MPIC’s Toledo is new chair of Chamber of Mines of the Philippines

December 14, 2021 | 12:01 am

THE Chamber of Mines of the Philippines (CoMP) has elected Michael T. Toledo as its new chairman, it said in a press release on Monday.

Mr. Toledo will succeed Gerard H. Brimo, who has been chair since 2017. Mr. Brimo will become vice-chairman and remain in the chamber’s board of trustees.

Mr. Toledo is the chief operating officer of Silangan Mindanao Mining Co. He also heads the Government and Public Affairs group of Metro Pacific Investments Corp. (MPIC).

He said he is ready to “steer CoMP as the nation prepares to elect a new administration that the mining industry hopes will continue to promote business stability and investor confidence.”

CoMP is an association of the country’s mining, quarrying, and mineral processing companies founded in 1975. It was the first mining association in Asia to adopt the Towards Sustainable Mining program developed by the Mining Association of Canada.

MPIC is one of three key Philippine units of First Pacific, 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. — LMJCJ

Lawmakers call for probe into hacking complaints

December 14, 2021 | 12:01 am

LAWMAKERS from the progressive Makabayan bloc are calling for an investigation into complaints from bank clients claiming their accounts were hacked.

Bayan Muna Rep. Carlos Isagani T. Zarate, Ferdinand R. Gaite, and Eufemia C. Cullamat filed House Resolution 2045 calling on the Committee on Banks and Financial Intermediaries to conduct a probe on the matter.

“Congress should protect the welfare of the people against these fraudulent activities, especially amid the pandemic and economic crisis,” the resolution said.

The Makabayan lawmakers said the banking industry, along with the central bank, should put in place more measures and policies to ensure the safety of financial transactions.

They added that those affected should be given “speedy reimbursements.”

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on Sunday that they are working with BDO Unibank, Inc. and UnionBank of the Philippines, Inc. to resolve the issue.

On social media, individuals claiming to be BDO clients posted screenshots of allegedly unauthorized transfers from their accounts to UnionBank accounts.

BDO required all online banking users to change their passwords as a security precaution following the complaints.

Meanwhile, Albay Rep. Jose Maria Clemente S. Salceda also filed House Resolution 2407 on Monday to ask the Committee on Banks and Financial Intermediaries to “assess the level of retail client protection among banks in the country.”

He likewise filed House Resolution 2406 calling for a probe by the Committee on Public Accounts into the implementation of anti-fraud provisions of the Cybercrime Prevention Act of 2012.

“Cybersecurity and user protection is still particularly lacking. User verification systems, identification features, are still very susceptible. Users are also not properly or adequately informed about scams,” Mr. Salceda said in a statement.

He also urged the Senate to pass its own version of House Bill 6768 or the proposed Consumer Financial Protection Act. Several bills on the matter are pending at the Senate committee level. — R.L.C. Ku

Philippines ranks 83^rd (out of 130 economies) in ‘network readiness’ ranking

December 14, 2021 | 12:00 am

Auto Sales

December 14, 2021 | 12:00 am

CAR AND TRUCK manufacturers reported their sales grew by double digits in November, allowing the industry to exceed last year’s total sales as demand picked up amid the further easing of lockdown restrictions. Read the full story.

How PSEi member stocks performed — December 13, 2021

December 14, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, December 13, 2021.

Foreign chambers press Senate to finish work on PSA measure

December 13, 2021 | 10:41 pm

THE Joint Foreign Chambers (JFC) pressed the Senate to pass a bill amending Commonwealth Act 146 or the Public Service Act (PSA), citing the need to safeguard the economic recovery.

In a statement on Monday, the foreign chambers said the bill can help maximize foreign investment that will create jobs, build infrastructure, and support the recovery.

They noted that the bill remains pending with the Senate at the plenary amendment stage, after having hurdled the House of Representatives in March 2020.

“By opening up key economic sectors, particularly telecommunications and transportation, and limiting the definition of public utilities largely to natural monopolies, the PSA amendments bill could maximize opportunities to attract new foreign investment that create jobs, build, infrastructure, and support economic recovery and growth as the country recovers from the effects of the pandemic,” they said.

“With less than 30 session days left before the end of the 18^thCongress, the members of the JFC stressed that it is crucial the reform is passed, with its intended purpose intact, soon. Not to approve this bill will deny the recovering economy many billions of dollars,” they added.

The JFC also sought looser restrictions in foreign ownership of renewable energy, specifically solar, water, and wind.

“Current restrictions in government regulations are preventing billions of dollars from helping the country to shift faster to cleaner energy. These are kinetic forces of nature, the ownership of which is rarely claimed by countries,” they said.

Senate Committee on Public Services Chair Mary Grace Natividad S. Poe-Llamanzares said in a Viber message that every provision in the proposed amendments is still subject to alteration.

“Nothing in the bill is cast in stone as amendments and a vote on contentious provisions could be made while Congress continues deliberations. While we seek a law that will keep us in step with the times, we assure that safeguarding the interest of Filipinos will be the primordial consideration,” Ms. Poe- Llamanzares said.

“The bill has adequate safeguards to address questions on national security, reciprocity, labor and information security. Our people deserve quality services, affordable rates and opportunities for jobs to aid in our coronavirus disease 2019 (COVID-19) economic recovery,” she added.

The members of the JFC include the American Chamber of Commerce of the Philippines, the Australia-New Zealand Chamber of Commerce Philippines, the Canadian Chamber of Commerce of the Philippines, the European Chamber of Commerce of the Philippines, the Japanese Chamber of Commerce and Industry of the Philippines, the Korean Chamber of Commerce of the Philippines, and the Philippine Association of Multinational Companies Regional Headquarters, Inc. — Revin Mikhael D. Ochave

Agriculture trade deficit hits $2.4B in third quarter

December 13, 2021 | 10:41 pm

AGRICULTURAL TRADE was in deficit by $2.4 billion in the third quarter, with imports of grain products worth over $900 million keeping the trade balance in the negative, the Philippine Statistics Authority said on Monday.

The deficit widened 18.3% from a year earlier, with the growth in imports (15.8% to $4.16 billion) outstripping that of exports (12.5% to $1.76 billion).

Total trade — the combination of export and imports— rose 14.8% year on year to $5.93 billion during the period, slowing from the second-quarter growth rate of 33.6%. A year earlier, the equivalent growth rate was 0.4%.

Agricultural imports accounted for 13.5% of the overall import bill in the period, with cereals representing the single largest category at $908.66 million.

Agricultural exports accounted for 8.9% of exports overall.

The top 10 export commodity groups were valued at $1.69 billion, or 96.1% of all export revenue.

The top exports were edible fruits and nuts and peel of citrus fruit and melons, which were valued at $471.71 million, or 26.8% of all farm exports.

Imports from the Association of Southeast Asian Nations (ASEAN) amounted to $1.37 billion, or 16.3% of all imports from ASEAN. Indonesia was the top source of farm goods with $401.21 million, or 29.3%. Vietnam followed with $326.95 million, and then Malaysia with $266.19 million.

The top commodities imported from ASEAN countries were animal or vegetable fats and oils and their cleavage products, prepared edible fats, and animal or vegetable waxes ($391.25 million), followed by cereals ($288.24 million), and miscellaneous edible preparations ($287.24 million).

Malaysia was the top destination within ASEAN of Philippine agricultural exports, accounting for $64.45 million. Thailand tallied $36.60 million, followed by Indonesia with $35.44 million. Agricultural exports accounted for 6.0% of total exports to ASEAN.

The top commodities exported to ASEAN were tobacco and manufactured tobacco substitutes ($58.63 million), animal or vegetable fats and oils and their cleavage products, prepared edible fats, and animal or vegetable waxes ($55.57 million), and miscellaneous edible preparations ($14.03 million).

The Netherlands was the top European market, accounting for $162.59 million worth of exports, while Spain was the leading source of agricultural imports, shipping $93.77 million. — Luisa Maria Jacinta C. Jocson

PHL signs on to OECD clean-energy financing program

December 13, 2021 | 10:41 pm

THE Department of Energy (DoE) said on Monday that it has agreed to sign on to a program organized by the Organisation for Economic Co-operation and Development (OECD) to attract clean-energy investment.

The OECD program, known as the Clean Energy Finance and Investment Mobilisation (CEFIM) Program, will help the Philippines “address the green financing challenge, as well as jumpstart the energy transition goals of the Philippine Energy Plan (PEP),” the DoE said in a statement after Energy Secretary Alfonso G. Cusi expressed his support for the initiative.

The CEFIM program is funded by the government of Denmark and helps partner countries in Asia and Latin America draft policies to attract funding for clean-energy projects.

“The program will provide an opportunity for the Philippines to highlight efforts and challenges in promoting renewables and energy efficiency deployment,” the DoE said.

Under CEFIM, the Philippines is expected to develop a Clean Energy Finance and Investment Roadmap that will advance the Philippine Energy Plan (PEP) by providing the government and private sector a clear action plan for financing and investing in clean energy sector.

The DoE, the Bangko Sentral ng Pilipinas, and the Securities and Exchange Commission will also develop a Clean Energy Finance and Investment database to track funding for energy-related assets, and a finance training program to improve banks’ confidence in financing such projects.

The program will also enable the Philippines to share knowledge with Indonesia, Vietnam, Thailand and other neighbors that are already part of the program.

“As the country moves towards a climate-safe future, initiatives encouraging ‘green’ investments and financing, such as the CEFIM Program, will now be a critical component of the PEP, as well as the government’s post-pandemic programs,” the DoE added.

CEFIM is the energy component of another OECD program on Sustainable Infrastructure for the Paris Agreement, a German-funded initiative which boosts investment in sustainable infrastructure.

In April, the Philippines committed to reduce its carbon emissions by 75% by 2030. — Marielle C. Lucenio

Senate approves extension of 2021 budget validity on 3^rd reading

December 13, 2021 | 10:40 pm

THE SENATE passed on third and final reading on Monday a bill extending the validity of the 2021 budget until the end of next year.

House Bill 10373, which amends Section 62 of the General Provisions of Republic Act 11518 or the General Appropriations Act of Fiscal Year 2021 was unanimously adopted by the Senate with 22 votes in support.

Senator Juan Edgardo M. Angara, who chairs the Senate Finance committee, said the extension is crucial for the government’s recovery efforts since the pandemic is expected to persist throughout next year with the looming threat of the Omicron variant.

“The approval of the measure will allow the government to provide more social services and implement more projects for the benefit of more of our countrymen, and to a certain extent, provide some stimulus for jumpstarting our economic recovery,” Mr. Angara said in a statement on Monday.

Under the bill, appropriations authorized in the 2021 spending plan, including budgetary support to government-owned and -controlled corporations and financial assistance to local government units (LGUs), will be available for release and obligation until the end of December 2022, except for funds for personnel services.

On the other hand, appropriations for the statutory shares of LGUs will be available until fully utilized and disbursed.

The construction of infrastructure projects, the delivery of goods and services, inspection, and payment must also be settled before the end of December next year.

Once approved, 2.5 million more indigent patients are expected to benefit from government assistance, Mr. Angara said, as a significant portion of the budget for Medical Assistance for Indigent Patients has yet to be obligated.

It may also provide leeway for the Department of Interior and Local Government to use unobligated appropriations to hire up to 8,000 more contact tracers for one month, and boost the economic recovery by increasing infrastructure spending, he added.

After the end of the validity period, all unreleased appropriations and unobligated allotments will expire and revert to the unappropriated surplus of the general fund.

Except for LGUs, all balances of fund transfers between government agencies, instrumentalities, and departments not utilized, expended, or disbursed will also revert to the general fund.

The Budget department is authorized to issue the guidelines for the effective implementation of the cash budgeting system.

The Senate will now send its amended third reading report to the House of Representatives for adoption. — Alyssa Nicole O. Tan

Traders seen as main beneficiaries of food import liberalization

December 13, 2021 | 10:39 pm

FARMERS and fishermen are not reaping the benefits of the liberalization in food imports, with much of the value captured by traders, participants in a food security forum said on Monday.

“Farmers’ losses are significant and far outweigh any gains of consumers,” National Manager Raul Q. Montemayor of the Federation of Free Farmers said in his virtual presentation. “Pro-import policy and consumer bias of government has exacerbated the problems of farmers.”

In the forum hosted by Tugon Kabuhayan, Mr. Montemayor said the rice tariffication law has largely benefited importers and traders while subjecting farmers to intense competition from imports, putting pressure on their earnings.

“There is no significant improvement in production volume, yield, cost of production, and competitiveness despite support from Rice Competitiveness Enhancement Fund (RCEF) and tariff proceeds,” he said, referring to some of the features of the law, which calls for rice imports to pay tariffs which then go towards funding programs that make domestic farmers more productive.

“We haven’t seen any significant changes since the law was passed. In the two years that the law came into effect, it resulted in a P56-billion loss for our farmers. This should have lowered the retail price and passed the savings on to the consumers. Instead, the importers and traders pocketed the difference,” Mr. Montemayor added.

The Philippine Statistics Authority estimates that 31.6% of farmers and 26.2% of fisherfolk are classified as poor. These percentages are equivalent to about 5.5 million farmers and 4.6 million fishermen.

Philippine Tilapia Stakeholders Association President Jon G. Juico said imports have affected fishermen as well.

“The tilapia farmgate price in Central Luzon is about P64-65, compared to P80-85 pesos last year. That’s why so many fishermen here in Central Luzon cannot compete and are driven further into debt,” Mr. Juico said. “We used to harvest twice a year, but now due to the pandemic we only harvest once a year. Tilapia is always abundant here in Central Luzon, but if this trend continues many fish farmers will stop producing.”

In October, 60,000 metric tons (MT) of galunggong (round scad) and mackerel were imported and sold in public markets. The government authorized the imports to ensure adequate supply during the three-month closed season and keep inflation in check.

Prudenciano U. Gordoncillo, a lecturer at the University of the Philippines Los Baños, said producers need to diversify in order to be more resilient against imports.

Mr. Gordoncillo added that the Philippines focuses too much on rice, and that farmers need to explore other crops.

“Corn used to be the primary source of carbohydrates in the Visayas and Mindanao, then it was replaced by rice,” he said. “But rice is harder and more expensive to produce than corn. Nutrition-wise, corn, cassava, gabi, and rice are the same. They are all carbohydrates. We shouldn’t just rely on one commodity.” — Luisa Maria Jacinta C. Jocson

Treasury announces second-round auction for seized European cars

December 13, 2021 | 10:38 pm

THE Bureau of the Treasury said it will conduct a second-round auction for imported European cars that had been seized by the Bureau of Customs (BoC).

The vehicles are a Ferrari Scuderia 430, a 2001 Porsche Boxster, a 2001 Mercedes Benz SLK350, a 2001 Mercedes Benz SLK55, and a 2011 Mercedes Benz E220.

No bids were received during the first round.

The BoC had set a floor price for the smuggled vehicles at P29 million.

The BoC’s previous practice was to destroy such smuggled cars. — Luz Wendy T. Noble

Fuel marking revenue tops P330 billion

December 13, 2021 | 10:36 pm

oil-gas-pump — PHILIPPINE STAR/KRIZ JOHN ROSALES

DUTIES AND TAXES generated by the fuel marking program totalled P330.286 billion as of Dec. 9, according to the Department of Finance.

The program, which started in 2019, has resulted in the marking of 33.539 billion litters of fuel as a deterrent to smuggling.

Some P300.47 billion in duties and taxes were generated by the Bureau of Customs, while P29.81 billion resulted from the imposition of excise taxes.

Some 24.63 billion liters were marked in Luzon, while 7 billion and 1.8 billion liters were marked in Mindanao and the Visayas, respectively.

Diesel accounted for 60.92% of all fuel marked while gasoline and kerosene accounted for 38.55% and 0.53%.

The program deters smuggling by injecting a special dye into fuel to signify that the shipment is tax-paid. The absence of the dye is deemed prima facie evidence of smuggling.

In November, the House Committee on Ways and Means approved a bill seeking to suspend or reduce the excise tax on some fuel products for six months amid rising global oil prices.

In September 2020, the government started collecting a fuel marking fee of P0.06884 per liter, inclusive of value-added tax on manufactured, refined and imported petroleum products. — Luz Wendy T. Noble