Sun Life launches new fund

September 8, 2021 | 12:01 am

SUN LIFE of Canada (Philippines), Inc. launched a new offshore fund for its investment-linked life insurance products, tapping global financial markets for portfolio diversification and to generate long-term gains.

Sun Life Philippines said in a press release late Monday that the Global Opportunity Payout Fund will operate as a fund-of-funds and will invest mainly in a mix of foreign currency-denominated, income-generating, and capital-appreciating financial assets.

The fund can be availed for the following Sun Life investment-linked insurance products: Sun MaxiLink Dollar One, Sun FlexiDollar1, and Sun FlexiDollar, the insurer said.

“This new fund is suitable for clients with medium to long-term wealth accumulation goals such as preparing for retirement. They can stay financially secured with insurance and enjoy potential capital appreciation of their funds over time,” Sun Life Chief Marketing and Client Experience Officer Gilbert Simpao was quoted as saying in the statement. “The fund aims to provide regular cash payouts to our clients which will be given as long as the assets in the fund are able to support it.”

The cash payouts come from the gains generated via the income-paying assets of the fund.

Target assets of the fund include mutual funds and exchange-traded funds, as well as the bonds and other securities issued by the Philippines, the United States and other foreign governments and companies. It also targets investments in equity-linked securities.

“The Global Opportunity Payout Fund is a perfect complement to our existing roster of fund options for our investment-linked insurance products since it aims to provide an annual stream of cash flows and offers global diversification for clients,” Sun Life Philippines Investments Head Ivan Corcuera said.

Cebu Pacific says it passed IATA’s operational safety audit

September 8, 2021 | 12:01 am

BUDGET carrier Cebu Pacific, operated by Cebu Air, Inc., announced on Tuesday that it recently passed the International Air Transport Association’s (IATA) operational safety audit.

“Cebu Pacific once again secure[d] the IATA’s Operational Safety Audit (IOSA) registration as it fully complies with its stringent global aviation safety standard,” the budget carrier said in an e-mailed statement.

The airline first joined the association in 2019.

“The IOSA audits the operator’s operational management and control systems covering organization management and control system, flight operations, dispatch, cabin, ground handling, cargo, maintenance and security,” Cebu Pacific said.

Cebu Air’s attributable net loss for the first half of the year was P13.8 billion, compared with a net loss of P9.1 billion in the same period in 2020.

Its first-half revenues dropped 65.9% to P5.9 billion from P17.3 billion previously.

Passenger revenue dropped 82.6% to P2 billion, while revenue from cargo grew 27.3% to P2.8 billion. Ancillary revenue for the period declined 69.4% to P1.1 billion. — Arjay L. Balinbin

Philippine Labor Force Situation (July 2021)

September 8, 2021 | 12:00 am

THE NUMBER of jobless Filipinos declined to 3.073 million in July, but job quality remains a concern as more employed Filipinos are still seeking additional work, the Philippine Statistics Authority (PSA) reported on Tuesday. Read the full story.

How PSEi member stocks performed — September 7, 2021

September 8, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, September 7, 2021.

Headline inflation rates in the Philippines (August 2021)

September 8, 2021 | 12:00 am

THE OVERALL year-on-year increase in prices of widely used goods accelerated to its fastest pace in 32 months in August, driven by higher food and utility prices amid the stricter lockdown, the statistics agency said on Tuesday. Read the full story.

Comelec public works ban for polls to start March 25

September 7, 2021 | 9:26 pm

Infrastructure-road-construction-worker — PHILIPPINE STAR/MICHAEL VARCAS

THE COMMISSION on Elections (Comelec) said the public works ban for the May national elections will run from March 25 to May 8, 2022.

The commission’s spokesman James B. Jimenez said the public works ban covers disbursement and spending as well as construction activity. Works are typically frozen around election season in order not to influence the outcome of the polls. The intent is to deny politicians access to resources that may be used to improperly aid their campaigns.

“For the 2022 elections, the period of prohibition is from March 25, 2022 to May 8, 2022 as per the Calendar of Activities,” Mr. Jimenez said in a Viber message Tuesday.

National elections take place in May, coinciding with the peak dry-season period where construction works can be carried out with minimal disruption. Building during the rainy season tends to be more irregular because concrete cannot be poured in wet conditions.

Mr. Jimenez said the Comelec has not yet released a formal resolution on the matter, “but it is expected that the same will be released in due time.”

The spending ban for the 2019 midterm elections was between March 29 and May 12, 2019.

During the ban, spending activity is largely limited to emergency and maintenance works and salaries, with a few exceptions. The Comelec may be appealed to for other exceptions not listed. — Bianca Angelica D. Añago

Gaming regulator says ‘uncollected’ revenue disputed by POGOs

September 7, 2021 | 9:25 pm

THE PHILIPPINE Amusement and Gaming Corp. (PAGCOR) said uncollected revenue flagged by government auditors worth P1.365 billion remains the subject of protest from Philippine Offshore Gaming Operators (POGOs).

In a statement Monday, PAGCOR said the uncollected revenue flagged by the Commission on Audit (CoA) is currently being disputed by the POGOs, who claim that other organizations had illicitly hijacked their gambling live feeds, leading the regulator to overestimate the fees they owe.

They said various websites are emulating the feeds of legal operators, a claim which is being validated to verify the actual amounts owed.

“As an initial remedial measure, the agency imposed assumed or estimated billings for these websites based on the average income performance of the original declared websites of its licensees… These billings were protested by its licensees, on the basis that the websites are actually websites of illegal operators, stealing their live streams and making it appear as the legal websites of our operators,” PAGCOR said.

In its 2020 audit report, CoA took note of PAGCOR’s P1.365 billion in uncollected receivables from 15 POGOs.

Overall, CoA said P1.382 billion in receivables remain outstanding, depriving PAGCOR of funds for its operations.

Of the 15 POGOs listed, eight have had their licenses canceled by PAGCOR as of 2020 while three remain operational as of Jan. 12, 2021. Two of these three have entered into agreements to restructure their receivables.

In its comment on the audit findings, PAGCOR said that its board has approved the restructuring of P97.33 million worth of receivables, along with an adjustment for uncollected revenues worth P6.08 million.

PAGCOR Chair Andrea D. Domingo said in a House budget briefing on Aug. 27 that more than half of POGO operators have ceased operations and have moved to Cambodia, Vietnam, and Laos. — Russell Louis C. Ku

Japan in talks for P82-M organic vegetable project

September 7, 2021 | 9:25 pm

vegetables-752153_1280 — FILE PHOTO - PIXABAY

THE DEPARTMENT of Agriculture (DA) said it met with representatives from the Japan Agricultural Exchange Council (JAEC) to discuss the latter’s proposal to improve vegetable production in the Philippines and set up cold storage facilities.

At a meeting on Sept. 6, Agriculture Secretary William D. Dar met with JAEC Senior Local Coordinator Toshiharo Sato and others to discuss their proposed “Safe Vegetable Production with Marketing Technology Improvement” project.

The project, which has a funding of P82 million, aims to help Filipino farmers improve their production via the safe vegetable from rich soil technology which develops the soil using organic matter such as wood vinegar.

“The JAEC’s proposal also included the construction of a cold storage solar-powered facility in Buguias, Benguet, as well as the purchase of refrigerated cooling trucks, to improve post-harvest handling, storage, and delivery,” the DA said.

According to the DA, the JAEC project will be financed by Japan’s Ministry of Foreign Affairs and is currently being reviewed by the National Economic and Development Authority.

The project will also require the input of the Departments of Finance and Foreign Affairs, before approval by the Office of the President.

Upon approval, a memorandum of agreement will be drawn up between the DA and JAEC.

Mr. Dar expects the proposal to be approved before the current government steps down. — Revin Mikhael D. Ochave

Public investment seen needed in areas with low digital penetration

September 7, 2021 | 9:25 pm

THE PHILIPPINE Institute for Development Studies (PIDS) said the government needs to focus its investment on communities underserved by digital infrastructure to fill in for gaps in private-sector coverage.

“Government investment in digital infrastructure must target network segments and areas where the market fails to deliver, as shown in NICTHS findings. The government may also consider investing in areas where the private sector has difficulty competing and making a profit,” PIDS said in a policy brief on Tuesday.

It was referring to the National Information and Communications Technology Household Survey (NICTHS) conducted by the Department of Information and Communications Technology (DICT) in 2019.

Most Filipinos still rely on cellular mobile services for their internet connections due to poor, inaccessible and expensive internet service, especially outside Metro Manila, PIDS said.

It said cost and availability remain the biggest barriers to internet connectivity while a number of rural areas remain unserved by the private sector.

The NICTHS estimates that only 18% of households have internet connections. The National Capital Region (NCR) was the most connected while the Bangsamoro Autonomous Region in Muslim Mindanao and the Eastern Visayas are least connected.

Non-users of broadband cited high costs, the expense of devices, and unavailable service.

The survey found that a quarter of households own a communal phone, while 75% of individuals said they have at least one mobile phone. Only 24% of households own a computer and 66% a laptop. Half of those that do not own such devices do not use computers at all.

One in five barangays has no internet service, including several barangays in the NCR, while providers in the regions are highly concentrated in urban areas.

“Income levels in some barangays are likely not sufficient for households to subscribe regularly to broadband services” to a degree required to make internet services viable for providers, PIDS said.

Cellular signal, meanwhile, reaches 92% of barangays, most commonly 3G.

To address the digital divide, PIDS said the government should also support passive infrastructure by granting all service providers access to operator-neutral utilities corridors.

It said outdated laws are holding back the growth of internet service providers, including the Radio Control Law, which only allows telecommunications companies with legislative franchises to use the radio spectrum and set up wireless internet. The Public Service Act prohibits foreign companies from fully owning telecommunication companies in the Philippines.

“Therefore, the government should remove regulatory barriers and expand market opportunities to allow players to invest, build, and innovate, regardless of size, ownership and technology,” it said.

The two laws need to be amended to ease entry restrictions, while House Bill 8910 or the proposed Open Access in Data Transmission Act should be passed to allow more investors to set up broadband networks via shared infrastructure. — Beatrice M. Laforga

Language education standards being aligned to industry needs

September 7, 2021 | 9:25 pm

ENGLISH EDUCATION firm Hopkins International Partners, Inc. said it is working with the Commission on Higher Education (CHEd) to match language education to industry requirements.

The People Management Association of the Philippines (PMAP) has released minimum and ideal English language standards for various industries using an international language framework.

“One of the biggest issues in education is nobody understands what industry wants,” Hopkins General Manager Rex Wallen Tan said at the Management Association of the Philippines meeting Tuesday.

“By using these descriptors or levels that makes sense to both parties — academe and industry — we can really do a lot.”

PMAP used the Common European Framework of Reference for Languages, an international standard that organizes language proficiency under six levels for common reference. The reference offers detailed descriptions of each level.

Hopkins took the PMAP standards to CHEd to organize support for a policy that would meet industry requirements, with the company due to present the standards to state universities and colleges along with higher education accrediting agencies in October.

Mr. Tan said that the Philippine targets for complying with global English norms are currently unclear.

“All we have are local standards which can be easily changed and move and it’s really non-comparable,” he said.

Filipino students had some of the lowest mean scores in reading comprehension, science, and math in the Program for International Student Assessment ranking released in 2019. — Jenina P. Ibañez

Coconut oil, crude coconut oil among top 3 US imports from PHL

September 7, 2021 | 9:21 pm

COCONUT OIL and crude coconut oil make up two of the top three US imports from the Philippines, according to the Philippine Coconut Authority (PCA).

The PCA said in a statement that the two products have maintained their standing among US imports over the past three years, citing estimates by the International Trade Center.

Eric C. Elnar, commissioner of the Philippine Trade and Investment Center (PTIC) in Los Angeles, said the Philippines accounts for 60% of US coconut oil imports and 73% of US crude coconut oil imports.

Mr. Elnar said coconut oil demand has risen due to changes in US trade policy, market trends, and dietary guidelines.

He said the surge in consumption follows the withdrawal of US guidance which had implicated coconut as a source of allergies.

He added that market demand for organic products and improved awareness of the benefits of a healthy lifestyle have contributed to the coconut boom.

“It is claimed that the US population has become increasingly heterogeneous; millennials now represent 30% of the population, with about 44% consisting of racial and ethnic minorities — including Filipinos, while Americans with college educations have increased by 12%. These factors resulted in a more educated consumer base with different spending patterns,” Mr. Elnar said.

Meanwhile, Mr. Elnar said the PTIC has tapped online shopping channel to address the changing market demand in the US due to the coronavirus disease 2019 (COVID-19) pandemic, while maintaining distribution in physical stores.

He added that the PTIC also helps service the reseller market led by Filipino-Americans operating micro, small, and medium enterprises (MSMEs).

Mr. Elnar also cited the efforts of the Trade Department’s Export Marketing Bureau and its partner eCFULFILL to enlist more MSMEs into the global e-commerce platform.

The target is to get 100 exporters signed up for the program. The current enlistment level is 76, Mr. Elnar said. — Revin Mikhael D. Ochave

Carabao industry strategy to expand herd, increase milk, meat output

September 7, 2021 | 9:20 pm

PROJECTS to upgrade the carabao industry are in the works to increase animal numbers and raise output of milk and meat, the Department of Agriculture (DA) said in a statement.

Agriculture Secretary William D. Dar said during a meeting of the Philippine Carabao Center (PCC) Advisory Board on Sept. 3 that other elements of the strategy are farm clustering, lowering feed costs, research, facilities modernization and collaborations with local government units.

“Those are the key areas with which we really have to pursue using the state-of-the-art facilities,” Mr. Dar said.

At the meeting, the board discussed the PCC’s service contingency and management plan, the creation of the Carabao Industry Roadmap for 2022-2026, the US Public Law (PL) 480 program of community-based dairy enterprise development, and collaboration with academic partners for applied biotechnology in livestock for 2022 to 2025.

“With the breeding centers that we have, we need to enlarge the breeding animals in every regional center so that we can have more exposure on the ground. Let’s see to it that we expand. That is the only way we can see a much-accelerated milk and meat production in the carabao industry,” Mr. Dar said.

According to the DA, the carabao industry’s output by value is currently at P13.23 billion.

Under PL 480 or the United States Agricultural Trade Development and Assistance Act, the PCC will receive P512 million.

The targets for the industry include the production of 27.7 million liters of milk, improved dairy carabao inventory, 22 province-wide impact areas as dairy business hubs, and a 20% increase in farmer incomes.

After the meeting, Mr. Dar inaugurated the National Livestock Cryobank at the PCC National Headquarters in Nueva Ecija, which is supported by PL 480 and the Korea International Cooperation Agency.

“The facility was built to strengthen the capacities of the PCC to advance research for development on ex-situ cryoconservation for animal genetic conservation leading to sustainable animal production systems,” the DA said. — Revin Mikhael D. Ochave