or already diagnosed with the disease. The Center also delivers screening packages for breast cancer and subsequent same-day breast ultrasound if needed for better interpretation of mammography. So, whether it is prevention, diagnosis, treatment, or a second opinion that is sought, the Center is ready to help find the answers in a quick and timely manner.

To learn more about the services offered by TMC APSCI Breast Center, visit https://tmcph.co/BreastCenter or contact (02) 8988-1000 local 6527 or 6528.

 

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Awareness and a rising need for improved breast cancer screening

Photo from freepik

This October, the global community once again observes Breast Cancer Awareness Month, also known as Pink October, at these times when the need for expanded awareness and wider access to screening for and treating breast cancer is sought.

Breast cancer is a type of cancer where cells in the breast multiply abnormally. It can be detected through self-breast examination and screening.

While men can get diagnosed with breast cancer, the disease is more common in women. According to the Philippine Cancer Society (PCS), the following risk factors contributing to breast cancer include among others, age (higher incidence at a higher age), genetic risk factors, family history, not having children or having them later in life; as well as lifestyle factors such as alcohol, being overweight or obese, and exercise.

According to the International Agency for Research on Cancer (IARC), breast cancer became the most commonly diagnosed cancer type in the world in 2020. Breast cancer was also found to be the most common cause of cancer death in women, and the fifth most common cause of cancer death overall.

During the said year, IARC found that about 2.26 million women were diagnosed with breast cancer, and about 685,000 women died from the disease.

Here in the Philippines, breast cancer is the most common type of cancer in women, according to the Department of Health (DoH).

As noted by a study by the Philippine Statistics Agency (PSA) in 2019, the Philippine Society of Medical Oncology (PSMO) reported that three out of 100 Filipino women are estimated to develop breast cancer before the age of 75. It was also noted that breast cancer accounts for 15% of all new cancer cases and 8% of all cancer deaths in the country.

In addition, the Philippine Obstetrical and Gynecological Society found that the Philippines had the highest prevalence of breast cancer among 197 countries in 2017. World Health Organization (WHO), in its Cancer Country Profile 2020, said that breast cancer is considered the most common type of cancer in the Philippines and has the highest incidence rate of 17.6%.

​These figures just show how crucial it is for women to self-examine and then get screened for breast cancer and so get treated upon detection of the disease.

According to the United Kingdom-based organization Breast Cancer Now, self-examination can be done in three steps: touching one’s breasts for feeling anything unusual, looking for changes in appearance, and checking for any changes with a general practitioner. On its website, our very own PCS has a guide on how to self-examine the breasts for any symptoms.

The WHO affirms that early detection of breast cancer affects survival rates, and when the disease is identified early the treatment can be more highly effective.

However, access to breast cancer screening and treatment is found to be not uniformly high globally, which means that survival from breast cancer gets compromised in some countries or regions.

“There are substantial disparities in survival between more-developed and less-developed countries, as well as between different social groups within countries. These disparities are due in part to reduced access to early diagnosis and timely completion of treatment,” the IARC, which is part of WHO, explained in a statement on its website.

A study recently published in the journal Preventive Medicine Reports in October highlighted the current challenges in screening breast and cervical cancers in the Philippines.

The study highlighted that most Filipino breast and cervical cancer patients are diagnosed with late-stage disease, and several factors have contributed to these late diagnoses.

“[M]ajority of breast and cervical cancer patients are diagnosed at advanced stages, as high out-of-pocket healthcare costs, the centralization of health human resources and infrastructure in the capital, and the absence of organized national screening programs preclude access to breast and cervical cancer screening,” the study noted.

Sociocultural factors also contribute to low screening uptake for women’s cancers, the study recalled. Such factors include poor knowledge of cancer screening, fatalistic attitudes toward cancer, and stigma associated with a cancer diagnosis, such as the perception that mammography is a painful experience.

The authors of the study found that the passage of the Universal Health Care Law and the National Integrated Cancer Control Act provides an opportunity to reduce disparities in access to cancer screening.

“This begins with investing in organized cancer screening programs, collaborating with multiple stakeholders on community-based educational campaigns, and addressing the social determinants that underlie women’s cancers,” the authors wrote.

Several brands, hospitals, and institutions are observing Breast Cancer Awareness Month through various promos, deals, and other initiatives. The PSMO, for its part, has begun its online breast cancer education this month. Its Abot Kamay Ako at Ang PSMO (AKAP) program currently offers free breast cancer education for patients, caregivers, patient support, and cancer advocates. Those interested in availing of this free learning program can visit https://psmo.org.ph/psmo-online-payments/lay-breast-cancer-101-online-registration/. — Adrian Paul B. Conoza

Consumer Insighting and Storytelling WebCon: The Turning Point — The Post Pandemic Consumer Insights and Trends

Even though COVID-19 is considered as an endemic rather than a pandemic situation these days, there are still multiple variants coming out, the effects of which are still unknown. Add the Russia-Ukraine war that resulted in the increase of oil prices and we have what seems to be a roller-coaster ride of situations that we need to handle.

This year’s Consumer Insighting and Storytelling WebCon’s (CISW) “The Turning Point — Post Pandemic Consumer Insights and Trends” theme take into account the historical perspective of pandemics and its effect on cultural renewal. With every pandemic that happened in the past, there has been a rebirth that followed. Will this be the same for our time?

What opportunities lie before us? How are consumers and businesses adjusting and coping with the many changes constantly happening? What challenges are we facing now and in the future? Are we truly on the road to recovery or should we be on the lookout to brace ourselves for more pitfalls?

These and more will be tackled and discussed in-depth during the event. “The Turning Point — Post Pandemic Consumer Insights and Trends” CIS Webcon will be held on Nov. 24 and 25, 2022 starting at 1:30 p.m.; a virtual event where we get to have a closer look at the post-pandemic consumer insights and trends.

We are at a crossroads. Let’s deep dive into the new world of post-COVID consumers, the new paths they are taking and potentially trek, with insights and trends that will help brands and companies to successfully navigate through the fork ahead — we are at THE TURNING POINT.

On Day 1 of the webcon, “The Consumer Awakens” sub-theme will identify new consumer needs based on recent research and understand the trends that can help pinpoint future needs and customer expectations.

On Day 2, it will be all about New Beginnings. Listen to stories that can provide innovative ideas and inspire people to address different consumer needs that emerged due to the pandemic that still continue to evolve in this endemic stage. What is the role of brand purpose, trust and sustainability, and what other frames of references are there for brands to consider in their strategies and plans?

Havas-Ortega CEO & Chairman Jos Ortega will be the keynote speaker, who will discuss renaissance from pandemics. What are the new realities and new expectations for marketing and businesses?

Other guests are Martin Oxley of Buzzback, Joan Penaflorida of Yondu, Inc. Emma Mclnnes of YouGov, Roki Ferrer of Dentsu, Mels Timan of Nutriasia, Josh Aragon of Zagana.com, Anna Lagon of BAYO, and Germaine Reyes of Synergy Market Research. Ron Molina of Ginebra San Miguel, Phil Tiongson of Havas Ortega, and speakers from ACEN, Unilever, YouGov, the Philippine Retailers’ Association, 4As, and others will be announced soon. The event will be moderated by Yayu Javier of Avanza Philippines.

Each day will have at least six speakers and will be filled with insights, learnings, many bits of knowledge that each one can share with their respective companies for strategic planning and program development.

For more information, please visit www.consumerinsighting.com.

For inquiries, email at seminars@synergy.ph or call us at +632 7957 4588.

 

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Advancing the treatment of breast cancer worldwide

mammography

Breast cancer affected around 2.3 million women worldwide in 2020, taking an estimated 685,000 lives globally. According to the World Health Organization, at of the end of 2020, there were 7.8 million women alive who were diagnosed with breast cancer in the past five years, making it the world’s most prevalent cancer. Women worldwide lose more disability-adjusted life years (DALYs) to breast cancer than any other type of cancer.

Fortunately, human ingenuity has a way of tackling its most pressing problems. The prevalence of breast cancer makes it a prime target for technological innovation.

In fact, technology is well on its way towards finding ways to improve the options for breast cancer patients, from screening to treatment. Advancements in imaging, for instance, are creating new opportunities for improvements in both screening and early detection.

The United States National Cancer Institute is funding a large-scale randomized breast screening trial, the Tomosynthesis Mammographic Imaging Screening Trial (TMIST), to compare the number of advanced cancers detected in women screened for five years with 3-D mammography with the number detected in women screened with 2-D mammography.

3-D mammography, also called breast tomosynthesis, takes images from different angles around the breast and builds them into a 3-D-like image.

“As cancer treatment is becoming more individualized, researchers are looking at ways to personalize breast cancer screening. They are studying screening methods that are appropriate for each woman’s level of risk and limit the possibility of overdiagnosis,” the NCI wrote on its website.

The organization cited a study done by the Women Informed to Screen Depending on Measures of Risk (WISDOM) to determine if risk-based screening — or, screening at intervals that are based on each woman’s risk as determined by her genetic makeup, family history, and other risk factors — is as safe, effective, and accepted as standard annual screening mammography.

“The mainstays of breast cancer treatment are surgery, radiation, chemotherapy, hormone therapy, and targeted therapy. But scientists continue to study novel treatments and drugs, along with new combinations of existing treatments,” the NCI said.

“It is now known that breast cancer can be divided into subtypes based on whether they contain estrogen and/or progesterone receptors (that is, are hormone receptor, or HR, positive) and whether they have high levels of HER2 protein (HER2 positive).”

As more information gets discovered about the different subtypes of breast cancer and their differences in behavior, medical researchers can use this information to devise new treatment options for women.

The NCI-sponsored TAILORx clinical trial, for example, is based on a study, which included patients with ER-positive, lymph node-negative breast cancer, that found that certain tests regarding the expression of certain genes can predict which women can safely avoid chemotherapy.

Breakthroughs are also being made in the area of bridging medical disparity. Black women are more likely to be diagnosed with aggressive subtypes of breast cancer, according to the NCI, and they are more likely to die of their disease than White women. To gain an understanding of these disparities, NCI is funding a multi-institution project, the Breast Cancer Genetic Study in African-Ancestry Populations.  The genes of Black women with and without breast cancer will be compared to each other, as well as to those of White women who have breast cancer.

The Detroit Research on Cancer Survivors study will look at the major factors affecting cancer progression, recurrence, mortality, and quality of life among African-American survivors of four different cancers, including breast. Detroit ROCS will examine medical, emotional, social, environmental, and other factors that may affect cancer survival.

The significance of the rate in which medical advancements are being made cannot be overstated. As the medical world gains more knowledge on the intricacies of breast cancer, the greater chances will be for millions of women affected by this insidious disease to have better lives. — Bjorn Biel M. Beltran

PHL may miss growth goal in 2023

A MAN poses for a photo at an alley lit with Christmas lights in Sampaloc, Manila, Oct. 13. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE economy’s expansion in 2023 and 2024 is expected to be below the government’s 6.5-8% target, the Bangko Sentral ng Pilipinas (BSP) said.

According to the highlights of the Monetary Board’s Sept. 22 meeting, monetary authorities expect the economy to maintain recovery momentum this year.

“GDP (gross domestic product) growth is projected to settle within the DBCC’s (Development Budget Coordination Committee) target of 6.5-7.5% for 2022 and slightly below the 6.5-8% target for 2023 and 2024,” the BSP said.

In the first half of 2022, GDP grew by 7.8%. Third-quarter GDP data will be released on Nov. 10.

Citing the latest Philippine Business Cycle reading which remained in the positive territory for the fifth straight quarter, the BSP said this indicates continued growth momentum.

The BSP also noted mobility indicators have been increasing since May as most areas retained their most relaxed alert levels.

The implementation of full face-to-face classes next month “is expected to lower mobility in households and, consequently, increase mobility to other location categories.”

“The weakening global growth reflects the deterioration in investors’ sentiment, persistent high inflation, and rapid tightening of global financial conditions,” the BSP said, adding that expansion continued in emerging market (EM) economies such as ASEAN (Association of Southeast Asian Nations) countries, India and Brazil.

It also noted broadening inflationary pressures in most EM economies as “weather-related disturbances, supply chain issues, and war-related supply disruptions led to the emergence of second-round effects.”

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a Viber message that accelerating inflation, rising borrowing costs and elevated debt levels will likely cut growth this year and in 2023.

“We expect headwinds to growth to persist, which could in turn dampen growth momentum,” he said.

Inflation quickened to 6.9% in September, marking the sixth straight month that inflation breached the BSP’s 2-4% target.

“Since April, inflation has been higher than the BSP’s target. As consumers dip into their savings and shift spending to essential goods, we will likely see a slowdown in consumer spending,” China Banking Corp. Chief Economist Domini S. Velasquez said.

“Higher interest rates will also force some businesses to put off expansion plans. Moreover, consumers taking out auto and housing loans might also defer their big-ticket spending,” she added.

Ms. Velasquez said she expects 5.8% GDP growth in 2023, well below the government target.

The Monetary Board raised borrowing costs by 50 basis points (bps) last month. The BSP has raised rates by 225 bps since May in an effort to tame inflation and curb the peso’s volatility.

“In deciding to raise the policy rate anew, the Monetary Board has noted that price pressures continue to broaden. The rise in core inflation indicates emerging demand-side pressures on inflation,” the BSP said.

Last month, the central bank also raised its 2022 inflation forecast to 5.6%, from 5.4% previously. It raised its 2023 inflation estimate to 4.1% from 4%, previously. Inflation is expected to ease to 3% in 2024.

“The depreciation of emerging market currencies against the US dollar has coincided with inflationary pressures stemming from elevated global commodity prices,” the central bank said. 

The peso closed at P58.75 per dollar on Friday. Year to date, the peso has weakened by P7.75 or 15.2% from its P51 finish on Dec. 31, 2021.

“Despite a weak peso, exporters will experience lackluster demand as advanced economies enter into recessions. The IMF (International Monetary Fund) expects a third of economies to enter into technical recessions in 2023, including major destination countries of our exports, such as the US and those in Europe,” Ms. Velasquez said.

In its latest World Economic Outlook the IMF slashed the global GDP growth outlook to 3.2% from 3.6% this year and to 2.9% from 3.6% for 2023.

The IMF also expects the Philippine economy to expand by 6.5% this year. — Keisha B. Ta-asan

Gov’t still addressing deficiencies in AML efforts

THE LOGO of the Financial Action Task Force (FATF) is seen at the OECD headquarters in Paris, France, Oct. 18, 2019. — REUTERS

By Keisha B. Ta-asan, Reporter

THE ANTI-MONEY Laundering Council (AMLC) said it continues to address the strategic deficiencies identified by the Financial Action Task Force (FATF) in its efforts against “dirty money” and terrorism financing, as the Philippines remained on the latter’s “gray list.”

“The remaining action plans for the Philippines focus on specific aspects of an effective anti-money laundering and countering the financing of terrorism,” AMLC Executive Director Matthew M. David said in an e-mail.

In an Oct. 21 report, the FATF kept the Philippines on its gray list of jurisdictions subjected to increased monitoring for dirty money risks. It has been on the list since June 2021.

Government officials earlier expressed hope the Philippines will exit the gray list by January 2023.

The global financial crime watchdog in a statement on Friday evening said the country still needs to implement measures to address money laundering and terrorism financing risks related to casino junkets and beneficial ownership.

The Philippines should also enhance its use of financial intelligence and money laundering investigations and prosecutions in line with risk, according to the FATF.

On the other hand, the FATF acknowledged the Philippines’ progress in combating financial crimes in terms of policies related to nonprofit organizations (NPO) and implementing supervision for targeted financial sanctions.

“The FATF noted that the Philippines has taken steps towards improving its AML/CFT regime, including by demonstrating that appropriate measures are being taken with respect to the NPO sector and implementing supervision for targeted financial sanctions. Continuous high-level and operational discussions are ongoing with the relevant agencies,” Mr. David said.

Mr. David said the government has been addressing the identified strategic deficiencies in its anti-money laundering and counter-terrorism financing (AML-CTF) framework through its National AML/CFT Coordinating Committee (NACC).

“The NACC shall continue engaging with relevant government agencies to ensure that strategies and mechanisms are in place to address the action plans,” he said, adding that the AMLC will continue in assisting the NACC as its secretariat.   

As part of its recommendations, the FATF wants the Philippines to streamline law enforcement agencies’ access to beneficial ownership information.

Mr. David said Philippine law enforcement agencies and prosecutors are implementing measures to address the recommendations related to investigations and prosecutions.

“Supervisory agencies likewise have a role in risk-based supervision as guidelines are in place to examine and enforce AML/CFT controls such as a monitoring system to address the risks associated with casino junkets. Further, regulators ensure accurate and up-to-date (beneficial ownership) information,” Mr. David said.   

The Bangko Sentral ng Pillipinas (BSP) earlier said the proposed changes in the country’s Bank Secrecy Law will improve the Philippines’ efforts against money laundering, which could help the country exit the FATF gray list by January 2023.

The bill is expected to hurdle the House of Representatives by next month. House Bill No. 4313, which proposes amendments to Republic Act No. 1405 or the Bank Secrecy Law, has been pending with the House Committee on Banks and Financial Intermediaries since Sept. 6. 

It seeks to allow the BSP to examine deposits in relation to possible fraud, serious irregularity, or unlawful activity being committed by bank officials.

The FATF also said the Philippines should show an increase in the identification, investigation and prosecution of terrorism financing cases as well as enhance the effectiveness of the targeted financial sanctions framework for both terrorism financing and proliferation financing by demonstrating that designated nonfinancial businesses and professions understand their obligations.

Holiday remittances unlikely to bring peso back to P55 level

A woman arranges Christmas decorations on a shelf at a shop in Manila, Aug. 31. Overseas Filipinos expected to send home more remittances ahead of the holidays. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE EXPECTED INFLOWS of remittances ahead of the holidays may help support the peso against the US dollar, but unlikely to drive it back to the P55-per-dollar level, economists said.

Finance Secretary Benjamin E. Diokno told Bloomberg last week that the government will “act aggressively” and “spend more” to defend the peso from further weakening against the US dollar. The peso will eventually strengthen to P55 by yearend, he added.

“The inflow of remittances during the holidays will help stabilize the peso at a level lower than the P60 mark. The inflow of remittances during the holidays, however, may not be enough to push the peso below the P55 mark,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail.

Remittances typically surge before yearend as overseas Filipinos send more money to their relatives in the Philippines.

Cash remittances rose 3% to $20.985 billion in the January to August period. The Bangko Sentral ng Pilipinas (BSP) projects that remittances will grow by 4% this year.

“Remittances are going to support the peso during the holidays and conceivably $10 billion to prop up the country’s gross international reserves (GIR). But this is transitory and is not expected to cover all our foreign currency needs in the future. More importantly, this only creates a continued overreliance on remittances to the detriment of our industry,” Ateneo de Manila University Economics Professor Leonardo A. Lanzona said in an e-mail.

Mr. Lanzona said this may offer “some temporary reprieve,” but the government will have to come up with a domestic policy that “addresses the weaknesses in the real sector and to develop a viable stimulus program that can generate foreign earnings, reduce import-dependency and stabilize the economy.”

On Friday, the local currency ended at P58.75 against the dollar, slightly higher by P0.19 from the previous trading day. For the year so far, the peso has weakened by 13.2% or P7.75 from its P51 close on Dec. 31, 2021.

According to Mr. Diokno, the government will use $10 billion from the expected $15.8 billion in inflows from overseas Filipinos’ remittances and call center receipts to defend the peso.

“I believe the first order of action is to withstand pressures that can weaken the peso further. One effective way to do that is to use our dollar reserves to defend the peso. We still have enough GIR to buy imports for more than 6 months even if we use $10 billion to defend the peso,” Mr. Terosa said in an e-mail.

The latest BSP data showed GIR stood at $93 billion as of end-September, the lowest in two years.

“If the country decreases its foreign reserves and does not change its domestic policies in a way that decreases its demand for foreign currency or increases its supply, then it runs the risk of losing its foreign currency further,” Mr. Lanzona said.

“More importantly, it signals that the government does not have a credible fixed foreign rate. One way to reverse the excess demand for foreign currency is to increase the borrowing rates by raising the demand for the peso, but this is a very difficult policy that can cause the economy to weaken, leading to higher unemployment rates,” he added.

The BSP has raised benchmark rates by 225 basis points (bps) since May in an effort to tame inflation. Its next rate-setting meeting is on Nov. 17.

Security Bank Corp. Chief Economist Robert Dan J. Roces said that further tightening by the local central bank will help keep in step with the US Federal Reserve.

“It will be tough to counter a strong US dollar, even more so with the Fed poised to continue with outsized hikes. But this is the strongest message yet from the government, and it is a sound strategy to intervene more aggressively now, as the dollar will likely peak in the near to medium term and with the inflows from remittances and some slight recovery in exports for the holidays helping shore up the currency,” he said in an e-mail.

Mr. Diokno also mentioned the possibility that the BSP will raise rates by another 100 bps at the last two meetings.

For Mr. Terosa, aggressive rate hikes are a step in the right direction as most central banks are also doing the same to combat inflation.

“If policy rates are not increased, the outflow of dollars may pose more problems for the Philippines in the future. I think the market can still cope with these rising rates because there is still enough growth momentum that can cushion their effects,” he added.

The Federal Reserve is set to approve another large interest rate increase in its November policy meeting, Reuters reported.

Investors are anticipating the US central bank to raise its overnight interest rate to a range of 3.75% to 4%. Since March, the Fed has raised key rates by 300 bps.

Mr. Roces said that the Fed will likely reach its peak rate in the first quarter next year, which will help ease the pressure on the peso.

“The strategy as espoused by Mr. Diokno should buy the central bank some time and help slow the depreciation if not stabilize the peso,” he added.

Meanwhile, Calixto V. Chikiamco, Foundation for Economic Freedom president, cautioned that increasing interest rates to keep up with the Fed can “destroy domestic demand at a time when the economy is still recovering from the pandemic.”

Analysts said there is a need to deploy other measures aside from monetary tightening to push down the peso.

“I believe that there should be forms of intervention in the foreign exchange markets so that monetary policy isn’t held hostage to short-term capital movements. The BSP can apply many tools short of strict capital controls,” Mr. Chikiamko said in a Viber message.

He cited administrative requirements on overseas remittances, regulating the overbought positions of banks, selling dollars in the open market, and a form of turnover tax as some examples.

“The source of inflation in the Philippines isn’t excess demand but supply shortages, particularly in food. Higher interest rates won’t address this supply shortage…what the government should do is to liberalize food importation instead of trying to weaken demand through higher interest rates,” Mr. Chikiamco added.

Another strategy to taking advantage of the weak peso is by ramping up high-quality exports, Mr. Terosa said.

“Aside from raising interest rates to attract dollar inflows, we should continue to fight inflationary pressures to make exports more competitive and to pursue productivity-enhancing supply-side policies to increase long-term competitiveness. The task of making the Philippines more attractive to foreign investors and foreign visitors should be relentlessly pursued,” he added.

Security Bank’s Mr. Roces said the government should also promote international tourism to add to inflows.

“Our tourism sites remain competitive and the peso will benefit from revenge travel consumption from international tourists,” he added.

Best scoop forward

The Entrepreneur Of The Year Philippines 2022 has concluded its search for the country’s most undaunted and unstoppable entrepreneurs. This is a program of the SGV Foundation, Inc., with the participation of co-presenters the Asian Institute of Management, the Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each finalist for the Entrepreneur Of The Year Philippines 2022.

Francisco “Paco” Magsaysay
President and CEO
Carmen’s Best Dairy Products, Inc.

NECESSITY is the mother of invention and for Francisco “Paco” Magsaysay, president and chief executive officer (CEO) of Carmen’s Best Dairy Products, Inc., makers of the artisanal Carmen’s Best Ice Cream, truer words have never been spoken.

Mr. Magsaysay was overseeing the family’s cable TV and internet business when his father asked him to help increase the sales of their dairy farm in 2009. Mr. Magsaysay, who grew up in the US and graduated with a degree in marketing, tried to distribute the company’s milk products to resorts and high-end recreation centers, only to realize later that the demand for fresh milk was not big enough.

While baking brownies for his children and thinking of ways to avoid wasting the oversupply of milk, Mr. Magsaysay came up with the idea of using the unsold milk products to produce homemade ice cream. With a small machine and the support of his household helpers, he started making his own ice cream and selling it from his garage.

Mr. Magsaysay admitted that selling a product that nobody knew about was extremely difficult. Carmen’s Best had no history. It was being sold by somebody who was not associated with food. With no culinary background and no experience in the restaurant business, Mr. Magsaysay recalled knocking on doors and going to restaurants only to find that managers and restaurant owners refused to meet with him. In addition, introducing an artisanal product with a high price range was challenging.

“For me, failure was not an option. I could not let my daughter, Carmen, down,” said Mr. Magsaysay, who painstakingly worked on carving his niche despite the challenges. At a time when artisanal ice cream was unheard of, Mr. Magsaysay would make the rounds at various weekend markets, offering free tastes. Such was his belief in the product that he was confident one taste would automatically lead to a sale.

Since its establishment, Carmen’s Best’s track record has been one of growth, driven by long-term business strategy and customer satisfaction. Under Mr. Magsaysay, Carmen’s Best is the first brand to make artisanal ice cream a household name and is now one of the country’s most iconic ice cream brands. Mr. Magsaysay is proud that Carmen’s Best, the first premium Filipino ice cream brand to make it in the market, continues to innovate and delight their customers. He sees this as proof that Filipino imagination and ingenuity, combined with attention to detail and quality, can produce something that can touch the hearts — and enchant the palates — of people of all ages, not just locally but also abroad.

Under Mr. Magsaysay’s leadership, the company persevered during the pandemic. Not only did it manage to keep all its employees, but it also managed to expand its product line and negotiate a partnership with one of the country’s top conglomerates, Metro Pacific Investments Corp. (MPIC). This partnership is proof of the business sector’s confidence in the company and Mr. Magsaysay’s hard work. He is confident this partnership will ensure that the company expands its products, services, and other areas of interest.

The artisanal sorbetero has come a long way from literally knocking on doors and working the weekend markets just so he can sell his ice cream. Today, Carmen’s Best is making inroads in the dairy, and restaurant and hospitality industry with the introduction of ice cream cakes, alcohol-infused ice cream under the name J&M Naughty and Nice Cream, and a value line called Arctic Ice Cream, targeted at hotels, restaurants, and catering services. More than just developing products, in the last 13 years, Mr. Magsaysay strategically expanded the business, which is now composed of Carmen’s Best Dairy Products, Carmen’s Best International Dairy Company, Real Fresh Dairy Farms, The Laguna Creamery, and RMJ Development Corp.

To date, Carmen’s Best is distributed through 400 channels that range from community resellers to corporate accounts. It also is served on outbound flights of Singapore Airlines, Qantas, Delta Airlines, and Philippine Airlines’ business class section. Carmen’s Best opened its first shop in Singapore in 2019.

Mr. Magsaysay believes that running a business is not just about consistently making quality products, but it is also ensuring employees, suppliers, and partners are compensated fairly. Trust and ethical business practices are essential values to a company’s success, he said. At the end of the day, Mr. Magsaysay said the people they interact with are their biggest supporters and advocates.

“Many of our distributors were initially Carmen’s Best customers who, after tasting our products, grew to share our passion for delicious ice cream,” he said, adding that being true to his brand allows him to connect with customers and build loyalty.

Mr. Magsaysay ensures that his business places importance on supporting institutions that help those in need. Part of its proceeds are donated to the Philippine General Hospital and the Good Shepherd Convent in Baguio. His vision for Carmen’s Best is holistic and inclusive, encompassing commercial and social responsibilities. For him, a company’s real growth is not only measured by how much money it makes, but also by how many people benefit from its existence.

The media sponsors of the Entrepreneur of the Year Philippines 2022 are BusinessWorld and the ABS-CBN News Channel. Gold Sponsors are SteelAsia Manufacturing Corp., Uratex, and Navegar. Silver Sponsors are Intellicare, OneWorld Alliance Logistics Corp., and Regan Industrial Sales, Inc.

The winners of the Entrepreneur Of The Year Philippines 2022 will be announced on Nov. 21, 2022 in an awards banquet at the Grand Hyatt Manila. The winner will represent the Philippines in the World Entrepreneur Of The Year 2023 in Monte Carlo, Monaco in June 2023. The Entrepreneur Of The Year program is produced globally by Ernst & Young (EY).

MPIC awaits higher income on units’ billed volume

PANGILINAN-led Metro Pacific Investments Corp. (MPIC) expects the higher billed volume of its power and water subsidiaries to boost the listed holding firm’s net income for the third quarter.

“[Our results] are higher than last year,” MPIC Chairman Manuel V. Pangilinan told reporters on Friday, citing the higher volume billed by Manila Electric Co. (Meralco) and Maynilad Water Services, Inc.’s “slightly increased to flattish” water billed volume.

Mr. Pangilinan did not give specific figures.

In the first half of this year, MPIC’s attributable income declined 8.6% to P9.5 billion from P10.39 billion a year ago. The group’s operating revenues grew by 12.1% to P24.29 billion in the first six months from P21.66 billion last year.

According to MPIC’s report, Meralco exceeded its pre-pandemic volume growth in the year’s first half.

Maynilad saw higher demand from residential customers but at a lower average tariff rate due to the closure of non-essential businesses. It said water consumption started to pick up in the second quarter.

In 2021, MPIC posted third-quarter operating revenues of P10.51 billion, 1.4% higher than P10.36 billion in 2020. In the same year, its third-quarter attributable net income rose by 0.6% to P1.99 billion from P1.98 billion in the previous year.

Meanwhile, Mr. Pangilinan said MPIC is looking forward to venturing into the agri-food business.

“We should allow MPIC to develop its own agri-food businesses first before we rationalize,” Mr. Pangilinan said, talking about his shares in listed sugar and ethanol producer Roxas Holdings, Inc.

“Right now, it’s just our business, but I think we are looking at several agri-food ventures, which hopefully in the near future we could announce,” Mr. Pangilinan added.

Roxas Holdings’ primary purpose is to operate mill and refinery facilities to manufacture sugar and allied products. Its subsidiaries include Central Azucarera Don Pedro, Inc., Central Azucarera de la Carlota, Inc., Roxol Bioenergy Corp. RHI Agri-Business Development Corp., Roxas Pacific Bioenergy Corp., and San Carlos Bioenergy, Inc.

In a disclosure to the Philippine Stock Exchange on Oct. 10, Roxas Holdings said Mr. Pangilinan holds 4.9% or 61,574 of the direct shares in the company.

MPIC, which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and 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. — Justine Irish D. Tabile

SC affirms ruling on Meralco, Napocor settlement

PHILSTAR FILE PHOTO

THE Supreme Court (SC) has upheld the validity of a settlement agreement between the Manila Electric Co. (Meralco) and National Power Corp. (Napocor) worth P20.05 billion.

In a 24-page resolution on Sept. 28 and made public on Oct. 20, the SC First Division said the Court of Appeals did not commit an error when it ruled the agreement between the two firms was not “disadvantageous to the government.”

“To reiterate, there is no longer any arbitrable dispute to speak of when Meralco and [Napocor] agreed to settle any dispute between them under the contract for the sale of electricity (CSE) through mediation,” the High Court said.

In 2003, a settlement agreement was reached by Meralco and Napocor where the private firm agreed to pay P20.05 billion for 18,222 gigawatt-hours (GWh) over a dispute related to the sale of electricity to the government.

The obligation was later reduced to P14 billion after Meralco made gradual payments to Napocor between the years 2003 and 2004.

The two firms had brought the dispute to mediation, which was overseen by former World Energy Council Chairman Antonio V. del Rosario.

Edgardo M. del Fonso, former president of Power Sector Assets and Liabilities Management Corp., represented Napocor while Meralco was represented by its former president and chief operating officer.

Meralco and Napocor entered into a contract for the sale of electricity (CSE) in 1994. The agreement obligated Napocor to supply Meralco with power while the latter had to purchase a minimum volume of power and energy at rates approved by the Energy Regulatory Board.

At that time, Napocor is engaged in generating, supplying, and selling electricity to distribution utilities approved by the government.

Meralco, a private corporation, obtained a franchise to operate and maintain a distribution system in Metro Manila, Bulacan, Cavite, and Rizal, among other municipalities and cities.

Executive Order No. 215 allowed private sector involvement in operating electric generating plants which can sell to the grid.

“This issue can hardly be considered a dispute, much less one arising from the CSE,” said the High Court. “Parties should not be barred from resorting to mediation, which, ordinarily, is a less adversarial and more conciliatory process than arbitration.”

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., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — John Victor D. Ordoñez

Appellate court upholds Davao LGU’s fee on San Miguel Foods

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has upheld the Davao City treasurer’s fee on San Miguel Foods, Inc. worth P338,731.90 for permits to slaughter animals for food production.

In a decision on Oct. 12 and made public on Oct. 19, the CTA Special Third Division said the local government code allows cities and municipalities to impose levy taxes, fees, and charges.

“Furthermore, the city is tasked with authorizing the establishment and operations of private slaughterhouses, whether for public use or exclusively as part of meat processing complex,” according to the ruling penned by Maria Belen M. Ringpis-Liban.

The tribunal noted that it is within the mandate of local government units (LGUs) to impose the permit fees to regulate slaughterhouses.

The Davao City revenue code mandates a permit to slaughter an animal from the city veterinarian which would be followed by a corresponding fee collected by the city treasurer’s office.

The petitioner, a subsidiary of a food conglomerate based in Pasig City, argued that the trial court in Davao City made an error when it ruled that there was no double taxation in the imposition of fees.

The court disagreed saying the fees did not count as local taxes.

“The fees imposed thereon [are] primarily regulatory in nature and not primarily revenue-raising,” said the CTA. “While the fees may contribute to the revenues of Davao City, this effect is merely incidental.”

It added that the permit fee to slaughter is meant to ensure the humane treatment in the killing of animals. The fees also serve as inspection charges to ensure that the slaughtered animals are safe for human consumption. — John Victor D. Ordoñez

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