FILIPINO consumers’ propensity to shop and visit brick-and-mortar malls is starting to rebound. We now see the resurgence of high-density retail segments such as family entertainment centers, and this should result in greater traffic in malls. Read the full story.
FIRST Georgetown Ventures, Inc. (FGVI) is set to open in January a new community-based complex, The Grid Co-Living, in Makati City.
FGVI recently appointed Hospitality Innovators, Inc. (HII) to operate The Grid, a 10-storey building located along Yakal, Lumbayao, and Bakawan Streets, in San Antonio Village, Makati City.
The Grid’s first two floors are allocated for commercial establishments and the rest for residential living.
“We chose to partner with HII given their well-established reputation and experience in operations and property management of hotels, resorts, and serviced apartments. We want to be able to serve our clients well and, at the same time, we want our building to be properly maintained. We believe that HII is the perfect partner for these objectives,” FGVI President Kristopher Yang said.
The Grid targets office workers, medical frontliners, and students who want to live near their workplaces and schools in Makati.
“The influx of working professionals in Makati and the horrible traffic going to and from workplaces prompted us to venture into a co-living project. We envision The Grid to be the young urban workers’ home near their offices. We hope that cutting their travel time to and from work would improve their overall well-being,” Mr. Yang said.
The Grid offers different unit types such as single (13.67-13.91 square meters), triple (14.18-17.52 sq.m.), and quadruple (15.98-20.71 sq.m.), which include bunk beds.
For four-in-one (36.1-39.99 sq.m.) and eight-in-one (36.1 sq.m.) units, there are multiple rooms with single beds, a shared kitchen and living/dining space.
Amenities include a swimming pool, gym, roof deck, retail shops, and several open spaces.
The company, led by George Yang, operates hotels in Laguna and El Nido, Palawan. FGVI also develops primary and secondary homes catering to the middle-income segment.
HII has over 24 years of experience in hotel and property management. It currently has 17 properties in its portfolio, including Hue Hotels & Resorts Boracay & Puerto Princesa, Charlie’s El Nido, The Picasso Boutique Serviced Residences, Parque España Residence Hotel, and Harvest Hotel. — Cathy Rose A. Garcia
MEDILINES Distributors, Inc. posted a P30.97 million attributable net income in the third quarter, turning around from its P706,960 net loss recorded last year, after booking higher revenues.
During the July-to-September period, Medilines’ revenues totaled P352.76 million, more than two times last year’s P138.49 million.
Meanwhile, the company booked direct costs amounting to P285.52 million, more than double the P138.95 million registered a year ago.
For the nine-month period, Medilines’ net profit reached P111.93 million, up by 12.7% from P99.34 million last year. Its revenues grew by 26.6% to P1.21 billion from P953.58 million previously.
In a press release on Monday, it said the major revenue contributor is its cancer therapy equipment, which contributed 56%. Its dialysis consumables shared 16%, up from 13% last year. The dialysis equipment and diagnostic imaging segments contributed 10% and 18%, respectively.
From January to September, Medilines registered a 50% sales growth for its dialysis consumables to P193 million. Sales of dialysis equipment rose by 7% to P122 million, while sales from diagnostic imaging increased by 5% to P213 million.
To date, the company has five ongoing projects from which it still expects to recognize 48% of net sales from its cancer therapy product segment until the first half of 2023.
“There will be significant opportunities in the healthcare industry which will drive the growth of the company for the coming years. Such will further solidify Medilines’ leadership in said market,” Medilines Chairman Virgilio Villar said. — Justine Irish D. Tabile
THE BANGKO SENTRAL ng Pilipinas (BSP) signed a memorandum of understanding (MoU) with other central banks in the Association of Southeast Asian Nations (ASEAN) to strengthen collaboration on payment connectivity.
The MoU on Cooperation in Regional Payment Connectivity (RPC) was signed on the sidelines of the G20 Leaders’ Summit with the Bank of Indonesia (BI), Bank Negara Malaysia (BNM), Monetary Authority of Singapore (MAS), and Bank of Thailand (BoT) on Nov. 14 in Bali, Indonesia.
“The more we recognize how interdependent our economies are, the more we need to be deliberate in our pursuit of the vision of an interconnected ASEAN region,” BSP Deputy Governor Mamerto E. Tangonan said in a joint statement released on Monday.
“This MoU concretizes our collaborative and inclusive approach to enhancing cross-border payments in the ASEAN that will translate into efficiency gains and cost savings in various international financial transactions and economic activities,” he added.
The RPC is expected to contribute in accelerating economic recovery and promoting growth as it aims to foster a more inclusive financial ecosystem by enabling fast, seamless, and cheaper cross-border payments across the region.
Implementation of cross-border payment connectivity will support and facilitate international trade, investment, and other economic activities.
Cross-border payment connectivity will also help small businesses in participating in international markets. The cooperation will include a number of modalities, including QR code and fast payment.
“This MoU serves as a significant milestone in paving the road for advancing cross-border payment connectivity. Existing bilateral payment connectivity arrangements will be expanded as part of the region’s efforts to strengthen its economic integration,” BI Governor Perry Warjiyo said.
“Such collaboration among central banks is key to accelerating economic recovery. We hope that other countries will follow this good example and leadership in implementing cross-border payment connectivity,” Mr. Warjiyo added.
The initiative could expand to include other countries in the region moving forward. This also marks the start of Indonesia’s leadership of the ASEAN region next year.
The RPC is in line with Indonesia’s G20 Presidency priority agenda in the area of digital transformation.
“This MoU underscores ASEAN’s commitment to achieve regional payments interoperability and connectivity by 2025 to enable cheaper, faster, and more transparent cross-border payments,” Ravi Menon, managing director of MAS, said.
“ASEAN’s effort is aligned with the G20’s goal of addressing existing frictions in global cross-border payments, creating new business opportunities and enabling inclusive growth,” he added.
For her part, BNM Governor Nor Shamsiah Yunus said the initiative highlights the importance of central bank collaboration in developing payment connectivity.
“Realizing the vision of an ASEAN regional network of fast and efficient cross-border payment systems will advance our digital ambitions and further deepen financial integration for the benefit of the region’s economic development,” she added.
The initiative also hopes to open wider participation in the ASEAN region, in line with ASEAN’s approach to deepen integration through mutually beneficial agreements, thus fostering stronger regional economic ties.
BoT Deputy Governor Ronadol Numnonda, who represented BoT Governor Sethaput Suthiwartnarueput, said the ASEAN region has become a global hotspot in international payments linkages.
“Building on our previous efforts, this MoU marks another milestone in our ASEAN Payment Connectivity initiative in working together to address the long-standing pain points in cross-border payments,” he said.
“It also dovetails ASEAN members’ current network of bilateral cross-border payment linkages and will serve as a basis for multilateral collaboration going forward,” he added. — Keisha B. Ta-asan
DISNEY+ will present A Night of Wonder with Disney+ to celebrate the streaming service’s arrival in the Philippines. To mark the occasion, a star-studded showcase will be streamed on the service on Nov. 17, 8 p.m., featuring the company’s creative excellence and celebrating Filipinos’ passion for music and song. Hosted by Catriona Gray and Robi Domingo, the special will feature highlights from movies and shows that viewers can watch on Disney+. Local landmarks will be transformed into stages for Filipino singers including Morissette, Christian Bautista, Janella Salvador, Stell of SB19, Zack Tabudlo, and Zephanie. Disney+ is the dedicated streaming home for movies and shows from Disney, Pixar, Marvel, Star Wars, National Geographic, and Star. The service offers a growing collection of exclusive originals, including feature-length films, documentaries, live-action and animated series, and short-form content. Disney+ is also the exclusive streaming home for the newest releases from The Walt Disney Studios. For more information, visit disneyplus.com, or find the Disney+ app on select compatible mobile and connected TV devices.
AMERICAN pop group Pentatonix has released their 6th album, Holidays Around The World, via RCA Records. The a cappella ensemble collaborates with some of the biggest stars from around the world on the album, including singer and actress Lea Salonga on the Philippine holiday classic “Christmas In Our Hearts,” which was originally written and performed by Jose Mari Chan. “I had the most wonderful time recording this classic Filipino Christmas song with Pentatonix,” Ms. Salonga posted on Instagram. “And, yes, this is the ‘Christmas In Our Hearts’ you think it is.” Pentatonix also collaborated with Chinese pianist Lang Lang, Congolese gospel singer Grace Lokwa, Lebanese singer Hiba Tawaji, Latin band La Santa Cecilia, Indian superstar Shreya Ghoshal, Japanese YouTubers HIKAKIN and SEIKIN, British a cappella ensemble The King’s Singers, and American star Meghan Trainor on tracks in the album. Following the album’s release, Pentatonix is set to embark on a multi-city tour in North America and Asia to promote it. Holidays Around The World is now available on all digital music platforms via RCA Records/Sony Music Entertainment.
AFTER TWO years of online film screenings and activities, the annual International Silent Film Festival Manila (ISFFM) is going in-person. Live scored by selected Filipino bands and musicians, silent films will be screened from Nov. 24 to 27 at the Red Carpet, Shangri-La Mall, Mandaluyong City. This year’s festival will be joined by Instituto Cervantes de Manila, the Embassy of France to the Philippines, Goethe-Institut Philippines, Embassy of Italy in Manila with the Philippine Italian Association, The Japan Foundation, Manila, Film Development Council of the Philippines, and the British Council in the Philippines. The festival’s invitational opening on Nov. 24 will feature the British film Piccadilly, which will be live scored by Filipino band Anahata in collaboration with Sensoria. The festival’s second day will feature a Zoom webinar (open to the public) spotlighting the representative films, with discussions on restoration, curation, and the continuing impact of the films in their countries’ cinema history. Other films to be shown during the festival are 1922 German film Nosferatu: A Symphony of Horror, scored by The Brockas; Charles Burguet and René Le Somptier’s 1919 French piece La sultane de l’amour (The Sultan of Love – A Thousand and One Nuits), scored by Bras Pas Pas Pas; Spain’s 1926 film Malvaloca, scored by Talahib People’s Music; 1931 Japanese film The Lady and the Beard, with musical score by Bullet Dumas; Italy’s 1921 film I Figli Di Nessuno (Nobody’s children), directed by Ubaldo Maria Del Colle. Other festival highlights are a round table discussion led by musicians sharing their expertise, tips and experiences in scoring their assigned films; a roundtable discussion on the challenges in the restoration of Philippine films led by local film archivists; and the official closing ceremonies which will be filled with colors and music, and the screening of three of the best short silent films from the 2021 Mit Out Sound (MOS): International Silent Film Competition organized by the Film Development Council of the Philippines: Ing Tianak, Alingasngas ng mga Kuliglig, and Dikit, with music played by the BConcept and Vincent Del Rosario. For more information on the schedule, visit this Facebook page: www.facebook.com/InternationalSilentFilmFestivalManila.
FILIPINO alternative soul/rock outfit of Mercury released its debut studio album CHANGIN’ via Sony Music Entertainment. According to the band, the 12-track release serves as an exploration of the different experiences that “we face as humans.” CHANGIN’ was co-produced by of Mercury with former bandmate knōwmaad. Its focus track, “I KEEP FALLING,” is a love song that doesn’t deny its sense of earnestness. Written during the pandemic, the song articulates the idea of inseparable love that lasts. CHANGIN’ is available on all digital music platforms worldwide.
On Nov. 12, GOMO, the country’s first fully digital telco, launched the GOMO Skate Park at Circuit Makati in partnership with Ayala Land and Make It Makati. The skate park, which is now open for every kind of skater, is part of GOMO’s second anniversary celebrations. “With GOMO Skate Park, we want our subscribers to have a safe space they can call their own, where they can nurture their creativity and love for the sport. Throughout our second year since launch, and in succeeding years to come, we aim to equip the GOMO Fam with the freedom and flexibility that will allow them to experience the world no holds barred – all made possible by ‘Mo Creds,” said GOMO Marketing Director Don Laudencia. Subscribers can experience the latest skating attraction by converting 8GB of their data through ‘Mo Creds to get a One-Day Access pass to the GOMO Skate Park. For more information, visit www.gomo.ph.
WAXIFIED Sound Production was awarded the Home Entertainment Studio Certification, the highest certification sound pioneer Dolby Atmos issues to their partners. The production company also introduced the Dolby Atmos Sound Mastering Service, a solution to quality control and master audio for music, audio visual clips, reels, TV shows, TV series, and movies without having to go abroad. Behind this venture are acoustic and audio mastering engineers, event DJs, and sound consultants. The endeavor is headed by Waxie G. Joaquin, founder of Waxiefied Sound Productions and Executive Mastering Engineer. “With the track record and expertise of our team, we are confident to produce top-notch and immersive quality audio that will give a multidimensional approach to storytelling,” said Mr. Joaquin. The Dolby Atmos Mastering Suite facilities spell the end of multiple back-and-forth accession of local content to mastering studios abroad just to have it certified by Dolby, as well as do quality control and certify high resolution lossless files and Apple Digital Masters sound for Apple Music. Waxiefied Sound Production clients include Massiah, Nadine Lustre, Jay Ortega, J. Mara, and Morobeats. For more information, visit their website www.waxiefiedsoundproduction.com.
K-POP boy band Xdinary Heroes has released a mini album, Overload, and has shared a video of the focus track “Hair Cut” via JYP Entertainment/The Orchard – listen/stream + watch/share. The seven-track mini-album’s songs are Hair Cut,” “Zzz…,” “LUNATIC,” “Crack in the mirror,” “Ghost,” “X-MAS,” and the instrumental version of “Hair Cut.” The band consists of Gun-il (band leader, drummer), Jungsu ( main vocalist, keyboardist), Gaon (electric guitar, lead rapper), O.de (synthesizer, rapper), Jun Han (electric guitar), and Jooyeon (main vocalist, bassist). For more information, follow Xdinary Heroes at www.xdinaryheroes.jype.com.
P-POP girl group BINI has partnered with Viber, to connect with their fans in chats. The group recently concluded a takeover of the Backstage Pass Channel that allowed BINI members Aiah, Colet, Maloi, Gwen, Stacey, Mikha, Jhoanna, and Sheena share a slice of their P-pop idol life and interact with fans through photos, videos, and uplifting messages. With over 1 million subscribers, Backstage Pass is a space where artists and their fans come together. It’s meant to give music enthusiasts access to never-before-seen content about their favorite stars. Viber is also launching a first-of-its-kind Viber Lens, making BINI the first Filipino music artist to have their own augmented reality (AR) lenses that Viber users can use to enliven their chats. BINI and Viber are inviting fans to join the #BINIxViberLens Challenge for a chance to win a video shoutout, signed merch, and more surprises from Star Music’s pioneering P-pop girl group. To join the challenge, fans must record an impression of BINI’s song “I Feel Good” from their sophomore album, Feel Good, while using the Viber Lens, while doing the BINI infinity sign. The video should then be downloaded from Viber and onto TikTok, with “I Feel Good” as the background music. Add in-video text by completing this sentence: “I Feel Good because ________.” The caption must include the hashtags #BINIxViberLens and #BINI_IFeelGood. All posts must be public and shown on one’s feed, and the video should also be downloadable. Deadline for submission of entries is Nov. 17.
Here’s a quick glance at how PSEi stocks fared on Monday, November 14, 2022.
THE PESO dropped versus the dollar on Monday amid hawkish signals from a US Federal Reserve official that dampened hopes of smaller rate hikes after US inflation slowed in October.
The local unit closed at P57.28 on Monday, losing five centavos from its P57.23 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session at P57.30 versus the dollar. Its lowest showing for the day was at P57.39 against the greenback, while the peso’s intraday best was at P57.22.
Dollars traded declined to $720.63 million on Monday from $820.15 million on Friday.
“The peso depreciated after Fed official Waller dismissed market views of a policy shift from the US central bank following the better-than-expected US consumer inflation report,” a trader said in an e-mail.
Fed Governor Christopher J. Waller on Sunday said the US central bank may consider slowing down the pace of rate increases at its next meetings but needs more signs of improving inflation.
US inflation eased to 7.7% in October from the 8.2% print in September. Month on month, the consumer price index rose 0.4% after climbing by the same margin in September.
The Fed has raised rates by 375 basis points (bps) since March.
Even as the peso slightly depreciated on Monday, its close was still among the lowest in nearly two months, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“Global crude oil prices still lingering among nine-month lows recently still partly supported sentiment on the peso and the rest of the local financial markets,” he added.
Brent crude futures were down 32 cents or 0.3% to $95.67 a barrel by 0725 GMT after settling up 1.1% on Friday, while US West Texas Intermediate crude futures fell 39 cents or 0.4% to $88.57 a barrel after closing 2.9% higher on Friday.
Mr. Ricafort said the stock market’s gains also boosted sentiment.
The benchmark Philippine Stock Exchange index gained 67.99 points or 1.08% to close at 6,354.76 on Monday, while the broader all shares index went up by 23.70 points or 0.71% to 3,352.59.
The trader said the peso may strengthen on Tuesday on the back of potentially weaker US producer inflation.
The trader gave a forecast range of P57.20 to P57.40 per dollar, while Mr. Ricafort said the peso could move from P57.15 to P57.35 on Tuesday. — KBT
PHILIPPINE STOCKS went up on Monday on improved market sentiment following positive data and tracking Wall Street’s rise on Friday.
The benchmark Philippine Stock Exchange index (PSEi) gained 67.99 points or 1.08% to close at 6,354.76 on Monday, while the broader all shares index went up by 23.70 points or 0.71% to 3,352.59.
“The PSEi sustained its upward momentum as sentiment continued to improve following the positive news last week (faster gross domestic product growth, cooler-than-expected US inflation and China’s easing of COVID restrictions), outweighing some of the uncertainties in the upcoming BSP (Bangko Sentral ng Pilipinas) meeting,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.
“Philippine shares picked up from last week, continuing their ascent, after stellar corporate earnings and growth data encouraged investors to buy into the market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.
Philippine gross domestic product (GDP) expanded by 7.6% in the third quarter, slightly faster than the revised 7.5% growth in the preceding three-month period and 7% a year earlier. In the nine months to September, GDP growth averaged 7.7%.
The strong growth print cemented expectations of an aggressive rate increase from the BSP at its Thursday meeting.
Meanwhile, US consumer inflation increased by 7.7% annually in October, slower than the 8.2% logged in September, raising hopes of smaller rate hikes by the US Federal Reserve starting next month.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the PSEi tracked the rise of US shares last week.
On Friday, the Dow Jones Industrial Average went up by 0.1%; the S&P 500 gained 0.92%; and the Nasdaq Composite went up by 1.88%.
The majority of sectoral indices rose on Monday. Holding firms went up 83.98 points or 1.41% to 6,036.56; industrials rose by 113.57 points or 1.24% to 9,228.54; property gained 33.51 points or 1.2% to end at 2,816.24; financials added 9.45 points or 0.58% to close at 1,623.80; and services climbed by 4.50 points or 0.28% to 1,612.30.
Meanwhile, mining and oil declined by 44.59 points or 0.46% to 9,613.96.
Value turnover went up to P5.65 billion on Monday with 634.86 million shares changing hands from P4.92 billion with 441.04 million issues traded on Friday.
Advancers outnumbered decliners on Monday, 103 versus 85, while 39 names closed unchanged.
Net foreign buying went up to P681.67 million on Monday from P432.73 million on Friday.
AP Securities’ Mr. Temporal placed PSEi’s immediate support at 6,200 and immediate resistance at 6,500. — A.E.O. Jose
By Arjay L. Balinbin, Senior Reporter
HITACHI RAIL has bagged the contract for the electrical and mechanical systems and track works of the Manila-Bulacan segment of the North-South Commuter Railway (NSCR) project, according to the Transportation department.
The Philippines, through the Department of Transportation (DoTr), issued the notice of award to Hitachi Rail S.T.S. SpA representative Jorma Johannes Oksanen on Nov. 8, according to a copy of the document obtained by BusinessWorld.
The contract is worth P13.13 billion plus €361.96 million, $153.88 million, and ¥7.89 billion, equivalent to P46.6 billion according to exchange rates prevailing on Nov. 14.
The Tutuban (Manila)-Malolos (Bulacan) rail project is part of the 163-kilometer NSCR urban rail transit system from Calamba in South Luzon to Clark in Central Luzon. It is co-financed by the Japan International Cooperation Agency (JICA) and the Asian Development Bank.
Undersecretary for Administration and Finance Kim Robert C. de Leon said Hitachi should submit a “performance security” or financial guarantee within 28 days of receiving the notice of award.
On its website, Hitachi Rail describes itself as a “fully integrated, global provider of rail solutions across rolling stock, signaling, operation, service and maintenance, digital technology, and turnkey solutions.”
The DoTr instructed Hitachi Rail, as the prospective supplier, to submit its offer in September 2021.
In 2018, the company launched an autonomous train servicing Australian mines, and signed a contract in the Middle East for the operation and maintenance services of lines 3-6 of the Riyadh Metro. It won a contract in Italy in 2020 to deliver a new tram platform.
The 38-kilometer Malolos-Tutuban segment has a projected cost of P149.13 billion, according to the National Economic and Development Authority. It is expected to carry more than 200,000 commuters daily. The travel time from Malolos to Tutuban is estimated to be 35 minutes once the project is finished.
The Malolos to Clark segment is expected to be completed in 2024. According to JICA, the NSCR project is designed to strengthen the mass transport network servicing growing demand in Metro Manila and surrounding provinces.
PRIORITY legislation taxing single-use plastics, foreign digital service providers, as well as a bill reforming the tax regime on passive income, were approved on third reading at the House of Representatives on Monday.
Voting 255-3, the House approved House Bill (HB) 4102, which seeks to impose an excise tax of P100 per kilogram on single-use plastic bags.
The bill calls for the tax to increase 4% every year starting Jan. 1, 2026. Incremental revenue from the tax will fund programs of the Department of Environment and Natural Resources.
Albay Rep. Jose Ma. Clemente S. Salceda said the measure is expected to raise P9.3 billion in revenue.
Party-list Reps. Arlene D. Brosas of Gabriela, France L. Castro of ACT-Teachers and Raoul Danniel A. Manuel of Kabataan voted against the measure, calling it a burden to consumers.
“While we want to regulate the use of plastic bags for environmental concerns such as reducing pollution, this proposed measure will just be an additional burden to consumers, sellers, and retailers,” Ms. Brosas said during plenary.
In a vote of 253-4 with one abstention, the House also approved HB 4122 on third reading. The measure seeks to impose the 12% value-added tax (VAT) on nonresident digital service providers such as Spotify and Netflix.
If signed into law, the 12% VAT will be imposed on the digital sale of services like online advertising, video on demand subscriptions, and the supply of other services which are delivered through online marketplaces, webcasts and mobile applications, among others.
Mr. Salceda, who also chairs the House ways and means committee, said the measure is expected to generate P19 billion in revenue.
“While it is true that the playing field must be fair especially to local online digital service providers who are already imposing VAT on digital goods and services, we believe levying a new tax in the form of digital tax on other streaming services and digital transactions is not the way forward,” Ms. Brosas, who voted no, said.
The House, voting 258-3, also approved on final reading HB 4339 which seeks to simplify taxation of passive income by harmonizing most rates at 15%.
Mr. Salceda said the measure is expected to generate P20 billion, mainly by raising the tax rate on foreign currency deposits to 20%.
The measure also proposes gross receipts tax on bank, quasi-bank and other nonbank financial intermediary income of 5%, a premium tax of 2% and a stock transaction tax of 0.1%. — Matthew Carl L. Montecillo
THE recently agreed updates to the ASEAN, Australia and New Zealand Free Trade Area (AANZFTA) deal are expected to accelerate the growth of micro, small, and medium enterprises (MSMEs) in the country, the Department of Trade and Industry (DTI) said.
“The substantial conclusion of the upgrade negotiations marks another milestone for both ASEAN and Australia-New Zealand, as we gain another high-quality free trade agreement (FTA),” Trade Secretary Alfredo E. Pascual said in a statement on Monday.
“The inclusion of a Chapter on Trade and Sustainable Development and MSMEs is expected to fuel inclusive growth and integration of businesses into the global value chain,” he added.
The DTI said the changes to the FTA modernize trade practices which level the playing field for small businesses.
The DTI said signatories plan to sign the second protocol amending the AANZFTA in 2023. Negotiations to update the FTA started in September 2020.
“ASEAN, Australia, and New Zealand introduced the inclusion of new Chapters on Government Procurement, MSMEs, and Trade and Sustainable Development to facilitate growth anchored on an inclusive and sustainable regional economy. With the inclusion of the new chapters, the upgraded AANZFTA is viewed to benefit both regions in a broad spectrum of areas,” the DTI said.
“Among others, the agreement will accelerate supply chain integration and resilience; ensure a smooth flow of essential goods during crises; deepen services and investment liberalization; and support electronic commerce and digital transformation,” it added.
The AANZFTA took effect for the Philippines in 2010. It is the first region-to-region trade agreement involving the ASEAN, Australia, and New Zealand.
According to the DTI, Australia and New Zealand were the 16th and 28th largest trading partners of the Philippines in 2021, with a combined trade value worth P2.64 billion.
It added that Australia was the 14th largest source of investment last year with P664.32 million. — Revin Mikhael D. Ochave
THE aquaculture industry said easing the import ban on processed animal proteins (PAP), a key ingredient in fish feed, will help the Philippines achieve food security.
In a statement on Monday, food advocacy group Tugon Kabuhayan said the industry, represented by 270 fishpond operators, non-government organizations, feed manufacturers, commercial fishing companies, fisherfolk, and regulators, wrote to President Ferdinand R. Marcos, Jr. welcoming the resumption of PAP imports, which they said will help improve food production.
PAP imports had been suspended as a precautionary measure because of fears animals affected by African Swine Fever (ASF) could find their way into the supply chain for fish feed.
“This decision will grant Filipinos an inexpensive and ample fish supply and provide the population with their daily allowance of required protein,” Tugon Kabuhayan said.
Tugon Kabuhayan said aquaculture feed mills obtain their PAP from European suppliers that only use Category 3 materials, which are parts of animals from accredited slaughterhouses and were determined to be safe for human consumption.
“The safety of PAP is based on science. The World Organisation for Animal Health Terrestrial Animal Health Code Article 15.1.23 stipulates that the ASF virus is inactivated if the meat is heated at 70°C for 30 minutes. Even assuming that ASF is present, the process used for rendering PAP is more than enough to kill or inactivate any virus or pathogen,” Tugon Kabuhayan said.
“Countries like the US, Canada, and the members of the European Union continue to import PAP even from ASF-affected countries. The shipment period of at least 45 days from Italy is more than enough time for any such contamination to be inactivated,” it added.
The Department of Agriculture (DA) in January issued a temporary ban on imported pork products from Italy due to an ASF outbreak. Italy accounts for around 70% of the Philippines’ annual imports of 150,000 metric tons of PAP.
In August, the DA issued Memorandum Order No. 59 that approved PAP imports even from ASF-affected countries for sole use in fish feed production following lobbying from the industry.
Recently, the Bureau of Animal Industry issued guidelines governing the import of PAP, requiring suppliers to provide a veterinary certificate from the country of origin.
The organizations that signed the letter to the President include the Bureau of Fisheries and Aquatic Resources, National Fisheries and Aquatic Resources Management Council, Philippine Association of Fish Producers, Inc., Alliance of Philippine Fishing Federations, Inc., Malalag Bay Fishcage Operators, Taal Lake Aquaculture Alliance, Inc., and Inter-Island Deep Sea Fishing Association, Inc.
Other signatories were Feedmix Specialist, Inc. II, Dobe Export International, Oversea Feeds Corp., CDT Farm, Finfish Hatcheries, Inc., Frabelle Group, and various fishpond and fish cage owners and operators from Luzon, the Visayas, and Mindanao. — Revin Mikhael D. Ochave
