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[B-SIDE Podcast] Going bananas (and pineapples): The future of food

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The pandemic changed the way we eat, said Christian Wiegele, president of the Fresh Produce Group of Dole Sunshine Company. 

In this B-Side episode, he tells BusinessWorld reporter Revin Mikhael D. Ochave about the future of food and how Dole is meeting the increased demand for fruits despite the logistical challenges caused by the pandemic.  

Mr. Wiegele, who spent 18 years with Coca-Cola, also talks about moving to an industry where the product is highly dependent on the whims of the weather. “Agriculture is exposed to natural disasters… You need long-term thinking and the ability to adjust your commercial strategy depending on the volume you have available,” he said. And unlike a bottle of Coke, he added, “it takes 18 months to grow a pineapple and nine months to grow a banana.” 

TAKEAWAYS  

To improve food security, the food sector should provide affordable food, cut food waste, and increase production.   

Mr. Wiegele said companies involved in the food sector can work on three areas namely: providing affordable food solutions for all socioeconomic classes; reducing food waste; and improving yields.   

“Food security is very much linked to malnutrition. Unfortunately, the pandemic has shown — due to the economic pressures — that a lot of people actually have moved into poverty and not being able to afford good nutrition,” Mr. Wiegele said.   

“There is so much food waste in the food supply chain from farm to market depending on which statistics you would use, it is somewhere between 30% and 50%,” he explained. “If you are able to increase yields, the economic situation is much better. The costs go down significantly and we can also sell produce at a lower price.”    

Venturing into the agriculture sector needs long-term thinking.   

Mr. Wiegele, who spent 18 years with the Coca-Cola Company, said the difference between the two companies is in fulfilling demand.   

“In the case of Coca-Cola, it is a product where you can fulfill the demand at any time. In the case of Dole, you are centered on our agriculture products. Agriculture is exposed to natural disasters, to changing weather patterns, and to different soil conditions,” he said.   

“In agriculture, you need long-term thinking and the ability to adjust your commercial strategy depending on the volume you have available. It takes 18 months to grow a pineapple and nine months to grow a banana.”   

Supply chains remain vulnerable. 

According to Mr. Wiegele, the Philippines accounts for the majority of Dole’s banana and pineapple production.   

While the company’s operations have not faced major disruptions amid the COVID-19 pandemic, there have been challenges in getting the fruit to consumers. 

“In terms of operations, I am extremely thankful to our associates in the Philippines to say that we haven’t faced any significant disruption. We’ve been able to grow our fruit, harvest our fruit, and process our fruit without any major interruptions,” Mr. Wiegele said.   

“On the supply chain side, we have definitely faced some challenges,” he continued. “There have been container shortages around the world, certain ports being closed from one day to another in some of our export markets. We’ve had vessels which were filled with fruits and suddenly cannot enter the ports.”   

Recorded remotely this July. Produced by Paolo L. Lopez and Sam L. Marcelo.

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Treatment innovations for heart matters

Treatment innovations for heart matters

The human heart has already started to function some weeks after conception and would beat billion times in an average life span. While an essentially impressive organ, however, the heart can become vulnerable due to an unhealthy lifestyle.

Cardiovascular diseases or CVDs are a range of conditions affecting the heart and blood vessels. Some CVD risk factors are tobacco use, high cholesterol, physical inactivity, air pollution, and others. According to the World Heart Federation, CVD causes 18.6 million deaths every year, making it the number one killer in the world.

Aiming to shed understanding on the human heart, BusinessWorld, in partnership with Mount Elizabeth Hospitals in Singapore, gathered cardiologists in an online forum themed “Understanding the Matters of the Human Heart” to share the developments on several CVD treatments.

Improving conditions

Dr. Chan Wan Xian, a heart failure intensivist at Mount Elizabeth Hospital, shared the medications and devices to improve patients with heart failure, a condition wherein the heart cannot pump blood well to the body.

“The main issue with heart failure is recurrent hospital admissions, which result in impaired quality of life of the patient and the rise in healthcare expenditure. Recurrent hospitalization also worsens a patient’s prognosis,” Dr. Chan said.

There has not been a breakthrough in heart failure medications for many years, according to Dr. Chan. Yet, in the past six years, medications like Entresto and SGLT2 have emerged, which can reduce heart failure hospitalization rates and even improved survival long term.

Besides medications, there are also devices which have been developed to improve survival of heart failure patients. These include cardiac resynchronization therapy, which involves implanting a pacemaker just below the collar bone and insertion of wires to synchronize heart contraction and improve heart function. This has been shown to improve survival of heart failure patients who are eligible for the device. Another progress is the ventricular assist device, also known as a mechanical circulatory support device. A surgery is done to implant a mechanical pump into the heart to take over the heart function. Ventricular assist device has been shown to improve survival in advanced heart failure patients. Mitral clip procedure has also emerged in recent years as an option to improve symptoms and quality of life of heart failure patients.

“When it comes to advanced heart failure, there are many specialists at [Mount Elizabeth Hospital] that we work closely with,” Dr. Chan said, also assuring their group’s expertise on devices like cardiac resynchronization therapy and mitral clip, and their collaboration with surgeons for the ventricular assist device. “We work as a team to provide the latest and best treatment strategy for heart failure patients.”

Dr. Chan, who also has experience in women’s heart health services, added on the capacity of Mount Elizabeth Hospital in managing heart conditions in women. “[The hospital] has recognized the significance of heart diseases in women and the need for specialized care of certain heart conditions specific to women. The Hospital has been exploring and improving on diagnostic options to assess specific heart conditions in women. This would allow more targeted approach in managing heart diseases in women,” she said.

Groundbreaking technology

Dr. Stanley Chia, an interventional cardiologist at Mount Elizabeth Hospital, discussed the underlying causes of coronary artery disease, risk factors for atherosclerosis, implications of chronic total occlusion (CTO) lesions, as well as new treatments for these conditions.

Atherosclerosis is the buildup of cholesterol-filled plaques on the inner walls of arteries. The plaques may progressively narrow the arteries and restrict blood flow to the heart. It is estimated that one in ten patients diagnosed with significant coronary artery disease during coronary angiography may have plaques that completely blocked up the arteries, known as CTO.

“In the past, there is limited success in treating CTOs using percutaneous coronary intervention (PCI) techniques, hence patients were either treated conservatively with medication, or had to go for open-heart surgery,” Dr. Chia shared. “We now have advanced techniques and devices to tackle this problem, and patients have the option to go for less invasive treatment.”

A new, groundbreaking technology for the treatment of coronary artery disease is the Shockwave Intravascular Lithotripsy (IVL) system, which can address severely calcified and hardened deposit.

“IVL is an integrated balloon catheter that can be deployed in the artery. It emits an electrical signal that vaporizes the fluid within the balloon. The rapidly expanding and collapsing bubbles generate sonic pressure waves that travel through the artery to break up the hardened calcium,” Dr. Chia explained.

“This is a huge technological advancement that allows us to treat our patients more safely and effectively,” he added.

Other innovations in the management of coronary artery disease he discussed included the Angiojet Thrombectomy System, Stringray Coronary System, Impella Left Ventricular Assist Device, and Diamondback Coronary Orbital Atherectomy System.

Dr. Chia has full confidence in the commitment of the medical and nursing teams at Mount Elizabeth Hospital to deliver state-of-the-art healthcare. In addition, “our priority is to provide all patients with a holistic experience as we accompany them on their journey of healing,” he said.

Safer interventions

Dr. Edgar Tay, an interventional cardiologist at Mount Elizabeth Novena Hospital, shared more heart treatment advancements such as transcatheter aortic valve implantation (TAVI) and Mitraclip.

“In the past 10 years, there is a big move towards less invasive therapies. That’s the key driver for some of these new technologies,” Dr. Tay said.

TAVI is a procedure for patients with aortic stenosis, a condition referring to the hardening of valves that obstructs blood flow. It can improve aortic stenosis symptoms like chest pain or breathlessness.

“[TAVI] essentially mimics what we do for coronary artery blockages. We put in a device that looks like a balloon, which first goes into the valve and dilates, and cracks open the valve. But we cannot just dilate it with a balloon alone. Like the coronary arteries, we need to put in this metal or stent to hold up the obstruction, so it doesn’t come back again. There are now valves sewn within these stents, which then start working immediately,” Dr. Tay explained.

Another recently developed treatment is Mitraclip. This intervention is for mitral valve regurgitation, wherein the patient’s valve does not close tight enough leading to a leaky valve that strains the heart.

Mimicking what surgeons can do, doctors and interventional engineers developed a technique where they can put in a device called a clip. This clip goes into the heart through the veins of the thigh. It helps to tighten the valve to enhance its ability to close well.

“This therapy made life a lot easier for patients because they don’t have to have their chest wall surgically opened. And typically, they can go home much earlier after the procedure,” Dr. Tay said.

These interventions, according to Dr. Tay, can extend the lives of the patients. In suitable patients, we expect up to a 50% reduction in death after TAVI and 38% after Mitra clip compared to medications alone. Such therapy can also improve the patient’s quality of life in a physical, social, and emotional sense.

Giving them the ability to do these therapies in a clean and sterile environment is the hybrid operating theater of Mount Elizabeth Hospital.

“But the most important is not just the hardware of the hospital; it’s the software, which is the people,” Dr. Tay added. “Many of these technologies, while great, require a whole team working for the patient to get good results.”

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Looking behind the fast-growing industry of video games

In photo during the BusinessWorld Insights (clockwise, from top left), in partnership with Smart, are moderator Santiago Jose Arnaiz of Day3 Innovations; with panelists Lloyd R. Manaloto, first vice-president and head of corporate marketing and strategy at Smart Communications, Inc.; Irymarc “Tryke” Gutierrez, co-founder and chief executive officer of gaming and esports talent agency Tier One Entertainment; and Darren Paul Vitug, commissioner of the local e-sports league The Nationals and ethics committee head of the Philippine Esports Organization.

By Bjorn Biel M. Beltran, Special Features Writer

Before the turn of the millennium, video games were as niche as it could get. Often, gamers — most likely children and young adults — would gather around arcade galleries, spending coins to have a go at the latest pixelated marvels released by companies like Atari and Namco.

Fast-forward to today, the video game industry has evolved into a global juggernaut, estimated to be worth more than $300 billion, according to a report by global professional services firm Accenture. This is more than the markets for movies and music combined.

In the Philippines, revenues of the gaming market have showed exponential growth in 2020 compared to the previous years, with the mobile games segment expected to continue growing in the next five years to as much as $1.52 billion in 2025.

Lloyd R. Manaloto, first vice-president and head of corporate marketing and strategy at Smart Communications, Inc., commented that while the numbers are staggering, the surge has been quite a recent development.

“In 2013, gaming was still very much a niche activity. It was not mainstream. But fast-forward to 2021, we see large crowds, large prize winnings, and this is tantamount to the effect of esports to our culture,” he said during BusinessWorld Insights on a session themed, “The Emerging Esports and Gaming Scene in the Philippines.”

According to Mr. Manaloto, there are around 45 million active gamers in the country now, a steady increase of 12.9% year on year since 2017. Around 63% of the online population, furthermore, watch gaming content, while 33% watch esports.

Esports, along with a number of other factors, have come into play to allow this growth to happen, Irymarc “Tryke” Gutierrez, co-founder and chief executive officer of gaming and e-sports talent agency Tier One Entertainment, said.

The accessibility of mobile games, particularly because of the lower entry price of smartphones compared to PCs or consoles, has boosted the video games industry to new heights, transforming it into a mainstream hobby.

“Being able to present gaming in a different way through streaming is also a big development,” he added.

“I remember casting a lot of DOTA 2 games back then. The most we’ve had was around 25,000 concurrent viewers for Philippine viewership. But today, with Mobile Legends when our teams compete, 260,000 people are watching online. That alone shows how much audiences the audience and the industry have grown.”

This shift from a niche hobby into a more mainstream form of entertainment has also reduced much of the previously held stigma that used to surround the industry. Darren Paul Vitug, commissioner of the local e-sports league The Nationals and ethics committee head of the Philippine Esports Organization, shared how the stigma of gaming as an unproductive hobby is changing as more people come to understand it.

“When people say that gaming is an unproductive hobby, they’re actually referring to gaming addiction and not gaming per se. Obviously addiction and hobby are polar opposites, or at least they should be. People do still think that gaming by itself is an unproductive hobby, I would say that in general that’s how people think about things that they are unfamiliar with. We have to understand that productivity in a hobby is not absolute, and since a hobby is something you do to relax, to decompress, and to enjoy, it’s not really fair for anyone to say in behalf of someone that their hobby is unproductive,” he said.

“I think the stigma is still there, but it is seriously being challenged. We have more and more people understanding gaming. Part of that is the population growing up. Before, when you looked at gamers, you were looking at very young people. But now if you describe gamers, you’re describing people who are in their 30s or in their 40s. Maybe even older.”

Mr. Manaloto added that as network technology continues to progress, video games as an industry will further see growth.

“We believe that the network is the core to this, because it is what allows people to connect to the games and play with other people,” he said, sharing how Smart has been investing in new 5G technology to further push the industry forward.

“The way we look at sports and esports is the same. Esports is no different from sports. The values of the sports are inherent in esports: camaraderie, teamwork, sportsmanship,” he added.

In a comment during the streaming of this forum on BusinessWorld’s Facebook page, Jun D. Lasco, founder and president of esports platform KALARO, noted that collaboration among industry players is key to further developing esports in the country.

“The more we collaborate [,] the more we can all push for the development of the Philippine Esports industry both in capacity and capability,” his comment read.

This session of #BUSINESSWORLDINSIGHTS was presented by Smart.

Gov’t debt service bill sinks in August

BW FILE PHOTO

THE NATIONAL Government paid P75.086 billion in debt in August, falling by half from a year earlier as amortization payments declined, the Bureau of the Treasury (BTr) reported.

Preliminary BTr data showed the government’s debt service bill slid by 50.73% from P152.396 billion in the same month in 2020.

Around 68.13% of total debt repayments went to amortization, while the rest went to interest payments.

Total interest payments rose by 6.13% to P23.93 billion in August, as the government increased local borrowings amid the pandemic.

Broken down, interest paid in local debt increased by 8.67% to P21.3 billion, consisting of P11.88 billion in Treasury bonds, P7.94 billion in retail Treasury bonds, and P1.46 billion in Treasury bills.

In contrast, interest paid on foreign debt fell by 10.75% to P2.63 billion.

Amortization payments plummeted 60.6% to P51.15 billion from P129.85 billion in the same month last year.

Broken down, amortization paid to local lenders plummeted to P171 million from P127.79 billion last year. Payments to foreign creditors surged to P50.98 billion from P2.06 billion last year.

For the first eight months of the year, the debt service bill jumped by 19.56% to P909.41 billion from P760.07 billion in the same period last year.

Amortization payments accounted for 67.95% of the total, while the rest went to interest payments.

Interest payments increased by 8.12% to P291.49 billion, including P217.51 billion in interest for local debt and P73.98 billion interest paid in foreign debt.

Amortization payments from January to August rose by 25.84% to P617.92 billion from P491.05 billion a year earlier. This included P405.4 billion in payments for local debt and P212.52 billion paid to external creditors.

In 2020, the National Government’s debt service bill went up by 14.2% to P962.47 billion as amortization payments rose.

The government borrows from foreign and local sources to fund its budget deficit as the state spends more than the revenue it generates to support programs that will stimulate economic growth.

The state has programmed a P1.26-trillion debt service bill this year, 31% higher than in 2020. — Jenina P. Ibañez

Fitch says will assess ‘scarring effects’ of pandemic on economy

PHILIPPINE STAR/ MICHAEL VARCAS
Economic managers expect the Philippines’ gross domestic product to grow by 4-5% this year and by 7-9% in 2022. — PHILIPPINE STAR/ MICHAEL VARCAS

FITCH RATINGS said it is keeping a close eye on the coronavirus disease 2019 (COVID-19) pandemic’s long-term impact on the Philippine economy, which is seen to return to pre-pandemic levels by the latter part of 2022.

“We will continue to assess the macroeconomic policy responses and the authorities’ ability to adhere to the fiscal consolidation plans in their medium-term framework. We will assess potential scarring effects, as well as possible challenges to unwinding the exceptional policy response to the health crisis and restoring sound public finances as the pandemic recedes,” Sagarika Chandra, a director at the Fitch Ratings’ Asia-Pacific Sovereigns team, said in an e-mail.

In July, the debt watcher revised its outlook on the Philippines to “negative” from “stable.” This means Fitch may downgrade the country’s investment grade “BBB” rating in the next 12 to 18 months.

The Philippine economy suffered a record 9.6% contraction in 2020, as the government implemented strict lockdowns to curb the COVID-19 outbreak.

Last week, Fitch trimmed its forecast for growth this year to 4.4% from 5% previously, citing the resurgence of COVID-19 infections and the low vaccination rate.

Economic managers expect gross domestic product (GDP) to grow by 4-5% this year and by 7-9% in 2022.

Ms. Chandra said Fitch expects the Philippine economy will only regain its pre-pandemic level by the second half of 2022.

“Higher levels of vaccination and easing outbreaks in the Philippines and the APAC region may result in the gradual lifting of some of the restrictions imposed to curb the spread of the virus. This, alongside base effects, may help to boost economic activity, trade and household spending,” she said.

However, Ms. Chandra said downside risks to the Philippines medium-term growth prospects stem from “the uncertain evolution of the virus which would dampen business sentiment and the recovery momentum.”

Economists have warned about the scars inflicted by the pandemic on the Philippine economy’s medium- and long-term potential.

The National Economic and Development Authority (NEDA) estimated the total economic cost of the coronavirus pandemic and lockdowns may reach P41 trillion over the next four decades.

Moody’s Investors Service in July has said the country may face “deep scarring” alongside Peru and India where pandemic management became a challenge. It last affirmed its “Baa2” rating with a “stable outlook” for the Philippines in July 2020.

Meanwhile, S&P Global Ratings in August said this “economic scarring” will likely mean the GDP by 2025 will be 12% lower than its potential without the pandemic. The ratings agency maintained its “BBB+” rating with a “stable outlook” for the Philippines in May.

The International Monetary Fund (IMF) said emerging and developing markets are expected to be hit with more scarring compared with advanced economies. With this, the IMF stressed the need to support most affected workers and sectors during the pandemic.

Fitch earlier said it will monitor developments in the country’s fiscal deficit and debt levels, saying a balance between fiscal consolidation and government spending for recovery will be crucial to the rating evaluation.

This year, the government expects the budget deficit to reach 9.6% of GDP before declining to 7.5% by 2022. 

As of end-June, the National Government’s debt-to-GDP ratio has already hit 60.4%, slightly over the 60% deemed as a prudential threshold for an economy’s debt level.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno last week said the 60% debt-to-GDP ratio threshold may need reassessment given the current situation.

“That [threshold] is a long, long-time metric being used by those who would like to join the Euro community — 60% debt-to-GDP ratio and a deficit-to-GDP ratio of 3%. That does not apply to current events. We have to evaluate that,” Mr. Diokno said at a media lecture on Friday. — Luz Wendy T. Noble

BSP eyes designation of four more as prominently important payment systems

THE CENTRAL BANK is looking to designate automated teller machines (ATM), the check image clearing system (CICS), and two major electronic fund transfer services PESONet and InstaPay as prominently important payment systems (PIPS).

The Bangko Sentral ng Pilipinas (BSP) has drafted a memorandum on the guidelines for the designation of the check image clearing system, ATM, PESONet and InstaPay as PIPS.

Once approved by the Monetary Board, all participants of these payment systems will have to comply with the regulations under the Payment System Oversight Framework.

A PIPS has the potential to have a major economic impact or may affect public confidence in the national payment system or in the circulation of money in general.

In comparison, systematically important payment systems (SIPS) are those that have the potential to pose risks that could threaten the stability of the national payment system.

“As participants of the designated payment system, subject recipients are expected to contribute towards observance by the CICS, ATM, PESONet and InstaPay of the Principles for Financial Market Infrastructures (PFMI) relevant to PIPS,” the draft memorandum said. These principles focus on risk management for payment systems.

Under the National Retail Payment System, the PESONet is an electronic fund transfer service facilitating transactions worth more than P50,000 which is credited to the receiver by the end of a banking day.

Meanwhile, its retail counterpart InstaPay allows real-time fund transfers for transactions not exceeding P50,000.

BSP data showed PESONet participants include 87 financial institutions such as banks and electronic money issuers as of Aug. 31. Meanwhile, there are 45 financial institutions that have sender/receiver functions in InstaPay, while 11 are only receivers.

The draft memorandum also requires participants of a PIPS to submit reports that are required by the BSP to evaluate a particular payment system or the national payment system as a whole. They are likewise expected to submit documents relevant to on-site assessments made by the central bank.

Nonbank participants of a PIPS are also expected to implement a risk-based, on-boarding process for its users and due diligence of service providers for payment-related activities.

Under the draft, the governing body will have to establish payment system rules and standards to ensure “safety and efficiency of payment transactions; settlement with finality; visibility of clearing and settlement positions,” among others.

The governing body will also develop and implement rules on risk management, as well as ensure business continuity and other contingency measures are in place “for high availability of the payment system and data at all times.”

For settlement not using central bank money, the governing body will also have to lay out criteria for the selection of a Treasurer or Settlement Bank, as well as monitor compliance and perform due diligence.

To recall, the Monetary Board has approved the accreditation of the industry-led Philippine Payments Management, Inc. (PPMI) as a Payment System Management Body last year.

The draft memorandum said operators of designated payment systems should comply with operational and technical rules in accordance with the relevant BSP regulations. They also need to closely coordinate with the central bank and the governing body to ensure the reliability of the payment system.

Concerned stakeholders are given until Oct. 15 to submit their feedback to the BSP regarding the proposed memorandum.

In August, the Monetary Board has designated the Philippine Peso Real-Time Gross Settlement Payment System as a SIPS. Following this, participants of the PhilPaSS plus were required to comply with the regulatory requirements set by the central bank and international standards in relation to the designation. — L.W.T.Noble

SEC flags more firms, warns of fake regulator’s Facebook page

By Keren Concepcion G. Valmonte, Reporter

THE Securities and Exchange Commission (SEC) issued six advisories this month so far, five of which flag unauthorized investment schemes while one was against a Facebook page posing as the commission.

The regulator flagged BCPay Financial Technology, Inc., Wealth on Web Company or WOW Trade, Bitrade Administration of Financial Marketing, Big Boss Marketing, and RM Trading. It also issued an advisory against SEC News and Updates Facebook Page, clarifying that it is “not, in any way, connected or affiliated” with it.

Noting the rise in investment scams, the commission held a “How to Spot and Unmask Investment Scams” on Friday as it participated in the global campaign organized by International Organization of Securities Commissions for World Investor Week.

“Investing in the capital market is perceived as complicated and intimidating. Fraudsters have taken advantage of this lack of knowledge and misguided perception to entice the public to invest in unauthorized investment schemes,” SEC Chairperson Emilio B. Aquino said.

The SEC said although some corporations or entities are registered with the commission as corporations or partnerships, a secondary license is needed to offer securities or investments to the public.

BCPay Financial Technology and Wealth on Web Company or WOW Trade are both registered with the commission, however, neither have the permit to sell securities to the public.

Bitrade Administration, Big Boss Marketing, and RM Trading are all not registered with the regulator. While Bitrade Administration was granted a Certificate of Business Name Registration by the Department of Trade and Industry on Aug. 24, it still lacks the required registration and/or license to solicit investments from the public.

Oliver O. Leonardo, the officer in charge of the SEC’s Enforcement and Investor Protection Department, noted that the most common type of investment scams are pyramid schemes and Ponzi schemes.

“Both schemes circulate the money collected to fool investors — ‘profits’ of old investors are paid for through the money invested by new recruits,” Mr. Leonardo said in Filipino, adding that the schemes become unsustainable once the entity can no longer find new investors.

The SEC said both Big Boss Marketing, which promises investors a 100% return on investments within 25 days through its double-your-money program, and RM Trading with its 40% monthly passive income promise show indication that their investment programs are modeled after a Ponzi scheme.

Meanwhile, Wealth on Web Company or WOW Trade offers multiple investment packages, promising investors returns of at least 3% to 6% daily, depending on the program.

Some entities also lure investors through selling products or inviting them to be resellers, Mr. Leonardo said. However, these selling programs do not emphasize the need to sell or earn through the products, but rather put importance on recruiting more resellers in exchange for a referral commission.

Other popular unauthorized investment schemes include enticing the public to be the entity’s business partner through offering franchise programs, even though there is no clear business program or the said business is nonexistent.

Fraudsters are also banking on the rise of cryptocurrencies to lure people into their unlicensed investment programs. Entities are promising would-be investors huge profits within a short period of time, however, their investments in cryptocurrencies do not exist.

These entities would take advantage of investors’ lack of knowledge about cryptocurrency or blockchain technology to lure them into the program, Mr. Leonardo said.

Late payouts and the lack of a “white paper” are some signs that the cryptocurrency investment program is a scam. The SEC said programs of these entities mirror pyramid or Ponzi schemes.

The SEC flagged BCPay Financial Technology for its investment scheme, noting that its “offering is an indication of a possible Ponzi scheme. It claims to be “one of the ‘few’ SEC-registered crypto companies in the Philippines,” luring investors by promising up to a 12% annual percentage yield (APY) through its platform and up to 180% APY by providing liquidity during its initial coin offering.

However, BCPay Financial Technology is not registered as a virtual asset service provider with the Bangko Sentral ng Pilipinas, among the other licenses and registration requirements it lacks. The entity also uses an unregistered online lending platform, FastCash3k.

Another platform luring investors to its alleged crypto trading program is Bitrade Administration. It offers investors a 50% profit within 15 days for as low as P1,000 as well as a referral bonus of 5% and an indirect referral bonus of 1%.

The commission reiterated that those who act as representatives of unlicensed investment schemes may be penalized with a maximum fine of P5 million or face 21 years behind bars, pursuant to Section 73 of the Securities Regulation Code.

Making Christmas shopping easier with personal shoppers

RUSTAN’S just might be a guiding star for gifts this season, announcing store renovations and an expanded personal shopper service during a press conference last week.

Rustan Commercial Corp. Bienvenido “Donnie” Tantoco III appeared on a Zoom call on Oct. 6 with a portrait of his grandfather and namesake, Rustan’s co-founder former ambassador Bienvenido Tantoco behind him. The senior Mr. Tantoco passed away earlier this year at the age of 100. (https://www.bworldonline.com/rustans-founder-bienvenido-tantoco-sr-100/)

“How truly wonderful it is to be together again. I believe that after all that has happened, all of whom we have lost these past 20 months, togetherness like this… one as real but also as imperfect as the family and community that is gathered together like this… is something we will not take for granted for the rest of our days,” said Mr. Tantoco.

Since the coronavirus disease 2019 (COVID-19) pandemic precludes most physical get-togethers, Rustan’s has adapted by offering contact-free shopping and other services that will help its customers arrange for celebrating Christmas with family and friends despite quarantine restrictions.

First, Dina Tantoco, Marketing and Communications Manager for Rustan Commercial Corp., introduced the expansion of their personal shopper program.

The Gift List Management service allows customers to send their gift list to Rustan’s personal shoppers who can look for the gift choices, assist in the transaction process, and set the delivery to the buyer’s or the recipients’ houses.

Rustan’s also offers Assisted Shopping services, in which customers can schedule an appointment with a store personnel to assist them during their physical store visit. On the other hand, patrons can also opt to go on a virtual store tour, which allows them to view items found at Rustan’s stores via video call with a personal shopper. Right now, Ms. Tantoco says that they currently have more than 117 personal shoppers. One media guest on the Zoom call had tried out the service and explained how a personal shopper helped her choose a Christmas tree via a video call.

Rustan’s also unveiled its Christmas Village, a one-stop shop located at the 5th Level of Rustan’s Makati with Christmas trees, ornaments, lights, wreaths, garlands, pillow covers, table napkins, and other holiday-themed items. Rustan’s Flower Shop also includes its wide selection of festive décor. The specialty shop also offers food boxes, made in partnership with Gourmet Garage, and Marks & Spencer. Items from brands Theo & Philo, Ferrero Rocher, and Moet & Chandon will also be available for purchase. The Christmas Village is now open until Dec. 31.

Mr. Tantoco acknowledged the boom of online shopping since quarantine restrictions were put in place was a challenge. “We kind of stumbled,” he said, in the beginning. But there have been improvements to their online shopping infrastructure, where he was proud to say that 95% of purchases were able to be delivered in two days; and some of them were delivered to customers in less than 24 hours. “He fixed it,” he said, speaking about his cousin, Rustan’s Vice-President for Store Planning and Expansion, Michael Huang. “We have a very, very good system of logistics and fulfillment right now.”

“We’re not going to stay still… we’re going to try to be better,” he said.

Rustan’s Makati, the company’s flagship store, is currently undergoing renovations. The renovated first floor will be ready by the end of next year with the rest of the floors to follow. Mr. Tantoco explained that his aunt, Zenaida Tantoco, chair and CEO of the Rustan Group, and Michael Huang are leading the renovations. “[S]he’s making the store much more experiential. It’s the experience that is going to bring you out,” he said. — Joseph L. Garcia

Audit firm calls on companies: Put sustainability at forefront

FIRMS should consider sustainability as part of their business goals and not just as a way of complying with requirements from regulators, an audit firm said as companies are gearing up for the submission of sustainability reports this year.

“I believe the number one pain point is that many companies may have yet to embrace sustainability as part of their advocacies or purposes. Hence, it may be difficult to prepare their sustainability reports,” Christopher M. Ferareza, partner at P&A Grant Thorton’s Audit & Assurance and Advisory, said in an e-mail last week.

The Securities and Exchange Commission (SEC) released its own sustainability reporting guidelines for publicly listed companies in 2019. These are laid out in SEC Memorandum Circular No. 4. Companies are to fill out the report forms through a “comply or explain approach,” where firms are expected to explain their noncompliance for some items.

More publicly listed companies have adopted the sustainability reporting system, P&A Grant Thorton said, after seeing “90.4% in 2019 for the 2020 reports to 91.07% for the 2021 reports.”

“I believe companies who have already integrated [or fully embraced] sustainability in their operations would prefer to use their own templates, but based of course on generally accepted standards such as GRI (Global Reporting Initiative), IIRC (International Integrated Reporting Council) [and] SASB (Sustainability Accounting Standards Board), [which have recently merged], and TCFD (Task Force on Climate-Related Financial Disclosures),” said. Mr. Ferareza.

“Most, however, would be dependent on the template suggested by the regulator,” he added.

The SEC plans to make sustainability reporting for listed companies mandatory come 2023.

To encourage more companies to comply with sustainability reporting, Mr. Ferareza said “giving various incentives both financial and nonfinancial” would be a good start.

“In Japan, which is the global leader in sustainability reporting, the financial incentives to achieve a carbon-neutral [or net-zero] society seems to be working very well,” he said.

Mr. Ferareza noted that some of the challenges is the lack of a sustainability reporting expert within a firm’s ranks, on top of “a possible conflict of interest among companies engaged in businesses that pose harm to the environment or society.”

This is where the role of independent auditors would be vital, he said.

“We usually know the business inside out so it’s easier for us to marry financial and nonfinancial aspects of the business operation,” Mr. Ferareza said.

Corporates are reminded to not only focus on profits, but also to keep sustainability as one of the pillars of their businesses.

“This means that if a reporting entity remains solely focused on profits, its sustainability reporting remains solely for compliance,” Mr. Ferareza said. — Keren Concepcion G. Valmonte

adidas x Quiccs Forum Low set for release this week

THE QUICCS Forum, the latest collaboration between Filipino toy designer and visual artist Juanito “Quiccs” Maiquez and global sportswear brand adidas, will be available beginning Oct. 15 for P6,500.

THE LATEST collaboration between Filipino toy designer and visual artist Juanito “Quiccs” Maiquez and global sportswear brand adidas is set for release this week.

The Quiccs Forum, a reimagined iteration of the brand’s iconic Forum Low silhouette, will be available beginning Oct. 15 for P6,500.

It is the third collaborative project between the artist and adidas from their partnership which began last year, after the Quiccs Manila Tees and the widely successful Harden Vol. 5 “Manila Heritage” colorway.

The shoe also comes after the launch of the Fall/Winter 2021 Forum collection in July, which is also a redesigned set of the silhouette, both low and mid-top models, and anchored on the push for “inclusiveness” and “openness to new ideas and concepts.”

In coming up with the design for the Forum Low, Quiccs sought to stay with adidas’ vision of embracing an open attitude to life and redefining the style of the future.

“Since the beginning of this partnership, I have said how I would like to be able to show and inspire other people that through passion, patience and hard work, one can build their dreams into a reality,” said Quiccs in a release.

“‘Earning my stripes’ was an opportunity I only used to dream of, and now I am living it, and I am honored to share with my fellow Filipinos — and the rest of the world — an iconic adidas Originals silhouette featuring a design that was a product of my passion and creativity,” added the designer, whose version of the Forum marked the first time that a Filipino has designed an adidas Originals shoe.

The Quiccs Forum Low features striking red stripes that represent the “Stripes Earned” through Quiccs’ passion. It infuses the shoe’s classic look with the designer’s own branding, which adidas touts as a perfect representation of the Forum’s call to experiment with self-expression and new ideas.

Elements that are unique to Quiccs as a designer are all over the shoe, such as his crossbones logo and “TEQ63,” his signature character that makes an appearance in the reflective 3M upper and as a logo on the gold metal deubre — an ornamental shoelace tag — and the back heel.

As a personal touch, the Quiccs Forum tongue also features the phrase “It Was All A Dream” and date “01.21.20,” representing the official start of Quiccs’ partnership with adidas and his feeling of gratitude and disbelief in fulfilling his dream.

A feature unique to the Forum franchise, the Quiccs Forum straps come in three interchangeable strap designs, giving its wearers more options for self-expression and style exploration.

Having experienced warm a reception for products designed by Quiccs, adidas hopes his Forum Low will enjoy the same and serve as an inspiration for others to continue pursuing their passions.

“We saw how much Filipinos and consumers all over the world from Singapore, Hong Kong, and especially the US, looked forward to seeing and owning Quiccs’ work through the Quiccs Manila Tees and the Harden Vol. 5 ‘Manila Heritage,’ and so it was no question that we wanted him to have his own take and colorway for the very first adidas Originals designed by a Filipino,” said John David Cortez, Manager of Brand Communications and Sports Marketing for adidas Philippines.

“We hope that the Quiccs Forum is able to inspire the new generation to keep pursuing their passions until they, too, earn their stripes.”

The adidas Quiccs Forum will be available at adidas.com.ph, the adidas App, and adidas stores in select countries. — Michael Angelo S. Murillo

PSE approves Megawide’s P4-billion follow-on offering

BW FILE PHOTO

THE Philippine Stock Exchange (PSE) approved the P4-billion follow-on offering (FOO) of Megawide Construction Corp. on Friday, just hours after the company also received the go signal from the Securities and Exchange Commission.

“The exchange approved the application of [Megawide] for the listing of up to 40,000,000 preferred shares, subject of the [FOO] of the company, at an offer price of P100 per offer share,” the PSE said in a listing notice.

Megawide’s base offering consists of 30 million Series 4 preferred shares, with an overallotment option of 10 million Series 4 preferred shares. It may raise up to P4 billion in proceeds should the overallotment option be exercised.

The listed engineering and construction development firm plans to use the net proceeds from the offer to redeem its Series 1 preferred shares due on Dec. 3.

Its offer period will run from Oct. 13 to 19, while its tentative listing date is set on Oct. 29. The offer shares will be listed under the ticker symbol, “MWP4.”

“The exchange’s approval of the listing of the MWP4 Shares is subject to the company’s compliance with all of the conditions and post-approval requirements of the exchange,” the PSE said.

Megawide engaged RCBC Capital Corp. as the sole issue manager, lead underwriter, and bookrunner for the offer, while PNB Capital and Investment Corp. was assigned co-lead underwriter.

On Friday, shares of Megawide at the stock exchange closed higher by 0.48% or three centavos to finish at P6.28 apiece. — Keren Concepcion G. Valmonte

Rates of T-bills, bonds may rise on concerns over high inflation

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RATES of government securities may inch up this week on inflation concerns and hawkish signals from the US Federal Reserve.

The Bureau of the Treasury (BTr) will auction off P15 billion in Treasury bills (T-bills) on Monday, broken down into P5 billion each in 91-, 182- and 364-day debt papers.

On Tuesday, it will offer P35 billion in reissued five-year Treasury bonds (T-bonds) with a remaining life of four years and five months.

Two bond traders said T-bill rates will likely continue to move sideways, with the first trader adding that there could be a slight upward bias from the previous auction.

“Demand may continue to be evident across the three tenors with investors still looking to park their excess liquidity at the immediate part of the curve,” the first trader said in a Viber message.

For the longer-tenored T-bonds, the first trader said the average rate of the five-year notes on offer on Tuesday could range from 3.25% to 3.35%, while the second trader gave a higher estimate band of 3.35% to 3.55%.

Both traders said dealers are awaiting more signals from the US Federal Reserve on the timing of its plan to taper its monthly asset purchases.

The Fed has said it could start reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected.

At home, the traders said the market remains concerned over elevated inflation.

“Some…inflationary pressures such as the rise in global oil prices and Meralco’s (Manila Electric Co.) power rate hike announcement this month have kept the market off the edge, with local bond yields adjusting higher,” the first trader said.

Headline inflation stood at 4.8% in September, slowing from the 4.9% logged in August but faster than the 2.3% print recorded in the same month last year, the Philippine Statistics Authority reported last week.

September’s inflation print hit the lower end of the Bangko Sentral ng Pilipinas’ 4.8%-5.6% forecast range that month.

Average inflation for the first nine months reached 4.5%, above the central bank’s 2-4% target and 4.4% forecast this year.

Meanwhile, Reuters reported on Friday that oil prices rose as industries switch to oil from high price gas and on doubts that the US government would release oil from its strategic reserves. US West Texas Intermediate crude futures went up 1.1% to $79.14 a barrel, while Brent crude futures climbed 1% to $82.75 a barrel.

The BTr made a full award of the T-bills it offered last week even as rates climbed across the board due to lingering inflation fears.

Broken down, the government raised P5 billion as planned via the 91-day debt papers from P13.01 billion in bids. The three-month T-bills fetched an average rate of 1.085%, up by 2.5 basis points (bps) from the 1.06% seen the week before.

It also borrowed the programmed P5 billion via the 182-day T-bills as the tenor attracted bids worth P22.42 billion. The six-month paper’s average yield rose by 0.6 bp to 1.391% from 1.385% a week earlier.

Lastly, the Treasury made a full P5-billion award of the 364-day debt papers from P20.93 billion in tenders. The one-year securities fetched an average rate of 1.584%, climbing by 0.2 bp from the 1.582% quoted at the previous week’s offering.

Meanwhile, the last time the BTr auctioned off the reissued five-year T-bonds on offer on Tuesday was on Sept. 1, when it made a full P35-billion award of the papers from P76.167 billion in tenders.

The debt papers fetched an average rate of 2.746% at that auction, dropping by 54.9 basis points from the 3.295% logged in the previous offering. This was also lower than the 3.375% coupon for the series.

The BTr is looking to raise P200 billion from the local market this month: P60 billion from weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Jenina P. Ibañez with Reuters

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