BSP unlikely to issue digital currency

February 7, 2022 | 12:34 am

A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration in Paris, France, Dec. 8, 2017. — REUTERS/BENOIT TESSIER/ILLUSTRATION

THE Bangko Sentral ng Pilipinas (BSP) is unlikely to issue its own central bank digital currency (CBDC) in the near term, according to BSP Governor Benjamin E. Diokno.

“The BSP has no plans to introduce a CBDC in the near term primarily because the population remains heavily cash reliant given the country’s efficient and effective payment and settlement systems,” Mr. Diokno told Global Source Partners in a report.

Mr. Diokno said the BSP’s technical working group has done consultations with other central banks, technological service providers, other institutions and even small businesses in relation to the use cases of a possible CBDC.

For now, he said they are strengthening the domestic retail payment system.

“Exploratory works on identified uses cases for CBDC in the Philippines are currently being undertaken for cross-border payments, settlement of equity securities, and intraday liquidity facility,” Mr. Diokno said.

The central bank is hoping that half of all transactions will be done online by 2023. In 2020, about 20% of payments were done digitally.

A CBDC is centralized, issued, and regulated by a central bank, and can serve as a medium of exchange or store of value. Unlike other digital assets, it is regulated by the central bank, making it less prone to price volatility unlike decentralized cryptocurrencies like Bitcoin.

Central banks in China and Europe have started working on developing their CBDCs. Just last week, India said it will soon launch a digital rupee that will be regulated by the Reserve Bank of India.

The development of the country’s national ID or the Philippine Identification System (PhilSys) will be crucial in any future CBDC issued by the BSP, said Swarup Gupta, an industry manager at The Economist Intelligence Unit.

He said India was in a position to launch its retail CBDC through Aadhar, which is the country’s digital identity project similar to the national ID in the Philippines. He added the IndiaStack, which gives governments and private institutions access to an open application program interface (API), also helped to resolve challenges related to identity and payments.

“The Philippines’ digital identity project, PhilSys, will ultimately resolve these issues, but it will be a while before substantial coverage is achieved and requisite digital public goods put in place,” Mr. Gupta said in an e-mail.

The National Economic and Development Authority earlier said that more than 50 million Filipinos have already completed the demographic and biometric data collection for the national ID.

Mr. Gupta said there are significant challenges and risks to CBDC adoption, which may be why the BSP is hesitant in considering a retail CBDC.

“A gaping digital divide in poor areas of emerging Asia, which includes the likes of both India and the Philippines, could hinder a major objective of such projects: financial inclusion. The major risks of launching a CBDC include raising the importance of the central bank to the point of crowding out the innovation of private players,” he said.

Mr. Diokno has said that 53% of Filipinos had an account with a financial institution as of the first quarter of 2021. The BSP aims to bring this to 70% of Filipino adults by 2023.

Mr. Gupta said the BSP may also be considering possible cyberattacks on a CBDC system.

“Further, a well-executed cyberattack on a CBDC system could have disastrous implications. Philippines’ central bank is cognizant of these issues and is, therefore, quite rightly, treading carefully as it evaluates the various design considerations a CBDC entails,” he said.

In the long term, Mr. Gupta said there is a case for the BSP to adopt wholesale CBDC.

“The central bank will, instead, focus on launching a wholesale CBDC, though it remains unclear how this will be superior to existing real-time gross settlement systems. Advantages could be gained from self-executing smart contracts, which could automate periodic payments successfully,” he said.

The Philippine Peso Real-Time Gross Settlement Payment System includes 175 direct participants including banks, quasi-banks, BSP units, and the Bureau of the Treasury. It is the system that facilitates transactions through automated teller machines, clearing houses PESONet and InstaPay, checks, and the trading of government securities.

Another advantage of a wholesale CBDC would be interoperability with other central banks, Mr. Gupta said.

“The success of such projects could raise the efficiency of cross-border payments, such as remittances, while reducing costs significantly,” he said. — Luz Wendy T. Noble

PSE eyes dividend yield index

February 7, 2022 | 12:33 am

THE Philippine Stock Exchange (PSE) is planning to launch a dividend yield index within the first half of 2022, as more publicly listed companies (PLCs) are now issuing dividends to common shareholders.

“With around 40% of PLCs giving out dividends to their common shareholders, we deemed it necessary to showcase companies that provide high dividend income to investors by coming up with a Dividend Yield Index,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.

“This thematic index will be one of the new indices that we will be introducing within the semester,” Mr. Monzon added.

The PSE said 108 out of 276 listed companies distributed a total of P402.18 billion in cash dividends in 2021. This was 17.3% higher than the P342.88 billion in dividends issued by 105 firms out of 271 in 2020.

The PLCs’ dividend yield stood at 2.58% in 2021, inching up from 2.50% from the previous year.

“The gradual reopening of the local economy allowed companies to generate better income, which resulted in bigger dividends for shareholders. We hope that earnings growth among PLCs continues to improve to ensure steady dividend income for stock market investors,” Mr. Monzon said.

Mr. Monzon also noted that real estate investment trusts (REITs) “have become a preferred asset class among investors because of its dividend mandate.”

In 2021, AREIT, Inc.; DDMP REIT, Inc.; Filinvest REIT Corp.; RL Commercial REIT, Inc.; and MREIT, Inc. paid out a total of P5.77 billion with a dividend yield of 2.16%. The PSE noted that this was achieved even as three REITs were only listed for an average of four months.

“With more REITs expected to list this year, including non-property REITs, investors will have a wider selection of companies that can provide passive income,” Mr. Monzon said.

The country’s first energy-focused REIT, Citicore Energy REIT Corp., kicked off its offer period last week for its P6.4-billion initial public offering and is expected to list at the main board of the exchange by Feb. 17.

Meanwhile, Jollibee Foods Corp. and DoubleDragon Properties Corp. are planning to launch an industrial REIT this year through DoubleDragon’s CentralHub Industrial Centers, Inc.

For the 30-member Philippine Stock Exchange index (PSEi), the cash dividends paid by 28 of its members to common shareholders totaled P157.8 billion with a dividend yield of 1.72% last year, inching up from the P157.05 billion disbursed by 29 firms with a dividend yield of 1.76% in 2020.

Firms in the financials sector had the largest dividend payout among the PSE’s six sectors, distributing a total of P187.55 billion. — Keren Concepcion G. Valmonte

Local gov’ts urged to ramp up spending

February 7, 2022 | 12:32 am

By Jenina P. Ibañez, Senior Reporter

LOCAL government units (LGUs) need to set up a strong pipeline of projects and improve their implementation processes to support spending as their share in national taxes expands this year, the Department of Finance (DoF) said.

“LGUs need to brush up on project planning and implementation so that projects are efficiently implemented and finished on time,” Finance Undersecretary and Chief Economist Gil S. Beltran said in a Viber message.

“They should also keep a good pipeline of projects so that resources are not kept idle. The Development Academy of the Philippines offers courses relevant to this for LGU executives and managers.”

The DoF has said the Supreme Court’s Mandanas ruling that expands local governments’ share in national taxes starting this year would lead to lower economic growth.

The department noted that the higher tax allocation for LGUs would dampen spending efficiency — which measures the share of funds that create jobs or stimulate demand to total spending — because the National Government usually spends at double the pace.

Romeo L. Bernardo, a trustee for the Foundation for Economic Freedom and former Finance undersecretary, said that the LGUs should explore more private public partnerships due to constraints in fiscal space and the need to tap private sector expertise.

In an e-mail, he said LGUs have limited ability to spend capital, which ends up being “either unspent or worse, wasted.” “Thus, the lack of local technical capacity perpetuates the dependence of local governments on the National Government,” he added.

He suggested that the National Government provide capacity-building support to LGUs and channel the higher internal revenue allotments to local coronavirus response.

“(This would) mitigate budget execution risks while providing much needed support to local constituents. Especially in the transition as their capacity is being developed,” he said.

The Supreme Court ruling is named after Batangas Governor Hermilando I. Mandanas who successfully challenged the government’s previous position that LGUs were entitled to a smaller share of National Government funds.

President Rodrigo R. Duterte in June last year signed Executive Order (EO) 138 which transfers a number of basic services to LGUs by 2024. With this, the government is shifting programs and projects, worth an estimated P234.4 billion, to LGUs.

Mr. Bernardo said that in the future, the government must pass legislation that would improve the internal revenue allotment system. The system could correct mismatches in amounts provided to different forms of LGUs and include performance incentives.

“Incorporate a performance incentive element in the formula to reward LGUs doing better in both revenue mobilization and spending efficiency,” he said.

However, lower LGU efficiency may not be the biggest driver of poor spending. Previously, Institute for Leadership, Empowerment, and Democracy (I-LEAD) Executive Director Zy-za Nadine Suzara said spending inefficiencies by LGUs would not likely deter economic growth, because a greater bulk of the budget stays with the National Government.

Factors that could dampen the contribution of government spending on economic growth include the ban on public works projects in the lead up to the elections in May, and limited spending from major agencies because of the pandemic, she said.

The World Bank in June last year said funds that the LGUs fail to spend could increase by P155 billion in 2022, or the equivalent of 0.7% of gross domestic product, if their capability to enforce projects are not upgraded.

Repatriated OFWs face tight job market in PHL

February 7, 2022 | 12:31 am

Repatriated Filipino workers arrive at the airport in Pasay City, May 26, 2020. — REUTERS/ELOISA LOPEZ

REPATRIATED Filipino workers faced a tight job market in the Philippines and savings losses, exposing gaps in the government’s reintegration programs, an Asian Development Bank (ADB) report said.

Thousands of overseas Filipino workers (OFWs) were repatriated to the Philippines during the coronavirus disease 2019 (COVID-19) pandemic, after most of their employers laid them off or did not renew their contracts.

“Although aggregate figures indicate that in 2020, remittance inflows to the Philippines declined much less than initially anticipated, implications of this decline could differ and might even be severe for some households, depending upon their income and financial conditions,” the ADB said.

Cash remittances fell for the first time in two decades in 2020, slipping by 0.8% year on year to $29.903 billion. However, the decline was better than the 2% contraction forecast by the central bank for the full year.

The World Bank in April 2020 projected a 20% global decline in remittances for that year as many migrants lost jobs.

Despite the lower-than-expected drop in remittances, many returning Filipinos were affected by the loss of wages. A third of male and 17% of female workers earned over P50,000 a month overseas.

“For these return migrants, the pandemic put an end to this inflow,” the report by ADB economist Jong Woo Kang and consultant Ma. Concepcion G. Latoja said.

Many also did not receive their final wages or separation pay after their contracts were terminated, reducing the money they brought back home. This loss of income put at risk their households’ consumption and savings, which they had mostly spent on food, education, and health.

“It is also possible that remittance-recipient households on the lower end of the income scale could risk sliding back into poverty,” the report said.

Over 325,000 OFWs were repatriated in 2020, data from the foreign affairs department showed.

After their return, workers found it hard to get local jobs during the pandemic as the unemployment rate shot up to 17.6% in April 2020.

“While the government aimed for return migrants to find suitable employment as quickly as possible to make their return viable and sustainable, the domestic labor market struggled due to the pandemic,” the report said. “Some firms impacted by loss of sales after months of strict mobility restrictions had to shut down.”

Job matching programs offered by the government did not always effectively help returning workers, who lost their local network and often held low-skilled jobs overseas, find training and employment in the Philippines.

“There is room to improve existing systems that match the supply of skills with job prospects to encourage OFW returnees to apply the competencies they acquired abroad in their local occupations,” the ADB said.

The lack of reliable government data on Filipino migrants hampered reintegration management responses, it added.

The ADB said the Philippine government should help prepare OFWs for their return, offering them resources through overseas labor offices.

“Reintegration initiatives must emphasize the role of health and social security through information and awareness campaigns, data collection on returnees’ health, and assisting OFWs in registering with public healthcare and social security systems.”

Policy recommendations also include expanded migrant information collection that can help the government respond better to their needs. Reintegration programs could also take into account how the skills of OFWs could help their communities.

The government could ramp up the use of technology that could match workers’ skills to local jobs, and offer online skills training.

“Online and digital platforms on managing income, savings, and investments could help returnees deal with their finances with more confidence even if they are no longer remittance senders.”

Cash remittances on the first 11 months of 2021 increased by 5.2% year on year to $28.43 billion, central bank data showed. — Jenina P. Ibañez

SEC flags six entities’ unauthorized investment taking

February 7, 2022 | 12:06 am

By Keren Concepcion G. Valmonte, Reporter

THE Securities and Exchange Commission (SEC) is warning the public against six new unauthorized entities soliciting investments from the public in the first week of February.

The regulator issued separate advisories against BeastnessAllDay Corp., Wellcons Unlimited Systems, Inc., Astrazion Global Holdings, Inc., LMB Football, QFX Markets Ltd., and Freecit/Freebit.

BusinessWorld reached out to each of the entities via e-mail and Facebook Messenger chat. However, BeastnessAllDay Corp., Wellcons Unlimited Systems, Inc., and Astrazion Global Holdings, Inc. have not responded as of press time.

QFX Markets merely responded with a “Welcome to QFXTrade Limited!” message on WhatsApp.

Meanwhile, LMB Football’s customer service site claims that it is a “project of William Hill.”

“LMB is a charity, not for profit. We do not have to register to perform charitable, welfare or developmental activities,” the LMB01 representative said in a chat. Customer services were accessed via the link on the commission’s advisory.

Asked for a statement, the representative added that the entity “is not for profit, but only for charity, so there is no record in some financial aspects. The purpose of LMB’s existence is to increase William Hill’s global customer base, so you are now the first stop for charity. More countries will be affected in the future.”

The SEC is warning the public on the “proliferation of sports betting investment scams such as LMB Football.” The entity is luring the public to place bets or “buy/order scores” of international football games based on its “team-guaranteed capital preservation plan.”

“LMB Football claims that its headquarters and website were established in the United Kingdom. However, a check with the online database of Companies House, the UK’s registrar of companies, reveal that LMB Football is not registered therein,” the SEC said.

“Likewise, online verification from the Financial Services Register of the Financial Conduct Authority of the UK, disclosed that LMB Football is not one of the licensed firms permitted to engage in financial services activities in the UK,” it added.

LMB Football is also not registered with the SEC and it is not authorized to solicit investments. It is also not registered as a crowdfunding intermediary or as a funding portal as required under the SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding.

BeastnessAllDay, Wellcons Unlimited Systems, and Astrazion Global are registered with the commission. However, none of the entities have the required secondary license to engage in investment solicitation activities.

Names of those involved in the operations of the entities will be reported to the Bureau of Internal Revenue “so that the appropriate penalties and/or taxes be assessed correspondingly.”

The SEC also noted that BeastnessAllDay, Wellcons Unlimited Systems, and Astrazion Global’s respective investment schemes show indication of a possible Ponzi scheme.

BeastnessAllDay is said to be operated by a certain Angelo Diez Parian. The SEC said it is “apparently victimizing innocent and hard-working overseas Filipino workers” to invest a minimum of P50,000 or $1,200 along with a contract agreement for five months, with a guaranteed 10% to 12% return of investment per month.

“BeastnessAllDay claims that it is engaged in investments, sale of gadgets, real or personal properties, sale of luxury vehicles, and branded shoes and apparels,” the SEC said.

Meanwhile, the regulator said that Wellcons Unlimited Systems’ investment activities “is a hybrid of a pyramiding and a Ponzi scheme.” The entity is enticing the public to invest in its investment programs, which include a “binary system” and a “pinagkabuhayan system.”

“The pyramiding scheme involves securities because for payment of a sum of money, often nominal, the investor participates in a recruitment scheme that promises a stream of profits,” the SEC said in its advisory against Wellcons Unlimited Systems.

“The scheme that requires recruitment in a two-pronged structure takes the form of a pyramid, one that grows wider at the bottom, and thrives with the supply of new recruits to the scheme,” it added.

Wellcons Unlimited Systems is said to be headed by Merarie Espuerta Pailagao. The entity is also registered with the Department of Trade and Industry, but its business scope is supposed to only be within the city or municipality of Valencia in Bukidnon, Northern Mindanao.

Meanwhile, Astrazion Global also goes by Astrazion International and Astrazion Noble Task Community and is led by a Napoleon Dela Cruz Visperas. The entity is trying to lure investors into investing in their digital currency called “AZNT Token,” among others.

“ASTRAZION claims that it aims to provide their investors a drastic change and improve an individual’s lifestyle and an opportunity to acquire a new house, new car, vacation trips, and to get rich in no time by investing their money in its so-called ‘AZNT Token’ packages,” the SEC said.

Its packages include a “starter package,” broze, silver, gold, diamond, platinum, and double platinum, all of which promise a 3% daily return. Astrazion’s website “has been closed by administrator” as of writing.

On the other hand, QFX Markets also goes by QFX Trade Ltd., QFX Technology Services, and Heart Capital Ltd. The entity claims it is operating in different countries and has headquarters in London, India, and Dubai.

“It appears that these entities are being promoted by a Filipino operator hiding his/her identity under the account name ‘RB Trader.’ RB Trader targets Filipinos by inviting them to attend [the entity’s] Zoom meetings and inviting and sharing its scheme,” the SEC said.

The entity and/or its operator is trying to lure the public to invest in its product called the “QFX FX BOT PRO,” which is said to be a “fully-automated Forex Trade-in robot.” Prospective investors are “assured” of a 50% monthly profit.

However, QFX Markets is not registered with the commission. Therefore, it cannot obtain a secondary license to authorize its investment solicitation activities.

“The Commission currently does not allow the registration of Foreign Exchange (FOREX) in the nature of Commodity/Financial Futures Contract, Contracts for Differences (CFDs) and other similar highly-volatile and risky derivative nor Commodity Futures Exchanges and commodity merchants/brokers,” the commission said.

The SEC also “has not yet registered a commodity futures exchange, it follows that no commodity futures merchant shall likewise be registered and allowed to solicit investments in the Philippines in commodity futures contracts, otherwise known as leveraged foreign currency contracts or margin trading.”

Meanwhile, Freecit/Freebit is an unregistered entity, claiming to be an “internet business support company that uses pioneering internet technology to vigorously promote the business of their customers.” The entity claims that investors can increase their income, promising yield of returns of up to 706% in 120 days.

The SEC noted that Freecit/Freebit’s investment programs “show indication of a possible ‘Ponzi scheme.’”

Nissan takes next electric steps

February 7, 2022 | 12:05 am

VELO_ANGEL-COLUMN_image1 — Nissan Philippines President and Managing Director Atsushi Najima poses with the all-electric Leaf. — PHOTO FROM NISSAN PHILIPPINES

The Blue Switch Initiative seeks to fill in the EV gaps

I’VE BEEN part of Nissan’s Philippine contingent to the biennial Tokyo Motor Show held in Japan over the last three times the event materialized. It was during these times that we had extremely immersive experiences that had everything to do with Nissan’s innovative Intelligent Mobility, electric and e-power vehicles, and other upcoming products. I remember asking myself when the right time might come when many of these modern technologies could finally — even just gradually — be adopted in the Philippine context. Fast-forward to two (going on three) years into the pandemic, I am actually pleased to see some baby steps towards the electric mobility route in our country, strongly led by the efforts of Nissan Philippines. Yay!

And so in yet another one of its strategic moves in the country, Nissan Philippines recently launched what it calls its “Blue Switch Initiative.” This marks the next phase of Nissan’s massive electrification plans which are, in turn, built on the premise of “Nissan Ambition 2030.”

The concept of Nissan Ambition 2030 was officially launched in Yokohama, Japan sometime late last year — as an important response to critical environmental, societal, and customer needs. And the core ambition of this project is to further transform Nissan into a sustainable company that drives toward a cleaner, safer, and more inclusive world.

Those are really large concepts to grasp — larger than life, to be honest. But if you will care to indulge the company, it says that the goal is to go carbon-neutral across the life cycle of its product offerings by fiscal year 2050. While doing so, it seeks to empower society in order to enable it to build a smart ecosystem with integrated mobility. For that, we’d need electric vehicles. So, the introduction and popularization of such in the Philippines is where we’re at.

Indeed, Nissan has democratized mass-market electric vehicles with its long-time introduction of the Leaf EV, which is now also available in the Philippines as of its local launch last year. And since vehicle electrification appears to now be at the core of the company’s long-term strategy, the company has already pledged investments of two trillion yen over the next five years in order to accelerate the development of its EV lineup and other tech innovations.

Nissan Chief Operating Officer Ashwani Gupta shares, “With our new ambition, we continue to take the lead in accelerating the natural shift to EVs by creating customer pull through an attractive proposition by driving excitement, enabling adoption and creating a cleaner world.”

Thus, the activation of Nissan’s Blue Switch Initiative in the Philippines is a major local milestone in achieving such an end. In Japan, the initiative zoned in on partnering with the government and private stakeholders to encourage the use of EVs for addressing issues such as energy management, eco-tourism and disaster response. Here in the Philippines, Nissan already managed to demonstrate the Leaf’s strengths when it comes to disaster response. The company used the Leaf EV alongside power mover units to help feed electrical power into some affected parts of Cebu, after the destructive effects of Typhoon Odette. If you will remember, Nissan’s vehicle-to-load (V2L) technology enables the energy stored in an electric vehicle’s battery (in this case, the Nissan Leaf’s) to be transferred into a grid. This technology may be used either to simply lower the cost of electricity of a certain household (if peak rates are applied by the electricity provider), or to power places that are completely without electricity due to natural calamities.

The Nissan Leaf was also toured in our precious Boracay Island, as part of the Nissan Philippines “Safe Trips” campaign and also to advocate for eco-tourism in this highly visited location. It is clear that the beautiful island has much to benefit from the use of EVs as people’s main mode of transportation — starting with the obvious: less noise pollution and cleaner air.

Nissan Philippines President and Managing Director Atsushi Najima explains that, “When we integrate EV technology into society, we can unify people, systems, and our goals as a nation. EVs can boost tourism, protect the environment, help us respond to emergencies faster, and help enrich the lives of many people. We are looking to turn this dream into reality this 2022, and we can do this by working together.”

I can’t wait to witness all the other innovations I’ve seen from Nissan’s Intelligent Mobility suite to trickle down as practical applications in our country. With ever more support from the national government, what promising heights we can achieve!

Cebu Carbon Market phase 1 ‘substantially completed’

February 7, 2022 | 12:05 am

By Arjay L. Balinbin, Senior Reporter

MEGAWIDE Construction Corp. said its subsidiary, Cebu2World Development, Inc. (C2W), has “substantially completed” the first phase of the P5.5-billion Carbon Market Redevelopment project in Cebu City and is on track for the official launch in April.

“[It] is on time despite the challenges brought by the pandemic and, more recently, Typhoon Odette,” Megawide Executive Director for Infrastructure Development Manuel Louie B. Ferrer said in a statement to BusinessWorld last week. He also serves as chairman of C2W.

“The official launch for phase 1 is scheduled in April 2022. Upcoming in Q3 (third quarter) will be the Puso Village, which is an F&B (food and beverage) and retail concept that will highlight Cebuano brands and feature well-loved international options as well,” he added.

The project is a 50-year joint venture with the Cebu City government. It covers the modernization of the 100-year-old Carbon public market as well as the infrastructure development of the entire district.

Under the contract, Cebu City will receive an annual guaranteed payment of P50 million with 10% escalation every five years.

The second phase of the project will be a mixed-use development.

Mr. Ferrer said C2W has completed portions of the ambulant vendor area, now called Carbon “Bagsakan.”

It “opened in Q4 (fourth quarter) last year. Although a temporary facility (to be used for two years until completion of the permanent market building), Bagsakan provides ambulant vendors — vendors with no permanent stall spaces and usually sell on the street — with proper facilities such as roofing, stall allocations, and other amenities,” he noted.

“Ambulant vendors and their products are no longer susceptible to flooding or heavy rains. Eventually, Bagsakan will have its own free toilets and a police outpost. Once completed, it will accommodate more than 540 vendors.

Construction and move-in of vendors being done in phases so as not to disrupt selling,” he added.

According to the company, the Carbon Interim Building is 95% complete as of Feb. 1, with only finishing work remaining.

“This is also a temporary facility which will be used for two years. The building has a total GFA (gross floor area) of about 10,000 sq.m., more than enough for the close to 800 vendors (regular stall holders and ambulant) that it will accommodate,” Mr. Ferrer said.

He also said the building will operate 24/7 and will have proper stall spaces, individual stall connections to water and electricity, “which vendors did not have in their previous location.”

It will also have “proper loading and unloading areas and new amenities such as Wi-Fi, free clean bathrooms, etc. This will also have offices and a media lounge. Vendors will transfer in batches this February,” he noted.

Another site that has been substantially completed is the Senior Citizen’s Park and Chapel with a 30-foot statue of the Sto. Niño.

“The park has an area of more than 3,700 sq.m. and the chapel interior can accommodate at least 150 parishioners. Chapel seating can be extended as required. The form of the chapel is inspired by the crown of the Señor Sto. Niño. The chapel and park will open by end-February,” Mr. Ferrer said.

“Finally, the company has also substantially completed site development works around the area, such as drainage improvements to prevent flooding, sidewalk improvement, road clearing, among other works,” he added.

He also noted that the new Philippine National Police outposts within the district have also been constructed by the company to address issues in security and petty crime.

“These new facilities and improvements will address the concerns of the Cebuano public on cleanliness, security, and convenience, which are among the top reasons why so many of them stopped going to Carbon regularly and instead choose supermarkets despite our low prices.”

Sadowski-Synnott snatches NZ’s first Winter Games gold

February 7, 2022 | 12:04 am

ZHANGJIAKOU, China — Zoi Sadowski-Synnott of New Zealand said she was a “proud Kiwi” after winning gold in the women’s slopestyle event at the Beijing Olympics on Sunday, snagging the nation’s first-ever Winter Games gold medal.

Rival snowboarders said the 20-year old’s final run pushed the women’s field to the next level and called it a giant leap for the sport.

Sadowski-Synnott scored 92.88 on her final run, landing back-to-back 1080s on a challenging course resembling the Great Wall of China.

Asked how she felt about making history as the island nation’s first Winter Games gold medalist, she said it made her a “proud Kiwi.”

“I hope I made them happy and they will celebrate for me,” she said.

Her coach, Sean Thompson, said “everyone was going to go crazy” back home over the win.

“She’s amazing and deserves every bit of it,” he said.

The New Zealander won over a tough field of competitors, including the reigning twice-gold medalist Jamie Anderson, who missed the podium after she said she “blew it” during Sunday’s contest.

Julia Marino of the United States, who took silver, said Sadowski-Synnott was elevating the women’s slopestyle competition, putting down tricks previously only ever successfully performed by men.

“She stomped that to the last line,” Marino said, adding she was “overcome with happiness” for all the winners.

“I just think it’s insanely huge for the progression of the sport,” she said.

After Sadowski-Synnott landed her final trick, her supporters erupted in cheers, waving her home country’s flag as well as another flag displaying the black and white silver fern.

Aussie Tess Coady, who won bronze, jumped on top of the Kiwi at the finish and Marino also piled in.

The skies were sunny but hard snow and the extremely low temperatures made the event demanding for boarders as air temperatures fell to -19.6 degrees Celsius at Genting Snow Park in Zhangjiakou.

Snowboarders described the course, which even includes a replica of an ancient watch tower on the Great Wall, more challenging than others they’ve tried.

Anderson, who lost her title and came in ninth in the finals, paused after an interview and turned towards the awards ceremony, watching in silence as the winners were crowned. — Reuters

Singapore’s SpaceDC eyes $700-M investment for PHL data center

February 7, 2022 | 12:04 am

SINGAPORE-BASED SpaceDC said it is looking to invest more than $700 million in its planned 72-megawatt (MW) hyperscale data center serving Greater Manila, which is expected to open this year.

“We are looking to invest over $700 million into the campus,” SpaceDC Chief Executive Officer Darren Hawkins told BusinessWorld in an e-mailed reply to questions on Friday last week.

SpaceDC, a data center provider, recently announced that it is working with global real estate services firm JLL to build a data center called MNL1, which will be situated in Cainta, Rizal.

“The Philippines ranks second in terms of data center growth in Southeast Asia. With only 47 MW of available capacity in the country, it is a dramatically underserved market. We are excited to be a first mover in a new market where we see our customers are investing heavily in,” Mr. Hawkins said.

The data center, which will run on renewable energy, is slated to open this year, he noted.

“The average rack density and configuration of our facility means we can accommodate both colocation and hyperscale customers. Our design provides flexibility and efficiency that equips our customers with the capacity to grow.”

Data analytics and consulting company GlobalData has said that global hyperscalers, or the massive international companies that dominate the cloud service sector, may be needed to open facilities in the country because “local hosting” is a “key requirement” to address the “strong demand” for cloud services.

More Philippine enterprises plan to migrate workloads to the cloud, propelling the country’s cloud market to $2.8 billion by 2025 from $1.8 billion in 2020, making it an ideal destination for global hyperscalers, GlobalData also said.

On why SpaceDC chose to build its facility in Cainta, Mr. Hawkins said: “We assessed all the local risk conditions throughout Greater Manila such as flooding, volcanoes and earthquakes. We determined Cainta was well placed to avoid any of these types of natural disasters.”

“Our site is designed to be resilient and strategically placed on elevated ground that is well serviced by a high voltage terminal station that supplies dual 110KV (kilovolt) feeds and in close proximity to the main fiber exchanges,” he also noted.

On the company’s future plans, he said: “We have developed an expansion plan for the Philippines that we look forward to announcing.”

“SpaceDC is also looking to expand throughout Broader Asia, we expect to announce further expansion as far as India, Japan and Australia.” — Arjay L. Balinbin

Rates of Treasury bills, bonds to move sideways on inflation data

February 7, 2022 | 12:04 am

RATES of government securities may move sideways this week after inflation eased in January.

The Bureau of the Treasury will offer P15 billion in Treasury bills (T-bills) on Monday, or P5 billion each in 91-, 182- and 364-day securities.

On Tuesday, it will auction off P35 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and 11 months.

A trader said T-bill yields may move sideways while the 10-year notes could range from 4.95% to 5.1%.

“While inflation clocked in lower, the expectation remains that the economic data will continue to evidence recovery,” the trader said in a Viber message.

“Also, the Fed (US Federal Reserve) is widely expected to hike rates in March and that local rate hikes may come in the second half of 2022.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said T-bill yields could either be steady or slightly lower this week after inflation decelerated.

“The maturity of more than P170 billion in Treasury bonds since the latter part of January 2022 added to the liquidity in the financial system,” he added.

Inflation slowed to 3% in January, the fifth straight month of deceleration, as housing and utilities prices eased, preliminary data from the Philippine Statistics Authority showed. This was slower than both the 3.2% in December and the 3.7% in January last year.

The Bangko Sentral ng Pilipinas (BSP) Monetary Board will meet to review its policy settings on Feb. 17. It has kept borrowing costs at record lows since November 2020.

BSP Governor Benjamin E. Diokno has said the central bank is unlikely to hike benchmark rates in the first half of this year as it waits for the economic recovery to become entrenched and unemployment to fall.

Meanwhile, the Fed earlier said it is likely to raise borrowing costs starting March to quell rising inflation. Markets expect the US central bank to fire off at least three rate hikes this year.

At the secondary market on Friday, the 91- 182- and 364-day T-bills were quoted at 0.7497%, 1.1249%, and 1.4394%, respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

On the other hand, the 10-year bond fetched a yield of 4.8805%.

The government raised P15 billion as planned via the T-bills it auctioned off last week.

Broken down, the Treasury raised P5 billion as programmed via the 91-day securities from P17.2 billion in bids. The average rate of the three-month debt papers went down by 0.2 basis point (bp) to 0.691% from 0.693% the previous week.

The government also borrowed P5 billion as planned through the 182-day instruments from P24 billion in tenders. The six-month T-bill’s average rate fell by 5.4 bps to 1.023% from 1.077% previously.

Lastly, the BTr made a full P5-billion award of the 364-day papers as bids reached P18.57 billion. The average yield on the one-year papers stood at 1.408%, down by 0.2 bp from 1.41% a week earlier.

Meanwhile, the last time the government offered the 10-year T-bonds to be auctioned off on Tuesday was on Jan. 18, where it raised P35 billion as planned as total tenders reached P72.24 billion. The debt papers fetched a coupon rate of 4.875%.

The Treasury plans to raise P200 billion from the domestic market in February, or P60 billion via T-bills and P140 billion from T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at 7.7% of gross domestic product this year. — Jenina P. Ibañez

Entry level gets a Raize

February 7, 2022 | 12:04 am

VELO_Page2_image1 — PHOTO FROM TOYOTA MOTOR PHILIPPINES

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Toyota expects to sell 1,000 units a month of this crossover

THE CROSSOVER war is far from over.

Toyota Motor Philippines (TMP) finally, officially, raised the drapes on what I had previously called in this column its “worst-kept secret.” That’s no knock on the country’s leading auto brand (we’re waiting for official word but let’s already congratulate TMP for an incredible 20-year run as “Triple Crown” winner — leading the country in passenger car, commercial vehicle, and total sales), but rather, a testament to how huge this release potentially is. We just couldn’t help ourselves from sniffing and digging around about the Raize. It now becomes the most affordable SUV (yes, SUV) in the Toyota stable, and finally allows TMP access to this lucrative segment. And now that we’ve heard of the lofty expectations (1,000 units a month, thank you very much), yes, it’s Death Star huge. While we’re talking Star Wars, the present players in the entry-level crossover segment which Toyota will be invading via the Raize must be feeling like Ewoks right now, gazing up at that bully in the sky, wondering when they’ll be scuttled.

During the online launch of the Raize, TMP officials were obviously bullish about prospects, underscoring that the commercial vehicle (CV) segment has been on the up and up since 2019. By the company’s reckoning, 2021 saw an average of around 16,000 CVs sold per month. Digging deeper, TMP Group Head of Brand Management JC Gaon said that entry-level SUVs accounted for 49% of SUV sales last year. Compare that to just 16% in 2017.

TMP Chairman Alfred Ty, who earlier said that the company’s 46.3% share is the strongest in the ASEAN region, declared that, well, even better days should be coming — buoyed by “significant, sustainable gains” in the economy and a ramp-up in vaccinations, leading to a rise in economic activities. Mr. Ty also made reference to the recent announcement by Toyota Motor Corp. President Akio Toyoda on the company’s battery electric vehicle plans toward an ultimately sustainable, green lineup.

“I’m very excited for what lies ahead,” declared Mr. Ty.

Meanwhile, TMP President Atsuhiro Okamoto revealed that Toyota is donating P5 million on behalf of the motoring media — with the funds turned over to dealerships to be funneled to the affected in the “hardest-hit areas” of the recent Typhoon Odette and, presumably, other natural calamities of the sort. One can surmise with confidence that success still lies ahead for TMP’s business as well even as it dispenses hope.

Back to the Raize, Mr. Gaon showed a slide revealing that more auto buyers are looking at lower-cost, seven-seater examples (like the Toyota Rush), but right behind it is the sweet spot of interest for the Raize and its price stablemates.

Who is the average buyer TMP seeks to appeal to with the Raize? Well, the primary customer is the one seeking an “SUV with basic, functional specs.” This motorist wants a daily driver to work, is 35 to 40 years old, married, and male. He might be a young professional or a middle manager. The secondary customer, according to TMP, might be looking for an additional automobile for the household — maybe that so-called “coding car” or even a weekender. This may be comprised of a younger set (23 to 30 years old) who is single or newly married. TMP is expanding this circle to include young professionals or college students.

The cost of admission, as we earlier discussed in this column, marks the lowest the company has ever gotten with an SUV. The most affordable Raize is priced at P746,000 for the E MT grade. Powering the Raize is a pretty basic, but TMP says capable, 1.0-liter three-cylinder, inline, 12-valve DOHC with VVT-i engine for the Turbo CVT variant, and dual VVT-i for the G CVT, E CVT, and E MT variants. The latter engine breathes naturally and has a swept volume of 1.2 liters. The turbocharged variant conscripts the Wigo’s power plant and adds a nifty turbocharger for added pep. Toyota reassures that the Raize’s “platform and powertrain unit have been newly developed, with the goal of realizing outstanding levels of driving performance, safety, and peace of mind.”

Despite the price points, the Raize boasts good stuff that add further value and attractiveness. The 1.0 Turbo CVT and 1.2 G CVT variants get split-type LED headlamps with line guide; the 1.2 E CVT and 1.2 E MT trims receive halogen headlamps. And, surprise, daytime running lights are standard across variants. Depending on the trim level, motorists can enjoy keyless entry with either push start or rotary type ignition function.

The tiller can get leather and silver embellishments (1.0 Turbo CVT and 1.2 G CVT) or urethane and silver accents (1.2. E CVT and 1.0 E MT). Positioned as a five-seater (perhaps this one is size-dependent), the compact crossover receives a stowable tonneau cover just so you can keep your things out of sight in the cargo hold. And perhaps as a nod to its younger target buyers, the Toyota Raize is Apple CarPlay- and Android Auto-capable. You can view your content via an eight- or nine-inch screen that finds expression in up to six speakers (if you get Turbo or G variant). For your mobile devices, there are two USB charging ports and a 12V accessory outlet.

There’s no scrimping on safety as well. All variants come with vehicle stability control and hill start assist, plus back sonar. The 1.0 Turbo CVT boasts a blind spot monitor and rear cross traffic alert, additional front side and curtain air bags, and front clearance sonar. Toyota equips both the Turbo CVT and G CVT variants with a reversing monitor.

The Toyota Raize comes in Gray Metallic and Silver Metallic, with red available exclusively for the 1.2 G CVT variant. The now fashionable two-tone combination is available for the Turbo CVT variant — White Pearl and black, Turquoise Mica Metallic and black, and yellow and black.

We asked TMP for the estimated preventive maintenance service schedule and expenses one can expect to shell out per visit. VP for Customer Service Operations Jeff Matsuo said to “Velocity” that the Raize visits to the dealership should be spaced out by 5,000 kilometers. Expect to pay P3,000 to P4,000 per visit; higher mileage sessions will go up to P8,000.

Overall, the Toyota Raize appears to be the crossover the competition was worried about, and the one you need to be putting in your consideration set.

Long may the crossover war last.

Just because Valentine’s Day is a Monday does not mean it can’t sparkle

February 7, 2022 | 12:04 am

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BECAUSE Valentine’s Day will be landing on a Monday this year, things can get a little blah. Add some sparkle to next Monday with some jewelry, scent, an ultra-luxurious hotel stay, and even a treat for the household’s favorite (hint: it’s the dog).

PANDORA’S HEARTS ON A WRIST
At Pandora, one can get a limited-edition cosmetic pouch with a minimum purchase of P10,000 from Feb. 4 to 14. To spend that P10,000, we can start off with the brand’s Domed Golden Heart Clasp Snake Chain Bracelet (P8,450), then add a few charms to it. Hand-finished in sterling silver, this design features a heart-shaped clasp with a slightly domed 14k gold heart center. The clasp has a plain polished look for a subtle effect. Featuring the brand’s popular snake chain, this bracelet includes threaders and stoppers to keep the charms in place. Especially for Valentine’s Day, consider the Sparkling Entwined Hearts Charm (P4,550), featuring intertwining polished 14k gold-plated hearts and sparkling stone-embellished hearts on the front and back. There’s also the Heart Padlock Double Dangle Charm (P3,950), featuring the silhouette of a heart in 14k rose gold plating that outlines a sterling silver heart pavé-set with brilliant-cut cubic zirconia. The sterling silver padlock is finished with the engraving “Together always.” Shop for hearts and more designs at pandora.lucerneluxe.com.

SMELLING SOMETHING SWEET FROM TIFFANY & CO.
We’d usually suggest the Return to Tiffany line, featuring hearts on chains, but this year, why not give something a little more personal — something only you two can enjoy on each other? Tiffany & Co.’s Tiffany & Love fragrance line features His and Hers scents. The line’s For Her Eau de Parfum has top notes of blue basil, blackcurrant, and grapefruit, and heart notes of Neroli, jasmine, tuberose flower. Vetiver and sequoia round out the base notes, sharing it with blue sequoia, which unites it with the base notes of the For Him Eau de Toilette. Other base notes in the masculine formula are sandalwood and vetiver. The For Him formulation contains top notes of Cardamom, ginger, and mandarin, and heart notes of juniper-cypress, geranium, lavender. Tiffany & Love For Him costs P6,598, while For Her costs P9,498.

SAYING ‘I DO’ WITH DAMIANI
With amethyst as the birthstone for February, Italian jewelry label Damiani is offering the stunning Anima White Gold Pendant with Amethyst and Violet Sapphires. The purple and blue stones mix with diamonds surrounding a large round-cut amethyst set in white gold (P141,750). One can also choose to make Valentine’s Day really special with a proposal: think an engagement, capped off with Damiani’s Minou Solitaire Engagement Ring in White Gold (P739,750). This engagement ring features a 1ct F-colored round-cut diamond on a basket setting on white gold.

Both Tiffany & Co. and Damiani are available at Rustan’s.

MAKING PROMISES WITH SWAROVSKI
Perhaps you can wear it as a charm or a promise. Swarovski’s Lifelong Line features hearts and knots in several finishes, from rose gold to white gold and mixed-metal. Each piece is plated in gold and features the brand’s signature crystals. The Lifelong Heart Pendant in rose gold starts at P7,950, while the Lifelong Bangle in the same color costs P12,500. Swarovski is available through Trunc.ph.

HEART AT TRUNC
Also at Trunc, Valentine’s Day birthday girl Heart Evangelista (who was trotting off in Paris for Fashion Week), is collaborating with Trunc.ph’s social media channels for February. Tune in to her Instagram account to catch her V-Day OOTD featuring her top fashion picks from Trunc, SSI’s online platform. In another Instagram video, catch her This or That highlighting her personal picks from Trunc Show, featuring labels like Saint Laurent, Loewe, Burberry, Tod’s, Hogan, and more. The actress and socialite will also be showcasing her Trunc at Home picks, as well as accepting a challenge for PowderRoom (Trunc’s beauty department), where she makes herself up with only four products. Trunc shoppers can get 10% off using the voucher code LOVETRUNC from Feb. 1 to March 31. The promo can be used multiple times with no minimum spend required.

PUPPY LOVE AT PEACHY PET
Get the puppies some love for Valentine’s Day too. Peachy Pet’s collars and leashes are made from upcycled leather scraps sourced from the workshops of local craftsmen, made with vegetable-tanned leather. Fifteen percent of the profits from every purchase is dedicated to rehabilitating rescue animals at Lara’s Ark. Shop Peachy Pet products at peachypet.co.

FOOLPROOF VALENTINE’S AT THE PEN
Enjoy an epic and romantic luxe escape with The Peninsula Manila’s Foolproof Valentine room package. At P10,000, the room package includes a romantic overnight stay in a Deluxe Room, an intimate four-course prix fixe dinner for two at The Lobby, and a set breakfast for two the following morning also at The Lobby. In addition, the hotel is offering a lavish “Foolproof Your Valentine A la Carte Gift Menu” that offers a selection of indulgent treats — guests can choose to purchase a box of 24 handmade Peninsula chocolates and a dozen Ecuadorian roses for P7,250, or a bottle of Peninsula Champagne at P12,825. Throw in a set of 10 Natalya Lagdameo “Giniling” gold-plated bangles for P4,500, a Serie Nuit silk polyblend His or Hers loungewear set for P5,990, Jewelmer’s men’s Pearl of Wisdom braided leather cord bracelet which retails for P33,000, or a Janina Dizon “Tatjana” clutch for P45,000. (All items on the “Foolproof Valentine Day A la Carte Gift Menu” are on personal account, and should be pre-ordered and prepaid.) Rates start at P10,000 for a Deluxe Room, inclusive of taxes. The complete package can be had for P118,565 along with a romantic night in a Deluxe Room at The Peninsula Manila. For inquiries or further information on the room package, call 8887 2888 (trunk line), extension 6630 (Room Reservations), e-mail reservationpmn@peninsula.com, visit the website peninsula.com, or through PenChat, The Peninsula Manila’s 24-hour e-concierge by using this link: https://bit.ly/PenChatFacebook.