Sansan Inc. to open global development center in PHL

November 29, 2022 | 12:01 am

JAPANESE tech firm Sansan, Inc. is set to open a global development center in the Philippines to accelerate its overseas product expansion.

In a statement on Monday, Sansan said that the global development center will be located in Cebu and is projected to be launched by early 2023.

Sansan is a provider of cloud-based solutions. Via its overseas unit, Sansan Global Pte. Ltd., the firm has been expanding the availability of its Sansan digital transformation solution and Bill One online invoice receiving solution in countries such as Singapore, Thailand, and Malaysia.

“The center will strengthen the development of Sansan’s product functions for global markets by establishing a global-standard technology development environment,” the company said.

“To accelerate its global ambitions, Sansan must increasingly respond to the needs of local customers in each country. This will require greater investments into multi-language support teams and development of unique functions in line with each country’s laws and regulations, systems, business customs, and workflows,” it added.

Sansan Overseas Establishment Team Head Fujikura Shigemoto said that the company opted to establish its development center in Cebu to boost its product development for overseas markets.

“The Philippines is actively attracting and supporting global information technology (IT) companies, and Cebu is known for its high-level IT education and large pool of talented engineers. The center’s opening will let us strengthen regional recruitment of engineers and improve our development environment overseas,” the official said. — Revin Mikhael D. Ochave

Entertainment News (11/29/22)

November 29, 2022 | 12:01 am

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Holiday shows at Newport World Resorts

NEWPORT World Resorts has a full festive season of live entertainment, with circus performances, concerts, and more at the Newport Performing Arts Theater this December. Kuh Ledesma will have a concert, All About Love, with fellow OPM icons Odette Quesada and Fe De Los Reyes, on Dec. 2 and 3. The man whose songs are the soundtrack of the Filipino Christmas, Jose Mari Chan, will be joined by vocal group The CompanY in Christmas in our Hearts: Jose Mari Chan in Perfect CompanY, on Dec. 9. On Dec. 15 and 16, Australian pop-rock duo Air Supply returns to the Newport Performing Arts Theater stage with their concert, Air Supply: The Lost in Love Experience. The Super American Circus is coming to town, combining cutting-edge circus acts and carnival fun. Produced by Global Entertainment Productions, it will have performances from Dec. 21 to Jan. 8. Spend the last night of the year at the biggest New Year’s Eve bash in Newport City, the Grand Countdown to 2023, on Dec. 31. Welcome the year with a bang through back-to-back performances by Lani Misalucha with Mel Villena and the AMP Big Band, and Gigi de Lana with the Gigi Vibes. The Grand Countdown will be hosted by Nicole Laurel-Asensio. Tickets to these shows are available at all TicketWorld and SM Tickets outlets.

Jessi, SB19, Denise Julia and more in Head In The Clouds Festival

INTERNATIONAL artist Jessi has been added to the lineup of the Head In The Clouds Music & Arts Festival in Manila. Jessi joins Denise Julia, Manila Killa, and SB19 at the inaugural Head In The Clouds Fest which will feature a range of global as well as local talent including headliners Jackson Wang, NIKI, Rich Brian, eaJ, and YOASOBI. This year’s festival will also showcase performances from BIBI, MANILA GREY, Ylona Garcia, ATARASHII GAKKO!, MILLI, Zack Tabudlo and many more; plus special guest Grammy-winning hitmaker and electronic producer ZEDD. The two-day festival will be held on Dec. 9 and 10 at SM Festival Grounds, Parañaque City. Limited tickets are available here: mnl.hitcfestival.com.

Araneta City’s Mini Fiesta Carnival opens

THIS year, Araneta City revives the feel of the classic Fiesta Carnival by opening the Mini Fiesta Carnival. This time, the carnival is situated in an open space, with many rides and attractions such as the Boat Pool, Mini Trampoline, Walking Dino, and Jurassic Adventure, Happy Cars and the Carousel. There’s also the Happy Chopper ride, a Snow Globe for IG-worthy photos, and a Road Train which goes outside the Carnival and roams around Araneta City. Apart from the rides and games, the carnival also features the iconic Giant Christmas Tree, and the returning Christmas on Display. Food stalls are also found inside Mini Fiesta Carnival. The Mini Fiesta Carnival is open from 2 to 11 p.m. every day until Jan. 8. Entrance fee is ₱50 with free food or drink. Tickets for each attraction vary, but a try-all-you-can pass is also available at ₱500.

Alchemy of Souls returns to Netflix

KOREAN fantasy drama Alchemy of Souls returns to Netflix on Dec. 10. The series proved to be a global hit and managed to stay on the Netflix Global Top 10 TV (Non-English) chart for 15 weeks. Telling a tale of images and magic, the series stars Lee Jae-wook and Go Youn-jung. Alchemy of Souls’ epic story is set to wrap up with its return to Netflix.

Ode to Mars releases debut single

THE BRAINCHILD of budding musicians Odilon Reyes and Martin Patrick Tan, Ode To Mars has released its first single, “O’ Sinta.” The song is part of the latest Fresh Finds Philippines playlist on Spotify and is now available on digital streaming platforms.

Waterwalk releases a Christmas track

NEW recording artists Cherise Katriel, Cola Cabalcar, and Alyn Magadia have released a Christmas song, “Pinakapasko,” a new collaborative track under Waterwalk Records and Sony Music Entertainment. The song has a blend of jazzy, R&B rhythms, and pop hooks. For updates on new tracks, artists, and upcoming events, follow Waterwalk Records on Facebook and Instagram.

BEY releases new single

FOLLOWING the release of “Dahilan” last year, Filipino-American singer BEY unveils a soothing track, “Close 2 U.” The song is a fusion of rhythm and catchy lyrics, depicting the struggles of finding yourself in a situation where you feel lost and perplexed. “Close 2 U” is available on all digital streaming platforms.

Ben&Ben releases new song

AFTER bagging five wins, including Album of the Year, at the recently concluded Awit Awards 2022, acclaimed and sought-after band Ben&Ben returns with a new single that captures the essence of romantic love. The nine-piece band encapsulates love that is earned through perfect timing and experience. Penned by Paolo Benjamin and Miguel Benjamin, “Dear” serves as a reflection of the band’s collective and individual experiences with love so far and how one becomes stronger after going through bittersweet lessons in life. “Dear” is available on all digital music platforms worldwide via Sony Music Entertainment.

Sun Life Philippines targets double-digit growth in 2023

November 29, 2022 | 12:01 am

SUN LIFE of Canada (Philippines), Inc. targets sustained growth in 2023 as it looks to launch new products to cater to its clients’ needs amid higher interest rates and elevated inflation.

Sun Life Philippines Chief Executive Officer and Country Head Benedict C. Sison told reporters on Monday that the life insurer is “cautiously optimistic” even as it targets double-digit growth by next year.

“We’ve been growing double digits, so next year will be another double-digit year,” Mr. Sison said.

The company was the top insurer in the country in terms of premium income in 2021 with P45.47 billion, up 15.9% from P39.23 billion recorded the previous year.

Mr. Sison attributed the growth to the company’s brand and reputation and their productive agency force. He said the coronavirus pandemic also prompted more Filipinos to get life insurance products.

“One of the things that the pandemic did was it highlighted the importance the value of life and health insurance,” Mr. Sison said.

This sentiment mostly came from people who were under-insured or felt vulnerable during the health crisis, and from Filipinos who realized their families will not be in the best financial position should something unexpected happen, he said.

STRONG FINANCIAL POSITION
Mr. Sison said Sun Life Philippines paid around P4 billion in claims and maturities in the first nine months of 2022, showing its strong financial position, which he expects to be sustained next year.

“We have a long roster of products to be launched next year covering life, health and wellness. Our products are really meant to basically address the changing the needs of our clients, and our client needs are changing day by day,” the official added.

“With rising inflation, obviously interest rates will go up. And because interest rates are going up, it kind of dampens the sentiments of people in the equities market. A lot of individuals are more fearful in their investing,” Mr. Sison said.

The Bangko Sentral ng Pilipinas has so far raised benchmark interest rates by 300 basis points since May to tame inflation.

Headline inflation averaged 5.4% in the first 10 months of 2022, lower than the central bank’s revised 5.8% full-year forecast but well above its 2-4% target.

“This is where market education or financial literacy is very important because what we tell our clients is to invest on three things: their goals, their time horizon, and their risk appetite,” Mr. Sison said.

“This is when we have to deepen our relationship with our clients and basically reinforce to them the value of constantly investing to help them address the needs in their life, wealth and health journey,” he added. — Keisha B. Ta-asan

Philippines still leads regional peers in climate change performance

November 29, 2022 | 12:00 am

The Philippines jumped 11 spots to land at 12th place out of 63 countries* in the Climate Change Performance Index (CCPI) 2023 report by Germanwatch, NewClimate Institute, and Climate Action Network. The CCPI is an independent monitoring tool for tracking countries’ efforts to combat climate change which aims to enable transparency in national and international climate politics and enables comparison of climate protection efforts and progress made by individual countries. It assesses a country’s performance in four categories, namely: greenhouse gas emissions, renewable energy, energy use, and climate policy. In the latest report, the Philippines outperformed its peers in the Asia-Paciﬁc region with an overall score of 62.75. However, it had a mixed performance across the four categories of the CCPI.

How PSEi member stocks performed — November 28, 2022

November 29, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, November 28, 2022.

Taking music production up a notch

November 28, 2022 | 11:59 pm

Waxiefied Sound Production — FACEBOOK.COM/WAXIEFIED.SOUND.PRODUCTION/

IN a world where there is a playlist or soundtrack for everyone’s daily activities, from doing an early morning workout to soothing sounds for a restful evening, Waxiefied Sound Production (WSP) has brought a more immersive way to enjoy music and improve music recordings for artists.

The music production company has earned the Home Entertainment Studio Certification, the highest certification that sound pioneer Dolby Atmos issues to its partners. WSP also opened the first certified Dolby Atmos Home Entertainment Studio in the country in Pasig City.

“I downloaded specifications and qualifications of the Dolby Suite, and I handed it over to [WSP acoustics engineer] Jiggs Hermano. Then he decided to make these designs and what to build,” Waxie G. Joaquin, founder of Waxiefied Sound Productions and its Executive Mastering Engineer, said during a launch on Nov. 5.

“In my other day job, I do supply acoustics as well. We put our skills and know-how together and so we achieved the room,” Mr. Joaquin said.

The studio was finished in 47 days.

The equipment, which went through strict screening by Dolby’s international team, took about six months to arrive in the Philippines from suppliers worldwide.

“We had to find the right monitors, not because they sound good but because they will last long. We got the specifications of those speakers, sent them to Dolby for them to approve it. They gave us a list of equipment and what we needed to do for processing — types of computers, types of audio interfaces, types of cables, to the cables, even the plugs of the cables,” Mr. Joaquin explained.

“Because of the project and the dream that we had, all the suppliers that we were talking to us were assisting us. So, they found temporary equipment or equipment for loan. They know that Dolby was coming over to Manila to tune the room and to certify us,” he added.

The Dolby Atmos Mastering Suite facilitates and certifies high resolution mastering of audio which is the same as the Apple Digital Masters sound for Apple Music. It is a soundproofed studio surrounded by 14 main speakers that facilitate an immersive audio experience.

The WSP room was recalibrated to accommodate the proper positioning of the speakers and its distances from each other.

“It’s not just like painting a picture viewed in one scene,” WSP acoustics engineer Jiggs Hermano said. “Now you can look around and there are many scenes going on.”

WSP also introduced the Dolby Atmos Sound Mastering Service, used for mastering audio from a variety of content such as music, audio visual clips, reels, TV shows, TV series, and movies.

WSP has recently remastered songs by James Reid, New Game Plus, Nicole Asensio, Dan Gil, and Marga Jayy in different modes, from stereo mix to Waxiefied Stereo Master to Dolby Atmos. Other clients in the Waxiefied Sound Production portfolio include Massiah, Nadine Lustre, Jay Ortega, J. Mara, and Morobeats.

During a visit to the studio, BusinessWorld listened to the original recording and the Dolby remastered version of James Reid’s song, “u & i” (2022). This writer was seated at the work desk at the center of the room facing three main speakers. The computer screen at the desk showed how the sound dynamics shifts from every speaker through the movement of green dots.

“We believe that this is the future and we’re here to help everybody get to that point in the Philippines,” Mr. Hermano told BusinessWorld during the studio tour.

He clarified that the technology is suited only for the digital platform. “The media cannot fit in an analog format,” he said, noting that one three-minute track can take up two gigabytes.

WSP is offering the Dolby Atmos Sound Mastering Service to artists, record labels, and other music production companies. It is also available for rent.

Mr. Hermano hopes that WSP will be able to work on remastering the existing library of Original Pilipino Music (OPM).

“We have to raise the bar and make us (Filipino artists) listenable to the rest of the world,” Mr. Hermano said. “We are here to support any label or artist. The technology is for everyone.”

For more information about Waxiefied Sound Productions, visit their website at www.waxiefiedsoundproduction.com and follow their official social media pages on Facebook, Instagram, and Youtube. — Michelle Anne P. Soliman

Stocks climb on bargain hunting ahead of data

November 28, 2022 | 9:00 pm

PHILIPPINE SHARES ended in the green on Monday, testing resistance levels, on bargain hunting ahead of key US economic data.

The bellwether Philippine Stock Exchange index (PSEi) gained 74.53 points or 1.12% to end at 6,681.47 on Monday, while the broader shares index went up by 28.73 points or 0.83% to 3,481.17.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the PSEi extended its climb and tested resistance levels ahead of the release of data from the United States.

“A slew of US economic data await investors to be digested this week, including November employment change, third- quarter GDP (gross domestic product) data, PMI (purchasing managers’ index) reading, non-farm payrolls, and unemployment rate,” Mr. Limlingan said in a Viber message.

“The market continued on with its countertrend rally after the main index broke a confluence of resistance levels,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

Mr. Vistan said the lack of leads was good for short-term traders, with positioning and bargain hunting lifting the market.

“Markets seemed to have stabilized and are forming a support base. Global rates may seem to be on the way up but the rising pace is slowing down as inflation have already in some countries,” he said.

Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said the PSEi tracked Wall Street’s rally over the weekend.

“Philippine stocks rose, following the lead of the US market, which finished the holiday-shortened week higher, buoyed by a less hawkish signal from the Federal Reserve. The minutes of the Fed’s November meeting revealed an expected shift in policy after a majority of policy makers came to an agreement that easing the phase of rate increases would be reasonable,” Mr. Lood said.

Almost all sectoral indices ended higher on Monday. Mining and oil surged by 414.56 points or 4.2% to 10,264.62; services gained 53.03 points or 3.14% to close at 1,740.94; holding firms rose by 82.56 points or 1.3% to 6,390.08; industrials added 41.47 points or 0.43% to end at 9,560.54; and financials climbed by 4.55 points or 0.27% to 1,687.42.

Meanwhile, property declined by 16.88 points or 0.57% to 2,903.93.

Value turnover climbed to P8.68 billion on Monday with 729.87 million shares changing hands from the P7.14 billion with 489.03 million issues traded on Friday.

Advancers outnumbered decliners, 112 versus 77, while 40 names closed unchanged.

Net foreign buying went up to P914.01 million on Monday from the P842.26 million seen on Friday.

For Tuesday, AB Capital Securities’ Mr. Vistan placed the PSEi’s immediate support at 6,630 and resistance at 6,720. — A.E.O. Jose

Peso up on easing oil prices

November 28, 2022 | 9:00 pm

THE PESO strengthened versus the dollar on Monday after global oil prices eased, erasing all gains posted since the start of the Russia-Ukraine war.

The local unit closed at P56.64 against the greenback on Monday, stronger by three centavos from its P56.67 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s session at P56.80 per dollar. Its intraday low was at P56.90, while its strongest showing was at its close of P56.64 against the greenback.

Dollars traded went down to $806.9 million on Monday from $849 million on Friday.

The peso strengthened after global oil prices eased to new 11-months lows, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Brent crude dropped $2.43 or 2.9% on Monday to trade at $81.20 a barrel at 0731 GMT, after diving more than 3% to $80.61 earlier in the session, its lowest since Jan. 4, Reuters reported.

US West Texas Intermediate (WTI) crude slid $2.16 or 2.8% to $74.12 a barrel. It fell as far as $73.60 earlier, its lowest since Dec. 22, 2021.

Both benchmarks have posted three consecutive weekly declines. Brent ended the latest week down 4.6%, while WTI fell 4.7%.

This is due to the continued lockdowns in China, one of the world’s biggest importers of oil and major global commodities, Mr. Ricafort said.

“The peso was mostly weaker for the trading session, tracking regional weakness before closing almost unchanged from last Friday,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a Viber message.

“Asian foreign exchange weighed down by concerns about growing unrest in China and what that might mean for growth in the near term,” he said.

China has stuck with President Xi Jinping’s zero-COVID policy even as much of the world has lifted most restrictions.

For Tuesday, Mr. Mapa said the market will take its cue from global developments, especially from US Federal Reserve Chair Jerome H. Powell’s speech on Wednesday, where he is expected to give an outlook for the US economy that could provide hints on their next policy move.

The Fed has so far increased borrowing costs by 375 basis points since March, bringing the fed funds rate to a 3.75-4% range. It will update its interest rate and economic forecasts at their policy meeting on Dec. 13-14

Mr. Ricafort gave a forecast range of P56.55 to 56.75 per dollar for Tuesday. — KBT with Reuters

Investigation looms after six power plants declare outages

November 28, 2022 | 8:15 pm

THE Department of Energy (DoE) called on the Energy Regulatory Commission to investigate the forced outages or limited production at six power plants which caused yellow alerts, and, briefly, a red alert, to be raised over the Luzon grid on Monday.

On Monday, the National Grid Corp. of the Philippines (NGCP) twice placed the Luzon grid on yellow alert after outages removed 2,648 megawatts (MW) worth of supply from the grid.

The DoE said that power plants that went on forced outages were Calaca 2 and Sta. Rita Module 20 in Batangas; GNPower Mariveles 1 in Bataan; Sual 1 in Pangasinan; Masinloc 3 in Zambales; and San Buenaventura in Quezon.

“We anticipate that the Energy Regulatory Commission will also look into the root of this to prevent similar occurrence,” the DoE said in a statement.

In an advisory, the NGCP declared a yellow alert for the 10 a.m. to 5 p.m. period and again for the 6 p.m. to 9 p.m. period. The grid operator said that the capacity available on Monday was 11,750 MW, against peak demand of about 10,437 MW.

The NGCP initially declared a red alert for the 5 p.m. to 6 p.m. period but withdrew it at 11:30 a.m. after Sual 1 and Masinloc 3 came back online.

Yellow alerts are declared when supply available to the grid falls below a designated safety threshold. If the supply-demand balance deteriorates to below an adequate supply of power, a red alert is declared, warning consumers of rolling brownouts.

“We assure the public that there appears to be no fuel constraints. Some of these generating plants are on forced outage caused by power plant tripping,” Energy Secretary Raphael P.M. Lotilla said.

Manila Electric Co. (Meralco) said it put interruptible load program (ILP) participants on standby for possible activation after the NGCP alert.

ILP participants are large power users that have their own generating facilities. These entities stop drawing power from the grid for a time, tapping their own power plants for their needs, reducing the overall load on the grid.

“As of 11:30 a.m., we had 346.40 MW of committed de-loading capacity under the ILP,” Meralco said in a statement.

Meralco said that it currently monitoring the situation and is ready to implement manual load dropping or rotating power interruptions if instructed by NGCP. — Ashley Erika O. Jose

LANDBANK exploring financing deal for New Clark City gov’t facilities

November 28, 2022 | 8:15 pm

THE Land Bank of the Philippines (LANDBANK) and the New Clark Government Center Corp. (NGCC) are exploring a financing deal to support the construction of new government buildings in New Clark City in Tarlac.

LANDBANK said that NGCC is sounding out institutions willing to support the MTD Group’s upcoming projects, which include facilities for the National Bureau of Investigation.

NGCC is a special-purpose company created for the development of New Clark City. The company is an arm of the MTD Group.

In a statement, the state-run bank said that this initiative would “support the National Government’s plan to decongest Metro Manila.”

Since 2015, LANDBANK has helped finance the MTD Group’s infrastructure projects in Central Luzon.

These include the Palayan Government Center and Business Hub in Nueva Ecija, and the Bataan Government Center and Central Business Hub in Bataan.

The project in Nueva Ecija includes a five-storey government building for national and regional government offices, two six-storey buildings for business process outsourcing offices and commercial areas, and a six-storey business hotel with an adjoining two-storey commercial and retail complex.

Meanwhile, the project in Bataan serves as a one-stop shop for various government services, providing greater convenience to the constituents of the province. — Luisa Maria Jacinta C. Jocson

Romualdez files bill creating sovereign wealth fund

November 28, 2022 | 8:14 pm

SPEAKER Ferdinand Martin G. Romualdez has filed a bill that, if passed, would create a sovereign wealth fund to be seeded by the major pension funds and government banks.

House Bill 6398, filed on Monday, seeks to establish the so-called Maharlika Investments Fund (MIF), which will “optimize investment allocation” by the Government Service Insurance System, Social Security System, Land Bank of the Philippines, and Development Bank of the Philippines.

The MIF will also ensure that “resources are efficiently channeled to investments that will provide the most value not only to the participating GFIs (government financial institutions), but also to the country.”

Mr. Romualdez described the MIF as a “sovereign wealth fund,” which is typically funded by a government’s oil or other commodity export revenue or excess foreign exchange reserves.

He said the MIF’s investment allocation policy will seek to align itself with President Ferdinand R. Marcos, Jr.’s Agenda for Prosperity and the eight-point socioeconomic roadmap.

Mr. Romualdez cited as a model the Indonesian fund, which invested in airports, supply chains, logistics, digital infrastructure, the green economy, healthcare services, the financial sector, technology, and tourism.

“The MIF will have a governing board, composed of nominees of contributing GFIs, which would be in charge of managing the fund. It will also have two independent directors.”

Mr. Romualdez said that the MIF will adhere to the Santiago Principles, a list of best practices for sovereign wealth funds.

Co-authors of the bill are Majority Leader Manuel Jose M. Dalipe, Senior Deputy Majority Leader Ferdinand Alexander A. Marcos, Marikina Rep. Stella Luz A. Quimbo, and Tingog Party-list Representatives Yedda Marie K. Romualdez and Jude A. Acidre. — Alyssa Nicole O. Tan

ADB touts microfinance role in building resilience vs climate change

November 28, 2022 | 8:13 pm

MICROFINANCE institutions (MFIs) should be tapped in helping build resilience against climate change, especially for poorer and more vulnerable communities, according to the Asian Development Bank (ADB).

“Economic development supporting small- and medium-sized enterprises contributes to the resilience of the poor and vulnerable, including in urban areas,” the ADB said in a report.

“Building resilience against the impacts of climate change and geophysical shocks is critical for economic development and poverty reduction,” it added.

The world faces increasing flooding events; more frequent and longer heat waves; and stronger tropical cyclones, the ADB said.

The world’s extremely poor population is expected to rise to 132 million by 2030 due to the pandemic and climate change, according to the report.

“Microfinance institutions are well-positioned to be part of the solution. Additionally, MFIs in the region have a good history of serving women,” it said.

The ADB said that recent studies for urban MFIs operating in Bangladesh show contributions to savings, educational expenditure, and transportation expenditure, which increases labor mobility.

“MFIs in Bangladesh and Indonesia by and large focus their lending in urban areas. Some of the MFIs are concentrated in a single urban area. These concentrations compound the problems created by a geophysical shock,” it added.

In the Philippines, MFI initiatives should trickle down to the grassroots level, according to an economist.

“This is partly through applying environmental, social, and governance (ESG) standards on lending and investment decisions that help promote measures against climate change and make them more far reaching and more inclusive,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“These sectors in rural areas are also among the most prone to disasters due to climate change, especially the poorest of the poor and the most vulnerable or hardest-hit given limited resources and probably limited knowledge-awareness. Thus, technical, financial, preparedness, risk mitigated initiatives need to be targeted to them,” he added.

The report concluded that climate change and geophysical shocks are “creating an unresolved conundrum whereby the very financial institutions relied upon by the poor are also especially vulnerable to geophysical shocks, meaning that they are in a poor position to help their community when they are needed the most.”

“The balance sheet of the MFIs suffers, which means that they cannot respond to the community — either through recovery lending or by offering other forms of response immediately after the shock,” it added.

The ADB recommended implementing disaster risk financing solutions in order to support vulnerable communities.

“Efficient disaster risk financing solutions can be used to facilitate MFI recovery lending as an essential facet of building the resilience of the poor and vulnerable and, in turn, their communities,” the multi lender bank said.

MFIs have used disaster risk financing solutions to either expand lending into vulnerable regions or to pre-plan recovery lending programs, the ADB said.

The report also recommended the use of a single debt instrument to wrap normal credit with contingent credit and contingent capital together into one loan agreement.

“Contingent credit rebuilds liquidity and contingent capital flows with risk transfer instruments that are treated as subordinate debt and can be quickly converted to capital under Basel. The risk transfer goes to the global capital markets,” it added. — Luisa Maria Jacinta C. Jocson