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Century Pacific starts making plant-based meat alternative

CENTURY PACIFIC Food, Inc. (CNPF) is introducing a vegan meat alternative to cater to Filipinos shifting to healthier lifestyles.

In a statement on Monday, the food manufacturer said it has started to create a meat alternative called “unMeat,” which is made from non-genetically modified organism plant-based ingredients.

The product claims to have zero cholesterol and trans-fat, but preserves the taste of real meat. 

CNPF is only selling the product to institutional customers at present, one of which is its sister company Shakey’s Pizza Asia Ventures, Inc.

In its statement, Shakey’s said it will be offering a plant-based burger as part of its strategy to introduce healthier menu options.

“We are working towards more plant-based options, making meat alternatives accessible to a wider segment of the Filipino population. The key is to create a product that is affordable, healthy, yet tasty,” CNPF Executive Chairman Christopher T. Po said.

The company said its unMeat product marks the milestone of being the first vegan meat alternative in the Philippines. — Denise A. Valdez

SM shifts to China-style mixed retail

SM INVESTMENTS Corp., the owner of the Philippines’ largest mall operator, is speeding up efforts to develop “omni-channel” options for shoppers as people shift to a mix of online and in-store purchases amid the coronavirus pandemic.

The group is tapping personal shoppers, ramping up delivery and pick-up services, and boosting its online presence, said Steven Tan, president of SM Prime’s mall unit. Last month, the group started operating a virtual mall for Manila residents, which it plans to roll out nationwide soon, he said.

“You have to be present in all channels,” Mr. Tan, 51, said in a virtual interview on Friday. “Retail is all about listening to your customers and moving so fast,” said Mr. Tan.

The group founded by the late Filipino billionaire Henry Sy is adopting the “omni-channel” retailing approach seen in China, where people shop both online and at malls, he said. Although malls need to keep up with changing times, they won’t go out of style, Mr. Tan said.

SM has 75 shopping centers in the Philippines and eight in China. It is opening another in its home country this quarter and about five are planned for next year, he said.

Transactions through social-media channels account for about 11% of sales at SM department stores, Timothy Daniels of SM Investments said at the interview.

“There is no plan to slow down the general retail strategy,” said Mr. Daniels, SM’s investor relations consultant.

Filipinos are returning to malls as virus quarantine curbs ease but shopping habits may have changed, Mr. Tan said. People visiting malls are those purposely buying and not just window shopping, he said, forecasting that by the third quarter of next year, sales of tenants at SM malls will be back at end-2019 levels.

Sales of SM shopping center occupants are at 60% to 70% of pre-pandemic levels, up from about 20% in the early months of Philippines’ reopening in May and June after a two-month lockdown, he said. Foot traffic is about 40% of what it was before the coronavirus. SM plans to gradually restore rents in 2021 after waiving most of the tenant fees this year, Mr. Tan said.

Swedish furniture retailer Ikea will open its store in SM’s Mall of Asia by the third quarter of next year, Mr. Tan said.

SM Group introduced 250 small-format outlets including Alfamart stores this year and plans to open more, Mr. Daniels said. The company’s malls are expanding al fresco dining and lounges to cater for the virus-driven trend toward bigger, open spaces, said Mr. Tan.

Mr. Tan joined the company in 2004 when fashion made up 70%-80% of tenants and restaurants were less than 5%. Food now accounts for 30% of SM mall occupants, services about 15% and fashion is below 50%. — Bloomberg

Gov’t increases T-bill award on strong demand

THE GOVERNMENT increased its award of Treasury bills (T-bills) on Monday as yields mostly declined on the back of strong liquidity in the financial system and as investors continued to favor short-dated debt.

The Bureau of the Treasury (BTr) borrowed P22 billion via the T-bills it auctioned off on Monday, more than the programmed P20 billion, as the offer was over four times oversubscribed, with bids amounting to P80.407 billion.

Broken down, the BTr awarded P7 billion in 91-day papers, higher than the P5-billion program, as tenders reached P24.631 billion. The three-month debt fetched an average rate of 1.019%, down by 0.5 basis point (bp) from the 1.024% seen in the previous auction.

The government accepted more bids from non-competitive investors for the three-month securities to take advantage of the lower average yield.

Meanwhile, the Treasury awarded P5 billion in 182-day T-bills as planned as bids for the tenor amounted to P22.246 billion. The six-month papers were quoted at an average rate of 1.443%, 1 bp lower than the 1.453% logged in last week’s offering.

Lastly, the government borrowed the programmed P10 billion via 364-day T-bills as tenders reached P33.53 billion. The average rate of the one-year securities stood at 1.745%, steady from the previous week’s auction.

At the secondary market on Monday, the 91-day, 182-day and 364-day T-bills were quoted at 1.094%, 1.465% and 1.782%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said the lower yields fetched for the T-bills yesterday indicated ample liquidity among investors and continued strong preference for short-term debt.

“It was a full award with double accepted bids from the non-competitive sector for 91-day papers. Hefty liquidity prevails [in the market] with magnetic appeal of short tenors,” Ms. De Leon told reporters in a Viber message after the auction.

A trader said the Philippines’ soft economic performance and a benign inflation outlook resulted in continued demand for shorter tenors.

“Inflation is expected to remain benign in the short-term. However, as the pandemic lingers, investors are still wary of economic risks in the long run. Stronger indicators for economic growth are still needed,” the trader said in an e-mail.

The overall year-on-year increase in prices of widely used goods rose to its fastest pace in three months in October, the government reported earlier this month.

Preliminary data from the Philippine Statistics Authority (PSA) showed headline inflation at 2.5% in October, picking up from the 2.3% pace the month before.

The October inflation result marked the fastest pace in three months or since the 2.7% reading in July 2020.

The latest headline figure is higher than the 2.4% median in a BusinessWorld poll conducted late last week and falls within the 1.9-2.7% estimate given by the Bangko Sentral ng Pilipinas (BSP) for October.

Year to date, inflation settled at 2.5%, still within the BSP’s 2-4% target this year, but above its 2.3% forecast for the entire year.

Meanwhile, the Philippine economy continued to shrink for a third straight quarter, although at a slower pace compared with the previous three-month period, as lockdown restrictions were further loosened amid the coronavirus pandemic.

The economy remained in recession as gross domestic product (GDP) contracted by 11.5% in the third quarter after the 16.9% plunge in the second quarter, the PSA reported last week. GDP grew by 6.3% in the third quarter of 2019.

A BusinessWorld poll of 19 economists showed a median forecast of a 9.2% decline in the third quarter.

Year to date, Philippine GDP shrank by 10%. The government expects the economy to contract between 4.5%-6.6% this year.

The BTr will auction off reissued 10-year bonds worth P30 billion on Tuesday, Nov. 17. The papers have a remaining life of four years and nine months.

The Treasury plans to borrow P140 billion from the domestic market this month: P80 billion in weekly T-bill auctions and P60 billion in fortnightly Treasury bond auctions.

It is also offering another tranche of Premyo bonds to raise at least P3 billion. The offer period is set to run from Nov. 11 to Dec. 18.

Premyo bonds are part of the government’s bid to attract more small investors to invest in government securities. Last year, the BTr raised P4.961 billion from the sale of one-year peso-denominated Premyo bonds, up from its initial offer of P3 billion.

Premyo bonds are government securities that have corresponding raffle numbers for cash and non-cash prizes, aside from earning interest. The minimum investment for the bonds stands at just P500 and can be bought in multiples. One Premyo bond is equivalent to one raffle ticket.

The government wants to raise around P3 trillion this year from local and foreign lenders to help fund its budget deficit, which is expected to hit 9.6% of the country’s gross domestic product. — KKTJ

Construction in HK shrinks  habitat of wild buffaloes

REUTERS

HONG KONG — Construction activity on one of Hong Kong’s largest islands is shrinking the habitat of its wild buffaloes, forcing them to search for food in residential areas, where barbed wire and building waste can injure them.

Grazing beneath lush country parks and Hong Kong’s highest peaks, wild water buffaloes have roamed Lantau, 30 minutes from the glitzy finance district by ferry, since the 1970s after being abandoned by farmers taking up industrial work.

Environment activists say the buffaloes are crucial to Lantau’s ecosystem, eating harmful weeds and keeping the wetlands fertile. Floating plants and microorganisms thriving on the buffaloes’ presence also filter out some pollution in Lantau’s rivers before they reach the sea, activists say.

Lantau residents say encounters with the buffaloes have been unusually tense in recent months, as the animals pop up in private gardens looking for food, and sometimes even charge at people.

The angriest residents want the buffalo culled. Activists estimate the animals’ numbers at just over 100, but are unsure how that compares to past years.

“There’s a war happening between landowners and conservationists,” said Ho Loy, an activist for the Lantau Buffalo Association.

The government’s Agriculture, Fisheries and Conservation Department said that it was communicating with the community to reach “appropriate consensus” and that its cattle management focused on sterilization and relocation.

Land scarcity has turned densely populated Hong Kong into one of the most expensive property markets in the world, making construction lucrative, but also leading to more waste, including on Lantau’s wetlands.

Sharp objects such as broken floor tiles have become a hazard for buffaloes, causing deep cuts which can attract fly larvae and lead to infections. “Lantau is nothing without buffaloes and wetlands,” Leung said. — Reuters

14 movies for P14

FOURTEEN Filipino movies for P14 starting Nov. 14 is what movie booking platform GMovies is offering for the next two weeks as part of the lead up to the first online version of the Metro Manila Film Festival (MMFF), according to a Globe executive.

“In today’s environment, while we acknowledge the many challenges the pandemic [has given us], we will once again deliver an alternative digital solution for our consumers,” Alfred Larazzabal, chief commercial officer of Globe Telecom, said in a press conference on Nov. 14 held via Zoom.

The program, called GMovies 14on14, was made in partnership with streaming service Upstream. It is meant to provide the moviegoing public a different way of consuming content while staying at the comfort of their homes. It should also be noted that this may well be a dry run of what this year’s MMFF will be like as Globe Telecom and Upstream are the festival’s official partners.

Aside from the MMFF, Upstream and GMovies are also the official partners of the online edition of the QCinema International Film Festival.

The MMFF runs from Dec. 25 to Jan. 7 while this year’s QCinema runs from Nov. 27 to Dec. 6.

Upstream is a new streaming service that was created by film producer Dondon Monteverde and director Erik Matti in March. Mr. Monteverde and Mr. Matti also have their own production company, Reality Entertainment

“After the lockdown, we realized that things will not open up soon for the country… we [Mr. Monteverde and Mr. Matti] started talking about what to do with the films in the can. We probably have five movies in the can and no cinemas to show it [in],” Mr. Matti said during the press conference.

And so they decided to create Upstream, touted as a streaming service for Filipinos by Filipinos.

“We’re pretty sure that there’s a lot of content producers out there that have a lot of content but nowhere to show it,” Mr. Matti added before explaining that “over the years, content producers have been at the mercy of where we could show our films,” and Upstream is a way of taking back that control.

“We envision Upstream as a place where all content producers are welcome. Content in the Philippines is so diverse and we want that diversity to come out in Upstream,” he said.

And that dream of showing the diversity of Filipino content is seen in the 14 films presented in the program. Mr. Matti described the slate as a way of showing the evolution of Filipino filmmaking.

The 14 films are all from Regal Entertainment — Mr. Monteverde is the son of the Regal Entertainment owner Lily “Mother Lily” Monteverde — and cut across several genres including “trendy, campy, serious, and art house,” according to a press release.

The films are: Shake, Rattle and Roll 3 (1991) by Lore Reyes and Peque Gallaga; Ang Babaeng Putik (2000) by Rico Maria Ilarde; The Debutantes (2017) by Prime Cruz; Dahas (1995) by Chito S. Roño; Woke Up Like This (2017) by John Elbert Ferrer; Bala at Lipstick (1994) by Maryo J. Delos Reyes; Starzan: Shouting Star of the Jungle (1989) by Tony Y. Reyes; Daddy’s Little Darlings (1984) by Luciano B. Carlos; Rakenrol (2011) by Quark Henares; Diliryo (1996) by Uro Q. Dela Cruz; Yesterday, Today, and Tomorrow (2011) by Jun L. Lana; Inday Bote at ang Mahiwagang Bibe (1985) by Luciano B. Carlos; Sinungaling Mong Puso (1992) by Maryo J. Delos Reyes; and Bihagin: Bilibid Boys (1981) by Ishmael Bernal.

Aside from the 14 films, Upstream will be showing a retrospective of MMFF films from Dec. 7 to 24.

GMovies and Upstream will also be donating to the victims of Typhoons Rolly (international name: Goni) and Ulysses (Vamco) via the Ayala Foundation’s Project Pananagutan. Those who are interested to donate can do so by visiting ayalafoundation.org/donate or through GCash and the Globe Rewards App.

Access the films of GMovies 14on14 by visiting Upstream.ph and get your tickets by visiting GMovies.ph or download the GMovies app available on both the Apple App Store and the Google Play Store. — Zsarlene B. Chua

Chelsea cost-cutting continues after ‘disappointing’ results — CEO

CHELSEA Logistics and Infrastructure Holdings Corp. said on Monday it would continue with cost-cutting measures to improve its financial health, as it expects to recover from the effects of the global health crisis in the second half of 2021.

“Despite the disappointing results in the third quarter, we continue to prepare the group for a prospective recovery we see by the second half of 2021,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a statement.

The company continues to work on “stemming the losses and improving its financial health,” it said.

The measures it implements include “workforce rationalization, improved vessel utilization, enhanced revenue management, cost-cutting strategies, and suspension of uncommitted capital expenditure programs.”

Mr. Damuy noted that such measures are already starting to make a positive impact on the company’s operations. The company has yet to disclose its full quarterly report.

In its statement, the company said its nine-month revenues decreased by 35% to P3.31 billion.

Chelsea Logistics attributed the decline to the  “continued community quarantine measures imposed all over the country which adversely impacted its operation.”

“Passenger travels are at their lowest and cargo movement has also materially declined, which resulted in a P2.601-billion net loss in [the nine-month period], a significant reversal from the P20-million net profit registered in the same period last year,” it added.

The company saw its shipping business revenues decline by 37% year-on-year to P3.08 billion, “mainly due to a 93% decline in passage revenues… to just P25 million” in the third quarter.

“On a cumulative nine-month basis, Chelsea’s freight revenues were also down by 24%, as the community quarantine measures brought on less demand resulting in lower voyage frequency,” it said.

The company also reported a P1.29-billion operating loss as of September, as compared with the P961-million operating profit it posted last year.

“This was due to a sequentially bigger operating loss in the third quarter of P1.01 billion versus P318 million in the previous quarter,” the company noted.

Chelsea Logistics said further its cost-cutting measures have resulted in the decline in its operating and finance expenses “for the second consecutive quarter.”

“Operating expenses have gone down to P237 million in the third quarter from P317 million and P295 million reported in the first and second quarters of this year, respectively,” it explained.

Finance charges have also gone down from P350 million in the first quarter to P321 million last quarter and further down to P320 million in the third quarter, it added.

Shares in Chelsea Logistics on Monday closed 6.15% lower at P5.49 apiece. — Arjay L. Balinbin

EEI incurs net loss as pandemic affects most of its business units

CONSTRUCTION company EEI Corp. reported a third-quarter net loss of P200.17 million for its parent firm equity holders, a reversal of the earnings it recorded a year ago, after a decline in revenues during a period dampened by work disruptions.

Its after-tax net loss was at P211.58 million, swinging from profits of P302.55 million in the same three months last year.

The company, which builds facilities for companies in diverse industries, reported in a regulatory filing a 30.6% drop in revenues to P4.37 billion during the quarter, as the pandemic hit the majority of its businesses.

Broken down, construction contracts declined by 29% to P4.14 billion. Services went down by 48% to P147.98 million, and merchandise sales decreased 66% to P57.16 million. Real estate sales, however, inched up by 2% to P20.52 million.

Also during the third quarter, EEI recorded lower expenses and costs at P4.39 billion, a 19.2% decrease year-on-year.

For the nine months through September, EEI’s net loss attributable to parent equity holders reached P891.5 million, reversing profits of P801.92 million a year ago.

Consolidated revenues stood at P11.35 billion, around 33% down from its previous value. In its disclosure to the local bourse, the firm said that work disruptions related to COVID-19 were the primary reasons for the decrease in year-to-date earnings.

EEI shares on Monday ended lower by 2.75% to finish at P7.44. — Angelica Y. Yang

PNC to buy the US banking arm of Spanish lender BBVA for $11.6B

PNC FINANCIAL Services Group, Inc. said on Monday it would buy the US business of Spanish lender BBVA for $11.6 billion in cash, further consolidating the US banking sector.

It is the second-largest US banking deal since the 2008 financial crisis and creates a US bank with nearly $560 billion of assets and a presence in two dozen states.

The move underscores how a loosening of financial regulations and lowering of corporate taxes under President Donald Trump has emboldened regional lenders to pursue scale through dealmaking, as they compete with bigger players such as JPMorgan Chase & Co. and Wells Fargo & Co.

PNC and BBVA have been in talks about a deal for the last few weeks, and decided to press on following the outcome of the Nov. 3 US presidential election because they believe the regulatory environment will not change with Democrat Joe Biden as president and the Republicans likely controlling the US Senate, sources told Reuters.

PNC said it was expecting the deal, which has been approved by the boards of both companies, to add to its earnings by about 21% in 2022.

The deal comes about six months after PNC sold its 22.4% stake in mutual fund giant BlackRock, Inc. for $14.2 billion. PNC booked after-tax gains of $4.3 billion on the sale, which it will use to fund the deal with BBVA as it seeks to expand its footprint in the southwest of the United States, the sources said.

The transaction represents an unwinding of BBVA’s $9.6-billion acquisition in 2007 of Compass Bancshares, Inc., which it turned into its US subsidiary. BBVA decided to retreat from the US market after its poor performance weighed on its stock, the sources said. The stock is down 36% year to date.

BBVA said it would keep some of its businesses in the US such as its brokerage and its stake in Propel Venture Partners and would keep handling some of its wholesale banking operations from its New York office.

The transaction, expected to close in mid 2021, will mean 300 basis points of common equity tier one ratio and a €580-million ($687.18-million) positive impact on its net profit, BBVA said.

DEAL CATALYSTS
Deal activity in the US banking sector languished after the financial crisis, as stricter rules were imposed on lenders with more than $50 billion in assets and regulators barred banks with compliance issues from expanding.

Changes in US tax laws under Trump, however, lowered corporate taxes, freeing up capital that banks could use to fund deals. Regulators started to approve more regional bank mergers, such as Cadence Bancorp’s combination with State Bank Financial Corp. and Synovus Financial Corp.’s acquisition of FCB Financial Holdings.

The biggest banking deal since the 2008 financial crisis was the creation of Truist Financial Corp. last year through US regional lender BB&T Corp.’s $28-billion all-stock acquisition of SunTrust Banks, Inc.

Another deal catalyst has been this year’s COVID-19 pandemic, which has driven more customers to bank online and prompted lenders to review their brick-and-mortar locations in a push to cut costs.

PNC, which has a market value of $52 billion, has traditionally been focused on the Mid-Atlantic, Midwest and Southeast US regions. The deal gives it a bigger presence in Texas and allow it to enter other sunbelt states such as Arizona and New Mexico.

Investors have been growing impatient with BBVA’s efforts to tackle the poor performance of its US business after the Spanish lender took a $1.5-billion writedown in its fourth-quarter 2019 earnings, blaming low interest rates and declining growth.

BBVA CEO Onur Genç changed tack recently, stating he was open to sales of businesses if it created value for shareholders.

Bank of America, Citi, Evercore and PNC Financial Institutions Advisory acted as financial advisers to PNC and Wachtell, Lipton, Rosen & Katz was its legal counsel.

J.P. Morgan Securities PLC represented BBVA as financial adviser and Sullivan & Cromwell LLP was its legal counsel. — Reuters

Federal Land advances portion for socialized housing program

FEDERAL LAND, Inc. said it is advancing its portion of socialized housing projects to support the government’s effort to address the massive housing backlog.

“The government’s action agenda for housing has never been more urgent than now, and we’ve taken it upon ourselves to advance our portion of socialized housing,” Federal Land President Thomas Mirasol said in a statement.

The Department of Human Settlements and Urban Development requires developers to contribute to socialized housing programs through their own compliance mode.

Mr. Mirasol said the updated policy, which requires 15% horizontal development and 5% vertical project contribution, opened more opportunities for Federal Land to upgrade its participation.

The company complies through the Building a Legacy for the Advancement and Integrity program, which has highest credit among all compliance modes. It is a “non-recoverable non-profit investment equivalent to 5% of the total costs of the main project.”

Under the program, Federal Land will be in charge of land development to deliver roads, drainage, power, and water lines.

Federal Land has also advanced its escrow by at least a year for more efficient compliance, ahead of the common industry practice. This allows Federal Land to be more expedient in processing the licenses needed for soon-to-be launched social housing projects with DHSUD and chosen LGU partners.

Netflix film tackles the problems of a ‘curated’ life

THE YOUNGER generation has a very complicated relationship with social media — on one hand it allows people to connect with their friends and make new friends, but on the other, social media also lends itself to being an outlet to a “curated” life meant to show that some people are living better (or differently) than they actually are.

And that is the crux of the new Netflix film Alter Me, directed by RC Delos Reyes. It tells the story of an angry human resources manager (Jasmine Curtis-Smith) who hires a male escort (Enchong Dee) to teach her how to connect with other people through Alter, a social media platform.

“More than anything else, what we want people to take from the movie is you learning to love yourself before you open up to the world. How can you be open to something without being open to yourself?” Mr. Delos Reyes said in a media roundtable on Nov. 10 held via Zoom.

(Warning: Mild spoilers ahead.)

The premise is deceptively simple, but what is really interesting is how the film portrays sex positivity as Alter is riff on Twitter’s alterverse, a community of Filipinos who post nudes and hookup and share sex stories. In a 2019 story by Vice, the alterverse is described as a place where “one may freely, anonymously share and act out parts of themselves that they otherwise wouldn’t feel comfortable doing so in real life.”

Alter Me, is a sexy, romantic comedy and that becomes very apparent in the first 10 or so minutes of the film as the audience sees Uno (Enchong Dee) getting it on with different women while Aimee (Jasmine Curtis-Smith) is shown as an angry HR manager whom no one likes.

They meet, fall in love, and, of course, both of them have issues: Uno wants someone to love him and will settle for anyone who will, while Aimee had her heart broken and is wary over falling in love.

The film, in Mr. Delos Reyes’ words, highlights the disconnect between people’s real selves online and offline, which is ironic since social media was meant to connect people.

“It’s easier to create connections online,” he said before adding it also made it easier for people to create “curated versions” of themselves through social media, and thus when people connect online and meet offline, the person you knew online may not be who they really are offline.

Alter Me is now streaming on Netflix. — Zarlene B. Chua

ATI net income grows nearly 15% as trade volume starts to recover

ASIAN TERMINALS, Inc. (ATI) on Monday reported a 14.8% increase in its attributable net income for the third quarter to P812.10 million as trade picked up with the easing of lockdown measures.

“With the lifting of government restrictions and the calibrated opening up of the economy, we have seen an encouraging uptick in Philippine trade as reflected in the volumes we handled during the third quarter,” ATI Executive Vice President William Khoury said in a statement.

“Despite the global pandemic, we are optimistic of finishing the year on a respectable note driven by our Company’s resilience as we continue fulfilling our important mandate of enabling trade in the Philippines,” he added.

ATI’s revenues for the third quarter totaled P2.92 billion, 6.7% lower than the P3.13 billion it generated in the same period last year, the company said in a disclosure to the stock exchange.

The company saw its total expenses decline 99.9% to P1.74 billion.

For the nine months to September, total revenues reached P7.97 billion, 21.6% lower than last year’s figure.

ATI’s net income attributable to the parent equity holder declined 31.2% to P1.96 billion during the three quarters.

Shares in ATI on Monday closed 3.63% higher at P15.98 apiece. — Arjay L. Balinbin

BSP works with Singapore’s central bank to promote data connectivity

THE BANGKO SENTRAL ng Pilipinas is working with the Monetary Authority of Singapore to promote data connectivity among banks. — BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) is working with Singapore’s central bank to promote data connectivity among financial institutions to beef up the management of risks related to money laundering, terrorism financing and cyberattacks.

The BSP on Monday released a joint statement of intent with the Monetary Authority of Singapore (MAS), which said they intend to adopt and implement policies related to data connectivity applicable to their supervised financial institutions.

“BSP and MAS recognize that the ability to aggregate, store, process, and transmit data across borders is critical to the development of the financial sector,” they said in the statement.

“These developments also pose new and complex risks for markets and challenges for policy makers and regulators. BSP and MAS are committed to working together and with other countries and authorities to promote an environment in financial services that fosters the development of the global economy,” they added.

The regulators said greater data usage and technology allows financial institutions to offer a wider range of services and also contributes to better risk management and increased efficiency.

“Covered institutions should be allowed to transfer data, including personal information, across borders by electronic means provided this activity is for the conduct of the business within the scope of their license, authorization, or registration,” they said.

“Data localization requirements can increase cybersecurity and other operational risks, hinder risk management and compliance, and inhibit financial regulatory and supervisory access to data. Data mobility in financial services supports economic growth and the development of innovative financial services, and benefits risk management and compliance programs, by, amongst others, making it easier to detect cross-border money laundering, terrorist financing patterns, and proliferation financing; defend against cyberattacks; and manage and assess risk on a global basis,” they added.

The regulators said where lenders can store and process data should not be restricted but said they must have “full and timely” access to these data to fulfill their regulatory and supervisory functions.

“If BSP or MAS is unable to access the data, covered institutions should have the opportunity to remediate such lack of access before being required to use or locate computing facilities locally,” the statement said.

The BSP has been engaging in policy dialogues with other central banks and multilateral agencies as the global economy grapples with the coronavirus pandemic.

In September, the BSP signed a Memorandum of Understanding with the Otoritas Jasa Keuangan or the Financial Services Authority of Indonesia that aims to come up with a framework on financial regulatory mechanisms between the two central banks.

Through the pact, the regulators may facilitate initiatives, including a joint regulatory sandbox to test cross-border retail payment linkages. — LWTN

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