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MPIC president to retire; Pangilinan to take over

Metro Pacific Investments Corp. (MPIC) announced on Friday that its president and chief executive officer, Jose Ma. K. Lim, will be retiring effective Dec. 31.

Mr. Lim’s position as president will be assumed by the company’s chairman, Manuel V. Pangilinan, on Jan. 1 next year.

“Mr. Lim will continue to be a board member of the company. There are no matters relating to his retirement that need to be brought to the attention of the shareholders of MPIC,” the company said in a disclosure to the stock exchange.

It added that its board of directors had elected Mr. Pangilinan “to be chairman and president of MPIC effective January 1, 2022.”

Mr. Lim has been with the group for 26 years.

“[He] has been instrumental in the inception of MPIC and has successfully grown MPIC to its current portfolio during his almost 15-year stint with the company,” the company noted.

Mr. Lim will remain a consultant of the company. “[He will] help with the more aggressive business development activities of MPIC,” it said.

MPIC closed unchanged at P3.86 apiece on Friday.

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. — Arjay L. Balinbin

Arthaland raises P3B from share offering

REAL ESTATE developer Arthaland Corp. raised P3 billion from its Series D preferred share offering, according to the Philippine Stock Exchange, Inc. (PSE) said in a statement on Friday.

Arthaland will use the funds raised from the follow-on offering to redeem the Series B preferred shares (ALCPB) issued by the listed developer in 2016, the PSE added.

“Proceeds from the ALCPB share sale was utilized by Arthaland for acquisition and development of real estate projects, repayment of loans, and general corporate purposes,” it said.

PSE President and Chief Executive Officer Ramon S. Monzon said the follow-on offering of Arthaland was more than 1.5 times oversubscribed, signifying the warm reception by investors.

“This comes as no surprise as more and more investors integrate sustainability into their investing criteria,” Mr. Monzon said.

“Arthaland is recognized as the only domestic property company with developments that are 100% certified as sustainable and has been recognized here and abroad many times over, for its green building advocacy, clearly placing the company on the sweet spot of Environmental, Social, and Governance (ESG) investing,” he added.

On Friday, shares of Arthaland at the local bourse climbed 1.61% or one centavo to end at 63 centavos apiece. — Revin Mikhael D. Ochave

Ayala group invests in phishing protection

Venture capital firm Kickstart Ventures, Inc. on Friday said the Ayala group had invested in SlashNext, a company that combats phishing attacks.

Kickstart manages the $180-million fund under the Ayala Corporation Technology Innovation Venture (ACTIVE), which is backed by Ayala Corp. along with its subsidiaries AC Energy, AC Industrials, AC Ventures, Bank of the Philippine Islands, and Globe Telecom, Inc.

“ACTIVE Fund, the largest venture capital fund to come out of the Philippines, has joined a team of investors to secure $26 million in Series B venture capital funding for SlashNext, the leader in SaaS-based spear-phishing and human hacking defense across digital channels and apps,” Kickstart said in an e-mailed statement.

“With new investors the ACTIVE Fund of the Ayala group as advised by Kickstart Ventures, G3 Enterprises, Telia Group, and participation from early investors Norwest, Wing, and Alter Ventures, the round brings SlashNext’s total funding to $43 million,” it added.

Kickstart said the amount would help SlashNext accelerate its mission to protect the world’s internet users from all forms of phishing.

“Ninety-one percent of all successful cyber breaches start with spear-phishing – including ransomware, data theft, and over $30 billion [in] financial fraud,” it said.

In a related development, the National Privacy Commission (NPC) also announced on Friday that 10 government agencies, including the Bangko Sentral ng Pilipinas and the Department of Justice, had joined efforts to catch those behind the recent smishing and text spams.

“Spearheaded by the CICC (Cybercrime Investigation and Coordinating Center), the group includes the NPC, Department of Information and Communications Technology, National Telecommunications Commission, Department of Labor and Employment, Department of Trade and Industry, National Security Council, and Anti-Money Laundering Council,” the agency said.

The group plans to set up a hub that will centralize complaints. — Arjay L. Balinbin

Globe empowers employees and customers to create a #GlobeOfGood this Int’l Volunteer Day

Volunteerism has been a key part of Globe’s corporate culture through its various employee engagement programs. In contributing to nation-building, the company is encouraging its employees and customers to actively support community engagement programs this International Volunteer Day (IVD).

IVD, as mandated by the United Nations General Assembly, is an annual celebration marked every December 5 and is viewed as a chance for volunteers and organizations to share knowledge and promote their work among their communities, non-governmental organizations (NGOs), United Nations agencies, government authorities, and the private sector.

Globe embeds the spirit of bayanihan or “civic unity and cooperation” in its corporate culture through the Volunteer Time-Off (VTO) program – a benefit that allows employees to volunteer at least once a year in their chosen advocacy or community.

Chief Sustainability Officer and SVP for Corporate Communications Yoly Crisanto said, “At Globe, we create ways to enable employees and customers to contribute to the greater good. Just like how our kababayans supported each other this year through the community pantries, we too, are ready to support nation-building together with our Ka-Globe.”

The company has opened numerous channels for its employees and stakeholders to share their time, talents, and resources. At the onset of the pandemic, Globe pivoted efforts by promoting digital volunteerism through fundraising using digital platforms such as GCash and Globe Rewards.

Currently, Globe is holding another internal fundraising campaign called The Purpose Tree, which supports hunger alleviation and livelihood initiatives of the Ayala Foundation and its partners under the #BrigadangAyala: Ka-Akay Program. The program aims to assist 10,000 families of displaced workers in the National Capital Region.

Globe is also extending volunteering opportunities to their customers. This December, the #ForFutureHeroes program is opening up a new avenue of donation through Globe Rewards via the new GlobeOne app. With this, Globe Platinum hopes to expand its reach to other education-focused advocacies such as the Ayala Foundation, Teach for the Philippines, and the Hero Foundation.

Since 2020, customers have been actively supporting Filipino students within the program — matching their participation and purchases from select Globe Platinum initiatives with equivalent DepEd-approved school kits through donations to World Vision.

Globe and TM customers can donate their Rewards points to various advocacies through the new GlobeOne app. All they have to do is visit the Rewards section on the app, click “DONATE,” and choose the organization and corresponding denomination they want to support with the “REDEEM” button. A confirmation message will be sent by 4438 upon successful donation.

The company strongly supports the United Nations Sustainable Development Goals, particularly UN SDG No. 9, highlighting the roles of infrastructure and innovation as crucial drivers of economic growth and development. It is committed to upholding the UN Global Compact principles and contributing to 10 UN SDGs.

For more information about Globe, visit www.globe.com.ph.

 

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Election spending ban poses fiscal risk

DPWH’s major road construction, improvement and rehabilitation programs have seen more than 2,436 km of completed roads across the country.

A state spending ban before the 2022 Philippine elections is expected to disrupt government infrastructure projects and delay reforms, according to an inter-agency body that sets macroeconomic goals.

A new government next year could also affect development priorities, which could affect reforms in the budgeting system, the Development Budget Coordination Committee (DBCC) said in a report on Friday.

“The implementation of the government’s infrastructure projects may be disrupted, as public works and the release of public funds during the election period are prohibited under the Omnibus Election Code of the Philippines,” it said.

The ban on public works starts 45 days before general elections, or from March 25 to May 8, 2022. The law also prohibits social welfare dole-outs during the period.

“Risks may be mitigated by the proper and timely conduct of early procurement activities, which in turn entails the approval and effectivity of the pertinent funding sources,” the committee said.

The DBCC said it supports a measure that will reform the budgeting system because it will limit appropriations to a timeline of one year while boosting public participation in the budget process. House Bill 9214 is pending at the committee on appropriations.

The body also cited fiscal risk from the enforcement of a law that increases the share of local governments in national taxes.

Finance Secretary Carlos G. Dominguez III earlier said this could cause lower economic growth because local governments were likely to spend the funds less efficiently.

Under Executive Order 138, some basic services will be transferred to local governments by 2024. These involve P234.4 billion worth of projects, according to government estimates.

The DBCC said it remains to be seen whether local governments can sustain the level of service before the devolution.

The Senate on Wednesday approved on final reading the P5.024-trillion national budget for 2022. — Luz Wendy T. Noble

Tax rules for offshore gaming operators out

The Bureau of Internal Revenue (BIR) has released the rules that will enforce a measure increasing the taxes on offshore gaming operators in the Philippines.

Under the rules, offshore gaming licensees — mostly Chinese-operated — that have failed to register or paid or even underpaid taxes will be penalized.

Under the law enacted in September, licensed offshore gaming operators will be taxed 5% on their gross gaming revenue starting next year. The law also requires foreigners working at offline gaming companies or their service provider to pay a 25% withholding tax on gross income.

The rules ask the BIR to shutter offshore gaming licensees, their gaming agents and service providers that fail to pay taxes.

The government will also slap a P20,000fine on a foreign employee who does not have a tax identification number.

Philippine offshore gaming operators must submit a list of their foreign employees and update their status or face fines.

“The BIR may recommend to other relevant agencies the revocation of the primary and other licenses obtained by POGO entities from government agencies and/or their perpetual or temporary ban in employing foreign nationals,” the BIR said.

Giving false information about their address is another violation under the law, according to the rules.

The Department of Finance earlier said they expect tax collections from the POGO industry to hit P76.2 billion from 2022 to 2023.

It said P35.1 billion would come from the 5% tax on gross gaming revenues, while P41.2 billion will come from the 25% withholding tax on foreign workers’ gross income.

Under the rules, 60% of the taxes will be used to fund the country’s Universal Health Care Act.

Meanwhile, 20% will be allotted to improve state healthcare facilities, and another 20% will go to sustainable development programs. — Luz Wendy T. Noble

BSP raises P100 billion at auction

BW FILE PHOTO

The Philippine central bank on Friday raised P100 billion from its auction of 28-day bills, with rates rising after hawkish signals from the US Federal Reserve.

The Bangko Sentral ng Pilipinas (BSP) fully awarded the short-term bills, with demand reaching P102.042 billion, lower than in the previous auction.

Banks sought yields of 1.76% to 2.09% — wider than last week — bringing the average rate of the one-month bills 10.5 basis points higher at 1.8749%.

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.

Auction yields for the BSP securities rose as Fed officials reiterated their more hawkish stance on tapering bond purchases, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Fed Chairman Jerome J. Powell on Wednesday said they would look into fast-tracking a cut in asset purchases, adding that the Fed would keep inflation in check, Reuters reported.

“We’ve seen the factors that are causing higher inflation to be more persistent” he told the House financial service committee on Wednesday.“Policy has adapted to that and will continue to adapt.”

Mr. Powell said the Fed might taper asset purchases in a few months.

Mr. Ricafort also traced the higher yields in central bank securities to the recent sale of 5.5-year retail Treasury bonds worth P360 billion.

Proceeds of the issuance would fund the government’s pandemic response and economic recovery program, the Treasury bureau said. — Luz Wendy T. Noble

Food manufacturers call for SRP adjustments as demand rises

PHOTO BY BERNARD HERMANT

THE Department of Trade Industry (DTI) needs to set new suggested retail prices (SRPs) for basic necessities to reflect increased consumer demand, food manufacturers said.

In a statement Friday, the Philippine Chamber of Food Manufacturers Inc. (PCFMI) said: “The last release of the SRP bulletin happened in September 2019. As a result, food manufacturers are struggling to keep up with the increasing demand with the upcoming Christmas season,” PCFMI said.

“There is a need to regularly update the SRPs of basic commodities to help food manufacturers recover from the losses due to the pandemic,” PCFMI First Vice President Helen Grace Baisa said.

The PCFMI said food manufacturers absorbed the impact of “outdated” price ceilings in order to keep retail prices artificially low.

It said the national government is responsible for ensuring the availability of basic necessities and prime commodities at affordable prices, especially during emergency situations, under Republic Act No. 7581 or the Price Act.

“As more Filipinos are able to consume more this coming holiday season, we trust that DTI will give equal importance to the voice of the food industry to ensure business stability,” Ms. Baisa said.

The PCFMI said the supply chain for food has been affected by the coronavirus disease 2019 (COVID-19) pandemic, which disrupted demand and highlighted logistical bottlenecks.

The PCFMI has more than 100 members including makers of canned goods, ready to eat meals, baked goods, dairy, coffee, and noodles.  – Revin Mikhael D. Ochave 

DTI bills RCEP as recovery driver in Senate testimony

REUTERS

THE PHILIPPINE participation in the Regional Comprehensive Economic Partnership (RCEP) trade deal will help revive the slumping economy after the pandemic, the Department of Trade and Industry said in Senate testimony.

“RCEP is expected to promote economic efficiency of member states, linking their strengths in manufacturing, technology, agriculture, and natural resources, and it will reinforce their global value chain network,” Trade Secretary Ramon M. Lopez said before the Senate Foreign Affairs committee Friday.

RCEP’s members are ASEAN plus Australia, China, Japan, South Korea, and New Zealand. The partnership combines current individual free trade agreements (FTAs) to take in most of ASEAN’s major trading partners, except for the US.

Mr. Lopez was making his reassurances to Congress after agriculture interests expressed worries that the deal might be unfavorable to them.

Mr. Lopez cited research by Virginia Polytechnic Institute and De La Salle University, which concluded that RCEP “is estimated to increase overall welfare, contribute real GDP growth by 1.93%, increase exports by 2.78%, and lower poverty incidence by 3.62% in 2031.”

Mr. Lopez noted that key trading partners and competitors are present in this agreement, so if the Philippines does not take part, “trade and investment will be diverted away from our country to the detriment of our local businesses and peoples.”

Trade Assistant Secretary Allan B. Gepty of the Industry Development and Trade Policy Group said in a presentation at the hearing that RCEP participating countries account for 52% of the market for Philippine exports, 63% of imports, and  58% of investment.

He noted that 13% of total imports consist of agricultural products, adding that the Philippines is “in deficit in our trade in agriculture based on the 2018 to 2020 data– our deficit is around $7.2 billion.” He said that about 63% of agricultural products being imported are intermediate products, while 37% are for consumption.

While the balance is in deficit, Mr. Gepty said, many other products are in surplus, like edible fruits and nuts, tobacco, animal or vegetable fats and oils.

Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said at the hearing that the promised “remarkable growth under a liberalized trading regime” is nonexistent, citing the Philippines’ accession to the World Trade Organization (WTO).

Prior to joining the WTO, he said that the share of agriculture to GDP was as high as 30%, but from 2017 to 2020, it had dropped to below 10%. “The purported gains in trade, production output, and employment never happened.”

Instead of pushing for RCEP, Mr. Cainglet said that a permanent shift is needed in agriculture policy for sustainable and localized food production to meet staple food demands.

Food self-sufficiency and significant rural livelihood opportunities must become the starting point of the food and agriculture program, he added, while improving the “viability and vibrancy of the agriculture industry” to achieve national development and real economic growth.

Mr. Gepty said that there are differences from the RCEP compared to the current FTAs. “In RCEP, we made sure that these highly sensitive agricultural products, including industrial products, and even products that are highly political” are excluded – 10% of which are agricultural products.

The Senate is currently reviewing RCEP in its Constitutional role as the ratifier of treaties. – Alyssa Nicole O. Tan

World Bank recommends farm consolidation to achieve scale

REUTERS

FARM consolidation in order to achieve efficiencies through scale is required to transform agriculture in the Philippines, where farmers tending small plots have become the norm, the World Bank said.

“To succeed, efforts at clustering and consolidation need to be voluntary, built on trust and confidence, and collaborative relationships among stakeholders whether they are farmers, communities, municipalities, other local government units, or small and larger agribusiness enterprises,” World Bank Country Director for Brunei, Malaysia, Thailand, and Philippines Ndiame Diop said in a statement Friday.

A World Bank report prepared in collaboration with the Department of Agriculture (DA) indicates that the Philippines can explore various arrangements for farm clustering.

Clustering can be pursued within irrigation systems, by supporting market-oriented producer organizations, or via contract farming organized by agriculture enterprises.

The World Bank cited the efforts of the Philippine Rural Development Project, which has organized producers into agriculture enterprises.

“Where different approaches to clustering land management are not feasible, support for the mechanization of farming and post-harvest operations may be an alternative or complementary strategy for smallholder-based systems to increase farmer productivity and incomes, both on and off the farm,” Mr. Diop said.

The World Bank said a typical farmer in the Philippines earns P100,000 a year, which is below the poverty line set by the Philippine Statistics Authority (PSA).

It added that the average size of farms in the Philippines declined to 0.9 hectares (ha) per family in 2012, from 3 ha in the 1980s.

“These increasingly smaller farms are often split into more fragmented blocks. The country has some 5.56 million farms, totaling 7.2 million hectares, of which 57% are one ha or less, 32% are one to three ha, 9% are three to seven ha, and only 2% are seven ha or larger,” the World Bank said.  – Revin Mikhael D. Ochave

Mango farmers seen needing tech infusion to better meet export demand

PHILSTAR FILE PHOTO

The Department of Science and Technology (DoST) said mango farmers need to upgrade their planting and cultivation know-how if they are to meet the export market’s requirements for supply and quality.

At a virtual conference Thursday conducted by the DoST’s Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD), participants said mango farmers have been failing to meet overseas demand during the pandemic.

“Only 25% of overseas client orders have been delivered due to lack of (economies of scale) required to supply processors abroad,” Science and Technology Secretary Fortunato T. de la Peña said.

The virtual conference was a precursor to the Farms and Industry Encounters through the S&T Agenda (FIESTA) conference on Mango, a gathering called to share technology on mango cultivation and to recognize the efforts of innovators.

“S&T plays a vital role in advancing sustainable agriculture,” Mr. de la Peña said in his keynote speech. “The invention and development of new technologies greatly impact the AANR (Agriculture, Aquatic, and Natural Resources) sector by helping out farmers by lessening manual operations or work.”

According to the Department of Agriculture (DA), mango is the third most important Philippine fruit crop. The carabao mango variety accounts for over 80% of overall output at 450.48 thousand metric tons (MT). Other economically significant varieties are the Pico and the Katchamita, also known as Indian mango.

In the three months to June, mango output declined 0.2% year-on-year to 556.82 thousand MT, according to the Philippine Statistics Authority (PSA). In the first quarter, production grew 4.1% to 97.9 thousand MT.

The Ilocos region was the leading mango producer with 22.4% of the national crop, followed by SOCCSKSARGEN and the Zamboanga Peninsula, with both accounting for 9.8% each.

Mr. de la Peña said that “from 2010 to 2014, the farmgate price of carabao mango increased by roughly 8%, while the cost of input, for example, fertilizers and flower inducers, increased by 20% thereby significantly lowering the profitability of mango production.”

“The post-harvest fruit damage and rejection rates have gone up to 50% because the equipment for handling and packaging is very inadequate. This has led to the reduction of opportunity to generate more export sales earnings,” he added.

Lourdes C. Generalao, Southern Mindanao Agriculture and Resources Research & Development Consortium (SMAARRDEC) Chairperson and also president of the University of Southeastern Philippines (USeP) President, said:

“When the pandemic hit our country in March of 2020… our lives drastically changed in just a matter of weeks, yet we managed to get through it as we learned to improvise and transition our operations online.”

“Innovation should not only begin when faced with adversity, we must think ahead in order to ensure our success… And innovation should not stop because of temporary convenience,” Ms. Generalao added.

Visayas Consortium for Agriculture, Aquatic and Natural Resources Program (ViCARP) Chairman and Visayas State University (VSU) President Edgardo E. Tulin said that the ultimate goal for mango farmers is to adopt the best technologies available.

He proposed that farmers adopt integrated plans for crop management and post-harvest quality management, which he touted as a means of reversing declining productivity.

He also backed “strategic rehabilitation of unproductive mango trees and in improving post-harvest handling systems to increase the production of export-quality and safe mangoes.”

Some of the technologies on display at FIESTA are a protein-analysis product called the mango detection dipstick kit, which helps confirm true-to-type mango varieties. The kit is intended to help ensure the quality of carabao mango planting material.

FIESTA will convene on Dec. 9-10 and 16-17, and will feature a technology business forum, a webinar on the enhancement of mango production, and other activities. – Luisa Maria Jacinta C. Jocson

Palace orders dissolution of GOCC Northern Foods Corp.

philstar

Malacañang has ordered the dissolution of Northern Foods Corp. (NFC) calling it no longer cost-effective and at odds with the government’s development policy.

Executive Secretary Salvador C. Medialdea, on the President’s authority, signed Memorandum Order No. 58 which would dissolve the NFC, which has incurred net losses since its founding except in 1989, 1995, and 2010.

The NFC was a subsidiary of the National Livelihood Development Corp., which later had its assets and liabilities transferred to the Land Bank of the Philippines (LANDBANK).

Under the order, the NFC’s assets will be liquidated to settle the liabilities of the government-owned and -controlled corporation (GOCC).

A technical working group will be created with representatives from the Departments of Agriculture and Budget and Management, as well as LANDBANK, to settle all liabilities and implement a personnel retirement plan.

Affected employees will be granted separation pay from the proceeds of the disposal, based on a formula that accounts for their length of tenure and monthly basic salary.  – Russell Louis C. Ku

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