Solon pushes approval of Media Workers Welfare Bill amid killing of community journalist

December 10, 2021 | 7:06 pm

A HOUSE LAWMAKER is urging Congress to approve a measure that would ensure the protection and sustained benefits of media workers following the killing of community journalist Jesus “Jess” Malabanan.

ACT-CIS Party-list Rep. Rowena Nina O. Taduran said on Friday that the approval of House Bill 8140 or the Media Workers’ Welfare Act will provide media with security and protection beyond the assistance of the Presidential Task Force on Media Security.

“Media workers need a law to give them security,” she said in a statement.

Under the bill, media workers who are reporting in areas that would expose them to occupational risks or peril to life are entitled to hazard pay of at least P500 per day.

Those covering in dangerous areas should also be provided with basic safety gear such as bulletproof vests, helmets, and first-aid kits by their employers. The bill also requires employers to provide additional insurance coverage such as death, disability, and medical benefits. The measure also seeks to ensure that media workers are covered by social welfare and retirement benefits upon employment.

The bill has already been approved on third and final reading in the House while two counterpart bills are pending at the committee level in the Senate.

Ms. Taduran also urged authorities to immediately investigate and resolve Mr. Malabanan’s murder.

“I am shocked at how journalists are being silenced by bullets. Their courage stems from their desire to tell the truth. We must not allow violence to kill that flame,” she said.

Mr. Malabanan was a correspondent for the Manila Standard, The Manila Times, Reuters, and Bandera.

Motorcycle-riding gunmen shot Mr. Malabanan in the head on Wednesday as he was watching television inside his family’s retail store Calbayog City, Samar.

Journalist Manuel Mogato said Mr. Malabanan worked on the Reuters reports on President Rodrigo R. Duterte’s drug war, which won the Pulitzer Award in 2018.

The Commission on Human Rights and Presidential Task Force on Media Security are currently investigating the killing, along with local police. — Russell Louis C. Ku

PHL economy seen to grow by 5.3% in 2021

December 10, 2021 | 7:00 pm

THE ECONOMY could grow by 5.6% this year, boosted by the faster-than-expected third quarter expansion and increased business activities following the easing of mobility restrictions, Sun Life Investment Management and Trust Corp. (SLIMTC) said.

In a presentation at a briefing on Friday, SLIMTC President Michael Gerard D. Enrique said their latest 2021 growth forecast is higher than the 4.5% estimate they gave in October.

“The fourth quarter estimate previously was at 6%, now it’s at 6.6%. The third quarter really surprised. With looser restrictions, more mobility is happening during the fourth quarter, and people are more optimistic in terms of their sentiment spend,” Mr. Enrique said in an online briefing.

More businesses have expanded their operations as restrictions were eased after a decline in coronavirus cases.

In the third quarter, Philippine GDP grew by 7.1% year on year. This brought the nine-month average to 4.9%, which is near the upper end of the government’s downward-revised 4-5% target.

In 2022, Mr. Enriquez said SMILTC expects the economy to grow by 5-7%.

However, the possibility of a spike in infections due to the Omicron variant could dampen growth prospects.

“The consumption story and business confidence can spiral back down if we see more alert levels to go up again,” he said.

“We were expecting election-related spending to be a bit muted given that there may be some mobility restrictions but as we see it now, we may expect more normalcy in terms of how we’ve seen previous election campaigns in terms of consumption spending,” Mr. Enriquez added. – LWTN

GlobalSource says improved unemployment data masks extent of joblessness

December 10, 2021 | 6:56 pm

face-mask-crowd — PHILIPPINE STAR/ MICHAEL VARCAS

A THINK TANK has flagged the alarming labor situation in the Philippines, as the number of Filipinos looking for more work or longer working hours increased.

While the country’s unemployment rate improved last month, overall joblessness rose to 21.9% in 2020 and 22.3% in 2021 from 16.8% in 2019, think tank GlobalSource Partners noted in an emailed report.

“Unemployment rate has declined this year but masks extent of joblessness,” it said.

GlobalSource said the number of Filipinos wanting to work more hours went up to 16.1% or 7.04 million people in October from 14.2% or 6.18 million in September.

“[Compared] with pre-pandemic (2019), employment increased by only about a third or about 1.3 million jobs,” it said. “Moreover, the sectoral and occupational jobs breakdowns provide a grim picture of the post-pandemic recovery where new jobs are largely in low-productivity, low-skilled and thus low-wage segments.”

The think tank said between 2019 and 2021, the labor force “grew faster than the working age population” due to the hundreds of thousands of repatriated overseas workers seeking local employment as deployment opportunities slumped.

“There may also be those who saw family incomes decline during the pandemic and are now forced to work to make ends meet,” GlobalSource said.

The country’s unemployment rate decreased to 7.4% last month from 8.9% in September, the lowest in three months or since July 2021’s 6.9%, the government reported earlier this week.

This is equivalent to about 3.5 million jobless Filipinos in October, down from 4.255 million unemployed in September. — K.A.T. Atienza

Meycauayan East Service Road opened to public

December 10, 2021 | 6:49 pm

THE Meycauayan East Service Road was formally opened to the public on Friday, NLEX Corp. said in an e-mailed statement.

The new access road connects Meycauayan city’s Libtong and Lawang Bato in Valenzuela City, which will “ease both northbound and southbound traffic in the city.”

The Department of Public Works and Highways (DPWH) constructed the new service road to be an alternative for the MacArthur Highway. The one-kilometer, two-lane service may be used by motorists to travel between Meycauayan and Venezuela.

“Aside from relieving traffic, this infrastructure is seen to enhance mobility and make economic activities in Meycauayan and nearby areas more efficient,” NLEX Corp. Vice President Donna Faylona-Marcelo said.

Present at the opening ceremony were Bulacan 4th District Representative Henry R. Villarica, Meycauayan City Mayor Linabelle Ruth R. Villarica, Meycauayan City Vice Mayor Josefina O. Violago, Toll Regulatory Board (TRB) Executive Director Alvin A. Carullo, DPWH District Engineer George Santos, and NLEX’ Ms. Faylona-Marcelo.

The new road aims “to provide motorists with a direct local route and help improve traffic flow, especially during rush hours at [the] Meycauayan Interchange.”

“The service road will improve the accessibility and address the increasing traffic volume in our city as we host many manufacturing and industrial companies,” Mr. Villarica said.

NLEX Corp. said the development is part of planned road network improvements after traffic along the east and west of Meycauayan increased “dramatically.”

Together with DPWH, NLEX Corp. is also working on a “more direct local route” for the 190-meter Marilao East Service Road which may be used by motorists to and from Meycauayan and Marilao.

NLEX Corp. is part of Metro Pacific Tollways Corp., the tollway unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Keren Concepcion G. Valmonte

Banks’ NPL ratio eases to six-month low in October

December 10, 2021 | 5:43 pm

BANKS’ soured debt continued to decline as of October, bringing the non-performing loan ratio to its lowest since April, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

Central bank data showed the industry’s non-performing loans (NPL) inched down 0.49% to P483.98 billion as of October from P486.362 billion at end-September.

However, the end-October NPL level rose 22.5% from P395.058 billion a year earlier.

The banking industry’s loan portfolio rose 3.2% to P10.959 trillion as of October from P10.61 trillion a year earlier.

This brought the bad loan ratio to 4.42%, easing from the 4.44% in September but higher than the 3.72% a year ago. October’s NPL ratio is the lowest in six months or since the 4.35% seen as of April.

Analysts attributed the lower NPL ratio to the economy’s recovery and its impact on borrowers’ capacity to pay their debts.

“NPL could have eased slightly as business activity comes back to life, helping both corporates and households make payments on time,” ING Bank N.V.- Manila Senior Economist Nicholas Antonio T. Mapa said in an email.

“Business is slowly rebooting and income generating activities are starting to take pace. NPL declines when the economy improves because money can circulate better in the economy,” John Paolo R. Rivera, an economist at the Asian Institute of Management (AIM), said in an email.

The economy grew by 7.1% year on year in the third quarter, bringing the nine-month average to 4.9%. BSP Governor Benjamin E. Diokno said gross domestic product expansion could surpass the government’s 4-5% target this year as fourth quarter growth could reach 7% or higher.

BSP data showed past due loans increased 10.3% year on year to P565.776 billion as of October from P512.889 billion. This brought its share in banks’ lending book to 5.16% from 4.83%.

Meanwhile, restructured loans more than doubled to P337.817 billion from P137.079 billion. These loans made up 3.08% of banks’ loan portfolio, increasing from 1.29% as of October 2020.

Loan loss reserves amounted to P413.375 billion at end-October, higher by 18.8% from the P347.771 billion. This brought its share in banks’ loans to 3.77% from 3.28%.

Still, NPL coverage ratio — which indicates banks’ allowance for potential losses due to bad loans — declined to 85.41% from 88.03% a year earlier.

ING Bank’s Mr. Mapa said the NPL ratio may continue to decline if the economic rebound is sustained.

“NPL ratio can still improve as we contain the pandemic. This is a good development,” AIM’s Mr. Rivera said.

BSP officials earlier said they expect the NPL ratio to hit 5-6% by end-2021 before peaking at 8.2% by 2022. If realized, this will still be lower than the 17.6% seen in the aftermath of the Asian Financial Crisis in 2002. — Luz Wendy T. Noble

BPI looking to raise at least P5 billion from bond offer

December 10, 2021 | 5:41 pm

BANK of the Philippine Islands is looking to raise at least P5 billion from it offer of peso-denominated bonds in January, it said on Friday.

“Proceeds from this bond offering will be used for general corporate purposes including refinancing,” the bank said in a filing with the local bourse on Friday.

The papers will have a tenor of two years. The upcoming issuance is the fourth tranche of the bank’s P100-billion bond program.

BPI will offer the papers from Jan. 6-21. Its issue and listing date will be on Jan. 31.

Investments start at P1 million and in increments of P100,000 afterwards.

The bank said it may update the offer’s terms and schedules.

BPI Capital Corp. and The Hongkong and Shanghai Banking Corp. (HSBC) are the joint lead arrangers for the offering. The selling agent for the bonds will be BPI Capital, while HSBC will serve as participating selling agent.

In August 2020, the lender raised P21.5 billion through its COVID Action Response bonds that were oversubscribed by more than seven times versus the P3-billion target. The proceeds were used to finance lending for small businesses during the crisis.

BPI’s third quarter net income inched up 3% year on year to P5.657 billion from P5.495 billion, as lower credit provision offset the decline in interest earnings. This brought its nine-month net profit up by 1.8% year on year to P17.5 billion.

The bank’s shares went down by P2.25 or 2.42% to close at P90.65 apiece on Friday. — Luz Wendy T. Noble

BSP fully awards one-month bills

December 10, 2021 | 5:39 pm

THE BANGKO SENTRAL ng Pilipinas (BSP) fully awarded its offer of one-month securities on Friday, with its average rate going down following the government’s retail bond offering.

The central bank awarded P80 billion in short-term bills as planned as the offer fetched bids worth P105.85 billion, making it oversubscribed by 1.32 times. This was also higher than the P102.042 billion in demand seen a week earlier.

Accepted rates for the 28-day bills were from 1.77% to 2.038%, slimmer than the 1.76% to 2.09% logged in the prior auction. With this, the average rate of the papers stood at 1.8653%, down by 0.96 basis point from 1.8749% previously.

The central bank uses its short-term securities and term deposit facility to mop up excess liquidity in the financial system and guide market rates.

The average rate of the central bank’s one-month bills dipped as the national government’s cash position increased following its retail Treasury bond (RTB) issue, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Bureau of the Treasury sold P360 billion in five-and-half-year RTBs after a two-week offer. Proceeds from the issuance will be used to fund the government’s pandemic response and recovery programs. — LWTN

No rediscount borrowings in November

December 10, 2021 | 5:34 pm

BANKS did not touch the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) in November amid ample liquidity and relatively slow lending growth.

“For the period Jan. 1 to Nov. 30, total availments of banks against their rediscount loans remain unchanged at P6.12 million for loans under the peso rediscount facility,” the central bank said in a statement on Friday.

There were also no availments under the Exporters’ Dollar and Yen Rediscount Facility (EDYRF).

The BSP’s rediscount facility gives banks access to additional money supply by posting their collectibles from clients as collateral.

In turn, banks may use the cash — denominated in peso, dollar or yen — to extend more loans to their corporate or retail clients and service unexpected withdrawals.

In 2021, lenders have so far only tapped the central bank’s rediscount facility in June, July, and September.

Lenders did not borrow from the rediscount facility in November as they have ample liquidity and lending growth remains muted, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Banks also have other options for funding such as the interbank market and the capital markets,” he added.

Outstanding loans by big banks rose 3.5% year on year to P9.268 trillion in October, based on latest BSP data. Production loans rose 4.9%, while retail borrowings dropped by 7.2%.

In the same month, liquidity growth slowed to 8.2% from 8.3% in September.

Meanwhile, for December, the applicable rate for peso rediscount loans will be 2.5%, regardless of maturity.

Rates of dollar- and yen-denominated loans, regardless of maturity, are at 2.17325% and 1.91533%. – L.W.T. Noble

Peso down on trade data

December 10, 2021 | 5:26 pm

THE PESO retreated versus the greenback on Friday as the country recorded a wider trade deficit in October and ahead of the release of the latest US inflation report.

The local unit closed at P50.35 per dollar on Friday, weakening by nine centavos from its P50.26 finish on Thursday, data from the Bankers Association of the Philippines showed.

Week on week, the peso appreciated by a centavo from its P50.36 finish on Dec. 3.

The peso opened Friday’s session at P50.28 per dollar, which was also its intraday best. Meanwhile, its worst showing was at P50.39 versus the greenback.

The local unit weakened as the country posted a wider trade deficit, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Data released by the Philippine Statistics Authority on Friday showed the trade deficit widened to $4.01 billion in October from the $2.04-billion gap a year earlier. It was also the biggest deficit since the $4.27 billion posted in January 2019.

That month, exports rose 2% year on year to $6.41 billion, slower than the 6.4% growth in September. Meanwhile, imports surged 25.1% to $10.43 billion.

The market was also cautious ahead of the release of the November US consumer price index, a trader said in a Viber message.

A faster-than-expected inflation print could strengthen the case for the US Federal Reserve to tighten their monetary policy this December, Reuters reported. — L.W.T. Noble with Reuters

Shares drop on profit taking ahead of US data

December 10, 2021 | 5:23 pm

042321-PSEi-Closing — Philippine Stock Exchange index

STOCKS declined on Friday on profit taking ahead of the release of the US consumer price index report.

The benchmark Philippine Stock Exchange index (PSEi) fell 42.75 points or 0.59% to close at 7,192.17 on Friday, while the broader all shares index slid by 12.12 points or 0.31% to 3,830.43.

“Local shares were sold as investors took in some of their profits ahead of the CPI data release this Friday in the US. Economists, as surveyed by Dow Jones, expect the Nov inflation to hit 6.7% year on year—the hottest since June 1982,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The US CPI for November was due later on Friday and a Reuters poll of economists expect it to have risen 6.8% year-on-year, overtaking a 6.2% increase in October, which was the fastest gain in 31 years.

Any upside surprise will likely be interpreted as a case for a faster Federal Reserve taper and bring forward expectations for interest rate rises.

“After PSEi gained for five straight days, the decline today is considered healthy,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message on Friday.

All sectoral indices closed in the red on Friday. Financials fell 21.76 points or 1.35% to 1,590.47; property lost 31.54 points or 0.96% to 3,233.90; industrials dropped 35.63 points or 0.34% to 10,397.95; mining and oil decreased 16.76 points or 0.18% to 9,196.45; holding firms gave up 9.54 points or 0.13% to 6,968.68; and services went down 1.01 points or 0.05% to 1,993.97.

Value turnover increased to 15.52 billion with 3.57 billion issues switching hands on Friday from the P8.61 billion with 1.87 billion shares traded on Thursday.

Decliners beat advancers, 103 against 99, while 43 names closed unchanged.

Net foreign selling jumped to P9.57 billion from the P1.09 billion seen the previous trading day.

Mr. Ricafort said the PSEi’s immediate support is at the 7,000-7,040 levels, while immediate resistance will be at 7,230-7,260.

“Support may be drawn at the 6,800 area, while 7,454.50 may be considered the resistance area to watch next week,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message. — M.C. Lucenio with Reuters

Vietnam’s Society Pass to acquire PHL e-commerce businesses

December 10, 2021 | 5:16 pm

As part of its Philippine expansion, Society Pass (SoPa), a Vietnamese loyalty points company, is acquiring four to five local e-commerce businesses in the next few months.

“Let’s say you go to Manila on a business trip. You can go to a restaurant in Manila and redeem the loyalty points you earned in a restaurant in Vietnam,” said SoPa founder, chairman, and CEO Dennis Nguyen, in a Dec. 9 press briefer. “The model of our business is to turn data into loyalty and revenues.”

The beta version of its loyalty app, for both iOS and Android, will roll out to Filipino customers and merchants before the end of the year.

SoPa has already hired a Philippine general manager and head of human resources, both of whom are based in Manila.

Mr. Nguyen said the Philippines was a “favorable prospect” due to its young, educated, English-speaking population, as well as its high Internet penetration rate.

E-commerce adoption moreover rose to 80.2% this year from 70% in 2019 and 76% in 2020, according to Trade secretary Ramon M. Lopez.

SoPa is the first Vietnam-based company to complete a traditional initial public offering on the stock market outside its home country. Its 1.5 million registered users to date earn universal loyalty points from over 3,500 registered merchants.

The company has seven interconnected consumer-facing and merchant-facing platforms that generate universal loyalty points for customers, and revenue for merchants.

Aside from the loyalty app and loyalty marketplace website, its five other platforms are the Leflair app and marketplace website, an e-commerce marketplace in Vietnam; the #HOTTAB point-of-sale solution that offers financial support packages for small and medium-sized enterprises; and the #HOTTAB biz app and administration website that provides order management for SoPa’s merchant partners.

The company spans verticals such as food and beverage, lifestyle, beauty, travel, and merchant software. It will focus on the first two in the Phliippines, as per Mr. Nguyen.

Apart from developing its own loyalty points ecosystem, the Singapore-headquartered company plans to differentiate itself by actively acquiring growing ecommerce platforms in the region.

— Patricia B. Mirasol

China, Nicaragua re-establish ties in blow to US, Taiwan

December 10, 2021 | 4:35 pm

Plaza_de_la_Independencia_de_Granada — WIKIMEDIA COMMONS

BEIJING/TAIPEI — China and Nicaragua re-established diplomatic ties on Friday after the country broke relations with Chinese-claimed Taiwan, boosting Beijing in a part of the world long considered the United States’ backyard and angering Washington.

China has increased military and political pressure on Taiwan to accept its sovereignty claims, drawing anger from the democratically ruled island, which has repeatedly said it would not be bullied and has the right to international participation.

China’s Foreign Ministry, announcing the decision after meetings with Nicaragua’s finance minister and two of President Daniel Ortega’s sons in the northern Chinese city of Tianjin, said the country had made the “correct choice.”

The break with Taiwan shrinks the island’s dwindling pool of international allies and is a blow to the United States.

It follows months of worsening ties between Mr. Ortega and Washington, and came on the day the US State Department said it had applied sanctions to Nestor Moncada Lau, a national security adviser to Mr. Ortega, alleging he operates an import and customs fraud scheme to enrich members of Mr. Ortega’s government.

The US State Department said Nicaragua’s decision did not reflect the will of the Nicaraguan people because its government was not freely elected.

“We do know, however, that this deprives Nicaragua’s people of a steadfast partner in its democratic and economic growth,” spokesperson Ned Price said in a statement. “We encourage all countries that value democratic institutions, transparency, the rule of law, and promoting economic prosperity for their citizens to expand engagement with Taiwan.”

Chinese Foreign Minister Wang Yi said Taiwan’s allies — now only 14 countries — have stayed with Taipei only because of pressure from the United States and Taiwan’s “dollar diplomacy,” accusations Taipei denies.

Nicaragua’s congress in 2019 accepted a $100 million loan from Taiwan, but Taiwan’s Foreign Ministry said on Friday that money, designed for economic reconstruction, has never been paid because of “procedural issues with allocation requirements” by the bank, which it did not name.

‘MARCH TOWARDS THE WORLD’

Taiwan’s government said it was unbowed by Nicaragua’s decision.

Taiwan President Tsai Ing-wen said they would not bend to pressure or change their determination to uphold democracy and freedom and “march towards the world.”

“The more successful Taiwan’s democracy is, the stronger the international support, and the greater the pressure from the authoritarian camp,” she said in Taipei.

A senior Taiwan official familiar with the matter told Reuters the timing was “provocative,” coming during the Biden administration’s Summit for Democracy, which Taiwan is attending, and a week before four referendums on the island, though they are on domestic issues like energy and pork imports.

At the now-defunct Nicaraguan embassy in Taipei, in a building in the leafy suburb of Tianmu, staff said the former ambassador was not in. Nicaragua’s flag outside had been removed by the time a Reuters reporter arrived mid-morning.

Mr. Ortega first cut ties with Taiwan in 1985, but they were re-established with the island in 1990 under then-Nicaraguan President Violeta Barrios de Chamorro.

One Taiwan-based diplomatic source, familiar with the region, said the move was not a surprise given Washington’s lack of leverage with Ortega due to the sanctions, and that looking to China for aid and support was a natural course of action.

“It appears that Ortega had had enough,” the source told Reuters, speaking on condition of anonymity.

Attention will now turn to another Taiwan friend, Honduras.

Aides for the incoming president Xiomara Castro have said she would not establish ties with China, backtracking from Ms. Castro’s earlier comments that she was open to starting formal relations with Beijing.

A second Taiwan-based diplomatic source told Reuters it was still a case of “watch this space” whether Honduras would ultimately go with Beijing.

China says Taiwan is one of its provinces with no right to the trappings of a state. — Yew Lun Tian and Ben Blanchard/Reuters