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UnionDigital books P4.8B in loans, P9B in deposits

UNIONDIGITAL Bank, the digital lender of UnionBank of the Philippines, Inc., recorded P4.8 billion in loans and P9 billion in deposits just five months after its commercial launch and sees continued growth this year on expectations of improved demand for credit.

UnionDigital Bank President and Chief Executive Officer Arvie de Vera said in an e-mail interview with BusinessWorld that the “record-breaking” numbers seen as of November 2022 came in cooperation with its parent lender.

“We are parented by UnionBank, who has a 40-year-old track record in banking, financial services, and lending. As well as being grand-parented by the Aboitiz Group, a 100-year-old ‘techglomerate’ who has deep roots in various ecosystems and participates in various value chains,” Mr. De Vera said.

“It’s really an ‘unfair’ advantage because we, and only we, have access to these potential customers and are able to maximize the data within the group, part of which are a lot of underserved customers — whom we decided to tap first,” he added.

UnionDigital is the listed lender’s digital bank and was granted a license by the Bangko Sentral ng Pilipinas in July 2021. It began operating in July 2022.

Mr. De Vera said the digital lender was able to harness its parent’s “decades of deep financial data,” allowing them to target UnionBank’s underserved segments.

“Unlike other lenders who are trying to lend based on new data, trying to determine their capacity and willingness to pay, we take a more sure path to lending by using existing transactional data,” he said.

“This, together with the ability to use new and innovative banking underwriting models where we can apply and monetize all the data we have, contributed to our success and growth so far.”

BANKING CONVENIENCE
Asked what trends the digital bank has seen among customers in the first five months of its operations, Mr. De Vera said there is growing preference for efficiency and faster services that only financial technology or fintech players have been able to provide. 

“People want things faster. They want things more immediate, more cost-effective — an overall better customer experience. They want things more digitally enabled rather than paper-based, not manual and one-size-fits-all. It’s about being more personalized, really,” he said. 

“Before, traditional banks could only lend based on income or collateral. Now, you can use alternative sources of data to determine someone’s willingness and capacity to pay — and this became possible because of the digital transformation,” he said.

He added that digitalization is an enabler of economic growth, as it allows people to transact more efficiently.

Mr. De Vera also said more digital tools are accessible now, which have enhanced security to prevent any illicit banking activities online and boost volume growth and usability.

“As a digital bank from day one, we have a better starting point for security and to prevent fraud. Our orientation is immediately on cybersecurity, whereas traditional banks have to pivot to that. We have embedded within us a world-class digital security program, complete with cybersecurity controls into the customer online experience,” Mr. De Vera said.

Some of the tools that the digital lender uses to protect its clients are multi-factor and risk-based authentication, encryptions, threat aware apps, text message or e-mail alerts, as well as fraud and anti-financial crime monitoring, he said.

LENDING TO DRIVE GROWTH
This year, UnionDigital is looking to offer more loans to its clients, the official said.

“Our strategy focus would really be to lend and maximize the learnings we get from our ecosystem. This is really the main point of financial inclusion and of a bank — to lend and to have a balance sheet,” Mr. De Vera said.

“Since we already have a successful loan growth portfolio to date, we plan to continue and focus on this [this] year. At the core of a digital bank should be the ability to lend,” he said.

He added that despite elevated inflation, the bank is expected to sustain its growth this year because of the economy’s rebound.

“We really see that loans are going to be our driver, not just in terms of profitability but also in terms of focus and growth. It’s with the challenging 2023 environment, not just in the Philippines but globally, that we’re even more encouraged to focus on loans — because loans generate revenues and actual profit — and that’s more sustainable,” he said. 

“We don’t want to waste our resources on things that will not bring us revenue. We want to focus our capital on where we can earn the most revenue because it will drive profitability and sustainability to allow us to scale for the future,” Mr. De Vera added. — Keisha B. Ta-asan

Kevin Spacey hails Italy museum for having ‘the guts’ to honor him

ACTOR Kevin Spacey awarded by the National Museum of Cinema of Turin with the “Stella della Mole Award.” — TWITTER/MUSEOCINEMA

TURIN — Kevin Spacey picked up a career award in Italy on Monday, despite controversy over the sex crime allegations that have tarnished the reputation of the Oscar-winning American actor.

The Museum of Cinema in Turin said it handed the prize in recognition of Mr. Spacey’s “personal aesthetic and authorial contribution to the development of the art of drama.”

For the occasion, the 63-year-old was invited to speak at the museum.

“I am surely blessed and grateful and humbled and my heart is very full tonight toward the Museum of Cinema for having had le palle (the guts) to invite me tonight,” he said.

Spacey won Oscars for performances in American Beauty and The Usual Suspects, but his career largely ended a few years ago, after more than 20 men accused him of sexual misconduct.

In the run-up to the award ceremony, the Turin-based La Stampa newspaper ran an editorial headlined “Italy, land of plenary indulgence.” Last week, Mr. Spacey appeared by video link before a court in London, pleading not guilty to several charges of sexual misconduct against one man about 20 years ago.

The charges were joined to an earlier five-count indictment related to alleged sex offenses against three men between 2005 and 2013, for which Mr. Spacey previously professed his innocence. In another case that played out in the United States, Spacey defeated in October a sexual abuse claim brought against him by actor Anthony Rapp. — Reuters

Enabling access through technology

PIXABAY

Achieving the goals of universal health coverage (UHC) in low- and middle-income countries requires a structured, collaborative effort that ensures health systems use resources effectively and efficiently.  

In this regard, governments, payers, and clinicians need to consider a range of decision-making tools to prioritize healthcare interventions and ensure patients have access to quality healthcare products and services to prevent, diagnose, and treat diseases, the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) said. 

According to the IFPMA, international and national agencies should consider several key policy principles in considering how to make evidence-based decisions on healthcare.  

Evaluation systems should be holistic and consider all impacts of medical technologies, including medicines, assessing both the benefits as well as costs; consider national health systems and circumstances and tailor the use of medical technologies to local circumstances; have transparent processes that involve all stakeholders; have as an objective to increase access to new medical technologies; inform and promote patient choice; and encourage innovation and experimentation. 

While there are many evidence-informed decision-making tools available, some governments and payers use health technology assessment (HTA) to help inform health policy decisions.  

The World Health Organization (WHO) defines HTA as a systematic, multidisciplinary and transparent evaluation of the properties of health technologies and interventions covering both their direct and indirect consequences. It aims to determine the value of a health technology and to inform guidance on how these technologies can be used in health systems around the world. 

According to the WHO 2015 Global Survey on Health Technology Assessment by National Authorities, high-income countries are much more likely than low-income countries to use HTA for determining reimbursement or to decide what to include in a benefits package. Middle-income countries tend to use HTA to inform clinical practice guidelines and protocols more often (85%) than high- and low-income countries (46% and 50%, respectively). Less than 60% of countries in any income category used HTA for pricing of health products. 

The most conventional form of HTA is at the “micro-level,” which focuses on the assessment of individual health technologies such as drugs and medical devices. However, “micro-level” HTA of individual technologies is unlikely to address the systemic challenges faced by healthcare systems in low- and middle-income countries.  

In contrast, “macro-level” HTA specifically addresses patient access to high quality medical care by assessing the effectiveness and efficiency of interventions within the whole health system and informing the prioritization of healthcare services.  

“Macro-level” HTA can inform payers’ decisions on what products and services to cover in benefits packages as countries progress towards UHC and expand beyond basic benefits packages toward comprehensive coverage. 

The innovative biopharmaceutical industry believes evidence-informed benefits design that is patient-centered and takes into account the healthcare delivery system as a whole can help promote long-term sustainability and flexibility in meeting UHC objectives. This, at the same time, while ensuring that priority setting reflects social values and preferences for investment in healthcare. 

The Universal Health Care Act of 2019 created the Health Technology Assessment Council (HTAC), an independent advisory body with the overall role of providing guidance to the Department of Health (DoH) and the Philippine Health Insurance Corp. (PhilHealth) on the coverage of health interventions and technologies to be funded by the government.  

HTAC is mandated to undertake technology appraisals by determining their clinical and economic values in the Philippine healthcare system, with the aim to improve overall health outcomes and ensure fairness, equity, and sustainability of coverage for all Filipino citizens. Ethical, legal, social and health system implications are also considered in the assessments. 

The HTAC Core Committee is responsible for the development and submission of final recommendations to policy- and decision-makers, based on the evidence appraisal of the different subcommittees. 

As the country’s HTA works toward assessing medicines and technologies, it is important to consider the patient perspective and overall impact to improving health outcomes of the individual, and in the healthcare system. An ideal HTA is one which enables access to life-saving medicines and technologies for each and every patient who urgently needs them. 

 

Teodoro B. Padilla is the executive director of the Pharmaceutical and Healthcare Association of the Philippines (PHAP), which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos. 

DHL Express opens larger service center in Pasig City

DHL.COM

LOGISTICS firm DHL Express has opened a larger facility in Pasig City in a bid to address customer demand and improve its operations in the country.

In a statement, the firm said it invested P254 million in the relocation of its Ortigas Service Center to a larger 4,768 square-meter lot at the Good Harvest Complex, a few minutes from the company’s old facility along C. Raymundo Ave., both in Pasig City.

“With this facility, DHL Express will continue to serve the needs of new and regular customers in Pasig City, Mandaluyong, Quezon City, San Juan, Marikina, Cainta and Taytay, Rizal. Walk-in customers can easily book or drop their shipments at the DHL retail outlet conveniently located at the entrance of the facility,” the company said.

According to DHL Express, the newly relocated Ortigas Service Center features three warehouses, a customer retail outlet, and state-of-the-art material handling equipment.

The facility is also equipped with 94 closed-circuit television (CCTV) cameras equipped to track shipments across the entire process within the service center. The facility also has an x-ray machine to improve the inspection of shipment content.

“Our investment in the Ortigas Service Center reaffirms our commitment to enhancing our services to meet the needs and changing demands of our customers with the highest standard of excellence,” DHL Express Philippines Country Manager Nigel Lockett said.

“This also demonstrates our commitment to sustainability and decreasing our carbon footprint with the installation of solar panels, LED lights and battery-operated forklifts for energy conservation and the deployment of electric vehicles to serve the area,” he added.

Meanwhile, DHL Express Philippines Senior Director for Operations Promod George said that the new Ortigas Service Center also features improved amenities such as an employee lounge and gym.

“We continue to upgrade our services with advanced infrastructure at our new Ortigas Service Center. With increased capacity and state-of-the-art equipment, our customers can be assured that their shipments are handled with the utmost care and security, which will support their growth in international markets,” Mr. George said. — Revin Mikhael D. Ochave

JLL Philippines launches Fly Ace’s real estate companies

Fly Ace Group announces the launch of Happy Coral Way Realty and Endurance Realty Corporation at JLL Philippines’ head office

JLL Philippines and Fly Ace Corporation held a partnership event with an office and logistics market overview at NEX Tower, Makati City.

Ernesto Manansala, Senior Executive Vice President and CFO / COO of Fly Ace Holdings, Inc., announced the launch of two new real estate ventures from Fly Ace—Happy Coral Way Realty and Endurance Realty Corp. “We will continue to put into these new ventures the same effort, commitment, and dedication that we have poured into our FMCG business.”

Joey Radovan, Country Head of JLL Philippines, moderated the event. “We are very honoured to have Fly Ace Holdings Inc. with us today. Fly Ace Holdings Incorporated (FAHI) is the parent company of Fly Ace Corporation, CLE Ace Corporation, Happy Coral Way Realty Corporation and Endurance Realty Corporation,” said Radovan.

The program included market overview presentations from Janlo de los Reyes, JLL Philippines’ Head of Research and Strategic Consulting; and Charlie McNaught, JLL Philippines Director for Logistics & Industrial.

JLL Philippines is currently the exclusive leasing agent for two of Fly Ace Group’s properties, namely:

Doña Elena Tower – Sta. Mesa Manila

Doña Elena Tower is a 12-storey mixed-use building by Happy Coral Way Realty Corporation with a floor area of 1600sq.m per floor, located near Mandaluyong City’s border in the bustling district of Sta. Mesa, Manila. It is connected to major thoroughfares and is accessible via public transportation with proximity to a variety of enterprises, giving tenants the opportunity to work in a community where their needs are readily available.

ELC Center – Sta. Rosa, Laguna

ELC Center is a campus-type, PEZA-registered facility ideal as a business process outsourcing (BPO) hub located in Sta.Rosa, Laguna. This spacious property is a two-storey bare shell building with a floor area of around 5600 sq.m.

To know more about these properties, visit jll.com.ph/en/contact-us.

 


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How PSEi member stocks performed — January 17, 2023

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 17, 2023.


Peso weakens on China GDP data

BW FILE PHOTO

THE PESO declined against the dollar on Tuesday as economic growth in China was stronger than expected in the fourth quarter, boosting the greenback and global oil prices.

The local currency closed at P54.82 versus the greenback on Tuesday, declining by 24.50 centavos from Monday’s P54.575 finish, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s trading session slightly weaker at P54.60 per dollar. Its worst showing was at P54.93, while its intraday best was at P54.55 against the greenback.

Dollars traded rose to $1.373 billion on Tuesday from $1.27 billion on Monday.

“The peso weakened amid increased global activity prospects following the stronger-than-expected fourth-quarter Chinese GDP (gross domestic product) growth report,” a trader said in an e-mail.

The dollar index bounced from a seven-month low of 101.77 made a day ago, holding at 102.30, Reuters reported.

China’s economic growth in 2022 slumped to one of its worst levels in nearly half a century as the fourth quarter was hit hard by strict coronavirus disease 2019 (COVID-19) curbs and a property market slump, raising pressure on policy makers to unveil more stimulus this year.

China GDP grew 2.9% in October-December from a year earlier, data from the National Bureau of Statistics showed on Tuesday, slower than the third-quarter’s 3.9% pace.

The rate still exceeded the second quarter’s 0.4% expansion and market expectations of a 1.8% gain.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the peso weakened as oil prices remained elevated.

US crude fell 0.69% to $79.32 a barrel, paring some morning losses, while Brent rebounded to gain 0.25% at $84.67 a barrel, still near their highest levels this month as easing COVID-19 restrictions in China raised hopes of a demand recovery in the world’s top crude importer.

For Wednesday, the trader said the peso may rebound against the dollar on expectations of a weak US producer inflation report.

The trader sees the peso moving between P54.70 and P54.95 per dollar on Wednesday, while Mr. Ricafort gave a slightly narrower forecast range of P54.75 to P54.95. — AMCS with Reuters

Stocks drop on profit taking after Monday rally

BW FILE PHOTO

PHILIPPINE STOCKS closed lower on Tuesday on profit taking after the main index hit the 7,000 level for the first time since April 2022 on Monday and ahead of the resumption of trading on Wall Street.

The benchmark Philippine Stock Exchange index (PSEi) went down by 31.44 points or 0.44% to close at 7,014.04 on Tuesday, while the broader all shares index lost 17.23 points or 0.46% to end at 3,657.92.

“Investors cashed in after the index touched the 7,000 level [on Monday] and ahead of the resumption of trading in the US,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

On Monday, the PSEi closed at 7,045.48, which was its best finish since 7,061.49 on April 21, 2022.

Wall Street was also closed on Monday in observance of Martin Luther King, Jr. Day.

“Despite selling pressure coming from the three-day rally, the PSEi managed to stay just above the 7,000 level, as positive market sentiment continues following expectations that central banks would slow interest rate hikes throughout the year,” Unicapital Securities, Inc. Equity Research Analyst Neil Andrew L. Maderaje said in a Viber message.

Slower US consumer inflation in December has boosted hopes that the US Federal Reserve could consider slower rate increases as early as its first meeting for the year on Jan. 31 to Feb. 1.

The US central bank raised borrowing costs by 425 basis points (bps) last year, which brought the federal funds rate to 4.25-4.5%.

Meanwhile, at home, Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla last week said the central bank is likely to raise benchmark interest rates by 25 or 50 bps at its meeting on Feb. 16 amid the need to anchor inflation expectations.   

The BSP raised borrowing costs by a total of 350 bps last year to tame inflation. This brought its policy rate to a 14-year high of 5.5%.

Most sectoral indices closed lower on Tuesday except for property, which went up by 34.26 points or 1.11% to 3,098.25, and services, which gained by 3.81 points or 0.22% to 1,729.07.

Meanwhile, industrials lost 133.23 points or 1.33% to close at 9,872.57; holding firms went down by 71.09 points or 1.03% to 6,799.43; financials decreased by 13.39 points or 0.72% to 1,828.07; and mining and oil slipped by 63.73 points or 0.55% to end at 11,393.90.

Value turnover went down to P10.14 billion on Tuesday with 1.25 billion shares changing hands from the P10.23 billion with 1.11 billion issues traded on Monday.

Decliners outnumbered advancers, 111 versus 77, while 38 names closed unchanged.

Unicapital Securities’ Mr. Maderaje said global economic developments will continue to drive the market, with the investors also waiting for the release of full-year 2022 Philippine gross domestic product data on Jan. 26.

“We expect the PSEi to move sideways this week, further testing 6,800 points as a new support level,” he added. — Justine Irish D. Tabile

Aboitiz, Zobel de Ayala headline PHL business delegation to Davos 

REUTERS

THE Philippine business delegation to the Davos conference in Switzerland was led by the heads of some of the country’s biggest blue-chip companies representing the energy, property, consumer goods, transportation, and logistics industries, the Palace said in a statement.

Joining President Ferdinand R. Marcos, Jr. at the World Economic Forum (WEF) at the Swiss mountain resort were Sabin M. Aboitiz, CEO of the Aboitiz Equity Ventures, Inc. and Jaime Augusto Zobel de Ayala, CEO of Ayala Corp. 

Other members of the business delegation were Lance Y. Gokongwei, CEO of JG Summit Holdings, Inc.; Ramon S. Ang, CEO of San Miguel Corp.; Enrique K. Razon, CEO of International Container Terminal Services, Inc.; Kevin Andrew L. Tan, CEO of Alliance Global Group; and Teresita Sy-Coson, vice chairman of SM Investments Corp., the Presidential Communications Office (PCO) said. 

The PCO identified the top executives accompanying the President after reports that the business delegation consisted of about 70 people.

Mr. Marcos arrived in Davos on Sunday afternoon.

The forum is hosting a country strategy dialogue featuring the Philippines, whose economy is expected to grow by 6-7% this year.  

Mr. Marcos has said he will promote the country as “leader and driver of growth and a gateway to the Asia-Pacific region.”

“One that is open for business — ever ready to complement regional and global expansion plans of both foreign and Philippine-based enterprises anchored on the competent and well-educated Filipino workers, the managers and professionals,” he said earlier.

In a briefing with the Palace press corps en route to Switzerland, the President said much of the business will take place in separate meetings away from the forum proper.

“Aside from the question-and-answer with the audience, the President is also looking forward to the ‘pull-aside’ or ‘pull-away’ meetings on the sidelines of the WEF annual meeting,” the PCO said. 

The Philippines faces challenges arising from elevated inflation, rising borrowing costs, and the follow-on impact of a global recession which will affect many of its export and labor markets.

According to the World Bank, the economy’s growth will likely slow to 5.4% this year from an estimated 7.2% last year.

The government has lowered its own economic growth target for 2023 to 6-7% from 6.5-7.5%.

A member of the government delegation, Trade Secretary Alfredo E. Pascual, said he is focused on companies at Davos with active operations in the Philippines, pitching them on potential expansions.

In a statement on Tuesday, the Trade department said that Mr. Pascual held bilateral meetings with companies with Philippine operations on the first day of the WEF on Jan. 16.

These include Chevron Corp., US online education firm Coursera, Inc., Chevron Corp., US satellite firm Astranis, and global woman-focused startup platform She Loves Tech.

Mr. Pascual also met with the WEF’s Executive Committee and Head of International Trade and Investment regarding potential partnerships with the Philippines. 

“We have presented our country as an ideal investment destination in Asia. Similarly, we shared with them our improved business climate, which was fueled by the recent economic policy reforms that facilitate ease of doing business,” Mr. Pascual said.

“We see WEF as an opportunity to gather more foreign direct investment (FDI) that will complement our country’s economic recovery initiatives,” he added.  

The Department of Trade and Industry (DTI) said Mr. Pascual will join the CEO dialogue on the Philippines with President Ferdinand R. Marcos, Jr. as the keynote speaker.

“The dialogue will highlight the administration’s initiatives on energy, food security, and digitalization to add resilience and growth momentum to the country’s economy through public-private collaboration,” the DTI said.  

Aside from the CEO dialogue, Mr. Pascual will also represent the Philippines in several World Trade Organization (WTO) Ministerial-level meetings on e-commerce, investment facilitation for development, and climate change ahead of the WTO Ministerial Conference set on February 2024. — Kyle Aristophere T. Atienza and Revin Mikhael D. Ochave

Film industry bats for reduced taxes in Congress

PHILSTAR FILE PHOTO

THE film industry told Congress it is too heavily taxed, and added that reducing the tax burden would encourage filmmakers to produce more movies of higher quality.

At a hearing of the House committee on creative industry and performing arts, producer Josabeth V. Alonso proposed a reduction in the amusement tax on movies to 5% from 10% as well as tax holidays for the industry.

Ms. Alonso also cited a 2010 decision by the Supreme Court (SC), which found that entities charged an amusement tax are not obliged to pay value-added tax.

According to Ms. Alonso, film producers pay both.

She said that incorporating the ruling into an amendment to the tax code would clarify enforcement and “be a big help to the producers because that would reduce the breakeven target by 12%.”

In 2019 the SC ultimately decided in an en banc resolution to reject the Film Development Council of the Philippines’ motion to grant films amusement tax privileges, saying this violated “the principle of local fiscal autonomy,” with the denial of amusement taxes to local government units (LGUs) could be detrimental to LGUs. 

Dennis N. Marasigan, artistic director of the Cultural Center of the Philippines, told the panel, “If we are able to take out a lot of the taxation that filmmakers and producers (are subject to), then that would encourage producers to produce more quality films rather than to cater to the (mass market).”

In her presentation, Ms. Alonso noted that a film with P100 million in box office revenue and production costs of P50 million will generate net revenue of P37.62 million after 10% amusement tax, 12% value-added tax, and a 5% distribution fee, resulting in a P12.38 million net loss.

“Just because a film grosses a hundred million and above, doesn’t necessarily equate to profit,” Ms. Alonso said.

Ms. Alonso noted that none of the locally-produced films released in 2022 hit P10 million in gross sales. She estimated that films need to gross roughly 270% of production cost to break even.

Currently, only the city governments of Las Piñas and Quezon City do not charge amusement taxes, while Pasay reduced its rate to 5%. Other LGUs still collect a 10% amusement tax. — Beatriz Marie D. Cruz

SRA calls for sale of smuggled sugar at Kadiwa stores

A MAN repacks sugar in packets at a public market in Taguig City, Aug. 27, 2008. — REUTERS/CHERYL RAVELO

THE Sugar Regulatory Administration (SRA) said sugar seized from smugglers should be sold to the public via the Department of Agriculture’s (DA’s) Kadiwa stores.

In a statement on Tuesday, SRA Administrator David John Thaddeus P. Alba said the SRA will recommend to President Ferdinand R. Marcos, Jr., the sale of 80,000 bags of sugar seized at the Port of Batangas.

Last week, the Bureau of Customs seized about 4,000 metric tons (MT) of refined sugar valued at P240 million shipped from Thailand on the MV Sunward.

In December, the DA said it is expediting the import of 64,050 MT of refined sugar to address high sugar prices allegedly caused by tight supply.

The DA said it is convening the minimum access volume (MAV) advisory council to facilitate imports via the MAV mechanism.

In a virtual media briefing on Monday, Food security and livelihood advocacy group Tugon Kabuhayan offered to help the government with its anti-smuggling efforts, blaming the ready availability of smuggled goods for depressing farm incomes.

Association of Fresh Fish Traders of the Philippines President Roderic C. Santos said food producers are the main victims of food smuggling and must be involved in the enforcement of anti-smuggling laws.

Asis G. Perez, convenor of Tugon Kabuhayan, said that the DA is scheduled to file charges against smugglers within this week.

He added that while the group supports the creation of a DA inspectorate and enforcement group, he noted that the problem with the government’s anti-smuggling campaign is that “the group that goes after smuggling is ad hoc, without personnel.”

Mr. Perez said the continued smuggling of onions, rice, corn, sugar, fish, and pork continues to be a burden to farmers.

 “The persistent entry of these undocumented products is also threatening our economy in terms of revenue loss and untaxable commodities,” he said.

United Broiler Raisers Association President Elias Jose M. Inciong said the Agriculture and Fisheries Modernization Act of 1997, especially its provisions on data and quarantine, must be enforced.

Meanwhile, Leonardo Q. Montemayor, chairman of the Federation of Free Farmers, said that the DA should distribute the P5,000 cash transfer to all rice farmers, not only for those farming two hectares or less.

“When prices of palay (unmilled rice) go down due to imports, it affects all farmers, not only those that farm two hectares of land or less. For the sake of those affected by imports, all should benefit from the P5,000 income transfer,” he said.

The government’s rice farmer financial assistance program grants preference to rice farmers tilling between 0.5 hectares and two hectares. — Ashley Erika O. Jose

Government generates P681M in procurement savings

BW FILE PHOTO

THE GOVERNMENT generated savings of P681.2 million from procurement efficiencies in 2022, up 21.8% from a year earlier, the Department of Budget and Management (DBM) said.

“For the past three years, the government has attained significant cost savings through bulk procurement and market price monitoring and validation,” the DBM said in a statement on Tuesday.

Savings are defined as the difference between the market price of common-use supplies and equipment (CSE) and the acquisition price obtained by the DBM.

The DBM Procurement Service (PS) is the government’s central procurement office. It recently decided to focus on CSE following a backlash against the prices it obtained for an order of laptops for the Department of Education.

“We look forward to achieving ‘procurement transformation,’ not only in processes, procedures and products that we procure, but the overall transformation of PS-DBM relative to its structure, system and human resources,” Procurement Service Executive Director Dennis S. Santiago added. — Luisa Maria Jacinta C. Jocson