Stuff to do (07/09/21)

July 9, 2021 | 12:01 am

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Online performances, exhibit, talks explore digital landscape

XSCENA, a series of scenography exhibits and webinars, gathers multi-awarded theater practitioners and multidisciplinary artists to collaborate on a project which seeks to capture and develop performance experimentations onto different platforms. The first installment, entitled “Iteration: Recon/figures,” features a week-long digital exhibit of live and pre-recorded original presentations which depict the digital medium not as a limitation but as additional character and setting in the discipline. It will be held from July 12 to 16, from 6 to 8 p.m. Participating in the first installment are multidisciplinary artist Bunny Cadag; Langgam Performance Troup (LPT) artistic director Jenny Logico-Cruz; LPT co-founder and resident director, photographer and filmmaker Blonski Cruz; multidisciplinary artist John Andre Sarmogenes; Pasakalye Black Box Theater Manager and Sining Banwa Albay Performing Collectives, Inc. resident playwright Sari Saysay; and artist-collaborators, scenographers, designers and educators Lawyn Cruz and JayLo Conanan. The retrospective is curated by Tuxqs Rutaquio and Katrina Stuart Santiago. The five-day series will conclude with a talk back session with the artists to be facilitated by Santiago and DeviDiva Productions Artistic Director Dr. Sunita Mukhi, on July 17, 3 to 4:30 p.m. Hosted by the Arts and Culture Cluster of the De La Salle-College of Saint Benilde, the event will be available on view on Facebook, TikTok, YouTube and Zoom. Interested participants may register at https://forms.gle/wzpZzjAAYPFnPLmR6. For more information, visit https://www.facebook.com/xscenafestival.

Son Ye Jin, Hyun Bin appear on Smart Hallyu Hangouts

Smart Communications is bringing Filipino fans closer to their favorite Korean superstars through Smart Hallyu Hangouts, a series of online shows where subscribers can watch their idols. Smart Hallyu Hangouts pilots on July 16 with multi-awarded Korean actress and Smart Signature endorser Son Ye Jin while Hyun Bin takes on the Smart Hallyu Hangouts stage on July 31. For the complete details on how to get tickets to these events, go to https://smart.com.ph/Pages/smart-hallyu-hangouts.

Big Bad Wolf online book sale extended

THE BIG Bad Wolf Online Book Sale is extended by popular demand until July 12. Over 60,000 book titles are available at discounted prices at the Big Bad Wolf site at bbwbooks.com.

Lego holds virtual party

THE LEGO Group will host the Lego Virtual Party: Building Imagination & Creativity on July 15, at 5 p.m., at the official Lego Certified Store PH Facebook page. The party includes a building session with Lego Dots, the creative line for DIY accessories. During the Virtual Party, guests will have the chance to create their own accessories according to their preferred style with the Lego Dots Bracelet set and Creative Party Kit. Showcasing the versatility of Lego for both kids and parents are Chloe Collings, Marie Field-Faith, Cham Magsaysay, Nikki Imbento, and Celline Bautista along with their children. The building session will be guided by radio and events host and adult Lego builder Tanya Zialcita. Viewers can participate through interactive games where they can write their answers in the comment section and get the chance to win the same sets used in the Lego Virtual Party. The audience can also follow along during the building session by getting the same Lego sets ahead of the event through the official Lego website at www.bankeebricks.ph or at any Lego Certified Store branches at Trinoma, The 30^th Mall, BGC, Greenbelt, and Alabang Town Center.

Entries open for 2021 Pinoy K-Pop Star Transcend

KOREAN Cultural Center in the Philippines (KCC) presents the 2021 Pinoy K-Pop Star Transcend, the annual Philippine final leg of the K-Pop World Festival in Changwon. After taking a break last year, the country’s biggest K-Pop competition is back with performances from some of the most talented K-Pop cover groups in the country. Interested participants may send their application and dance demos until July 11, 11:59 p.m. Guidelines and details may be accessed through: tinyurl.com/2021PinoyKPop. The first place winner will win P30,000, second place will take home P20,000, while the third place will win P15,000. The fourth, fifth, and sixth place will take home special KCC gift bags. The 2021 Pinoy K-Pop Star Transcend will be livestreamed on July 30 on KCC’s YouTube Channel.

Philippine factory output continues rebound in May (2021)

July 9, 2021 | 12:00 am

THE COUNTRY’S factory output continued to rebound in May as demand for manufactured goods grew amid the reopening of external markets coupled with low base effects. Read the full story.

How PSEi member stocks performed — July 8, 2021

July 9, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, July 8, 2021.

Peso weakens on increased demand for the dollar

July 8, 2021 | 9:00 pm

THE PESO weakened versus the greenback on Thursday on expectations of more imports following the release of data showing increased factory output on the back of the economy’s gradual reopening.

The local unit closed at P49.875 per dollar on Thursday, losing 8.5 centavos from its P49.79 finish on Wednesday, based on data from the Bankers Association of the Philippines.

This was the peso’s weakest close since its P49.92-a-dollar finish on June 26, 2020, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The peso opened Thursday’s session at P49.85 versus the dollar. Its weakest showing was at P49.97, while its intraday best was at P49.79 against the greenback.

Dollars that changed hands increased to $1.127 billion on Thursday from $937 million on Wednesday.

A trader said the peso weakened due to increased demand for the dollar as the country’s economic situation improves.

Data released by the Philippine Statistics Authority showed Philippine factory output continued to expand in May on the back of businesses’ higher operating capacity as restrictions were eased.

Factory output, gauged through the Volume of Production index, surged by 265% in May following its 155.6% expansion in April, based on preliminary results of the Monthly Integrated Survey of Selected Industries.

Meanwhile, Mr. Ricafort said the peso dropped after the US Federal Reserve said uncertainties continue to hound the world’s largest economy.

The minutes of the Fed’s June meeting released on Wednesday showed a “substantial majority” of central bank officials acknowledging risks from higher inflation, Reuters reported.

However, the minutes did not show clearer hints on the timeline of the reduction of the Fed’s bond purchases and its rate hikes.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno yesterday said the peso will continue to get support from the country’s ample foreign reserves, remittances, and business process outsourcing (BPO) receipts, even as it nears the P50-per-dollar level.

Mr. Diokno said in an online briefing that the dollar has been gaining ground against “almost all major currencies”.

“That means that it is dollar that is strong, not the peso that is weak,” he said.

“As you can see, our defense for the peso right now is our hefty gross international reserves and the steady inflow of dollars brought about by various sources like OFW (overseas Filipino workers) remittances, payment for BPO and foreign direct investments,” Mr. Diokno added.

The central bank chief also reiterated that the BSP only participates in foreign exchange trading “to minimize the fluctuations” in the market.

For Friday, Mr. Ricafort gave a forecast range of P49.75 to P49.95 per dollar, while the trader expects the local unit to move around a weaker range of P49.80 to P50 versus the greenback. — LWTN with Reuters

Shares slip on worries over China tech crackdown

July 8, 2021 | 9:00 pm

PHILIPPINE shares declined for the third straight day on Thursday due to the absence of catalysts, also tracking markets in the region that fell due to China’s crackdown on technology firms.

The benchmark Philippine Stock Exchange index (PSEi) declined by 18.01 points or 0.25% to close at 6,924.99 on Thursday, while the broader all shares index inched up by 2.50 points or 0.05% to 4,274.66.

“The market fell for a third straight day as catalysts that could spur optimism remain missing,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The net foreign outflows this Thursday… also contributed to the decline. Trading remained tepid,” he added. “This implies that many investors are still staying on the sidelines while waiting for compelling factors before they participate in the market.”

Net foreign selling soared to P838.94 million on Thursday from the P211.97 million logged in the previous day. Meanwhile, value turnover went up to P5.04 billion with 1.36 billion issues traded on Thursday from the P4.46 billion with 1.70 billion shares switched hands on Wednesday.

“This (the PSEi’s performance) is consistent with how Asian markets performed today, amid lingering worries over China’s ongoing crackdown on tech giants,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a separate Viber message on Thursday.

Asian stocks fell to a six-week low on Thursday as investors sold companies caught in a widening Chinese tech crackdown, while a surprising hint at monetary easing in China raised questions about the strength of the global pandemic recovery, Reuters reported.

MSCI’s index of Asia shares outside Japan fell 1% to its lowest since late May, led by a 2.3% drop in the Hang Seng, where one-time darlings Tencent and Alibaba slumped to year-to-date lows.

Shares in ride-hailing firm Didi crumbled another 4.6% on Wednesday to put them more than a quarter below last week’s offer price, a sell-off sparked when China ordered the app removed from stores.

Back home, most sectoral indices closed in the red on Thursday except for mining and oil, which went up by 65.65 points or 0.67% to 9,836.49, and services, which gained 8.50 points or 0.52% to end at 1,615.47.

Meanwhile, industrials shed 49.27 points or 0.5% to 9,635.58; property lost 16.72 points or 0.49% to 3,335.23; financials went down by 7.41 points or 0.49% to end at 1,495.35; and holding firms declined by 9.16 points or 0.13% to 6,947.72.

Decliners beat advancers, 119 against 82, while 50 names closed unchanged.

Timson Securities’ Mr. Pangan expects the PSEi to trade between 6,820 to 7,080 on Friday, while Philstocks Financial, Inc. Research Associate Claire T. Alviar placed its immediate support at 6,900.

“Having no fresh leads along with weak investors’ participation may put the market in consolidation with a downward bias,” Ms. Alviar said in a Viber message. “Traders may also take profits on the last trading day of the week to avoid any uncertainties over the weekend.” — Keren Concepcion G. Valmonte with Reuters

Gov’t confident rest of tax reform agenda will pass before term ends

July 8, 2021 | 8:42 pm

THE PALACE on Thursday expressed optimism that the last two tax reform bills being pushed by President Rodrigo R. Duterte will passed before he steps down in 2022, saying the tax reform agenda has the support of Congress.

The proposed Real Property Valuation and Assessment Reform Act and the Passive Income and Financial Intermediary Taxation Act are the third and fourth packages of the tax reform program. The two measures are still pending at the Senate.

The last two components of the Comprehensive Tax Reform Program are likely to pass because they have been certified as urgent by the Executive branch, the President’s spokesman Herminio L. Roque, Jr. said at a televised news briefing.

“I think Congress… defers to bills which have been certified as urgent by the Executive and the reality is we also have support in both houses of Congress for these initiatives,” he said.

If passed, the real property valuation bill will establish a “single valuation base for taxation through the adoption of the schedule of market values of (local government units), and use the updated values as benchmarks for other purposes, such as right-of-way acquisition, lease, rental, etc.”

The measure is set to expand the property tax base of LGUs “without increasing the existing tax rates or devising new tax impositions.”

The House of Representatives passed its version of the bill on third reading in November 2019, while the Senate version is still pending at the committee level.

The proposed passive income law, which aims to simplify the tax structure for financial instruments, was approved by the House in September 2019 and at committee level in the Senate.

The first package — Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act, — was signed by Mr. Duterte in 2017 after it was submitted to Congress in 2016. The law that cuts personal income tax rates and hikes or imposes sales taxes on various items encountered resistance in the Congress, with some legislators calling it anti-poor.

In August 2018, a few months before the 2019 elections, Finance Secretary Carlos G. Dominguez III said the President’s remaining tax reforms, which included the second package at that time, would face rough sailing in Congress partly because of “the proximity of elections.” He said tax policy “is never the best way to be reelected.”

Maria Ela L. Atienza, a political science professor at the University of the Philippines, told BusinessWorld in January that key economic bills usually take a back seat at the Senate because the chamber is “of national” significance, and senators may be considering their chances in the next elections.

The next national elections are scheduled for May 2022. — Kyle Aristophere T. Atienza

DoF backs DepEd complaint over WB education report

July 8, 2021 | 8:41 pm

THE DEPARTMENT of Finance (DoF) is supporting a Department of Education (DepEd) complaint about the poor rating the World Bank (WB) gave to the Philippine education system, calling the banks failure to consult the DepEd a violation of the protocols for dealing with government partners.

The DoF said in a statement Tuesday that it is supporting the DepEd’s call for a public apology after one of the bank’s reports used outdated data in its assessment of the education system.

“The failure of Bank officials to follow the protocol of consulting with the DepEd prior to publication further illustrates the lack of professionalism which we come to expect from the World Bank and its staff,” Finance Secretary Carlos G. Dominguez III said in his letter to World Bank President David Malpass.

“Such a Report should be taken out from the bank’s website as not to further mislead the public. We also believe that a public apology to the DepEd and the National Government is in order,” he added.

He said the report caused “undue reputational risk” to the education sector since the assessment was based on data released two years ago.

On June 29, the World Bank posted on its website the report, Improving Student Learning Outcomes and Well-Being in the Philippines: What Are International Assessments Telling Us? (Vol.2): Synthesis Report Presentation.

The study found that the education sector faces a crisis that may have been made worse by the pandemic, noting that more than 80% of Filipino children “do not know what they should know.”

It traced the poor performance of students to their limited proficiency in the languages used in instruction; as well as to the “unacceptably poor school climate, with high levels of bullying.”

The bank used the findings of the Programme for International Student Assessment 2018; Trends in International Mathematics and Science Study 2019; and Southeast Asia Primary Learning Metrics 2019 studies.

The timing of the report’s publication may be “wrongfully used” to paint a bad picture of the Philippine government, even if the data used were outdated, according to Mr. Dominguez.

Mr. Dominguez said the challenges presented had been “addressed” by the DepEd and other development partners.

He said he expects the World Bank to be more responsible in reporting and “adhere to the highest standards of ethical and professional conduct.”

“The bank has delivered numerous development programs and projects to reform the education sector since the 1980s, and has remained steadfast in pursuing initiatives to improve the quality of education in the country,” he said.

“As a valued partner, the bank should serve and protect the development interests of the Philippines and other World Bank members,” he added.

BusinessWorld asked the World Bank for comment but it had not replied at the deadline.

The report is no longer available on the bank’s website as of Thursday afternoon. — Beatrice M. Laforga

DoE considering new RCOA threshold to expand number of contestable customers

July 8, 2021 | 8:40 pm

THE DEPARTMENT of Energy (DoE) said it will consider lowering the threshold for eligibility to join the retail competition and open access (RCOA) program to expand the number of contestable customers whose accounts suppliers can compete for.

Under current rules, contestable customers consuming at least 500 kilowatts (kW) a month may choose their own power suppliers.

“Further assessment will be made on further lowering the threshold of 500 kW,” Energy Assistant Secretary Redentor E. Delola said during the department’s Luzon Virtual Energy Investment Information, Education, and Communication forum Thursday.

He added that the DoE will be consulting with the energy regulator and market operator in pursuing retail aggregation in the RCOA to enhance the program’s efficiency.

More end-users have joined the RCOA since the department started the program in 2013, Mr. Delola said.

“(We had) only 892 in 2013. As of May 2021, we have a total of 2,920 electricity end users who have been issued certificates of contestability by the ERC (Energy Regulatory Commission) … Out of this number, 1,791 or more than 60% (are) already being served by suppliers,” he said.

In 2017, the Supreme Court blocked the RCOA scheme because it was made mandatory for large power end-users.

In December that year, the DoE issued a department circular making participation in the RCOA voluntary.

The department is planning to develop RCOA policies for Mindanao, which is not part of the program as yet, according to Mr. Delola.

“With expected commercial operation of the WESM (wholesale electricity spot market) in Mindanao in the next quarter, we shall develop and promulgate RCOA policies for the grid… We have been receiving feedback from various customers in Mindanao interested in participating in RCOA, thus (bringing about the) need to fast-track its implementation,” he said. — Angelica Y. Yang

Another Ilocos Sur social tourism port project expected to be completed in August

July 8, 2021 | 8:39 pm

cruise ship — PHILIPPINE STAR/ EC TOLEDO IV

THE TRANSPORTATION department said Thursday that the government is undertaking another social tourism project in Ilocos Sur at San Esteban Port, which is targeted for completion in August.

Transportation Secretary Arthur P. Tugade made the announcement at the inauguration of the Salomague Port Expansion Project, which is expected to spur economic growth and tourism in Ilocos Sur.

“Nais ko rin ‘hong ipagbigay-alam sa inyo na bukod dito, ang DoTr (Department of Transportation) at PPA (Philippine Ports Authority) ay mayroong pang dalawang completed port projects sa Ilocos Sur — ito ay ang natapos na improvement project sa Sta. Catalina Port at San Esteban Port, (I wish to inform all who have gathered here that the DoTr and PPA have so far completed two more improvement projects in Ilocos Sur at Sta. Catalina and San Esteban ports)” Mr. Tugade said.

Mr. Tugade was referring to the construction of Sta. Catalina Port’s fish landing, which was completed in April 2019, and the rehabilitation of San Esteban Port, which was completed in July 2020.

“Mayroon pa ‘ho kaming isang (we still have one) ongoing project (at) San Esteban Port,” Mr. Tugade also said, referring to the improvement of the port for social tourism.

Transportation Assistant Secretary Goddes Hope O. Libiran said the project is now 69% complete and targeted for completion by Aug. 28.

The Salomague Port Expansion Project was completed in April this year.

The Transportation department said Salomague Port is being positioned as a port of call for cruise ships and had been given priority for expansion “to prepare it for the anticipated tourism boom in Ilocos Norte and Ilocos Sur.”

“With its proximity to the ports of Hong Kong, Taiwan and South China, cruise calls are expected to increase as the post-pandemic economic recovery is now being paved and gathering steam,” the department said in a statement. — Arjay L. Balinbin

Bottlenecks to electric vehicle development seen dampening PHL competitiveness

July 8, 2021 | 8:37 pm

SHORTCOMINGS in electric vehicle (EV) charging infrastructure and manufacturing technology have left the Philippines behind in the competition in the region for trade and investment, a Philippine Institute for Development Studies (PIDS) representative said.

“(There is a) low level of technology utilization in manufacturing and infrastructure,” PIDS Supervising Research Specialist Maureen D. Rosellon said at a virtual event Thursday.

“Given the projected growth in EV production, there are also concerns about the adequacy of charging infrastructure.”

Ms. Rosellon added that the country is somewhat in an advantageous position given the presence of electric vehicle technology in neighboring economies.

The EV value chain is expected to grow larger, she said, given investments in production from China, Japan, and South Korea. The Philippines’ investment prospects lie in battery production and transfer of technology partnerships with foreign firms.

“What I think the country must prepare for is the increased competition in inward investments in the region,” she said.

Edmund A. Araga, president of the Electric Vehicle Association of the Philippines, said there are low levels of technology adoption in manufacturing.

“EV manufacturers have difficulty (achieving the) ideal manufacturing setup” because the size of the market may not warrant the investment required. “How to sustain such a high cost of manufacturing or capability to introducing a lot of units if there is no demand?”

He also noted the absence of government EV purchase and infrastructure development incentives and subsidies.

“We are hoping that government buy some locally-manufactured EVs,” he said.

The Trade department is studying electric vehicle manufacturing as a potential niche for the Philippines after a 15-country trade deal was signed last year. The Board of Investments earlier this year approved startup company CHRG Electric Vehicle Technologies, Inc. as a new domestic producer of EV fast chargers and retrofit kits under the Investment Priorities Plan.

The plan recognizes as eligible for tax incentives “innovation drivers” that facilitate the entry of new technologies and government-funded research and development into the market.

Global manufacturers are also exporting EVs to the Philippine market. Nissan Philippines, Inc. is asking the government to reduce the import duties on electric vehicles after it launched its Nissan Leaf for sale here earlier this year. — Jenina P. Ibañez

PEMC says systems developed in-house monitoring power spot market

July 8, 2021 | 8:35 pm

THE PHILIPPINE Electricity Market Corp. (PEMC) said Thursday that two systems developed in-house are being used to monitor the wholesale electricity spot market (WESM).

The Compliance Post-Evaluation Monitoring System offers a platform for WESM compliance officers to explain potential breaches by providing supporting documents. It also allows market participants to receive reports on the PEMC’s findings.

Meanwhile, the New Market Assessment System serves as the PEMC Market Assessment Group’s data collection and market monitoring platform.

“These governance systems, largely developed in-house by the PEMC personnel who have had years of experience in monitoring the market, have undergone and passed third-party audits,” PEMC said in a statement Thursday.

The PEMC, which oversees the WESM, used to operate the spot market before transferring the responsibility to the Independent Electricity Market Operator of the Philippines (IEMOP) in 2018 on the recommendation of the Energy department and stakeholders.

On June 26, IEMOP rolled out the enhanced WESM design and operations (EWDO) in Luzon and the Visayas. One key feature of the EWDO includes reducing the time between the scheduling and dispatch of power.

Senator Emmanuel D. Pacquiao has alleged that the IEMOP is enriching itself at the expense of power consumers, citing complaints received by his office.

In reply, IEMOP rejected the allegation, saying that it is a non-profit and non-stock entity that recovers WESM operating costs through market fees which are cleared by the Energy Regulatory Commission. — Angelica Y. Yang

Nickel industry sees growth momentum continuing after issuance of mining EO

July 8, 2021 | 8:34 pm

THE PHILIPPINE Nickel Industry Association (PNIA) said it expects growth momentum for the industry to continue with the issuance of an executive order lifting the freeze on new mining agreements.

“We are hopeful of maintaining this growth momentum especially after the issuance of Executive Order (EO) No. 130 that lifted the ban on new mineral agreement as it will pave the way for new mining projects and entice more investments in the mining industry,” PNIA President Dante R. Bravo said in a statement Thursday.

He said PNIA members accounted for about half of the Philippines’ nickel production last year, and 31% of the total in the first quarter.

“Despite the pandemic, the country’s nickel industry remained resilient with a reported increase of 4% in production and a 22% rise in export value,” he said, citing 2020 data from the Mines and Geosciences Bureau (MGB).

Citing the MGB, Mr. Bravo said the value of the nickel industry’s direct-shipping ore was P38.86 billion in 2020 against the year earlier P31.79 billion.

He added that the nickel industry produced 27.17 million dry metric tons (DMT) of nickel ore last year, against 26.21 million DMT a year earlier.

“The increases were driven by the continuous uptrend in nickel prices and by the robust demand from China’s stainless steel producers,” Mr. Bravo said.

The MGB has said that the overall mining industry accounted for P102.3 billion or 0.6% of Philippine GDP in 2020.

The PNIA said in 2020, its members spent P167 million on their social development and management programs, P49 million on COVID-19 assistance, and P532 million on their environmental protection and enhancement programs, with more than seven million trees planted to date.

“PNIA members are equally committed to ensuring sustainability in our communities through community and environmental preservation efforts. The projects we implement for the community and the environment are as equally important to PNIA members as their operations,” Mr. Bravo said.

“(Our) members will soon release their performance report on their alignment with United Nations’ Sustainable Development Goals (SDG) before the year ends as part of our collective commitment to industry sustainability efforts,” he added. — Revin Mikhael D. Ochave