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Indians tighten belts as Ukraine war drives up prices of necessities

EVGENY NELMIN/UNSPLASH

NEW DELHI — Many Indians are cutting down on fried food and even vegetables as the Ukraine war inflates the prices of items from edible oils to fuel, threatening a sputtering recovery in the consumption-based economy after two years battling coronavirus disease 2019 (COVID-19)

Consumers in Asia’s third-largest economy are feeling the bite as companies pass on a surge in costs since the invasion, battling the first hikes in five months this week in the prices of diesel and petrol, as well as more expensive vegetable oils. 

“God only knows how we will manage this level of price rise,” said Indrani Majumder, the sole earner in a family of four in the eastern city of Kolkata, adding that the past two years of the pandemic had brought a halving in salaries. 

These days her family eats more boiled food to save on the cost of edible oil, she said. It is just one of almost a dozen homes where people said they were taking similar steps. 

India’s economy expanded at a pace slower than expected in the quarter from October to December, and economists forecast a further dent to growth in the current one, as high fuel prices bring a jump in inflation. 

Private consumption contributes the largest share of gross domestic output, at nearly 60%. 

But since the invasion late in February, which Russia calls a special operation, Indian firms have raised prices of milk, instant noodles, chicken and other key items by about 5% to 20%. 

About 800 million of a population of nearly 1.4 billion received free government supplies of staple foods during the pandemic, and even small price rises now can mean a knock for their budgets. 

Families’ finances could stay anemic for the third year in a row, warned Pronab Sen, formerly India’s chief statistician. 

“The process of rebuilding savings was only beginning post the pandemic,” he added. “Because of this latest shock, they will have to cut back on consumption.” 

DARKENING PICTURE 

Surging global prices of crude have prompted companies in the import-dependent nation to raise retail prices of petrol and diesel twice this week. India imports 85% of its crude oil, which has seen prices rise nearly 50% this year. 

The South Asian nation is also the world’s biggest importer of edible oil, shipping in nearly 60% of its needs. 

But the price of palm, the country’s most widely consumed edible oil, has jumped 45% this year. And supplies of sunflower oil, which Ukraine and Russia produce in large quantities, have been disrupted. 

Some wholesalers said their sales of edible oil had fallen by a quarter in the past month as prices rose. 

These factors helped keep India’s retail inflation in February above the central bank’s comfort level of 6% for the second month in a row, while the wholesale rate was more than 13%. 

“The timing of input price inflation could not have been worse in the context of a slowing consumption trend,” financial services firm Jefferies said in a note. 

The central bank has said it is monitoring crude and commodity prices ahead of its next monetary policy meeting in early April. But markets do not expect the Reserve Bank of India to change key rates, as it looks to prioritize growth. 

This stance compares with global central banks, which have either raised rates or are weighing whether to do so to curb inflation. For instance, policymakers of the US Federal Reserve called this week for big rate hikes in May. 

For consumers, there is little relief in sight. 

The Confederation of All India Traders estimates input costs for makers of consumer durables and fast moving consumer goods (FMCG) to rise another 10% to 15% this month as fuel prices rise, an expense destined to be passed on to the final consumer. 

In Kolkata, vegetable vendor Debashis Dhara said higher transport costs would bump up vegetable prices by a further 5% this week. His sales have already halved since February. 

India’s Mother Dairy and Amul raised milk prices by nearly 5% this month, while FMCG companies such as Hindustan Unilever and Nestle are charging more for items such as instant noodles, tea and coffee. 

Broiler chicken prices have jumped nearly 45% in six months to a record 145 rupees ($1.90) a kg this week, as key feed ingredients corn and soymeal have become costlier after supplies from the Black Sea region were affected. 

Fertilizer prices have shot up to a record $150 a tonne since Russia, one of the biggest producers, rolled tanks and soldiers into Ukraine. 

“It has become very difficult to manage our monthly budget,” said Archana Pawar, a housewife in the financial capital of Mumbai. “This kind of price rise is forcing us to cut down consumption.” — Aftab Ahmed and Rajendra Jadhav/Reuters

Smart brings back annual Infinity Golf Classic exclusive to members

FILIPINO PRIDE Rianne Malixi and PLDT Inc. and Smart President and CEO Alfredo S. Panlilio play golf at the Smart Infinity Classic The President’s Cup early this week at the Sta. Elena Golf and Country Club in Laguna. Smart, through its luxury postpaid brand Smart Infinity, has taken a huge leap into the new normal by bringing back the well-loved annual golf event. (Photo by Nino Carandang)

Mobile services provider Smart Communications, Inc., (Smart), through its luxury postpaid brand Smart Infinity, has taken a huge leap into the new normal by bringing back the well-loved annual Infinity Golf Classic President’s Cup exclusive to members at the Sta. Elena Golf and Country Club in Laguna last March 21.

Part of the many exclusive perks and privileges of every Smart Infinity subscriber, the revival of the Infinity Golf Classic The President’s Cup took on a much deeper meaning as it honored changemakers and advocates of social impact and coincided with the 11th anniversary of the MVP Sports Foundation (MVPSF).

“One of the most important lessons that I learned during this pandemic is that while our time here on earth is finite, we have the ability to make an infinite impact and leave a legacy. Throughout the pandemic, Smart Infinity has been inspired by powerful stories of individuals who contribute to society the best way they can. Now, we aim to empower Infinity members to become Changemakers in their own way and create infinite legacies for a better world,” said Alfredo S. Panlilio, President and CEO at Smart and its parent company, PLDT Inc.

Enabling members, championing Changemakers

Smart Infinity’s The President’s Cup served as a competitive reunion for Infinity members who have been going out of their way to create a positive impact in society.

As a sportsman himself and President of MVPSF, Panlilio recognizes that athletes giving their best for the sport they love is a powerful source of inspiration – be it at the golf course, on the basketball court, or even on the virtual arena.

Amongst the golfers in attendance was 15-year-old Filipino pride and Defending Philippine Amateur Champion Rianne Malixi, who is among the athletes backed by the MVPSF. Definitely a changemaker herself at a young age, the 2021 American Junior Golf Association (AJGA) winner and qualified US Women’s Amateur Championship golfer is expected to be part of Team Philippines in the 2022 Southeast Asian (SEA) Games in Hanoi, Vietnam in May.

Exclusive perks and privileges for Smart Infinity members

Apart from the one-day tournament, Infinity members were treated to a relaxing and rewarding day with exclusive offers from Smart Infinity powered by the country’s fastest 5G mobile network.

“Last year was a pivotal year for Smart Infinity when we relaunched the brand as the luxury postpaid brand of Smart Communications Inc. Today, Smart Infinity is here to highlight how we value our members as we continue to serve their lifestyle needs over and beyond mobile connectivity,” said Sofia Borromeo-Alvarez, Smart Infinity AVP and Brand Head.

“Smart Infinity is here to go the extra mile when it comes to serving our members — be it in sports, travel, and other lifestyle needs — our customer-centric Limitless Plans provide unlimited 5G connectivity, unlimited all-network mobile calls and texts, unlimited landline calls, and a wide array of luxury services though our Worldwide Concierge for both local and international lifestyle needs,” added Borromeo-Alvarez.

Smart Infinity also comes with the services of a personal relationship manager, a 24/7 dedicated hotline, and priority lane at Smart Stores nationwide. Know more about how Smart Infinity empowers changemakers at https://smart.com.ph/Postpaid/infinity.

 


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IMF sees need to adjust rates earlier

BW FILE PHOTO

By Luz Wendy T. Noble, Reporter

THE Philippine central bank may have to reassess its loose monetary policy earlier than planned as the surge in commodity prices raised inflation concerns, the International Monetary Fund (IMF) said.

“While there is still some policy space to absorb the price increases, as the latest numbers show that inflation is in the middle of the BSP’s (Bangko Sentral ng Pilipinas) target range, greater vigilance from the monetary authorities will be required, and the accommodative monetary policy may need to adjust earlier than expected,” IMF Representative to the Philippines Ragnar Gudmundsson said in an e-mail.

A poll held by BusinessWorld last week showed 15 out of 17 analysts expect the Monetary Board to retain its record low policy rates today (March 24), in line with signals from the central bank that it will remain patient in supporting growth.

BSP Governor Benjamin E. Diokno has earlier said the central bank would remain patient in supporting the economy and would wait until the second half of the year to assess the need for a rate hike.

The consumer price index (CPI) rose by 3% for the second straight month in February, which is within the BSP’s 2-4% target range. However, the BSP has warned that inflation could breach the target range in the second quarter if oil prices continue to climb.

Global crude oil prices have been extremely volatile in recent weeks after Russia’s invasion of Ukraine. This was due to worries over supply as Russia is the world’s second-biggest oil exporter.

Commodity prices have also spiked around the world. Wheat is a major export for both Russia and Ukraine.

Mr. Gudmundsson noted that oil and gas, energy and transportation, and wheat have a combined weight of about 18% in the country’s CPI.

“The current surge in energy and commodity prices has added to the inflationary pressures already caused by supply chain disruptions and the rebound from the coronavirus disease 2019 (COVID-19) pandemic,” he said.

“One should therefore expect some pass-through of these higher prices to headline inflation in the coming months,” he added.

Mr. Gudmundsson said the IMF estimates that the pass-through impact of world oil prices in emerging markets to prices paid by consumers is 25%.

“The war will affect the cost of living, especially for the poorest households disproportionately affected by the increase in energy prices,” he said.

Since the start of 2022, pump prices of gasoline, diesel and kerosene have increased by P14.90, P19.20, and P16.35 per liter, respectively.

Meanwhile, Mr. Gudmundsson noted the country’s strong external position serves as a safety net amid market volatility and the weakening of the peso caused by the war in Ukraine.

“While market uncertainty may prompt an increase in government bond yields and intensify pressure on the currency, it’s important to note that the Philippines benefits from its flexible exchange rate and a strong foreign exchange reserves position,” he said.

The IMF in a blog titled “How War in Ukraine Is Reverberating Across World’s Regions” last week has said Asia-Pacific economies will only experience limited spillover effect from the war due to the distant economic ties. However, it warned that a slower growth in Europe and the global economy could hit petroleum importers in Southeast Asia.

“Asia’s food price pressures should be eased by local production and more reliance on rice than wheat. Costly food and energy imports will boost consumer prices, though subsidies and price caps for fuel, food and fertilizer may ease the immediate impact — but with fiscal costs,” it said.

The IMF expects the Philippine economy to grow by 6.3% this year, which is below the 7-9% government target. In January, it said the impact of the Omicron variant will be limited to the first quarter of the year.

The economy expanded by 5.6% last year following a record 9.6% contraction in 2020.

Duterte signs EO on economic recovery

PHILIPPINE STAR/ MICHAEL VARCAS
A teacher assists students at an elementary school in San Andres, Malate, Manila, Feb. 9. President Rodrigo R. Duterte signed an executive order on a 10-point policy agenda for economic recovery, which includes resumption of face-to-face classes. — PHILIPPINE STAR/ MICHAEL VARCAS

PRESIDENT Rodrigo R. Duterte signed an executive order which lays down a 10-point policy agenda aimed at accelerating the economy’s recovery from the coronavirus pandemic, just a little over three months before he steps down from office.

“There is an urgent need to adopt policies on economic recovery to sustain current economic gains, minimize the pandemic’s long-term adverse effects, and restore the country’s development trajectory,” read Executive Order (EO) No. 166, which was signed by Mr. Duterte on March 21. A copy was made public on Wednesday.

The Philippine economy grew by 5.6% in 2021, rebounding from the 9.6% contraction in 2020. Economic managers are targeting a 7-9% gross domestic product growth this year.

The 10-point policy agenda, which was recommended by the Economic Development Cluster, includes strengthening the country’s healthcare capacity and accelerating the coronavirus disease 2019 (COVID-19) vaccination program. The EO stated that restrictions on the use of COVID-19 vaccines by the private sector will be reduced.

It also emphasized the further reopening of the economy, expansion of public transport capacity, and resumption of face-to-face learning.

To boost the local tourism industry, the government will streamline requirements for domestic travel, limiting these to vaccination cards or negative RT-PCR test results for unvaccinated individuals, and a QR code that can be scanned by various contact-tracing apps.

The EO also sought to further loosen the requirements for international travel, such as providing quarantine exemptions for vaccinated foreign tourists.

Also, the government will prioritize the passage of laws to accelerate digital transformation, and to allow the efficient rollout of emergency programs during a pandemic.

“The proposed legislation may include measures such as the establishment of a standby fund to be utilized during pandemics, grant of authority to re-allocate funds for pandemic response, lifting of ceilings on the use of quick response funds, relaxation of data privacy requirements and standardization of special risk allowance, hazard pay and other reasonable forms of compensation to healthcare workers,” the EO stated.

Lawmakers are now on a break to prepare for the May elections. Congress will resume session on May 23 and adjourn on June 3.

The EO stated the government will shift the focus of decision making and government reporting to “empowering metrics” such as the total number of severe and critical COVID-19 cases, case fatality ratio and total vaccinations. This will help the government avoid “unnecessary changes” in alert levels and encourage more people to get vaccinated.

The government will also develop a Comprehensive Pandemic Response Framework to ensure the country will be able to handle future pandemics.

Under the EO, all government departments, offices, including state corporations and local government units should ensure their policies and programs are aligned with the 10-point policy agenda.

“These measures would help further reopen the economy towards greater normalcy, especially to mitigate the adverse economic effects of the Russia-Ukraine conflict,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort told BusinessWorld in a Viber message, referring to the resumption of physical classes and loosening requirements for international tourists.

Asian Institute of Management economist John Paolo R. Rivera said in a Viber message the 10-point agenda would help drive Philippine economic growth “if implemented efficiently and effectively.”

De La Salle University law and business professor Antonio A. Ligon said in a text message that while the EO’s objective is “laudable… it is unrealistic to say that the 10-point policy can bring us immediately to the pre-pandemic level because as experts observed, the government did not respond effectively when pandemic set in.” — Alyssa Nicole O. Tan

BSP tells banks to strengthen guard against phishing attacks

REUTERS/KACPER PEMPEL/FILE PHOTO

THE Bangko Sentral ng Pilipinas (BSP) told banks to boost their efforts to prevent phishing attacks that have led to losses for their clients amid the rise in digital transactions.

Memorandum No. M-2022-015 signed by BSP Deputy Governor Chuchi G. Fonacier on March 22 laid down supplementary controls that supervised financial institutions can implement to help prevent unauthorized transactions.

“BSP-supervised financial institutions should conduct continuing risk assessment of its product features, business rules and application controls, and implement appropriate enhancements and mitigation, as necessary,” it said.

“Fraudsters are adept in exploiting legitimate application features and business rules as well as in bypassing layers of controls,” the BSP said.

The central bank identified account takeovers and social engineering attacks as the most prevalent schemes by fraudsters.

“These are intended to manipulate customers into disclosing sensitive personal and account information necessary to execute unauthorized transactions,” it said.

To counter the aggressive phishing schemes, the BSP suggested ways for financial institutions to step up their guard.

For one, the BSP said banks should remove clickable links in e-mails and messages sent to retail clients. This should be complemented by a campaign to ensure users know that clickable links have been phased out.

The BSP said financial institutions should also have a customer notification measure coursed through mobile or e-mail whenever there is a request to change a mobile number, e-mail address, or account credential.

Sending personalized one-time personal identification number (PIN) messages to clients for services like device registration, fund transfer, and profile update, among others were also suggested.

The BSP said officials or representatives of financial institutions should be restricted from requesting or obtaining passwords and other critical authentication like one-time passwords. These institutions should also have a dedicated customer assistance team that will focus on and prioritize fraud cases.

Control measures include mandatory transaction notification for fund transfers beyond a predefined account as well as a cooling-off period for account changes is also recommended after a thorough risk analysis and assessment.

To boost financial consumer awareness, the BSP said banks should conduct regular customer education campaigns that discuss online scams and phishing schemes, as well as prevention.

The BSP said financial institutions should be equipped with surveillance mechanisms that will promptly address the growing threat of online scams.

Financial institutions are encouraged to tap existing information sharing platforms within the industry to investigate and recover funds lost to fraud incidents. They are likewise encouraged to cooperate with law enforcement agencies to resolve cybercrime cases.

In January, the Bankers Association of the Philippines partnered with the Department of Justice to boost information sharing and training to prevent financial cybercrimes.

“Banks have been recently proactively implementing measures designed to help clients protect themselves from cybercrime. One example is the removal of clickable links in SMS messages and e-mails that banks send to clients,” the BAP said in a Viber message.

The industry group said ensuring cybersecurity is a shared responsibility of the government, the banking industry, and the public.

Unauthorized withdrawals in illegal transfers reached over P1 billion during the pandemic, Justice Secretary Menardo I. Guevarra has said.

BSP Governor Benjamin E. Diokno earlier said financial institutions may have to reassess their spending on cybersecurity as more users shift to digital transactions. He said a major cyberattack may have a possible systemic implication to the Philippine financial system. — Luz Wendy T. Noble

Hidden pandemic victims: Filipinos get sick or die, but not from COVID-19

The San Juan de Dios Hospital in Pasay City displayed a sign that read: “Full capacity for COVID cases” on Jan. 14. Most parts of the country experienced a surge in coronavirus disease 2019 (COVID-19) infections in January. — PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Senior Reporter

MEDICAL DOCTOR Frederic L. Ting remembers when his patient, a 33-year-old woman, was diagnosed with breast cancer in late 2019, months before Manila, the capital and nearby cities and provinces were locked down to contain a coronavirus pandemic.

She was due to show up at the doctor’s office in mid-March of the following year, but had to postpone it after the first lockdown was imposed that month. She managed to see an oncologist only in September 2020.

“Unfortunately, the early stage two breast cancer had already spread to the lungs and liver,” Mr. Ting said in a virtual interview via Zoom.

“This was a typical scenario that many of our patients experienced because of the treatment delays caused by this pandemic.”

The coronavirus disease 2019 (COVID-19) has sickened 3.7 million and killed almost 60,000 Filipinos. Treatment delays caused by lockdowns and public health fears also worsened other illnesses, including cancer.

About 475 million people have been infected by COVID-19, while deaths reached over six million worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

Early stage breast cancer is curable, Mr. Ting said, but when it has worsened, the goals change from being cured to controlling the cancer.

These treatment delays could set back the county’s public health in the long term. And as Filipinos get sicker, the Philippine economy, already scarred by the pandemic, could worsen.

About a third of more than a hundred cancer patients at St. Luke’s Medical Center in Quezon City and Taguig experienced treatment delays in 2020, according to a study by the Cancer Reports journal.

The Philippine Society of Medical Oncology had asked doctors to prioritize treatment based on the patient’s cancer status to avoid coronavirus infection. They should consider shorter treatment if possible, or delay chemotherapy for patients in deep remission. 

Filipinos received delayed treatment for various non-COVID illnesses because of limited healthcare supply. Some of them lost their jobs and could no longer afford drugs whose prices have also risen.

The country’s limited healthcare facilities and manpower were transferred to coronavirus patients especially during an infection surge.

“Many of the machines used to diagnose tuberculosis were transferred for COVID-19 use,” Valerie Gilbert T. Ulep, a research fellow at the Philippine Institute for Development Studies (PIDS), said by telephone.

The Philippines could only offer 1.2 hospital beds for 1,000 people, the government’s health facility development plan showed.

“Every time a surge in coronavirus cases happens, patients infected with COVID-19 eat up valuable space in our hospitals that could have been used to accommodate non–COVID-19 patients,” Mr. Ting said.

“It’s not just the literal space or room, but also the manpower and other logistical functions.”

Although teleconsult services helped during lockdowns, doctors’ assessments were limited in the absence of a physical exam, he said.

Meanwhile, demand for healthcare treatment also declined, not because people were less sick but because they could no longer afford it.

In a study published by The Lancet journal, Mr. Ulep and his co-authors found that disease admissions and several healthcare procedures declined at more than a thousand Philippine hospitals in the first months of the pandemic. This continued to fall short of pre-pandemic levels for the rest of 2020.

The authors found that healthcare treatment for the poorest Filipinos declined at three times the pace for people who had insurance

“In the Philippines, 50% of healthcare services are out of pocket,” Mr. Ulep said in mixed English and Filipino. “If the economy sinks, household income will decline. You will not spend any more for healthcare services.”

LOST WAGES
In poorer countries, he said, income is a big indicator of healthcare use. “That kind of shift is more apparent among the poorer segments of the population.”

Mr. Ting said he had consulted with several patients whose conditions worsened because of treatment delays. “Unfortunately, this significantly decreased their quality of life and their chances of survival.”

Mr. Ulep in his study published by PIDS said the economy could lose P2.3 trillion because of the pandemic. Much of this is due to foregone wages and lost productivity due to untreated diseases and deaths unrelated to the coronavirus.

“And because of the pandemic, the prevalence of cardiovascular diseases, diabetes increased. That will linger throughout the lifespan of that person,” he said.

Socioeconomic Planning Secretary Karl Kendrick T. Chua has said the country is poised to reach upper middle-income country status — an economy with a gross national income per capita of $4,096 to $12,695, according to the World Bank — by end-2022.

Philippine gross national income per capita fell by 11% to $3,430 in 2020 from a year earlier, according to the multilateral lender.

But the country’s healthcare outcomes, such as infant and maternal deaths, don’t match upper middle-income countries, Mr. Ulep said.

“Even if we are transitioning to an upper middle-income country, our health status is actually not that great,” he said. “Because of COVID-19 that might also suffer. That’s how dismal it is. The problem in the Philippines is that the high infant mortality rate is actually because of the large disparity between the poorest and richest.”

He cited the need to boost state investment in public health.

The Philippine Health Facilities Development Plan 2020-2040 aims to provide 2.7 hospital beds to 1,000 people by 2040, requiring 400,000 more beds. Upper middle-income countries, the report said, have 3.8 beds for 1,000 people.

Southeast Asian governments should invest more in their healthcare systems to improve labor productivity and boost economic growth, according to the Asian Development Bank.

“We need to fully implement the Universal Health Care law,” Mr. Chua said in a Viber message.

Senator and presidential candidate Panfilo M. Lacson in January said the law, signed by President Rodrigo R. Duterte in 2019, had not been fully implemented to offer enough hospital beds and medical services because it lacks funding.

Meanwhile, Mr. Ting hopes that more people would get vaccinated against the coronavirus.

“It’s a vicious cycle,” he said. “We spend more resources every time we have a COVID-19 surge in the country, and we should remember the collateral damage of COVID-19 on patients whose conditions worsen because of treatment delays,” he said.

“We have to help each other out so we can end this pandemic soon and hopefully stop the vicious cycle.”

Bacolod hospital IPO approved

THE Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of Asia-Pacific Medical Center Bacolod, Inc., or APMC Bacolod.

In its March 22 meeting, the commission sitting en banc, resolved to render effective the Bacolod City-based medical facility’s offering of common shares worth up to P1 billion, subject to the compliance of remaining requirements.

“APMC Bacolod will offer to the public 3,600 blocks composed of 10 shares each, at an offer price ranging from P250,000 to P400,000 per block. The shares will be traded over the counter,” the SEC said in a media release on Wednesday.

The net proceeds from the offering is expected to amount to P997.52 million, which the company will use for the building and construction, loan payment, working capital, and other expenses related to its P2.6-billion medical facility in Bacolod.

APMC Bacolod will be a “multidisciplinary facility that will house medical and dental specialists who are subscribers to the capital stock of the corporation.” The intended and considered markets for its shares are mostly specialists and individuals related to these specialties, the company said in its prospectus.

APMC Bacolod is currently developing a state-of-the-art medical facility under Allied Care Experts Medical Center Bacolod, Inc.

In 2018, the deed of absolute sale was signed to acquire a lot for the center’s site located along Lacson St., beside the Ceres Northbound Terminal, in Brgy. Bata, Bacolod City.

APMC Bacolod said it aims to set up a Level 2 healthcare facility with an “organized, systematic, cost-effective, sympathetic and holistic approach to its goal in providing the best quality and justifiable medical and dental services to its clients and stakeholder.”

The new facility will provide services to residents of Bacolod City, nearby barangays and municipalities, and the whole province.

“Enormous task is expected and ahead of us but we are holding on to the vision of our founders and leaders, with dedication, faith in God and a burning passion to work together to cater to the people of Negros of their medical and health needs. Soon, there will rise a 250-bed capacity tertiary care medical center that is state of the art and of international standards, in the heart of Sugarlandia,” APMC Bacolod said in a statement.

In Western Visayas, there are three hospitals under the banner of Asia-Pacific Medical Center — in Aklan, Bacolod and Iloilo.

In June 2021, the SEC approved the initial public offering of Asia-Pacific Medical Center Aklan, Inc., covering 240,000 common shares.

APMC Aklan offered 35,420 shares, equivalent to 3,600 blocks or 10 shares per block at an offer price ranging from P250,000 to P350,000 per block. It expected to net P983 million from the offer.

APMC Aklan is currently constructing a seven-story, 216-bed health care facility worth P1.3 billion. The project is slated for completion by the second quarter of 2023.

The hospital will include doctors and dentists’ clinics, office area for the health maintenance organization, administration office, parking lots, commercial area, and waiting areas for patients. — Luisa Maria Jacinta C. Jocson

Converge gets go signal for P20-B bond offering 

LISTED fiber internet service provider Converge ICT Solutions, Inc. has obtained approval from the Securities and Exchange Commission (SEC) for its plan to raise up to P20 billion from the sale of bonds.

“The SEC has considered favorably the fixed-rate bond offering by Converge Information and Communications Technology Solutions, Inc.,” the agency said in a statement on Wednesday.

It said the commission sitting en banc resolved on March 22 to render effective the registration statements of Converge covering up to P20-billion shelf-registered bonds.

The offering is subject to the company’s “compliance with certain remaining requirements,” the agency also said.

The SEC noted that Converge may offer the P20-billion fixed-rate bonds in tranches within three years.

“For the first tranche, the listed internet provider will offer to the public up to P5 billion of bonds due 2027, with an oversubscription option of up to P5 billion.”

“Assuming the oversubscription option is fully exercised, the company could net up to P9.87 billion from the offer,” the agency added.

Proceeds, according to the SEC, will be used to fund Converge’s capital expenditures (capex) in connection with “plant equipment and other property, plant, and equipment and intangible assets for the expansion of its nationwide fiber network.”

The first tranche of bonds will be offered at face value from March 14 to 18, and will be listed on the Philippine Dealing & Exchange Corp. on March 25.

The regulator noted that Converge engaged BDO Capital & Investment Corp. as the transaction’s issue manager, while working with BPI Capital Corp. as joint lead underwriter and bookrunner.

Converge expects to spend around P26-28 billion for capex projects this year, higher than last year’s P25 billion. The company’s capex initiatives for the year will include selected investments into international subsea cables and enhancement of its information technology systems.

Converge said its net income more than doubled to P7.16 billion in 2021 from P3.39 billion in 2020. Its revenues increased by 69% to P26.48 billion in 2021 from P15.65 billion previously.

The company saw its earnings before interest, taxes, depreciation and amortization margins expand to 55.9% last year from 52.5% in 2020.

Converge ICT shares closed 5.93% higher at P28.80 apiece on Wednesday. — Arjay L. Balinbin

Globe subsidiary Asticom plans IPO

GLOBE Telecom, Inc.’s wholly owned Asticom Technology, Inc., a shared services company, said on Wednesday that it plans to go public in five years.

“It is part of our five-year plan to go public, to have that IPO (initial public offering). So yes, that is part of the growth strategy of the Asticom Group of Companies in order for us to continue growing the portfolio of services,” Asticom President and Chief Executive Officer Mharicar Castillo-Reyes said during a virtual press briefing.

She also said the group will soon launch a staffing and platform company that will “revolutionize the staffing solution industry.”

Asticom has formed various subsidiaries, including Asti Business Services, Inc. (ABSI), Fiber Infrastructure and Network Services, Inc. (FINSI), BRAD Warehouse and Logistics Services, and HCX Technology Partners, Inc.

Created in 2021, ABSI serves as Asticom’s business process solutions arm.

FINSI, which was also created in 2021, offers end-to-end services and industry-specific solutions to telecommunications, tower, infrastructure, and technology, including construction, building, installation, and maintenance services.

BRAD is an end-to-end supply chain technology solutions provider. Its services are tailor-fit for different industries, including e-commerce, food and beverage, health and wellness, and telecommunications.

Meanwhile, HCX is a provider of human resources, customer relationship management, and digital solutions.

The group announced in January that it had reached P2 billion in revenues as of the fourth quarter of 2021.

Globe Telecom shares closed 0.84% higher at P2,408 apiece on Wednesday. — Arjay L. Balinbin

CLI’s The East Village towers set to be completed by 2026

REAL estate developer Cebu Landmasters, Inc. (CLI) said that the development of The East Village’s first three towers at Davao Global Township (DGT) will be completed in the third quarter of 2026.

“The East Village at DGT is the first residential development in the township with over 2,000 residential unit offerings spread across the 6-tower vertical village. The newly launched and sold-out three towers with a total of 1,087 units will break ground in the second quarter of 2022 and are scheduled for completion in the third quarter of 2026,” CLI said in a disclosure on Wednesday.

The East Village and DGT are both projects of YHEST Realty Development Corp., CLI’s joint venture with the Yuson, Huang and Tan families belonging to the Villa-Abrille clan of Davao.

CLI reported that it sold out all units in the three towers, generating P4.068 billion in sales.

“Positioned as the most connected, green, and generous abode designed for the global Filipino, the record high sales turnout of The East Village shows that the development captured the robust demand in Davao City for residential units within a premier township designed to meet world-class standards,” CLI said.

The residential units are a mix of studio, one-bedroom and two-bedroom units with floor areas from 22.3 to 75 square meters (sq.m.). Prices range from P118,800 per sq.m. to P150,000 per sq.m. for the first three towers.

The East Village, along with a lifestyle mall and cultural center, is part of first phase of the 22-hectare DGT, which is close to completion, CLI said.

“DGT is envisioned to transform the former Matina Davao Golf Club into a global and iconic central business district. It will host the headquarters of top corporations in the country, office hubs of BPOs and multinationals; it will have a hospital, retail, civic spaces and a central park. It will be a development that dynamic Davao City truly deserves,” YHEST President Fred Yuson said.

Part of DGT’s initial phase is the P700-million lifestyle mall, DGT City Center. It will be complemented by the P200-million DGT Cultural Center, with showrooms, museum spaces, and theater, among other features.

CLI said it is developing other townships, including the 100-hectare Minglanilla Techno Business Park in Cebu, the 14-hectare Manresa Town in Cagayan de Oro, and more future estate projects in Cebu and Bacolod.

The company posted an attributable net income of P535.96 million in the third quarter last year, down 24.5% year on year. Its nine-month income went up by 23.3% to P1.85 billion.

At the stock exchange, CLI shares were unchanged at P2.97 apiece on Wednesday. — Luisa Maria Jacinta C. Jocson

AllDay Marts income up 80% to P395M as sales climb

SUPERMARKET operator AllDay Marts, Inc. reported unaudited net income growth of 80% to P394.9 million in 2021 on higher sales productivity and lower operating expense ratios.

“AllDay’s remarkable performance for 2021 is a continued validation of our value proposition, and bodes well for the company’s long-term prospects. AllDay’s distinct in-store experience, coupled with an increasingly efficient e-commerce model, has proved to truly resonate with our growing customer base of Filipinos who show an increasing preference for differentiated and experience-driven retail,” AllDay Chairman Manuel B. Villar, Jr. said in a statement on Wednesday.

In 2021, AllDay reported that sales were up by 19% to P 9.46 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) also improved by 9.1% in 2021 from 7.9% in 2020.

“As the country is well on its way to recovery from the pandemic, we will continue to focus on growing the business towards our 100-store milestone by 2026,” Mr. Villar said.

As of January, AllDay has a network of 35 stores in the country.

Last year, the company had its P6.03-billion initial public offering, which was about four times oversubscribed, raising a combined P4.52 billion by selling 7.52 billion shares at 60 centavos each.

“AllDay’s remarkable growth in 2021 befits our first year on the PSE (Philippine Stock Exchange). We believe that this puts us on strong footing to continue implementing our blueprint for AllDay: an in-store experience comparable to the best that the world has to offer, featuring even smarter customer facing technology, comprehensive product offerings, curated international selections, as well as better-tuned e-commerce capabilities. On the strength of these, we remain confident in our ability to deliver even better value to our stakeholders,” AllDay Vice-Chairman Camille A. Villar said.

AllDay Chief Executive Officer Frances Rosalie T. Coloma said the company’s performance in 2021 “confirms the Filipino market’s affinity for upgraded experiences — both in-store and online.”

“With fresh funds available to us by way of our successful IPO, we are put in a much stronger financial position as we can move forward with minimal debt load. This, in turn, allows us to fully focus our capacities towards our store network expansion. As we ride the tail end of the pandemic on this high note, we are increasingly confident as we continue to bring AllDay to even more locations across the country.”

At the stock exchange on Wednesday, AllDay shares were up 4.44% or P0.02 to close at P0.47 apiece. — Luisa Maria Jacinta C. Jocson

First Gen test-drives integrated EV project

FIRST Gen Corp. has launched on Wednesday its electric vehicle (EV) initiative called GreenWheels, a project that the company said will bring it closer to carbon neutrality.

“EVs do not spew CO2 (carbon dioxide) and other pollutants into the atmosphere, and these vehicles’ increasing popularity now expands their role in reducing emissions from the transport sector. By utilizing a solar-powered charging station, even the power used to charge the EVs becomes clean. This further optimizes and enhances the role of EVs in cutting down CO2 emissions and mitigating climate change,” First Gen President Francis Giles B. Puno said in a media release.

The project will be used inside the company’s Clean Energy Complex in Batangas City, supporting its push for reduced carbon emissions.

First Gen said under the GreenWheels project, it developed a fast EV charging station, which can accommodate multiple EVs, inside the complex.

“For the test vehicle, First Gen has acquired a Nissan LEAF, one of the first passenger EVs to hit the Philippine market,” it said.

After the pilot testing, the electric vehicle unit was calculated to be able to reduce 3 tons of carbon emissions after a 50-kilometer drive a day. A car that runs on fossil fuel can emit the same amount of carbon emission in a year.

The same calculations showed the acquired car can run up to 311 kilometers in one full charge.

Mr. Puno said the transport sector is a “crucial” factor in mitigating climate change.

“As part, therefore, of our mission to forge collaborative pathways for a decarbonized and regenerative future, we are pilot-testing the GreenWheels Project to understand its potential in reducing our carbon footprint and evaluate the feasibility later of developing it,” he said.

On Monday, First Gen reported that it ended last year with “flat earnings” of P12.4 billion attributable to equity holders due to more expensive fuel prices offsetting higher electricity sales as power demand recovered to pre-pandemic levels.

First Gen shares at the local bourse went up 30 centavos or 1.24% to close at P24.55 apiece on Wednesday. — Marielle C. Lucenio