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Crime at crypto ‘DeFi’ sites hits $10.5B in 2021, research shows

UNSPLASH

LONDON — Fraud and theft at decentralized finance (DeFi) platforms has totaled $10.5 billion so far this year, research showed on Thursday, laying bare the risks in the fast-growing but still mostly unregulated area of cryptocurrencies.  

So-called DeFi platforms allow users to lend, borrow, and save — usually in cryptocurrencies — while bypassing traditional gatekeepers of finance such as banks. Backers say the technology offers cheaper and more efficient access to financial services.  

Cash has poured into DeFi sites this year, mirroring the explosion of interest in cryptocurrencies as a whole. Many investors, facing historically low or sub-zero interest rates, are drawn to DeFi by the promise of high returns on savings.  

Yet crime is also booming in the mostly unregulated sector, according to London-based blockchain analytics firm Elliptic. Users have suffered over $12 billion in losses through crime at DeFi apps, lending platforms and exchanges since 2020, with the majority of losses coming in 2021 alone, it found.  

Bugs in code and design flaws allow criminals to target DeFi sites, Elliptic found, with deep pools of liquidity also allowing criminals to launder proceeds of crime while leaving few traces. Scams are also common, it added.  

“Decentralized apps are designed to be trustless in that they eliminate any third-party control of users’ funds,” said Elliptic’s Tom Robinson. “But you must still trust that the creators of the protocol have not made a coding or design mistake that could lead to a loss of funds.”  

Major DeFi platforms say they take a variety of measures to bolster security, from hiring external firms to audit code for vulnerabilities to maintaining keys and passwords needed to access user wallets in secure environments.  

Cryptocurrency worth some $86 billion is currently stored on DeFi platforms, versus $12 billion a year ago, according to sector tracker DeFi Pulse.  

Major investors have also bet heavily on the growth of the sector, with Canadian pension fund Caisse de Dépôt et Placement du Québec last month taking part in a $400 million investment in major lending platform Celsius Network.  

DeFi site Poly Network was in August rocked by a $610 million crypto theft, one of the biggest ever — though the hacker later returned nearly all the loot. — Tom Wilson/Reuters

Globe reaps two golds and a silver at the 2021 Stevie Awards for Great Employers

Globe received a Gold Stevie for Employer of the Year, in the Telecommunications division, at the 2021 Stevie Awards for Great Employers. A company known for treating its people right, Globe truly stepped up during the pandemic, ensuring its employees safety and extending invaluable support amidst a difficult time.

Among some of Globe’s award-winning programs were the Globe Labs, its own PCR testing facility, Thursdays By The Desk, which discouraged meetings every Thursday to give way to productive, uninterrupted work, and HopeChat, which connects employees to mental health experts via Messenger.

“Ultimately, by caring for our employees, we can achieve great business results and create products that connect families, help businesses flourish, and make the nation admired — not only during this difficult time, but for many years to come,” said Ato Jiao, Globe Chief Human Resource Officer.

Meanwhile, in recognition of its best practices in employee engagement, Globe also received a Gold Stevie for Achievement in Employee Engagement. Despite the challenges of the pandemic, Globe’s engagement score in the 2020 iSpeak Employee Engagement Survey from Willis Towers Watson was at 93% – the highest in five years. A true feat, at a time when most organizations are struggling to sustain employee engagement and business continuity. Globe is also the only Filipino Company to be part of the WTW High Performing Organizations.

To honor the numerous initiatives to provide employee care during the pandemic, Globe also won a Silver Stevie for Most Valuable HR Team.

Globe aligns its actions with the United Nations Sustainable Development Goals No. 3 on good health and well-being, UN SDG No. 8 on decent work and economic growth and UN SDG No. 9 on industry, innovation, and infrastructure.

To know more about Globe, visit www.globe.com.ph.

 


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Safeguard continues hand hygiene effort as pilot face-to-face learning begins

Lucao Elementary School

Handwashing has been an integral habit to protect our health from the threats of germs and bacteria transmitted by touch, even before the pandemic. As the country continues to lift strict protocols, resume face-to-face classes, and slowly ease in reopening, ‘di pa rin pwede, ang pwede na! The demotivation caused by pandemic fatigue has caused Filipinos to settle with “pwede na” hand hygiene, even at time when it’s vital to maintain proper handwashing.

Procter & Gamble’s Safeguard reinforced the importance of proper handwashing with the SafeWash Movement last 2020. Now, the brand continues to ensure that Filipino families are safeguarded from the threats of germs and bacteria with every handwash.

Safeguarding Filipinos, One Safe Wash at a Time

Earlier this year, Safeguard has donated ₱70 million worth of multi-faucet hand wash facilities in 280+ public schools nationwide, and in public spaces across Metro Manila. The aim is for schools to increase their ratings higher in WinS (Wash in Schools), so that no school is left behind and all students, educators, and parents are SAFE, especially for key COVID-19 areas. Construction of said facilities will commence in January 2022.

Safeguard is also donating ₱2.5 million worth of Safeguard Liquid Hand Soap to 30+ of the public and private schools that will lead the pilot testing of face-to-face classes. The donation of handwashing facilities and hand soaps helps to ensure that Filipinos, even in far flung areas, are kept safe against the threats of germs and bacteria that could cause illnesses, manage COVID-19 community outbreaks, and strengthen proper hand hygiene education to students and educators.

Pangasinan Integrated School

After almost 2 years of remote learning, 30 public schools all over the Philippines and a few nominated private schools have commenced with the pilot testing of face-to-face classes, including schools in Northern Mindanao, Bicol Region, Western Visayas, Central Visayas, and SOCCSKSARGEN.

Safeguard continues their mission to promote proper hand hygiene education including through the celebration of the Global Handwashing Day last October 15, 2021. With the participation of the Department of Education, Department of Health, Manila Water Foundation, and UNICEF, Safeguard aims to help change the ineffective hand hygiene practices of Filipinos and make every wash a SafeWash.

The Global Handwashing Day was celebrated through an informative and fun livestream hosted by the Manila Water Foundation Facebook page, with leading experts in health including David Khoo, Principal Scientist of P&G Singapore Innovation Center.

As the country continues to lift strict protocols, resume face-to-face classes, and slowly ease in reopening, ‘di pa rin pwede, ang pwede na! The brand is also continuing its support towards vaccine hubs and hospitals nationwide to further aid frontliners in the fight against COVID-19 by providing these facilities with Safeguard products. Together with masks, practice of proper social distancing, and strengthened hand hygiene with Safeguard, everyone can stay protected from the threats of germs and viruses.

Be part of Safeguard’s continuous #SafeWash efforts by shopping your Safeguard essentials in leading supermarkets, drugstores, Shopee, or Lazada, and we can all look forward to a safe Philippines.

 


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Duterte says cocaine user among presidential election candidates

PCOO

MANILA – Philippines leader Rodrigo Duterte declared on Thursday in a televised speech that an unnamed candidate for next year’s presidential election was a cocaine user.Duterte, who waged a war on drugs that killed thousands of users and peddlers, did not name the candidate, nor provide evidence to support his allegation, but said he was “a very weak leader”.Dozens of people have registered to run for president in next year’s polls. Duterte, 76, is not eligible for re-election due to the constitution’s one-term limit.“We have a candidate using cocaine,” Duterte said in a speech in the province of Oriental Mindoro.“That is why I am wondering, ‘What has this person done? What contribution has he made for the Philippines?”“Why are the Filipinos crazy supporting … I am just asking,” said Duterte, who will run for a seat in the senate next year.Reuters asked Duterte’s acting spokesperson, Karlo Nograles, who the president was referring to and for more details, but received no immediate response.“He is a very weak leader,” the outspoken Duterte said of the unnamed candidate. “He might win hands down. If that is what the Filipino wants, go ahead,” he said in the speech, confirmed by a transcript provided by his office.“I am not making intrigues. It is up to you. Find out who.”In the same speech he praised his chosen successor and longtime aide, Christopher “Bong” Go, a senator who is seeking the presidency.Other prominent presidential candidates include senator and retired boxing icon Manny Pacquiao, Vice President Leni Robredo, Manila mayor Francisco Domagoso, senator and former police chief Panfilio Lacson, and Ferdinand Marcos Jr, son and namesake of the late Philippines dictator, whose running mate is Duterte’s daughter, Sara Duterte-Carpio. — Reuters

US announces sex-trafficking charges against Duterte ally

U.S. prosecutors on Thursday announced sex-trafficking charges alleging that girls and young women were coerced to have sex with the founder of a Philippines-based church who is a friend and adviser to Filipino President Rodrigo Duterte.A 74-page indictment charges Apollo Carreon Quiboloy, founder of a church called Kingdom of Jesus Christ, The Name Above Every Name (KOJC) and other church officials, including two U.S.-based church administrators, with running a sex-trafficking operation that threatened victims as young as 12 with “eternal damnation” and physical abuse.Federal prosecutors in Los Angeles said the new indictment expanded on allegations made last year against three church administrators based in the city. It charges nine defendants with participating in a scheme in which church members were brought to the United States using fraudulently obtained visas and forced to solicit donations to a bogus children’s charity.Prosecutors said the donations were used to pay for “lavish lifestyles” of the church leaders.The latest indictment adds Quiboloy and five other new defendants to an existing indictment filed in 2020. Prosecutors said U.S. authorities arrested three of the new defendants on Thursday, but three others, including Quiboloy, were believed to be in the Philippines.Lawyers for the new defendants could not immediately be identified and the Philippines embassy did not immediately respond to a request for comment.The indictment alleges that Quiboloy and two other defendants recruited females aged 12 to 25 as personal assistants, or “pastorals.” It said they were required to prepare Quiboloy’s meals, clean his residences, give him massages and have sex with him during what they called “night duty.”Quiboloy, a self-proclaimed “Owner of the Universe” and “Appointed Son of God”, is a longtime friend and spiritual adviser of Duterte. The influential evangelist is followed by millions of Filipinos.In September, Filipino boxer Manny Pacquiao, a candidate for next year’s presidential election who has frequently clashed with Duterte, sued Quiboloy for libel after he accused the multiple world champion of embezzling funds intended for a sports complex.Church leaders are highly influential in Philippine elections.Duterte is prevented by the constitution from running for a second term as president. He has reacted negatively in the past to attacks on allies and last year vowed to terminate a key military pact with the United States after a Philippine senator who was an ally was denied a U.S. visa. — Reuters

Natural Gas: The necessary step to a decarbonized future

The United Nations calls climate change “the defining issue of our time.” In worst-case scenarios, the consequences of climate change range from shifting weather patterns that would decimate global food production, to rising sea levels that would increase the risk of catastrophic flooding that would literally reshape the world we live in.

Without coordinated drastic action, adapting to these impacts in the future will be both difficult and costly. Scientific research from the UN Intergovernmental Panel on Climate Change (IPCC) concluded that limiting global warming to 1.5°C would require “rapid and far-reaching” transitions in land, energy, industry, buildings, transport, and cities.

Essentially, the net human-caused emissions of carbon dioxide (CO2) would need to fall by about 45% from 2010 levels by 2030, reaching ‘net zero’ around 2050. This is why we need to reduce the carbon intensity of emissions, which is a process known as decarbonization.

Yet, as more developing countries grow, the demand for energy will keep rising. The question is, how can countries like the Philippines continue to prosper without also increasing their reliance on emissions-heavy energy sources like coal and oil? While many will be quick to mention a swift transition to renewable energy (RE), the reality is far more complicated.

“The energy transition is critical to achieving carbon neutrality by 2050 as indicated in the Paris Agreement. According to the Global Carbon Budget report in 2020, our carbon budget to limit temperature increase to less than 1.5 degree Celsius can be used up in less than 10 years,” Francis Giles B. Puno, president and chief operating officer of First Gen Corporation, one of the country’s leading providers of clean and renewable power, said.

“If we go too fast in transition, we will be saddled by unreliable and expensive electricity, which will do untold damage to the economy. If we go too slow, we will be unable to mitigate effectively the effects of climate change, and the damage to the economy will also be devastating as we have seen with the calamities due to extreme weather conditions that have hit the Philippines more frequently in recent years. It is critical that we get this transition right,” he added.

The Philippines is fortunate to have great potential for RE, being rich in geothermal, hydro, and solar energy sources. Yet, to best optimize their use, there remain significant steps that need to be made in order to transition from being powered by fossil fuels to RE.

“There are a lot of factors that need to be considered for the energy transition. This may take time due to the intermittency of renewable energy sources and early stages of development of storage technologies. Recent developments show that we are going in the right direction. The implementation of the coal moratorium, ongoing efforts to craft legislation for natural gas, electric vehicles, green energy auctions, among others will help accelerate the transition,” Mr. Puno said.

While the technology for renewable energy continues to develop, there is a need for a transitory solution that would help wean the country from traditional fuels towards solutions with lower carbon emissions. Natural gas will make that transition smoother.

“Natural gas is a bridge fuel that can provide power when intermittent RE sources, like solar and wind, become unavailable. Because natural gas is flexible, it can quickly provide power at night, or on a cloudy day, or when wind speed is not sufficient, as natural gas plants can start up and provide power in as fast as 15 minutes or even less. At a time when storage technologies are still very expensive and scarce, natural gas fills the crucial role of providing affordable complementary power to these intermittent sources,” Mr. Puno said.

“Moreover, natural gas is clean — unlike alternatives like coal — which would also be hard pressed to be able to provide the same function. In short, natural gas will ensure that we keep the lights on while we undergo this transition,” he added.

First Gen Corporation owns and operates 30 power projects across the country with 3,495.2 MW of installed capacity, as of 2020. Its portfolio consists of renewable energy sources such as geothermal, hydroelectric, wind, solar. These renewables are complemented with flexible natural gas, forming a reliable and clean energy portfolio. In 2020, First Gen’s natural gas plants generated over 11,500 gigawatt hours (GWh) of electricity, which helped avoid almost 7 million tons of carbon dioxide emissions, equivalent to removing about 1.5 million vehicles off the road.

The company has four natural gas-fired plants, which are in the First Gen Clean Energy Complex (FGCEC) in Batangas City, with a combined installed capacity of over 2,000 MW.

Moreover, First Gen Corporation ensures that its natural gas assets are operated responsibly and efficiently, with insignificant amounts of fugitive emissions released into the atmosphere. First Gen employs significant efforts to monitor and minimize emissions of harmful substances to way below than allowable levels.

With the urgency of the issue of climate change, there is a pressing need to take action and move the country towards a decarbonized and regenerative energy system. The benefits of natural gas make it the clear next step towards achieving this goal, and First Gen is committed to leading this transformation by meeting the needs of the energy market with competitive, efficient, and environment-friendly energy and power generation assets with the least impact to the environment.

“Natural gas will serve as a transition fuel to the installation of more renewable energy. The fast ramp-up capability of natural gas plants can address the intermittency of renewables and increase their share in total power generation. Natural gas provides a way to increase the share of renewables without having to worry about losing electricity supply when the sun or wind are not available. Equally important, it enables consumers to have an affordable and clean source of complementary power to solar, wind, and other intermittent RE,” Mr. Puno said.

“It is undeniable that the future will be dominated by RE and other non-carbon power technologies, in fact we support the ambition that eventually the Philippines will be totally dependent on zero-carbon power sources. Similar to the rest of the world, we see that natural gas will play a critical role — as we also continue to find options of decarbonizing this fuel source — towards a truly decarbonized and regenerative future,” he added.

First Gen Corporation is the leader in clean and low-carbon power in the Philippines. It has the largest portfolio of clean energy, making it well-positioned to lead the country towards a decarbonized energy future. Learn more about First Gen’s services by visiting www.firstgen.com.ph.

 


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BSP keeps rates to boost recovery

By Luz Wendy T. Noble, Reporter

THE PHILIPPINE central bank on Thursday kept policy rates unchanged as expected, saying an accommodative stance is key to economic growth that has gained solid traction.

Monetary officials also warned about risks to inflation next year, including typhoons and fare increases.

The Bangko Sentral ng Pilipinas (BSP) left the key rate steady at 2%, as predicted by all 20 economists in a BusinessWorld poll last week. It also kept the overnight deposit and lending rates at historic lows of 1.5% and 2.5%.

“The Monetary Board maintains that keeping a patient hand on the BSP’s policy levers, along with appropriate fiscal and health interventions, will keep the economic recovery more sustainable over the next few quarters,” central bank Governor Benjamin E. Diokno told a news briefing on Boracay Island in central Philippines.

This was the first time journalists were allowed to cover the BSP briefing on the policy meeting physically since the main island of Luzon was locked down in mid-March last year to contain a coronavirus pandemic.

“Economic growth appears to be gaining solid traction, driven by improved mobility and sentiment amid the calibrated relaxation of quarantine protocols and continued progress in the government’s vaccination program,” Mr. Di-okno said.

“Nevertheless, the Monetary Board noted that sustained measures to safeguard public health and welfare remain crucial to facilitate the recovery in investment and employment,” he added.

Aside from typhoons and fare increases, the central bank chief also cited the price risks from a prolonged recovery of domestic pork supply.

The central bank’s decision comes a week after the government released data that showed the economy grew by 7.1% in July to September from a year earlier. Economic growth was 3.8% quarter on quarter.

Economic output shrank by 9.6% last year, one of the worst in Asia and the Philippines’ deepest recession since World War II.

“It’s necessary that you continue policy support and not withdraw this fully until there is very strong evidence of aggregate demand being sufficient,” central bank Deputy Governor Francisco G. Dakila, Jr. told the same briefing.

He added that the BSP has been coordinating with fiscal authorities about monetary policy eventually normalizing because it could affect the government’s pandemic response.

The Philippine economy remains far from its pre-pandemic level, said Alex Holmes, an economist at Capital Economics. He added that last quarter’s growth had come from a low base.

“While growth for the year will probably now eclipse the government’s earlier estimate of 4-5%, the economy will still enter 2022 with huge amounts of spare capacity,” he said in a note. He expects the central bank to keep rates steady for the rest of the year.

Mr. Dakila said the BSP had lowered its average inflation forecast for the year to 4.3% from 4.4% at the previous policy review. Inflation in the first 10 months of 2021 was 4.5%.

Consumer prices are expected to rise by 3.3% and 3.2% in 2022 and 2023, unchanged from the previous forecast.

Mr. Dakila said their updated estimates had considered rising global oil prices and strong third-quarter GDP data.

These had been tempered by slower inflation in September and October, he said, adding that it was possible for November inflation to be within the target.

Headline inflation last month slowed to 4.6% from 4.9% in September amid a slower increase in food prices. Inflation was still above the central bank’s 2-4% target.

Slower inflation in the past months had given the BSP “some breathing room” to keep an accommodative stance in the meantime, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

“However, a surprise pickup in economic growth opens the door for possible adjustments down the road,” he said in a note. The BSP’s first rate increase could happen by the second quarter of next year, he added.

The Monetary Board will hold its final policy rate review this year on Dec. 16. Mr. Diokno earlier hinted that he did not see the need to adjust policy settings for the rest of the year.

Senate’s budget debates delayed on COVID scare

By Alyssa Nicole O. Tan and Jenina P. Ibañez, Senior Reporter

SENATE DEBATES on next year’s budget would probably get delayed after some senators and their staff were exposed to the coronavirus by a Cabinet official who tested positive.

“Yes, indeed, there will be a delay,” Senate President Vicente C. Sotto III told reporters in a Zoom Meetings video conference on Thursday. “We will just have to work double-time.”

Senators ended the session at 11:30 p.m. on Wednesday after learning that Defense Secretary Delfin N. Lorenzana, who went to the Senate the day earlier, had tested positive for the coronavirus.

Lawmakers who were exposed to the Defense chief immediately left the plenary as a precautionary measure. The Senate building was immediately disinfected.

A photo provided by Senator Emmanuel Joel J. Villanueva showed Mr. Lorenzana shaking his hand, while Senators Juan Miguel F. Zubiri, Maria Lourdes Nancy S. Binay and Francis N. Tolentino were nearby.

Senator Ronald M. dela Rosa, defended the Defense agency’s proposed budget, was seated in front of Mr. Lorenzana.

Mr. Sotto said a four-day delay was not too bad since the chamber was considering to approve the appropriation bill by the first week of December. “So, it will become the second week of December.”

Congress will take a month-long holiday break starting Dec. 18.

Senators had wanted to finish interpellations this week so they could propose changes by next week. The Senate president said they would try to finish debates by Monday.

“Because of what happened, we will have to try on Monday to finish everything until the wee hours of the morning on Tuesday,” he said. Sessions would be extended up to Friday if debates could not be finished in a day.

Senators still have to discuss the budgets of the Social Welfare, Transportation, Trade, Education and Public Works departments, as well as appropriations for the Presidential Communications Operations Office and Philippine Association of State Universities and Colleges.

Mr. Sotto ruled out a reenacted budget, saying they still have time even for a bicameral committee session.

Senators and congressmen could fast-track agreement on the budget measure as long as the bicameral meeting “does not drag on,” he added.

In an advisory, Mr. Sotto said that all visitors entering Senate premises must present a negative coronavirus test result that will be valid for 24 hours, a medical certificate showing that they do not have symptoms, and a COVID-19 vaccination card.

“We have decided to increase our protocols by requiring all visitors for the Budget deliberation to present a 24-hour RT-PCR report instead of a 72-hour result,” Mr. Zubiri told reporters in a Viber group message. Mr. Lorenzana presented a 72-hour result but he got exposed after that, he added.

The Senate majority leader said the Senate has informed people who were in contact with the Defense chief so they can self-quarantine.

“Unfortunately, the day that the secretary was here was a day of an unusual number of senators present in session as we had an official delegation from the Hungarian Parliament present as well,” he said.

Meanwhile, government agencies’ cash use rate had gone up to 91% in the 10 months to October, according to data from the Department of Budget and Management.

The National Government, local governments and state-owned companies used P3.05 trillion of P3.35 trillion worth of notices of cash allocation issued to them during the period.

The rate was better than 77% a year earlier, while it was 95% as of end-September. The notices of cash allocations are given to agencies to let them withdraw funds from the Treasury to cover their spending needs.

The quick disbursement and use of the budget is typical leading up to the national elections, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

“In some election cycles the increased contribution of these government activities outweighs or perhaps is mirrored in household consumption, suggesting that administrations and politicians on every level are busy attempting to complete as many projects ahead of the polls,” he said.

Government spending on infrastructure had been one of the key economic drivers since the start of the pandemic last year, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

Projects could be fast-tracked before the election ban on some public works next year, he said in a Viber message.

“Infrastructure would be one of the major pillars for the country’s economic recovery program from COVID as funds are already available to further pump-prime or stimulate the economy to improve economic recovery pro-spects,” he said.

A public works ban will be in effect on March 25 to May 8, 2022 before the elections, according to the Commission on Elections.

The Budget department said line agencies had used 88% or P2.09 trillion of their notices of cash allocations from January to October, leaving P289.9 billion unused.

The Commission on Audit had the highest use rate among these departments at 99%, while the Joint Legislative-Executive Councils used as much as 88%. The Civil Service Commission and Interior and Local Government depart-ment had 97% each.

Budget support for government-owned and -controlled corporations reached 96% usage, while the allotment to local government units had been fully used.

The House Committee on Appropriations on Wednesday night endorsed to the plenary a bill that would extend the validity of funds under this year’s national budget. House Bill 10373 will extend all appropriations until Dec. 31, 2022.

Completion, inspection, and payment of infrastructure projects and maintenance and operating expenses should also be finished by then.

The House approved the proposed P5.024-trillion budget for next year on third and final reading as early as Sept. 30.

President Rodrigo R. Duterte had approved legislation that extended the validity of the 2019 and 2020 national budgets.

The Philippine economy grew by 7.1% year on year in the third quarter, lower than the revised 12% growth in the second quarter, after fresh lockdowns were imposed in Metro Manila to contain a more contagious Delta coro-navirus variant. — with RLCK

Gov’t, private spending may bolster 2022 GDP growth

By Jenina P. Ibañez, Senior Reporter

THE PHILIPPINE ECONOMY could grow by 7.1% next year amid stronger private consumption and government infrastructure spending, according to IHS Markit.

In a report, the London-based market intelligence provider on Thursday said easing coronavirus restrictions would support an economic rebound this quarter.

“Despite the recent COVID-19 Delta wave, the Philippine economy has shown considerable resilience during the third quarter of 2021,” it said.

The economy grew by 7.1% in the third quarter, faster than the 4.7% median estimate by economists in a BusinessWorld poll.

This was slower than the revised 12% growth in the second quarter, as the government placed Metro Manila under a strict lockdown for two weeks in August to curb a Delta-driven surge in infections.

IHS Markit said it expects the economy to grow by 5% year on year in 2021, which will be at the higher end of the government’s reduced 4-5% target. The state expects economic output to grow by 7-9% next year.

The government vaccine rollout was still constrained by low supply, making economic recovery vulnerable to renewed outbreaks, it said.

But the 2022 outlook is positive amid stronger private consumption, higher government infrastructure spending and improving remittance inflows, it said.

IHS Markit said its October manufacturing survey indicated increasing business confidence among manufacturing companies.

“Optimism was underpinned by hopes of greater international and domestic demand in the year ahead,” the information provider said.

IHS Markit earlier said the country’s manufacturing activity inched up to a seven-month high in October as orders stabilized due to easing lockdowns in Manila, the capital and nearby cities.

The Philippines Manufacturing Purchasing Managers’ Index (PMI) rose to 51 last month from 50.9 in September. A reading above 50 indicates improving conditions for the manufacturing sector versus the previous month, and below the threshold means the opposite.

The gradual reopening of domestic and international tourism, IHS Markit said, would help support the economy.

Tourism’s share in the gross domestic product (GDP) fell to 5.4% in 2020 from 12.8% a year earlier, government data showed.

“Due to the importance of domestic tourism in the overall contribution of tourism to GDP, the recovery of domestic tourism could be a significant growth driver in 2022,” IHS Markit said.

Meanwhile, remittance inflows to the Philippines could grow by 3.8% this year as it recovers from a decline last year, the World Bank said.

In a report, the multilateral lender said the Philippines has been the fourth-biggest recipient of remittances this year, after India, China and Mexico.

World Bank estimates that remittances received by the Philippines will reach $36 billion this year. At the top of the list is India with $87 billion, followed by China and Mexico with $53 billion each.

Inflows to the Philippines this year are expected to reverse a 0.7% decline last year, according to the World Bank report released on Wednesday.

The United States remained the primary source of remittances for the Philippines at almost 40% last year, it said.

Remittance flows from the United States remained resilient, growing by 7% in the first eight months this year from a year earlier, it added.

Remittance fees in the Philippines were among the lowest in East Asia and the Pacific. The average cost of sending $200 in remittances to the region fell slightly to 6.7% in the first quarter, compared with 6.9% in the fourth quarter of last year.

For the first quarter of 2021, the five lowest-cost corridors in the region averaged 2.7%, with transfers primarily to the Philippines.

The five lowest-cost corridors included remittances sent from Singapore to Indonesia, along with remittances transferred from Singapore, Saudi Arabia, Kuwait and United Arab Emirates to the Philippines.

Data released by the Bangko Sentral ng Pilipinas on Monday showed that money sent home by migrant Filipino workers grew for the eighth straight month in September, with cash remittances increasing by 5.2% year on year to $2.737 billion from a year earlier.

Nine-month cash remittance inflows went up by 5.6% to $21.117 billion. Personal remittances, which include inflows in kind, have risen by 5.7% to $25.699 billion as of end-September.

Remittances to low- and middle-income countries are projected to grow by 7.3% to $589 billion this year, the World Bank said, attributing the growth to migrants supporting their families during the crisis and the economic re-covery in Europe and the US.

“Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis,” Michal Rutkowski, World Bank global director for Social Protection and Jobs, said in a statement.

“Facilitating the flow of remittances to provide relief to strained household budgets should be a key component of government policies to support a global recovery from the pandemic,” he added.

Domestic ore processing seen boosting mining share of GDP

BW FILE PHOTO

A BILL seeking to require the domestic processing of some ore mined in the Philippines holds the potential to “double or triple” the mining industry’s contribution to gross domestic product (GDP), the Mines and Geosciences Bu-reau (MGB) said.

Juancho Pablo S. Calvez, MGB Metallurgical Technology Division chief, said during on the first day of the MGB virtual stakeholder forum Thursday that the bill, which would limit the export of some ore in order to jump-start a domestic-processing industry, would lead to the capture of more value-added than exporting ore 100%.

“How much can it contribute to the country’s gross domestic product (GDP)? Maybe it will double or triple the (mining contribution to) GDP if we push for (the) processing of our own raw ores,” Mr. Calvez said.

On July 5, South Cotabato 1st District Rep. Shirlyn L. Bañas-Nograles filed House Bill No. 9775, or the proposed Promotion of Mineral Processing and Value-Adding Act, which reduces exports of nickel ore and other raw metallic ores and encourages mineral processing within the country.

“This bill proposes gradual/partial restriction of export of these direct shipping ores as its mechanism to start and drive the mining industry to compel into mineral processing, value-adding, and establishing downstream indus-tries…,” Ms. Bañas-Nograles said in the bill’s explanatory note.

The bill is currently pending at the House Committee on Natural Resources.

“This (bill) encourages the processing of raw ores into value-added products rather than exporting them as unprocessed raw direct shipping ores,” Mr. Calvez said, noting that there are currently two domestic mineral processing plants capable to handling low-grade nickel.

The plants are operated by Coral Bay Nickel Corp. in Palawan and Taganito HPAL Nickel Corp. in Surigao del Sur.

He said that under the bill, mining firms that do not have processing plants can enter into contracts with processors or form consortiums to establish joint processing facilities.

The bill will allow miners five years to establish their processing plants.

Mr. Calvez said he does not expect the bill to pass during the current Congress, but might do so in the next Congress.

“We proposed the bill on partial restriction just a few months ago. I think the bill will not be passed during this Congress,” Mr. Calvez said.

According to the MGB, the value of Philippine metallic mineral output rose 25% year on year to P68.63 billion during the first half.

Nickel and its products accounted for 53.44% or P36.68 billion, followed by gold with 34.84% or P23.91 billion, and copper 10.87% or P7.46 billion. The remainder consisted of silver, iron ore, and chromite, worth a combined P584.75 million.

In June, the MGB said the mining sector accounted for 0.6% or P102.3 billion of GDP in 2020. — Revin Mikhael D. Ochave

PAL losses since bankruptcy filing reach P2.89B

FLAG carrier Philippine Airlines (PAL) ended October, two months since its Chapter 11 filing on Sept. 3, with a loss of $27.87 million, or P1.40 billion, resulting in a cumulative loss of $57.42 million, or P2.89 billion.

The airline’s end-October report to the United States Bankruptcy Court for the Southern District of New York, as signed by PAL Chief Financial Officer Nilo Thaddeus P. Rodriguez, showed it had a gross income of $122.95 million for the month.

However, cost of goods sold reached $119.32 million, resulting in a gross profit of $3.63 million.

PAL reported $6.07 million in selling expenses, $6.69 million in general and administrative expenses, and $1.91 million in other expenses.

PAL filed its October operating report on Nov. 15, according to a copy of the document from the airline’s claims agent Kurtzman Carson Consultants LLC.

To recall, PAL ended September with a loss of $29.56 million, or P1.5 billion. It had a gross income of $91.75 million for the month.

The airline said the cost of goods sold from Sept. 3 to 30 reached $90.42 million, resulting in a gross profit of $1.33 million.

The US Bankruptcy Court for the Southern District of New York is expected to decide next month on either to approve or reject the reorganization plan of PAL.

The deadline for filing objections to the plan is Dec. 10, while the confirmation of the plan hearing will commence on Dec. 17.

PAL hopes to exit the Chapter 11 process before the end of the year.

PAL also expects to exit the recovery phase by the end of 2022, as operating activities “generate more consistent positive monthly cash flow,” it said.

It anticipates to generate an operating income of $220 million in 2022 and $364 million in 2023.

PAL Holdings, Inc. (not included in the Chapter 11 filing) had said that billionaire Lucio C. Tan’s private firm Buona Sorte Holdings, Inc. (BSHI) would inject “fresh and additional capital” amounting to P12.75 billion ($255 million) into the listed parent company of PAL.

BSHI would also provide a five-year loan of $250 million to PAL.

For the nine months to September, PAL Holdings’ attributable net loss was reduced to P21.83 billion from a loss of P28.85 billion last year. Gross revenue went down by 29% to P32.16 billion from P45.29 billion previously. — Arjay L. Balinbin

Bank lending to get boost from reopening, vaccination progress

PROGRESS in the country’s vaccination drive and the gradual reopening of the economy are expected to help boost confidence and spur lending, a central bank official said.

Bangko Sentral ng Pilipinas (BSP) Department of Economic Research Senior Director Zeno R. Abenoja said bank lending rebounded after several months of decline following “the gradual easing of restrictions on the econ-omy, the increase in confidence as the government continue to provide programs and policies to support the economic recovery.”

“With the advancement in the vaccination program, we hope to see greater momentum in terms of bank lending not only to the production sector, but also the household or the consumer loan sector,” Mr. Abenoja said at a virtual BSP media forum on Thursday.

Outstanding loans disbursed by big banks rose by 2.7% year on year in September, marking the second straight month of loan growth.

Despite record low interest rates, lending contracted for eight straight months since December due to risk aversion among lenders and borrowers amid the crisis.

The government aims to vaccinate 70 million Filipinos against the coronavirus by the end of this year. Data from the Johns Hopkins University showed the Philippines has already fully vaccinated 39.4 million or 36.5% of its popu-lation.

Retail borrowings may recover once employment conditions get better, although this may take some time as economic rebound is not yet solid enough, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

“As the job market improves and the economy recovers, we can see retail loans move back into black with loans for autos and housing return while salary loans may fade as employees can secure their incomes on time,” Mr. Mapa said in an e-mail.

The unemployment rate increased to 8.9% in September, equivalent to 4.21 million Filipinos. This is the highest this year, matching the 8.9% jobless rate in February. — L.W.T. Noble