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Primeworld Land Holdings, Inc. tops off District Tower H in Cebu

From L-R: Helen Zafra (Marketing and Sales Director VISMIN), Mykee Tan (EXECOM) and Nichole Tan (EXECOM), Ar. Alex Tan (President, Hamm-asia), Johnny Uy (Chairman), Sherwin Uy (Executive Vice-President), Benjie Picardo (Guest), Nelba Pangilinan (Consultant), Ar. Fritz Correa (Sr. Architect, Hamm-asia), Ar. Arnel Gabriel Wong (Hamm-asia, General Manager)

Manila-based developer Primeworld Land Holdings, Inc. (PLHI) topped off its second tower in Primeworld District, Tower H in Mactan Island, Cebu, in a ceremony held on March 13.

Primeworld District is a residential development that is home for those who dream to have a permanent holiday. Young families can find their starting point here at an affordable price. For local and foreign investors, securing a property is a practical idea as their condos and villas are perfect for vacation rentals.

Primeworld District Tower P and Tower H, as of March 12, 2022

Located in Brgy. Agus Basak, Lapulapu City, Cebu, Primeworld District is an eight-tower (Tower H has 10-storeys with 328 units) resort-themed residential condominium complex with private villas in a 4.6-hectare land. Unit cuts include 22 sq. m. one-bedroom units, 51 sq. m. two-bedroom units, and 132 sq. m. villas with own swimming pools.

With just a quick drive away from nearby establishments, malls, hospitals, and the airport, Primeworld District’s accessibility is unmatched by any other development on the island.

With multiple swimming pools, jacuzzi, leisure and lap pool, grand lobby with alfresco dining, function halls and open event spaces, promising outdoor environment, gyms, and commercial areas, residents will enjoy top-of-the-line amenities that offer a resort-style living experience.

Primeworld District is also designed to offer hotelier assistance to everyone, making the vertical community a safe space for foreigners who wish to retire in Cebu. It holds the promise of a laid-back-island lifestyle within a quickly emerging urban hub all year round.

Due to the health restrictions and challenges brought by the COVID-19 pandemic, the Primeworld District Tower H development team admitted that they struggled with communication and skeletal workforce implementation as the company is based in Manila. The team also had to prepare contingency sales plans as people are not yet keen on investing following Typhoon Odette.

“We are very happy to top off the second tower in the midst of the pandemic. We thank our General Contractor, Hamm Asia, who prepared and ensured that there will be no damages from Typhoon Odette. It’s a tremendous milestone for PLHI,” Sherwin Uy, PLHI executive vice-president, said.

Helen Zafra, PLHI sales & marketing director for VisMin, expressed, “We share this momentous day with our partner sellers who have come a long way to make this happen.”

Today, prospects of real estate industry look promising in Cebu as this first-class highly urbanized city remains to be at the forefront of tourist destinations in the Philippines, offering homebuyers the best of both worlds.

PLHI believes that every Filipino deserves a good home by developing quality houses in safe communities where Filipinos can thrive and live a good life as well.

Established in 2010 as a pocket housing developer, PLHI has evolved into a full-grown housing development firm with market presence across key cities in the Philippines.

PLHI has ongoing developments in the Province of Quirino, Bulacan, Polomolok, and Butuan and is eyeing future projects in Nueva Vizcaya and Isabela in North Luzon; Pampanga, Tarlac, Quezon City, and Caloocan City in Mega Manila; and Davao in Mindanao.

The company plans to mark its name in the industry with more projects in store for areas of tourism hotspots nationwide and to continue on delivering its promise of providing homes to more families in major cities and beyond.

 

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WHO says global rise in COVID cases is ‘tip of the iceberg’

REUTERS

Figures showing a global rise in coronavirus disease 2019 (COVID-19) cases could herald a much bigger problem as some countries also report a drop in testing rates, the World Health Organization (WHO) said on Tuesday, warning nations to remain vigilant against the virus.

After more than a month of decline, COVID cases started to increase around the world last week, the WHO said, with lockdowns in Asia and China’s Jilin province battling to contain an outbreak.

A combination of factors was causing the increases, including the highly transmissible Omicron variant and its cousin the BA.2 sub-variant, and the lifting of public health and social measures, the WHO said.

“These increase are occurring despite reductions in testing in some countries, which means the cases we’re seeing are just the tip of the iceberg,” WHO’s head Tedros Adhanom Ghebreyesus told reporters.

Low vaccination rates in some countries, driven partly by a “huge amount of misinformation” also explained the rise, WHO officials said.

New infections jumped by 8% globally compared to the previous week, with 11 million new cases and just over 43,000 new deaths reported from March 7–13. It is the first rise since the end of January.

The biggest jump was in the WHO’s Western Pacific region, which includes South Korea and China, where cases rose by 25% and deaths by 27%.

Africa also saw a 12% rise in new cases and 14% rise in deaths, and Europe a 2% rise in cases but no jump in deaths. Other regions reported declining cases, including the eastern Mediterranean region, although this area saw a 38% rise in deaths linked to a previous spike in infections.

A number of experts have raised concerns that Europe faces another coronavirus wave, with cases rising since the beginning of March in Austria, Germany, Switzerland, the Netherlands, and the United Kingdom.

The WHO’s Maria Van Kerkhove said at the briefing that BA.2 appears to be the most transmissible variant so far.

However, there are no signs that it causes more severe disease, and no evidence that any other new variants are driving the rise in cases.

The picture in Europe is also not universal. Denmark, for example, saw a brief peak in cases in the first half of February, driven by BA.2, which quickly subsided.

But experts have begun to warn that the United States could soon see a similar wave to that seen in Europe, potentially driven by BA.2, the lifting of restrictions, and potential waning immunity from vaccines given several months ago.

“I agree with the easing of restrictions, because you can’t think of it as an emergency after two years,” said Antonella Viola, professor of immunology at Italy’s University of Padua.

“We just have to avoid thinking that COVID is no longer there. And therefore maintain the strictly necessary measures, which are essentially the continuous monitoring and tracking of cases, and the maintenance of the obligation to wear a mask in closed or very crowded places.” — Jennifer Rigby and Manas Mishra/Reuters

Empty pharmacies, dwindling medical supplies a reality in Ukrainian port city 

Courtesy of Doctors Without Borders (Médecins Sans Frontières or MSF)

The southeastern port city of Mariupol has borne the brunt of what Russia calls a “special operation” in Ukraine. Volunteers of the humanitarian organization Doctors Without Borders (Médecins Sans Frontières or MSF) cope with the reality of empty pharmacies, dwindling medical supplies, and a lack of running water for patients in need.  

“In a dramatically changed landscape, the work I was doing with Doctors Without Borders earlier is no longer possible,” wrote an MSF staff member in Ukraine who sent a first-hand account to the organization on March 17 under the pseudonym Aleksandr Burmin. “Many of my colleagues find themselves in the same situation. But even in the most trying circumstances, they have been working hard to provide emergency medical assistance.”

Hospitals are reporting a rising number of injured individuals as a result of the conflict, said another MSF staffer using the pseudonym Lishchynska. 

“These people need urgent care. At the same time, hospitals are reporting that they are running out of supplies to treat these severe injuries,” he told BusinessWorld in a March 11 e-mail, adding that surgical instruments and trauma kits are needed. “It is crucial that more supplies — and the right supplies — are rushed to hospitals where they are needed as quickly as possible.”   

Romanian non-governmental organization Zibedine donated medicines, the first batch of which was delivered March 13. More are expected to arrive in the coming days.  

A hospital complex with a maternity ward was attacked a few days ago, according to Lishchynska.  

“While we cannot confirm that this was a targeted attack, we know from our staff that houses and hospitals have been damaged during the fighting over the past days…” he said. “Depriving people of much-needed health care is a violation of the laws of war. It is imperative that civilians and civilian infrastructure including health facilities be spared from attacks, and people’s right to seek health care and safety guaranteed.”  

Mariupol, which had a population of around 450,000 before the conflict, has been lacking food, water, and electricity since at least March 5, another on-the-ground staffer confirmed. 

“We saw people going to ground springs to get some water,” said MSF staffer Olexander (also a pseudonym) in a phone conversation with his coordinator, the audio files of which were shared with BusinessWorld. “In one place, we saw a truck with water from UNICEF [the United Nations’ children’s agency]. But it was only in one place and a huge, huge queue of people trying to get [that ration of water].”  

A majority of pharmacies and groceries, added Olexander, has already been emptied by residents who have nowhere to buy food and medicines.  

“There’s no fuel in the city anywhere. We have gas in our flat, but in some parts of the city, the gas has already been cut off. In the left bank, which is severely impacted, there is no gas as well,” he said. — Patricia B. Mirasol

Fed hikes interest rates, signals aggressive fight to curb inflation

REUTERS/KEVIN LAMARQUE/FILE PHOTO

WASHINGTON – The Federal Reserve on Wednesday raised interest rates for the first time since 2018 and laid out an aggressive plan to push borrowing costs to restrictive levels next year in a pivot from battling the coronavirus pandemic to countering the economic risks posed by excessive inflation and the war in Ukraine.

The U.S. central bank’s Federal Open Market Committee kicked off the move to tighten monetary policy with a quarter-percentage-point increase in the target federal funds rate, lifting that key benchmark from the current near-zero level in a step that will ripple through a variety of other rates charged to consumers and businesses.

But more notably, new Fed projections showed policymakers ready to shift their inflation fight into high gear, with one policymaker, St. Louis Fed President James Bullard, dissenting in favor of an even more aggressive approach.

Most policymakers now see the federal funds rate rising to a range between 1.75% and 2% by the end of 2022, the equivalent of a quarter-percentage-point rate increase at each of the Fed’s six remaining policy meetings this year. They project it will climb to 2.8% next year – above the 2.4% level that officials now feel would work to slow the economy.

Fed Chair Jerome Powell, speaking after the end of the latest two-day policy meeting, said the economy is strong enough to weather the rate hikes and maintain its current strong hiring and wage growth, and that the Fed needed to now focus on limiting the impact of price increases on American families.

Even with Wednesday’s actions, inflation is expected to remain above the Fed’s 2% target through 2024, and Powell said officials would not shy from raising rates more aggressively if they don’t see improvement.

“The way we’re thinking about this is that every meeting is a live meeting” for a rate hike, Powell said in a news conference, emphasizing that the Fed could add the equivalent of more rate increases by also paring its massive bond holdings. “We’re going to be looking at evolving conditions, and if we do conclude that it would be appropriate to move more quickly to remove accommodation, then we’ll do so.”

Rate increases work to slow inflation by curbing demand for big-ticket items like houses, automobiles or home improvement projects that become more expensive to finance, which can also slow economic growth and potentially increase unemployment.

The economy may already be slowing for other reasons. Fed policymakers marked down their gross domestic product growth estimate for 2022 to 2.8%, from the 4% projected in December, as they began to analyze the new risks facing the global economy.

“That is just an early assessment of the effects of spillovers from the war in Eastern Europe, which will hit our economy through a number of channels,” Powell said. “You are looking at higher oil prices, higher commodity prices. That will weigh on GDP to some extent.”

Over time, Fed policy itself would begin curbing economic activity, Powell said.

“The Fed is playing catch-up and clearly recognizes the need to get back in front of the inflation situation,” said Seema Shah, chief strategist with Principal Global Investors.

“It won’t be easy – rarely has the Fed safely landed the U.S. economy from such inflation heights without triggering an economic crash. Furthermore, the conflict … has the potential to disrupt the Fed’s path. But for now, the Fed’s priority has to be price stability.”

The Fed’s preferred measure of inflation is currently increasing at a 6% annual rate.

STUBBORN INFLATION

The policy statement, which dropped a longstanding reference to the coronavirus as the most direct economic risk facing the country, marked the end of the Fed’s full-on battle against the pandemic. After two years focused largely on ensuring families and firms had access to credit, the Fed now pledges “ongoing increases” in borrowing costs to curb the highest inflation rates in 40 years.

The interest rate path shown in new quarterly projections by policymakers is tougher than expected, reflecting Fed concern about inflation that has moved faster and threatened to become more persistent than expected, and put at risk the central bank’s hope for an easy shift out of the emergency policies used to fight the fallout from the pandemic.

Major U.S. stock indexes briefly pared gains after the release of the statement and projections before recovering to close sharply higher, with the S&P 500 index up 2.2% on the day.

Two-year Treasury note yields rose to 2.002% while benchmark 10-year Treasury yields reached 2.246%, both the highest levels since May 2019, before falling back to 1.948% and 2.188%, respectively.

The dollar traded lower against a basket of currencies.

Even with the tougher rate increases now projected, the Fed expects inflation to remain at 4.3% this year, dropping to 2.7% in 2023 and to 2.3% in 2024. The unemployment rate is seen dropping to 3.5% this year and remaining at that level next year, but is projected to rise slightly to 3.6% in 2024.

The new statement said the Fed expects to begin reducing its nearly $9 trillion balance sheet “at a coming meeting.” Powell told reporters that policymakers had made “excellent progress on that front and could finalize details at their next policy meeting in May.

The central bank’s holdings of Treasury bonds and mortgage-backed securities ballooned after the start of the pandemic in 2020 when it began making massive monthly asset purchases to bolster the economy. — Reuters

Cloud solutions made simple

New offerings from ICS set SMBs up for a seamless cloud migration journey.

In a new normal workforce and workplace where going digital is essential, organizations no longer have to ask whether or not they should migrate to the cloud.

A 2021 survey of Asian markets revealed that the Philippine market shows the highest level of support towards using cloud-based IT solutions to grow their businesses compared to pre-pandemic times; while a more recent survey from learning company O’Reilly showed rapid cloud adoption among organizations, with 90% of respondents using cloud computing, compared to 88% in 2020.

Cloud technology has shown many benefits to organizations, specifically small and medium-sized businesses (SMBs), saving them time and money while effectively supporting hybrid workforces. According to a report from Multisoft Virtual Academy, cloud computing is up to 40 times cost-effective compared to in-house IT systems for SMBs, and 80% of SMBs and startups in another research report improvements in operations within the first few months of adopting the technology.

While migrating to the cloud is no longer in question, where and how to start doing so are important considerations. Integrated Computer Systems, Inc. (ICS), a premier provider of high-standard IT solutions in the country, helps SMBs get a headstart by offering simplified cloud offerings designed to drive business efficiency, productivity, and collaboration on both on-site and remote workplaces.

ICS’ cloud servers are built on the industry’s leading hyperconverged infrastructure technologies, meaning all the elements of a traditional data center, including storage, compute, networking, and management, are combined in one cluster. The servers are built with fully redundant, highly available and resilient architecture. And, they are rapidly deployable with a user-friendly management portal.

Customers can opt for these subscription-based servers in small (consisting of 4GB RAM, 2vCPU, 300GB SSD), medium (8GB RAM, 4vCPU, 500GB SSD), and large (16GB RAM, 8vCPU, 1TB SSD) sizes; or they can have a customized one based on their requirements.

ICS integrates these cloud servers with collaboration solutions, via Microsoft Office365, giving teams the right tools to help them achieve more under a hybrid mode of work.

The “Business Basic” package bundles email, cloud storage, and online office apps such as Microsoft Word, PowerPoint, Excel, and OneNote, among others. “Business Standard” adds desktop office apps to the basic suite. While “Business Premium” extends the solutions’ coverage to employees’ mobile devices with mobile device management (MDM) tools added to the bundle.

With these simplified solutions, along with other more sophisticated offerings, ICS stands ready to meet SMBs’ needs and demands in a more digitized and hybrid business landscape.

Let ICS guide your business through its cloud transformation journey. Interested parties can get in touch at cloud@ics.com.ph or visit ics.com.ph.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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SFA Semicon Philippines Corp. announces annual stockholders’ meeting on April 22

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Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Duterte nixes fuel tax suspension

PHILIPPINE STAR/ MIGUEL DE GUZMAN
Motorcycle riders queue at a gasoline station along España Boulevard in Manila, March 15. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Rodrigo R. Duterte rejected calls to suspend the excise tax on fuel products amid soaring pump prices, and instead approved the Finance chief’s recommendation to extend the P200 in monthly aid to poor families for a year.

Acting Presidential Spokesperson Jose Ruperto Martin M. Andanar made the announcement at a regular news conference on Wednesday, just hours after Finance Secretary Carlos G. Dominguez III made the proposals.

Mr. Dominguez told a Cabinet meeting on Tuesday that the fuel excise tax imposed under a highly opposed tax reform program must be retained “because we already budgeted it for salaries of school teachers; “Build, Build, Build” program; and other expenses.”

Calls to suspend the excise tax on petroleum products have grown louder, especially after fuel retailers on Tuesday raised gasoline and diesel prices by P7.10 and P13.15 per liter, respectively.

Mr. Dominguez said the government is expecting to collect P147 billion in taxes this year from fuel products, of which P131.4 billion is from excise taxes. The rest would be from value-added tax (VAT) imposed on oil imports.

The current excise tax rate is P10 per liter for gasoline, P6 per liter for diesel, P5 per liter for kerosene, and P3 per liter for liquefied petroleum gas (LPG).

Mr. Dominguez said suspending excise taxes on fuel products would only force the government to borrow more money and would result in P105.9-billion revenue losses in 2022 or around 0.5% of the country’s gross domestic product (GDP) this year. If implemented over the next 10 years, he said losses are projected to reach P1.76 trillion.

Instead, the Finance chief proposed the government provide direct aid to the most vulnerable sectors, allocating P33 billion for unconditional cash transfers to the bottom 50% of all households or an estimated 74.7 million Filipinos. This would mean each qualified household would receive P200 a month or a total of P2,400 as aid.

Mr. Dominguez admitted the P200 monthly aid might not be enough to cushion the impact of fuel price hikes on poor families, but said this is what the government can afford at this time.

The Finance chief said the funds for the targeted subsidies would be sourced from VAT collections on oil imports.

If Dubai crude oil reaches $110 per barrel, Mr. Dominguez said VAT collections are expected to increase by P26 billion. VAT revenues will increase by P34.6 billion at $125 per barrel Dubai crude oil price, he added.

Russia’s invasion of Ukraine has driven global oil prices higher, affecting countries like the Philippines that import majority of its fuel requirements. Crude prices have fallen below $100 this week as China, the world’s biggest oil importer, implemented lockdowns to curb the spread of the coronavirus.

However, a senator said the amount of cash aid set by the government is not enough.

“Coming in after 11 weeks of successive oil price increases, the government’s proposed P200 per month cash assistance to poor families is a pittance,” Senate Committee on Public Services Chair Mary Grace S. Poe-Llamanzares said in a statement.

She said the people deserve more amid the rising cost of living across the country, joblessness, and the prolonged pandemic. 

Senator Francis “Kiko” N. Pangilinan, who is running for vice-president, and presidential candidate Senator Panfilo M. Lacson also reiterated their calls for the government to suspend the collection of fuel excise taxes.

4-DAY WORKWEEK?
Meanwhile, Socioeconomic Planning Secretary Karl Kendrick T. Chua proposed a four-day workweek to cut the costs for businesses and workers. A similar four-day workweek was implemented in 2008 when fuel prices were also high, he said.

“Let us try to conserve energy and one of the examples here is through the four-day workweek,” Mr. Chua said at the Tuesday Cabinet meeting. “Every Filipino will still have to work 40 hours per week but instead of five days, it will be four days and instead of eight hours, it will be 10 hours per day.”

At the same meeting, Labor Assistant Secretary Dominique R. Tutay proposed a three-month wage subsidy worth P24 billion, which will benefit one million workers.

If approved, the wage subsidy would be distributed from April to June. “Given the indirect impact of the global tension on the Philippine economy, we’re seeing that the wage subsidy will be important for the workers,” she said.

A labor group earlier filed a petition seeking for a P470 increase in the daily minimum wage of workers in the capital region, bringing it to P1,007.

Mr. Chua, who heads the National Economic and Development Authority (NEDA), said a P39 increase in the daily minimum wage in the National Capital Region will add one percentage point to inflation.

Raising jeepney fares by P1.25 will also add 0.4 percentage point to inflation, he added.

Transport groups also have filed several petitions to increase jeepney fares by as much as P6.

GDP TARGET
Meanwhile, Mr. Dominguez said the Philippines’ economic growth target this year may take a hit as the ongoing conflict between Russia and Ukraine drags on.

“The Ukrainian war escalation may shave off 0.4% of our gross domestic product (GDP) target. We are taking a look at it right now. It all depends on how long this crisis will last,” he said at the Bloomberg ASEAN Business Summit held virtually on Wednesday. “The longer it takes, the worse it is for everyone.”

Economic managers are targeting 7-9% GDP growth for this year.

Mr. Dominguez said the crisis is pushing up prices of commodities, and may affect potential investments in the country.

“Last year, we had the highest foreign investments ever at $10 billion, and we think this crisis is making investors in the West look elsewhere,” he said. — with Tobias Jared Tomas

Jan. remittances up despite virus surge

ALEXANDER MIL-UNSPLASH

By Luz Wendy T. Noble, Reporter

MONEY sent home by Filipino migrants rose for an 11th consecutive month in January, reflecting improving employment prospects abroad despite the Omicron-driven surge in coronavirus disease 2019 (COVID-19) infections.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday evening showed remittances increased by 2.5% to $2.668 billion in January from $2.603 billion a year earlier.

“The growth in cash remittances from the United States, Japan, and Singapore contributed largely to the increase in remittances in January 2022,” the central bank said in a statement.

During the month, the US, Singapore, Japan, Saudi Arabia, the United Kingdom, the United Arab Emirates, Canada, Taiwan, Qatar, and Malaysia, were the 10 biggest sources of remittances. These countries accounted for 79.6% of the total inflows.

Remittances declined by 10.7% from the $2.987 billion in December, reflecting the seasonal dip in inflows as the holiday season ended.

Despite the spike in cases of the Omicron variant in many countries, remittances rose as economic reopening continued and more job opportunities opened up for overseas Filipino workers (OFWs), Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said.

Asian Institute of Management (AIM) economist John Paolo R. Rivera said it may have been possible that the Omicron-driven surge in coronavirus infections pushed OFWs to send more money to help their families in the Philippines.

Metro Manila and some provinces returned to a stricter Alert Level 3 in January as COVID-19 cases reached record highs after the holidays.

“Many people were sick. Remittances were sent, by virtue of altruistic motives, to finance medication and hospitalization,” Mr. Rivera said in a Viber message.

Personal remittances, which include inflows in cash, rose by 2.5% to $2.966 billion in January from $2.895 billion in the same month in 2021.

In 2021, cash remittances hit a new record of $31.418 billion, reflecting the improvement in the global economy as countries learned to better handle the pandemic.

The BSP expects remittances to grow by 4% this year, as virus restrictions are further relaxed.

However, RCBC’s Mr. Ricafort said the ongoing war between Russia and Ukraine could slow global growth prospects that may dampen business activities in some host countries.

AIM’s Mr. Rivera also noted that while there could be a decrease in remittance inflows from war-affected economies, OFWs from other countries may send more as they take into account faster inflation caused by rising fuel and food prices.

“Because of the crisis in Eastern Europe that impacted oil prices and affected everyone’s purchasing power driving inflation faster, remittances might be expected to increase to augment the purchasing power of households,” Mr. Rivera said.

Inflows from Russia and Ukraine were at $292,000 and $14,000, respectively, in January. Both are relatively small compared with the $301.872 million worth of inflows sourced from Europe.

Latest data from the Department of Foreign Affairs showed 286 Filipinos have been repatriated, while 84 were evacuated out of war-stricken Ukraine.

BSP still plans to start rate hike cycle in 2nd half

BANGKO SENTRAL NG PILIPINAS GOVERNOR BENJAMIN E. DIOKNO — PHILIPPINE STAR/ GEREMY PINTOLO

THE PHILIPPINE central bank will remain patient and stick to its plan to raise its key policy rate in the second half of the year, despite heightened uncertainty caused by the war in Ukraine, its governor said.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they are also factoring in the policy tightening of the US Federal Reserve.

The US Federal Reserve is widely expected to raise interest rates by at least 25 basis points amid surging prices later on Wednesday.

“Russian invasion of Ukraine is certainly going to change the mood among Fed members. We don’t know yet. That’s why we are waiting for their action. I think that it’s necessary to be patient. For our part, we will be patient,” he said at the Bloomberg ASEAN Business Summit held virtually on Wednesday.

Mr. Diokno is confident the Philippine economy is on the road to recovery.

“The [Philippine] economy grew at 5.6% last year. Assuming we meet our target this year of 7-9%, then I think we’re on track [to recovery]. We plan to adjust in the second half of the year,” he said.

Mr. Diokno has also previously said they would want to see four to six straight quarters of economic growth before considering increasing rates.

The Philippine economy expanded by 7.7% in the last three months of 2021, marking three straight quarters of growth.

First-quarter gross domestic product (GDP) data is scheduled to be released on May 12.

The BSP chief noted that central banks in Southeast Asia are “more patient” in retaining accommodative policies compared with their counterparts in Latin America, noting only South Korea and New Zealand have started increasing interest rates in the Asia-Pacific region.

The Monetary Board will have its next policy review on March 24.

Last month, the BSP kept rates steady as it vowed to continue supporting economic recovery.

While they are not yet keen to increase interest rates, Mr. Diokno said they have started policy normalization for other measures done to support the economy during the pandemic.

He cited that the latest zero-interest loan extended by the central bank to the National Government amounted to P300 billion, lower than the P540-billion previously.

“We expect that [financing] to be down to zero by the third quarter of this year,” he said.

This gradual policy unwinding was also seen in the BSP’s purchase of government securities (GS), Mr. Diokno said.

“We bought something like 19.4% of the GS portfolio [in 2020]. It’s down to 4.8% in 2021 and now it’s down to 0.7%. So we have started the unwinding,” he said.

LESSONS FROM THE PANDEMIC
Two years into the pandemic, Mr. Diokno said the government should carry out responses beyond monetary policy to really drive recovery.

“The most important lesson I learned from the pandemic is that monetary policy has limitations. I think we [BSP] did very well, but there is a strong need for support from the National Government and from each individual and household,” he said at a virtual forum organized by the Asian Development Bank on Wednesday.

Mr. Diokno, the former budget secretary, said international cooperations have been very crucial as well, especially in securing vaccinations against the coronavirus disease 2019.

He is hopeful that the legislation of the Retail Trade Liberalization Act, the Public Service Act, and the Foreign Investment Act would help to attract more foreign investments into the country that could strengthen economic recovery. — Luz Wendy T. Noble

Pandemic sends 4.7M more people into extreme poverty in SE Asia

PHILIPPINE STAR/ RUSSEL PALMA

MANILA — The pandemic added 4.7 million more people to Southeast Asia’s most extreme poor in 2021, reversing gains made in fighting poverty, the Asian Development Bank (ADB) said on Wednesday, while urging governments to take steps to boost economic growth.

The number of people in extreme poverty — defined as those living on less than $1.90 a day — was 24.3 million last year, or 3.7% of Southeast Asia’s collective 650 million population, the ADB said in a report.

Before the pandemic, figures for those in extreme poverty in Southeast Asia had been on the decline, with 14.9 million in 2019, down from 18 million in 2018 and 21.2 million in 2017.

“The pandemic has led to widespread unemployment, worsening inequality, and rising poverty levels, especially among women, younger workers, and the elderly in Southeast Asia,” said ADB President Masatsugu Asakawa.

Mr. Asakawa urged governments to improve health systems, streamline regulations to boost business competitiveness, invest in smart, green infrastructure and adopt technology to speed up growth.

The ADB said there were 9.3 million fewer employed workers in Southeast Asia in 2021 as coronavirus disease 2019 (COVID-19) curbs reduced economic activity, leaving millions without work.

Its 2021 growth forecast for Southeast Asia was 3.0%.

The region was projected to grow by 5.1% this year but the Omicron COVID-19 variant could cut its growth outlook by as much as 0.8 percentage point if it spreads further and triggers supply and demand shocks, the ADB said.

Ramesh Subramaniam, director-general at the ADB, said Southeast Asia’s growth outlook will be revised to reflect the impact of the Russia’s invasion of Ukraine, which he expected to be “manageable.”

“The challenge is going to be what does the medium term holds. Is this going to affect the region’s recovery from the pandemic and the fiscal challenges it will face?” Mr. Subramaniam said at the report’s launch.

“How can we make sure that any knock-on effects don’t become serious in the case of Southeast Asia?”

The conflict has forced Asia’s policy makers to rethink assumptions for 2022, with the risks of weak growth coupled with surging prices adding unwanted complexity to monetary setting plans. — Reuters

SMC bank allots P1-M IPO shares per small investor

SAN MIGUEL Corp. (SMC) affiliate Bank of Commerce has placed the maximum subscription amount for local small investors who will participate in its initial public offering (IPO) at P1 million per investor.

The IPO will have a primary offer of 280,602,800 common shares, with an offer price of P12 per share, or an offering size of about P3.37 billion.

In a listing notice on Wednesday, Bank of Commerce said that it would give priority to accepting smaller subscription orders ahead of larger orders.

The bank tapped Philippine Commercial Capital, Inc. (PCCI) as the financial advisor and issue coordinator, together with BDO Capital & Investment Corp. China Bank Capital Corp., PCCI, and PNB Capital and Investment Corp. as the joint issue managers, joint lead underwriters, and joint bookrunners.

Net proceeds from the IPO will be used to fund its lending activities, acquisition of investment securities, and to finance capital expenditure requirements, which involve upgrading its ATM fleet and its core banking system.

Bank of Commerce is licensed by the Bangko Sentral ng Pilipinas (BSP) and has been operating since 1963. In 2008, it became an affiliate of SMC.

The bank provides “innovative banking solutions and a complete range of products and services in deposit, commercial loans, credit card services, consumer banking, corporate banking, treasury, asset management, transaction banking, and trust and investments.”

Separately, SMC said in a statement on Wednesday that Bank of Commerce “is ramping up investment in technologies to optimize operations and further improve customer experience across multiple channels, ahead of a resurgent economy post-pandemic.”

It said the move comes as the bank completed systems upgrade of key services such as treasury, trust banking and anti-money laundering.

SMC said the bank has also invested in improving its digital capabilities through its enhanced mobile banking and web platform, which are part of its P1.2 billion spending since 2019.

“The banking sector is essential to our country’s post-pandemic recovery, and we want Bank of Commerce to play a more significant role in San Miguel’s overall efforts to help boost our economy,” SMC President and Chief Executive Officer Ramon S. Ang said.

He said the upgrade of the bank’s information technology and digital infrastructure “is key to meeting the challenges of banking in the new normal,” while serving the needs of retail customers, small and medium-sized enterprises, and corporate clients.

“We believe in the bank’s strong potential, that’s why we are investing to upgrade and enhance its capabilities to serve more clients,” Mr. Ang said.

Bank of Commerce President and Chief Executive Officer Michelangelo R. Aguilar said: “We are committed to embracing new technologies to strengthen our core functions and governance, unleash capabilities to integrate our services, realize operational efficiencies, and reduce transaction costs.  Ultimately, this will redound to providing a exceptional customer experience in the new normal.”

The bank has also set aside P1 billion to upgrade its core banking system and refresh its ATM fleet across the country, including the installation of additional machines at strategic offsite locations starting this year, the SMC media release said.

Bank of Commerce has a network of 140 branches and 261 automated teller machines nationwide. — Luisa Maria Jacinta C. Jocson

Aces force sudden-death game

JERON TENG — PBA IMAGES

Alaska hacks out a huge 93-79 victory over NLEX

By Olmin Leyba

DON’T sound the final buzzer yet for Alaska Milk.

With firm resolve, the seventh-seeded Aces hacked out a huge 93-79 victory over No. 2 NLEX on Wednesday to extend the Philippine Basketball Association (PBA) Governors’ Cup quarterfinal duel — and their emotional farewell tour — to a sudden-death game.

To loud cheers from the Alaska faithful at the Smart Araneta Coliseum, the Aces charged back from an early 16-point deficit and did everything needed to prevail and stave off elimination against their twice-to-beat opponents.

From new import Mark Saint Fort to young star Jeron Teng to backup Mike Tolomia and Yousef Taha, coach Jeff Cariaso’s team put up a spirited performance to put itself in position to go all the way to the Final Four with a repeat against NLEX in Saturday’s do-or-die.

Mr. Saint Fort, who arrived four days ago to replace the injury-hampered Olu Ashaolu, debuted with 17 points and 14 rebounds and got enough support from the local crew. Mr. Teng scored 16 with six boards while Abu Tratter had a 12-10 double-double, Mr. Tolomia chipped in 10, and Mr. Taha had 12 rebounds on top of nine points.

“We didn’t want it to be our last game. What makes it harder is compared to the announcement (of Alaska’s PBA departure a month ago), we’re kinda closer to possibly seeing the end,” said Mr. Cariaso.

“That in itself is a challenge and a motivation so we tried to use that to motivate us even more, to focus even more and play together even more.”

Cameron Clark accounted for 25 markers and 16 boards in his maiden appearance for NLEX in lieu of KJ McDaniels.

Mr. Clark banged in 10 in the first quarter as he led NLEX’s hot 55% clip that keyed their breakaway to a 26-12 tear.

Their season under siege, the Aces cranked it defensively up in the second, holding NLEX to a 14.3% shooting, and turned things around with a 28-12 exchange en route to a 40-38 upperhand.

After the break, it was Mike Tolomia’s turn to step into the plate. Mr. Tolomia fired 10 on a 2-of-2 marksmanship from deep as Alaska wrested a 64-52 tear and went into the final canto on top by nine. The Aces didn’t relinquish control.

“Our mental approach on how we’re trying to play early was  focused on the offense so sabi namin, we have to go back to our defense, understanding our defensive schemes and be more physical. When we became more physical defensively, we were moving our feet better and not giving up easy fouls, that allowed our offense to transition for it to be a little bit easier,” said Mr. Cariaso.

THE SCORES:

Alaska 93 – Saint Fort 17, Teng 16, Tratter 12, Tolomia 10, DiGregorio 9, Taha 9, Ahanmisi 6, Bulanadi 5, Ilagan 3, Racal 3, Faundo 3, Stockton 0, Adamos 0

NLEX 79 – Clark 25, Alas 17, Trollano 12, Rosales 7, Paniamogan 5, Quinahan 4, Nieto 3, Chua 2, Ighalo 2, Soyud 2, Miranda 0, Varilla 0

Quarterscores: 12-26, 40-38, 64-55, 93-79

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