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Taal Volcano emits 900-meter plumes

TAAL VOLCANO generated six volcanic earthquakes in the past 24 hours, including four volcanic tremors lasting one to four minutes, according to the Philippine Institute of Volcanology and Seismology (Phivolcs) on Thursday morning.

“Activity at the Main Crater was dominated by upwelling of hot volcanic fluids in its lake which generated plumes 900 meters tall that drifted southwest,” Phivolcs said in a bulletin posted on its website on Thursday.

The institute’s daily summary of volcanic activity described the plumes to be moderate, compared to the weak emissions the day before.

Taal’s alert status remains at level 2 of a five-step system, which means probable activity, including “sudden steam- or gas-driven explosions, volcanic earthquakes, minor ashfall, and lethal accumulations or expulsions of volcanic gas.”

Entry into the island is prohibited, especially around the main crater, the agency said.

Seismologists advised local government to continuously assess and strengthen the preparedness of previously evacuated barangays around Taal Lake in case of unrest.

Meanwhile, civil aviation authorities must advise pilots to avoid flying close to the volcano as airborne ash and ballistic fragments from sudden explosions and wind-remobilized ash may pose hazards to aircraft.

Phivolcs said it was closely monitoring Taal Volcano’s activity. — Brontë H. Lacsamana

Short AstraZeneca shelf life complicates COVID vaccine rollout to world’s poorest

BRUSSELS/LONDON — The relatively short shelf life of AstraZeneca Plc’s coronavirus disease 2019 (COVID-19) vaccine is complicating the rollout to the world’s poorest nations, according to officials and internal World Health Organization (WHO) documents reviewed by Reuters.

It is the latest headache to plague the COVAX vaccine-sharing project, co-led by the WHO and aimed at getting shots to the world’s neediest people.

Initially, poorer countries and COVAX lagged richer countries in securing vaccine supplies, as wealthier nations used their financial might to acquire the first available doses.

As vaccine production ramped up and richer states began donating excess doses, some countries — particularly in Africa —  are now struggling to administer the big shipments.

The need to turn down vaccines with short shelf lives, along with the initial inequality, hesitancy, and other barriers, has contributed to a much lower vaccination rate in Africa where only around 10% of people have been immunized, compared with more than 70% in richer nations.

Many vaccines are arriving with only a few months, and sometimes weeks, before their use-by date, adding to the scramble to get shots in arms. Some countries have had to destroy expired doses, including Nigeria which dumped up to 1 million AstraZeneca vaccines in November.

The problem with a short shelf life largely concerns AstraZeneca, according to COVAX data and officials.

An internal WHO document reviewed by Reuters detailing vaccine stocks in several central and west African countries for the week ending Feb. 6 highlighted the problem.

Most of the 19 listed African nations had expired AstraZeneca doses, compared to a handful of countries with expired doses from other manufacturers. Of the total expired doses declared by those countries in the week, about 1.3 million were AstraZeneca, 280,000 Johnson & Johnson, 15,000 Moderna, and 13,000 Russia’s Sputnik, the document shows.

Many more vaccines are expected to be rejected as African nations and COVAX said that from January they would not accept vaccines with less than two-and-a-half months’ shelf life.

Yet Benin received 80,400 AstraZeneca doses from COVAX on Jan. 30, set to expire on Feb. 28. It also got 100,000 doses of the Sputnik Light vaccine from Russia, with the same expiry date — but outside the COVAX initiative. Vaccines from other manufacturers had a much longer shelf life, according to the document.

“Since January 2022, COVAX is shipping vaccines to countries on demand, ensuring that countries get the right volume at the right time,” said Phiona Atuhebwe, a vaccine expert at WHO Africa.

Asked about the internal document, seen by Reuters, she said: “WHO is fully cognizant of the pressure that short shelf life doses put on delivery strategies and systems amid weak infrastructure and low demand.”

Two and a half months of shelf life is the minimum duration African countries reckon they need to administer the shots.

AstraZeneca, COVAX’s second-biggest supplier after Pfizer, said that since the start of the global rollout, more than 250 million of its shots left factories with less than two-and-a-half months before expiry.

Short shelf life is not generally a problem for a wealthy country with expertise and infrastructure. But without systems in place, it can be insurmountable.

A spokesperson for Anglo-Swedish AstraZeneca said vaccines had to undergo scrupulous quality checks and pointed to the fact that the company was a major player in supporting vaccination drives in poorer nations. With donations from rich countries included, more AstraZeneca vaccines have been distributed by COVAX than any other shot.

“AstraZeneca has supplied 2.6 billion vaccine doses globally, approximately two thirds of which have gone to low and lower middle-income countries,” the spokesperson said.

“Almost nine out of 10 doses released from our manufacturing sites ready for donation have a shelf life of at least two and a half months which is consistent with the rest of our supply chains,” the spokesperson added.

CLOCK TICKING 

The volumes of delivered vaccines vastly outnumber wasted doses, but the losses have been substantial thanks in part to the time pressures. This has led to AstraZeneca shots being turned down even before being shipped.

Taking into account only donated doses, which represent nearly half the billion vaccines distributed by COVAX, about 30 million AstraZeneca shots were rejected or deferred last year by poor nations, said Gavi, the nonprofit that co-runs COVAX alongside the WHO. That amounts to a quarter of AstraZeneca’s donated shots via COVAX.

Many were later reassigned to other countries, Gavi added, noting that more than 95% of them were AstraZeneca. It did not say where to.

Millions of additional AstraZeneca doses shared by the EU, COVAX’s biggest donor, have not been distributed yet, according to an EU internal document reviewed by Reuters.

The main problem is the vaccine’s shelf life of just six months from the date of bottling, the shortest among COVAX’s top suppliers, several COVAX and EU officials told Reuters.

In addition, the company’s quality checks can themselves sometimes take months.

COVAX’s complex system to assign doses to countries, and donors’ requests to deliver them to selected nations, often further eat into the vaccine’s short life, leaving sometimes only a few weeks before they expire.

Quality checks are conducted by all vaccine makers, but the time constraints are less of an issue for COVAX’s other top suppliers. Johnson & Johnson’s vaccines last two years when frozen, Pfizer’s last nine months and Moderna’s seven months, according to storage instructions approved by the WHO.

Millions of Moderna and Pfizer vaccines could also go wasted, some African countries warned in the WHO document, with the problem being linked usually to low vaccine uptake and insufficient cold-chain equipment to distribute these shots in remote regions.

EXTENDING SHELF LIFE 

Gavi said it has encouraged AstraZeneca to apply to the WHO for an extension of the expiration date, but talks have not led yet to a formal application. AstraZeneca said the process is complex due to its vast global network of companies manufacturing its vaccine.

One of its production partners, the Serum Institute of India, has been granted WHO approval for a nine-month shelf life, after it was initially authorized only for six. But other batches produced by AstraZeneca in the rest of the world have only six.

“We are currently in discussions with the World Health Organization … but this is a complex task which requires data to be collected from across our global manufacturing network,” a spokesperson for AstraZeneca said.

A WHO spokesperson did not comment on the talks.

On average, African countries have used two-thirds of received doses, but that drops to 11% in Burundi and 15% in Congo, with other large countries, including Madagascar, Zambia, Somalia and Uganda, having used only about one-third, Gavi said, citing figures from late January.

Gavi said the total wastage rate was around 0.3% of doses delivered by mid-December. It declined to share more updated figures, but said the rate was expected to rise. — Francesco Guarascio and Jennifer Rigby/Reuters 

BW Insights: Public-Private Collaboration to Pivot into a Greener World

According to recent data by the Green Finance Platform through its Green Finance Measures Database, there are 684 national and sub-national policy and regulatory measures on green finance in place in 100 developed and developing countries. This represents a 264% increase since 2015.

How does the Philippines fare compared to these countries? With eight years left before the 2030 deadline stated by the Paris Agreement, is the country on track to achieve its environmental goals? How are the country’s policymakers enacting change to facilitate the Philippines’ green transition? How does the private sector contribute to realizing this vision?

Join the second and final leg of BusinessWorld Insights’ two-part series themed “Green Finance for a More Sustainable Future” as experts discuss the topic “Public-Private Collaboration to Pivot into a Greener World.”

This session of #BUSINESSWORLDINSIGHTS is supported by the British Chamber of Commerce of the Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry and The Philippine STAR.

Early home preps for the awaited summertime

It’s time to get your home ready for the hot summer days ahead. It would be best to keep your home cooler and more comfortable to enjoy the season with the whole family. To help you make your home into tip top shape before the summer hits, here are five early summer home preparations you can do with Wilcon Depot. 

Equip your space with efficient cooling product

Ensure that your home is equipped with the right and efficient cooling products that can maintain comfort at your home during the hottest days of the year. You should consider installing an air conditioning unit that can bring cooling comfort to your home this summer. Kaze air conditioners are perfect for a cost-efficient, sleek-looking room. These are energy-saving, economic, and environment-friendly AC units with low sound technology.

Declutter time!

It’s time to clear out the unnecessary things and clean up all the clutter that takes up your space. Decluttering every room in your home will make a huge difference and give your area a new look and vibe. Prepare all the cleaning materials you need like trash bin, broom and dustpan, rugs, mops, gloves, and cleaning solutions. You also need to consider having boxes and organizers to store your things and keep your valuables in one place.

Update interior into summer-ready feels

The warm weather calls you to update your interiors with a bright and beach-themed home. You can quickly transform your home by creatively designing your space with colorful and vibrant home interiors. Update your living room with a new couch, blankets, throw pillows and add some decorations in hues of seaside and nautical summer decor that would surely give your space a lift. Of course, you cannot go wrong with bringing in plants and flowers that will surely provide a summery look to your home.

Make a to-do list of home repairs

As you get ready for summer, inspect every area of your home for possible home maintenance and repairs. Take time to check your exteriors and interiors to know what materials you’ll be needing.  To make this job a less hassle, equip your home with Truper equipment and tools to help you with all the maintenance and repairs.

Plan food business ideas

When you’re thinking of starting a home-based small business this summer season, Filipinos are interested in food. When you’ve got skills in cooking and baking, you can explore and try selling summer food staples from merienda favorites, refreshing drinks, to yummy desserts. With this in mind, you need to equip your kitchen with high-quality and efficient appliances to get your job done quickly. Hamden kitchen appliances will be your partner for your foodie business idea.

Summertime is a perfect opportunity to enjoy so from this day on, start to plan your early summer home preparations with Wilcon Depot. Make your home ready for summer and get everything you need from the wide selection of products that Wilcon offers.

Shop for home improvement and building needs at any of their 73 stores nationwide or shop online at Wilcon Online Store by visiting shop.wilcon.com.ph. 

For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook and Instagram. Subscribe and connect with them on Viber Community, LinkedIn, and YouTube.

 


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Roxas Holdings, Inc. to conduct annual stockholders’ meeting on March 16

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS 

Please be advised that the Annual Meeting of the Stockholders of ROXAS HOLDINGS, INC. for the year 2022 will be conducted by remote communication on Wednesday, 16th day of March 2022 at 10:00 a.m. (URL: https://asm2022.rhi.com.ph/).  

Stockholders who are interested to participate in the proceedings may visit the above website, RHI’s website at https://www.roxasholdings.com.ph/ or check the Company’s disclosures via PSE Edge, for the requirements to register.  

Should you have queries, kindly send an email to: corporatesecretary@rhi.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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S&P sees above 7% GDP growth for PHL

PHILIPPINE STAR/ MICHAEL VARCAS
People cross Taft Avenue in Manila, Feb. 16. The government is preparing for the shift to a “new normal” as the country is now under a “low-risk” classification for coronavirus disease 2019 (COVID-19). — PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINE ECONOMY is expected to grow above 7% in the next few years, but is still grappling with pandemic scars as seen in the lost output gap in the gross domestic product (GDP), S&P Global Ratings said on Wednesday.

“As of the latest GDP reading, at the end of the fourth quarter 2021, we still estimate that the Philippine GDP level is 14% below where it would have been without the pandemic,” Vincent Conti, S&P senior economist, said at an online webinar.    

The Philippine economy rose by 5.6% in 2021, a reversal of the record 9.6% contraction in 2020.

For 2022, S&P expects Philippine GDP to expand by 7.4% which is within the 7-9% target by economic managers.

“We do expect growth, the rate of GDP growth to recover quite strongly over the next few years, staying above 7%. And we do also expect unemployment to ease down gradually from the peak that we saw during the pandemic,” Mr. Conti said.

Still, Mr. Conti noted how the Philippine economy continues to reflect economic scarring or some signs of long-term impact due to the crisis.

“However, we do also recognize that some of this scarring might be permanent in the sense that the level of GDP might never catch up to the half that it was taking without the pandemic. But that is not to say that the important parts of of the economic assessment cannot recover,” he said.

Mr. Conti last year warned that by 2025, the Philippine GDP will likely be 12% below where it would have been without the pandemic.

At the same time, Moody’s Analytics raised its growth forecast for the Philippines to 6.2% this year, after seeing the strong rebound in the fourth quarter as restrictions were loosened and business activity picked up.

“The 6.2% growth largely reflects the strong fourth quarter of 2021, which puts the 2022 forecast for GDP at a higher level,” Moody’s Analytics Chief APAC Economist Steve Cochrane said in an e-mail.

The projection is higher than the 5.6% GDP growth projection given in January.

Moody’s Analytics had cut its projection last month after it took into account the slowdown in economic activity due to the Omicron-driven surge in coronavirus disease 2019 (COVID-19) cases. 

Philippine GDP grew by 7.7% in the fourth quarter of 2021, a reversal of the 8.3% contraction in the same quarter in 2020. This was also higher than the revised 6.9% GDP expansion seen in the third quarter of 2021.

Moody’s Analytics’ 2023 growth projection was cut to 5.4% from the 5.7% given in January. “On a quarter-to-quarter basis, the 2023 projections are little changed, but the annual figure is shifted a bit as it is coming off of the revised 2022 forecast,” Mr. Cochrane said.

BANKS ON TRACK FOR RECOVERY
Meanwhile, the Philippine banking industry is on track for recovery, as loan quality improves alongside the economic rebound, S&P said. However, the debt watcher said risks remain due to its significant exposure to the property sector and the emerging variants of COVID-19.

In its Philippine banking industry country risk assessment (BICRA), the economic risk trend was upgraded to “stable,” S&P Global Ratings Associate Director Nikita Anand said. This was changed from “negative” which was given in the third quarter of 2020.

“The reason for a stable trend is because we believe that Philippine banks are on a recovery path supported by improving macroeconomic conditions, our concerns on asset quality have reduced significantly,” Ms. Anand said at a webinar on Wednesday.

The country’s BICRA standing is at 5, on a scale of 1-10 with 1 being the best. In the region, Singapore and Hong Kong were assessed as having the strongest banking sector landing a grade of 2. Malaysia ranked higher than the Philippines with a grade of 4, while Thailand and Indonesia were assessed with a score of 6.

Ms. Anand said the expected launch of more digital banks this year could trigger other banks to raise their deposit rates. New digital banks typically offer about 5-6% rates to attract funds. Only the Overseas Filipino Bank and the Tonik Digital Bank, Inc. (Philippines) have started operations.

The other four lenders that were granted licenses by the central bank are Union Digital Bank, UNO Bank, Maya Bank, and GOtyme.

“So if there is a possibility for deposit price competition, there’s a huge market out there to capture. The Philippines is a very under-penetrated market in that sense, especially when it comes to retail loans or small-ticket loans,” Ms. Anand said.

RISKS FROM PROPERTY
Philippine banks may face risks arising from their exposure to commercial properties, Ms. Anand said.

“There is uncertainty on the long-term prospects of this sector with the increasing preference for working from home and increasing preference for shopping from home and e-commerce,” she said.

Potential policy rate hikes could improve margins, although Ms. Anand said the BSP is not expected to start increasing interest rates in the near term.

Philippine banks will also likely improve profitability this year with the reopening of the economy.

“We are expecting higher credit growth and growth in fee income as business activity picks up as well as the lower credit costs to improve sector profitability,” she said.

The World Bank on Tuesday warned of the risk of rising loan defaults when relief measures are scaled back.

At a briefing on Wednesday, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno downplayed such risks in the case of the Philippines.

“I think the World Bank is referring to emerging economies in general. I think the Philippines does not belong to that group. I think we have prepared our banks and MSMEs (micro, small, and medium enterprises), we have helped them during this crisis. So I don’t see them under threat at the moment,” Mr. Diokno said.

Support measures introduced during the pandemic, included loan moratoria and relaxed accounting standards for recognizing distressed loans, have already lapsed. Ms. Anand noted that very few lenders have applied for the accounting relief measures and were mostly rural and cooperative banks.

In 2021, central bank data showed the local banking industry’s combined net income reached P223.66 billion, up 44% from the P155.22 billion seen in 2020.

The bad loan ratio declined to an 11-month low of 3.99% as of end-December, reflecting improving asset quality. It reached a 13-year high of 4.51% in July and August 2021. — Luz Wendy T. Noble and Jenina P. Ibañez

National ID should be accepted for all transactions, Duterte says

PHILIPPINE STAR/ MICHAEL VARCAS
A WOMAN registers for the national ID at a mall in Quezon City, Nov. 18, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

PHILIPPINE PRESIDENT Rodrigo R. Duterte has ordered government agencies and private institutions to start accepting the national ID or the Philippine Identification System (PhilSys) number as sufficient proof of identification in a bid to improve the delivery of public services and promote ease of doing business.

The national ID will serve as the state’s central identification platform for all citizens and resident aliens of the country, Mr. Duterte said in Executive Order No. 162 signed on Monday.

The PhilSys ID (PhilID) and PhilSys Number (PSN) shall be considered as sufficient proof of identity and age in all public and private transactions, he added.

“Unless otherwise provided by law, the presentation of the PhilID, PSN or PSN Derivative, as authenticated, shall be sufficient proof of identification and of all other personal details stated therein, without need for presentation of other identification documents,” the order stated.

The national ID may be presented instead of a birth certificate in applications for marriage license, student driver permit, or conductor’s license, the Professional Regulation Commission, and those relative to voter’s registration, the order stated.

It may also be used when enrolling at public and private schools or registering for the Philippine Educational Placement Test, it added.

The EO tasks the Philippine Statistics Authority (PSA) to ensure that “cardholders or holders of PSNs will not be prejudiced if authentication cannot be performed through no fault on the part of said persons.”

“Neither does this Order foreclose the recognition and acceptance of other government-issued identification documents in government and private transactions,” it said.

The order directs covered agencies to amend their Citizen’s Charters to integrate the components of PhilSys and accommodate its features.

Covered agencies must inform the public of these amendments, while private entities are enjoined to do likewise regarding similar changes in their identification requirements.

About 55 million Filipinos have already registered for the national ID system, but only six million cards have so far been released, the PSA said last week. — Kyle Aristophere T. Atienza

Japan may offer additional loans for Philippine pandemic response

REUTERS
A Japan Yen note is seen in this illustration photo taken on June 1, 2017. — REUTERS/THOMAS WHITE/ILLUSTRATION

THE JAPANESE government discussed extending an additional ¥30 billion in loans (about P13.3 billion) for the Philippines’ pandemic response in an economic and infrastructure meeting held on Wednesday, the Department of Finance (DoF) said.

“During the meeting, the two sides discussed proposed additional financing support of 30 billion yen from Japan under the 2nd COVID-19 Crisis Response Support Loan (CCRESL 2) to help cover the funding for the Philippines’ ongoing national vaccination program,” the DoF said in a statement after the 12th meeting of the high-level joint committee on infrastructure development and economic cooperation on Wednesday.

The Japanese government in 2020 released a ¥50-billion loan to the Philippines for its pandemic response, under the initial COVID-19 (coronavirus disease 2019) Crisis Response Emergency Support Loan. Japan-backed projects also included support for medical equipment procurement and cold chain storage system development in the Philippines.

After the meeting, Finance Secretary Carlos G. Dominguez III expressed confidence about continuing aid from Japan.

“I am confident that the commitment of Japan to partner with the Philippines in developing our economy is for the long term, as it has been in the past,” Mr. Dominguez told reporters in a Viber message.

The two countries also discussed Japan’s public and private financing to the Philippines since 2017, which has reached ¥1.38 trillion (about P612 billion), exceeding the commitment made five years earlier.

“I wish to report that Japan’s public and private financial contribution to the Philippines’ nation-building in the five years since January 2017 amounts to ¥1.38 trillion, well over the ¥1-trillion mark set forth,” Special Advisor to Japan’s Prime Minister Mori Masafumi said during the meeting.

Mr. Mori said that Prime Minister Fumio Kishida continues to support Philippine infrastructure development, maritime law enforcement, and COVID-19 responses.

“I’d like to emphasize that the government of Japan’s commitment to the bilateral cooperation project remains unchanged under the Kishida Cabinet,” he added.

The two countries also discussed the Japan-supported big-ticket projects under the government infrastructure program, including the Metro Manila Subway Project, North-South Commuter Railway Project, rehabilitation of the Metro Rail Transit Line 3 (MRT-3), Dalton Pass East Alignment Alternative Road Project, Central Mindanao Highway Project (Cagayan de Oro-Malaybalay Section), and the Parañaque Spillway.

The first high-level committee meeting was held in 2017, after Japan Prime Minister Shinzo Abe committed to provide ¥1 trillion in financing support to the Philippines over five years, mostly funding big-ticket infrastructure projects.

The government has raised $25.8 billion in financing and grants from multilateral lenders, development partners, and foreign currency denominated global bonds for its COVID-19 response since the start of lockdowns in 2020 up to Jan. 14 this year. — J.P.Ibañez

Southeast Asia poll shows China beats US as top economic power

UNSPLASH

CHINA is seen as the most influential economic power in Southeast Asia, according to the new poll, although there’s caution over Beijing’s territorial positions over the South China Sea.

A survey of 1,677 Southeast Asians by the ISEAS-Yusof Ishak Institute showed 76.7% regard China as the most influential economic power in the region, followed by the US at a very distant 9.8%. Washington trailing in second place comes after the administration of US President Joseph R. Biden finally unveiled its strategy to engage with Asia last week.

Half of those with a positive view of China, however, say that perception could be negatively impacted if Beijing continues to expand its influence in their country. China’s “strong-arm tactics” in the South China Sea are a top concern among those surveyed with 46.2% saying it could taint their perceptions of China. It was the top concern for all the claimant nations: 56.9% in Malaysia, 71.2% in the Philippines and 55.3% in Vietnam.

The survey on Wednesday comes as the foreign ministers from the Association of Southeast Asian Nations meet in Cambodia amid concerns over whether the region is able to get together on pressing issues ranging from disputes over the South China Sea to civil strife in Myanmar.

Of the 58.1% of survey respondents who show distrust toward China, nearly half of them fear Beijing could use economic and military power to threaten their country’s sovereignty. More than three out of four believe China should respect national sovereignty “and not constrain” the foreign policy choices of Southeast Asian countries.

A study by the Sydney-based Lowy Institute in December showed China’s influence in Asia receding for a second year of the pandemic as the country turned more inward, while the US expanded its power in the region through better diplomacy.

China’s membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, meanwhile, is perceived to create both opportunities and challenges for the region, according to the ISEAS study. If China were able to join, 31% felt it would reduce economic tensions in the region and help to resolve the US-China trade war, while just under 30% disagree.

Nearly 60% of respondents welcome the strengthening of the Quad, a regional partnership made up of the US, India, Japan and Australia, while 36.4% feel that the US’ security partnership with the UK and Australia known as Aukus will help balance China’s growing military power. — Bloomberg

Australia business council backs easing in PHL mining rules

THE Australia Philippines Business Council (APBC) said it welcomes the change in the Philippines’ policy direction for mining, including the lifting of a freeze on new mining licenses.

“These developments are expected to usher in significant benefits to the economy including manufacturing resurgence, and step up investor confidence,” the council said in a statement.

In December, the Philippines lifted a four-year ban on open-pit mining.

In April, it also lifted the moratorium on granting new mining permits.

“Mining is one industry that truly highlights the complementarity between Australia and the Philippines. The Philippines has vast untapped natural resources; Australia is a global expert in minerals development and production underpinned by responsible mining practices sought by the Philippine government and community. The potential for rewarding opportunities has always been there,” APBC President Rene Cabrera said.

“The country’s mineral resource assets are valued at approximately $1.32 trillion Australian dollars (and) are largely untapped. Thirty percent of its total land area has mineral potential but less than 3% is covered by mining tenements,” APBC said.

It said that the policy changes come with “stringent, clear-cut rules and regulations to ensure that they are equitably beneficial to the state and to the private sector with emphasis on environment sustainability and community safety.”

“Australian companies are well-placed to capitalize on these developments. The areas of opportunity include mineral exploration, mining equipment supply, engineering services, specialist software and industry education and training,” Jose P. Leviste, special advisor to the APBC and former chairman of OceanaGold Philippines, said. — Luisa Maria Jacinta C. Jocson

A local bakery is rising from the ashes of the pandemic

WHILE the Tinapayan Festival bakery has been around since 1982 (think of everything else that had happened in the 40 years since), the virus that had taken the world hostage in 2020 changed the game for its founder and General Manager Lucito Chavez.

“There were a lot of businesses, especially bakeries, that struggled to still exist and operate. We were forced to cut down our operations by 60%. Earlier than other establishments, we were the first to close our branches in the malls to secure our personnel from COVID-19 (coronavirus disease 2019) infection. We suspended our delivery operations due to lack of manpower as our employees wanted to go home to their provinces and be with their families. Even our suppliers, wholesalers, and resellers had a hard time reaching us due to the lockdown and community quarantine measures during the strict lockdowns,” he said in an e-mail to BusinessWorld.

Before the pandemic the bakery had three branches — the main one in Sampaloc, Manila, one in Fisher Mall in Quezon City and another in Market! Market! in Taguig. The mall branches closed in 2020.

“We never knew that this pandemic was coming and that it would hit our economy this hard. Pre-pandemic, we already had plans set up for the company and we had to postpone most, if not all, in consideration of this pandemic,” he added.

Rolling into the third year of the pandemic, the bakery has plans. It is expanding again, reestablishing its roots in Batangas. “This expansion is an adventure. It is high time for us to explore the bakery business by going home to our roots in Cuenca, Batangas — which is known as the Home of the Bakers,” said Mr. Chavez who hails from that town.

They are hoping to resume delivery operations in the next few weeks.

CHALLENGING THE INDUSTRY
Tinapayan Festival’s product lines include breads that pioneered the use of agricultural products such as squash, potato, cassava, carrot, ube (purple yam), and sweet potato. According to a statement, their aim is to “place the Filipino baking industry at par with international brands.”

“The challenge in the Philippine baking industry is the call for continued research and development of products. We have to have the right mindset and inspiration to create products that are at par with the global market,” Mr. Chavez told BusinessWorld. “In achieving my goals for Tinapayan, I did not stop innovating my products until I was able to realize that the creation of our products is a testament of one of our values: excellence.

“A proper mindset must be inculcated to our fellow bakers in the industry. Dapat isaisip ng ating mga kasamahan sa industriya ang pagnenegosyo sa pagtitinapay habang isinasapuso ang pagtitinapay sa pagnenegosyo. (Our industry partners need to internalize business in baking; and baking in business.) We grow in both directions, in baking at the same time in doing business.”

SURVIVING THE PANDEMIC
What kept the bakery going during the pandemic? The fact that food is essential, basically. That, plus the need to help its employees. This was accomplished with help from the government and friends.

“We are in the food industry and food is essential. Ang tinapay sa pang-araw-araw at maging ang mga cakes and pastries sa mga celebrations ay laging bahagi ng hapag ng bawat pamilyang Pilipino. (Bread is for every day, and even cakes and pastries are always part of celebrations for Filipino families).

“We did not stop baking to give opportunities to our employees, despite our skeletal workforce, to retain their livelihood and to serve the community with baked products in the middle of the strict community quarantine,” said Mr. Chavez.

Government efforts and the private sector’s needs aided in their continued production.

“Another highlight is the Kadiwa Rolling Store, a project by the city government of Manila, in partnership with the Department of Agriculture, to bring fresh produced products closer to the residents amid the community quarantine,” said Mr. Chavez. “We are also very thankful to the Philippine Association of Flour Millers, Inc. who contributed to our donations to frontliners in the early years of this pandemic,” he said.

“It was not important to us if we lost sales by closing our branches and suspending delivery operations while focusing only on our main branch,” said Mr. Chavez. “Our main priority is to take good care of our employees and assure them of a little livelihood as we ensure the community of continued supply of bread products.”

Madaming nawalan ng trabaho dahil maraming nagsarang negosyo, walang mabilhan ng pagkain at gamot ang mga tao; ito ang ayaw namin maramdaman ng aming mga empleyado. May pagkain, may tirahan, may vitamins, may gamot at doktor, walang dapat ikatakot o ipangamba. (A lot of people lost their jobs because of businesses that have closed, and people then couldn’t buy food or medicine; this is what we don’t want our employees to feel. They have food, they have shelter, they have vitamins, doctors, and medicine; there is nothing to fear or worry about).”

Despite the challenges, Mr. Chavez finds some hope. “We see the pandemic as a rebirth. It is a great opportunity to restructure and to grow. It is a good time to teach and nurture people. Now that we are at what may be the lowest and most struggling point, our only option is to move forward and rise.”

Tinapayan Festival is located at 1650 Dapitan St. corner Don Quijote, Sampaloc, Manila. To place advanced orders, call 8732-2188, send an e-mail at sales@tinapayan@gmail.com. Tinapayan Festival products are also available via GrabFood and FoodPanda. —  Joseph L. Garcia

CREIT moves debut after ‘voluminous transactions’

By Keren Concepcion G. Valmonte, Reporter

CITICORE Energy REIT Corp. (CREIT) deferred its listing at the Philippine Stock Exchange (PSE) due to “voluminous transactions arising from the huge number of retail and individual investors.”

In a statement on Wednesday, the company said the strong investor demand for the P6.4-billion initial public offering (IPO) of the country’s first energy-focused real estate investment trust (REIT) slowed its processing time.

CREIT’s market debut was initially scheduled Feb. 17. It has yet to confirm a new listing date as of press time.

“We are grateful to the overwhelming reception of investors, owing also to the extensive market education conducted, which further increased appreciation for REITs as a new asset class,” CREIT President and Chief Executive Officer Oliver Y. Tan said.

The company said all shares allotted for its institutional, trading participants, and local small investors (LSIs) tranches were oversubscribed.

“In as much as the underwriters wanted to accommodate all interested investors, the strong orders for CREIT’s IPO from local and international institutions and more than 5,000 retail investors simply outnumbered the total shares offered to the public,” Unicapital, Inc. First Vice-President for Corporate Finance Pamela Louise Q. Victoriano said.

“The underwriters nonetheless exerted efforts to distribute the shares as widely as possible to a broad investor base to hopefully result to better liquidity and more active trading,” she added.

CREIT said the local small investors tranche of the offer was oversubscribed by 124.09%. The company received a demand of 270.745 million shares for 218.182 million shares allocated for the LSI tranche.

“For the LSI investors who were not able to participate in the country’s first energy REIT or received partial allocations, rest assured that refunds for those who placed and paid for their orders but were not allocated are being promptly processed by the Underwriters and the Receiving Agent,” Mr. Tan said.

CREIT sold 2.509 billion shares for P2.55 apiece. Based on projected earnings, the company is expected to have a dividend yield of 7% in 2022 and 7.4% in 2023.

The company said it is looking to implement a dividend payout of at least 95% of its distributable income for the preceding year.