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Interest income boosts central bank earnings

THE CENTRAL BANK’S net profit rose in the third quarter supported by improving gains from domestic securities and foreign exchange trading.

Net earnings of the Bangko Sentral ng Pilipinas (BSP) reached P9.1 billion in the three months ended September, inching up by 3.8% from the P8.7 billion booked in the same period in 2019.

“The quarter-on-quarter increase in quarterly net income was primarily the result of higher interest income from domestic securities and miscellaneous income,” the central bank said.

However, the BSP’s net income was still down by 40% to P22.81 billion year to date from the P38.649 billion in the first nine months last year.

The central bank’s profit was down by 77.3% year on year to P3.8 billion in the second quarter from P16.75 billion, dragged by lower interest income on reserved and miscellaneous income.

In the third quarter, revenues rose by 14.17% to P34.25 billion from P30 billion. In total, interest income slipped 6.9% to P23.332 billion from P25.07 billion.

Interest income from domestic securities surged 198.7% to P8.103 billion from P2.712 billion. Miscellaneous income, which includes trading gains, also climbed 124% P10.883 billion from P4.848 billion.

On the other hand, interest income on international reserves declined by a third to P13.358 billion from P19.925 billion a year ago.

Meanwhile, the central bank’s expenses in the third quarter slipped 8.78% to P19.02 billion from P20.851 billion last year.

As of end-September, the BSP’s assets stood at P6.608 trillion, rising by 4.97% from the P6.295 trillion recorded as of June and by 30% from the P5.09 trillion seen at end-September 2019.

“The BSP’s financial condition remains strong with total assets being dominated by international reserves amounting to $4.82 billion as of end-September,” the central bank said.

Meanwhile, liabilities reached P6.45 trillion, higher by 5.3% from the P6.13 trillion as of end-June and by 30% against the P4.959 trillion seen a year ago. Most of the liabilities were deposits and currency issues. — LWTN

Banking on bancassurance in the new normal

The jury is still out on the net impact of the coronavirus disease 2019 (COVID-19) pandemic on bancassurance firms following a rough year of extended quarantines and economic recession.

Still, if there’s a silver lining for these firms, it is that it has led to increased awareness towards insurance products.

“We have received more inquiries on our products than usual this year, which is an indication of increased awareness for insurance protection among the population at this particular time,” BPI-Philam Life Assurance Corp. Chief Executive Officer Surendra Menon said in an e-mail.

Mr. Menon added that the uncertainty that comes with COVID-19 has led more people to seek out security through insurance. “Customers actually come to us on our digital channels to learn more,” Mr. Menon said.

“Product sales have been hugely skewed to insurance protection products with smaller ticket sizes but with more stable margins,” he said.

Allianz PNB Life Insurance, Inc. Senior Vice-President and Chief Marketing Officer Gino Riola shared this assessment: “There is heightened insurance awareness in fact across various market segments brought about by the pandemic especially for health insurance coverage. We see this in the increased take-up of our new Eazy Health proposition, which is an affordable insurance solution that will help Filipino families future-proof their health,” he said.

This preference towards insurance products runs consistent with a survey released by market research firm GlobalWebIndex in July. Asked on whether they have delayed purchases on insurance, only 12% of Filipino respondents said they have done so — the lowest among other goods which include other expenses such as vacations or clothes where responses were as high as 63% and 52%, respectively.

Mr. Riola also noted that Filipinos continue to look for alternative financial investments given the low interest rate environment, citing for instance the sales of their single premium unit-linked policies which are at an “all-time high.”

BPI-Philam Life and Allianz PNB Life are only some of the bancassurance arrangements in the country. Considered a relatively nonexistent practice in the country’s insurance industry around two decades ago, bancassurance is now widely regarded as an essential business among local financial services firms.

Bancassurance is a partnership between a bank and an insurance firm that allows the former to sell within its premises the products of the latter. Under this arrangement, banks earn through fees while insurance companies gain access to the lenders’ customers via the referral process.

Bigger banks have already partnered with insurance for bancassurance deals. Among these partnerships include that of the Bank of the Philippine Islands and the Philippine American Life and General Insurance Co. (BPI-Philam Life), the Philippine National Bank and Allianz SE (Allianz PNB Life), and the UnionBank of the Philippines, Inc. and Insular Life Assurance Co. Ltd. (UnionforLife).

But even these partnerships were put to the test when strict lockdowns were put in place in late March to combat the spread of the virus.

“The height of ECQ (enhanced community quarantine) during the second quarter delivered the worst- case scenario so far during this pandemic: the Insurance Commission temporarily suspended agency examinations, branches were closed or had limited operations, and Filipino consumers postponed their purchase decisions,” Allianz PNB Life’s Mr. Riola said.

Since then, bancassurance sales agents have migrated online to peddle their goods and services.

“We have responded with our bank partners by enhancing the efficiency and effectiveness of our online sales processes and tools, so that purchasing an insurance policy are not hindered by quarantine restrictions,” Mr. Riola said.

UnionBank of the Philippines, Inc. Head of Bancassurance Sales Dinesh M. Sahijwani said they “have been always prepared” for “black swan events” such as COVID-19, noting that their relationship managers were still able to connect with their clients through their Digital Relationship Manager MAX 5.0 and Automatic Underwriting System, both aimed towards providing service to their clients remotely using web and app-based systems.

“Even to open an account, we can do it remotely. You need not visit the branch anymore and soon our customers will be able to avail an insurance package through our convergent banking app,” Mr. Sahijwani said.

“The realistic worst-case scenario is not being able to connect with your customers…,” he added.

BPI-Philam Life’s Mr. Menon said that while individually, people are spending less on insurance, there are still more people willing to spend for it.

“So, to adapt, we have pivoted to selling our products online to allow customers to secure their lives even while doing social distancing,” Mr. Menon said.

For Mr. Menon, sales via digital channels and digital tools such as virtual meetings have become a significant part of their sales and premium payments and thus, is confident that they will be able to maintain sales even in cases of extended quarantines. However, he noted that they continue to experience “telecommunication infrastructure issues” in the more remote parts of the country even as it represent less than 10% of their overall sales.

“[E]ven at 50% of our current scale, the economics of our business is still viable albeit with lower levels of profit (but nonetheless profitable),” he said.

OUTLOOK
Moving forward, bancassurance still has miles to go in addressing the concerns surrounding the industry.

“[T]he country needs to invest on stable and reliable internet connection if we must work remotely for us to connect to our customers [as well as] [e]ducating the customers that a vaccine may not be available soon, but a life insurance is readily available…,” said UnionBank’s Mr. Sahijwani.

Another concern is the country’s low insurance penetration rate, or total premiums as a percent of economic output. Data by the Insurance Commission show that as of 2018, penetration rate stands at 1.63% based on current prices.

“The industry, in general, needs to address the still huge protection gap in the Philippines well into 2021 and even post-pandemic — gearing their offerings and services to a population that will become more variable income dependent (as apart from fixed income-salaries),” BPI-Philam Life’s Mr. Menon said.

“In the same way, this serves as an opportunity for us to protect more and more people and help improve their quality of life. If anything, COVID-19 has made the idea of protection more tangible and real, which helped more people appreciate the value of insurance as a necessity rather than just an option in modern life.”

Allianz PNB Life’s Mr. Riola share the same sentiments: “The protection gap in the Philippines remains in the trillions of pesos and COVID-19 has only increased our resolve in terms of insuring more Filipinos. We aim to do our part in filling this gap by targeting the very young demographic in the country…” — Jobo E. Hernandez

Trade dep’t has started seizing inferior steel products — industry group

THE PHILIPPINE Iron and Steel Institute (PISI) said the Trade department has started seizing substandard steel products from hardware stores.

“The unprecedented act of seizing the inferior products sends a strong signal to the errant manufacturers and hardware stores,” PISI President Ronald C. Magsajo said in an e-mailed statement on Friday.

The department and the private sector would further intensify their campaign against substandard rebars, angle bars, and unmarked and unregistered bars, he added.

There would be “intensified” test-buy operations in the suspected hotspots of inferior steel products, Mr. Magsajo said.

He added that some manufacturers have been taking advantage of consumers who have become “price-sensitive” during the pandemic crisis.

“PISI and the Department of Trade and Industry have to step in to protect the public,” Mr. Magsajo noted.

The group has said its monitoring team found steel bars with either no markings or unregistered logos in Pampanga and La Union in October.

It has also flagged substandard rebars in Central Luzon, which failed to meet mass variation, bending, lug height and diameter, and tensile and yield strength standards.

In 2019, the Trade department said it would investigate the proliferation of substandard steel products after legislators observed damage to buildings caused by earthquakes in southern Philippines. — Arjay L. Balinbin

Luxury watch wins award for sustainable production

LUXURY watch brand IWC Schaffhausen has won the GEO Award in its first-ever entry into the industry competition Factory of the Year. The Global Excellence in Operations awards are given by SV Veranstaltungen and Kearney.

The brand was given the award for its sustainability in production and its improvement of its product. According to a release, “Examples included the use of advanced techniques for data analysis. From the production of a product and all test steps right up to service and customer feedback, comprehensive data on quality is collected and evaluated at IWC. The findings from this regularly feed into the improvement of processes. IWC’s performance in the area of sustainability was also particularly highlighted — for example, energy efficiency in production, the avoidance of waste and the ‘Great Place to Work’ certification as an employer.”

The prizes will be officially awarded on June 21 to 23, 2021, at the Neckar Forum in Esslingen, Germany.

The company has been around since 1868, and while it exists today under the Richemont group, it had an interesting history, counting even Carl Jung as one of their leaders.

Said Andreas Voll, COO of IWC Schaffhausen, “For over 10 years, we have been addressing the subject of operational excellence as part of various strategic programmes, and have since then been able to achieve far-reaching improvements across the entire value-added chain. In the areas of quality, service and sustainability, in particular, we have achieved huge successes in doing so. The fact that we were able to win the major accolade of the GEO Award the very first time we took part in the competition is a great affirmation of our work, but at the same time is a great motivation for continuing to work on the ongoing improvement of our processes and products.”

DTI announces launch of online delivery platform for farm goods

THE Department of Trade and Industry (DTI) said an online delivery platform permitting farmers to sell directly to consumers will formally launch today, Monday.

In a statement Sunday, the DTI said the platform, which is known as DELIVER-e, was organized in partnership with the Department of Agriculture, farm cooperatives, the private sector, and the United States Agency for International Development. DELIVER-e was developed by a startup, Insight Supply Chain Solutions.

The platform comes with a “multi-stakeholder pledge signing to upscale the agriculture value chain and improve overall food security” even beyond the pandemic, the DTI added.

Trade Secretary Ramon M. Lopez said the launch of DELIVER-e is designed in part to raise farmer incomes by eliminating middlemen.

“This initiative is all about bringing farm produce closer to consumers and cutting layers of traders. Through technology and innovation, it will be game-changing not only for our farmers but also for consumers,” Mr. Lopez said.

The DTI said DELIVER-e is blockchain-powered and “integrates related e-commerce and logistics application services from consolidation point to a central warehousing facility, and then to last-mile delivery services to reach end-clients.”

Mr. Lopez reiterated that the DTI aims to increase production and ensure supply stability for commodities by exploring new business models.

DELIVER-e has been in initial operation since April, and has moved more than 260 tons of fresh fruit and vegetables, generating P7.15 million in sales, the DTI noted.

The department added that the platform has helped about 600 farmers in Luzon and the southern Philippines “by doubling their income from their harvests and reducing waste from 50% down to only 5%.”

The DTI expects the platform to take in more users operating in the agriculture value chain.

“DELIVER-e will soon be able to build an elaborate supply-and-demand dashboard system that will be useful in providing insightful data for the Philippine government’s evidence-based decision-making process in relevant sectors and issues as the country moves towards building back better,” the department added. — Arjay L. Balinbin

Lazada ‘11.11’ grand raffle winner drives home all-new Honda City 1.5 S CVT

HONDA CARS Philippines, Inc. (HCPI) recently awarded a brand-new Honda City 1.5 S CVT to Lazada “11.11” grand raffle winner Rich An Cruz at Honda Cars Quezon City (HCQC).

In October 2020, HCPI officially announced the establishment of a new Honda flagship store on LazMall in partnership with Lazada Philippines. Honda partnered with Lazada for its “11.11” campaign to raffle off a unit of the recently launched all-new Honda City 1.5 S CVT to customers who followed Honda’s LazMall Flagship Store page and purchased items from Honda’s LazMall Flagship Store from Nov. 1 to 20.

“We would like to congratulate Rich An Cruz, the winner of this year’s Lazada 11.11 grand raffle. We are also grateful to have been part of Lazada’s 11.11 campaign this year. Through our partnership, we were able to reach our loyal customers and patrons online and further expand our virtual presence in the new normal,” said HCPI President Masahiko Nakamura.

Joined Lazada Chief Operating Officer Carlos Barrera, “Our partnership with Honda signals Lazada’s commitment to deliver the best shopping experience to customers, by providing convenient access to Honda’s vehicles, automotive parts and accessories on our platform. During our recent 11.11 Shopping Festival, we saw over 4,500 Honda car reservations made in one day, and we are excited to achieve even more milestones together.”

Honda is also additionally raffling off one brand-new Honda Brio 1.2 S MT and other exciting prizes through its “Stay Connected with Honda Raffle” promo. Honda car owners who successfully register and provide their contact information (with OTP and email verification) through the microsite link of HCPI at https://hondaphil.com/raffle will get one corresponding e-raffle entry.

For more information, visit HCPI’s official website at www.hondaphil.com. Follow Honda’s LazMall Flagship Store at www.lazada.com.ph/honda-cars-philippines-inc to know more about Honda’s exclusive promotions.

Microinsurers cope with losses amid challenged market conditions

By Marissa Mae M. Ramos, Researcher

REGARDLESS of the nature of the disaster, the poor are usually the ones most affected as any negative impact on their assets and consumption levels threaten their subsistence.

Enter microinsurance.

Like the name suggests, microinsurance offers insurance products specifically targeted towards low-income households or individuals who will otherwise not have access to financial services.

The government’s push for microinsurance began with the Insurance Commission’s (IC) initiative in 2006 through the issuance of Memorandum Circular 9-2006, laying down the guidelines on microinsurance, as well as lower the initial guaranteed fund requirements of a mutual benefit association (MBA) that wholly engaged in microfinance.

This was followed by the release of the National Strategy and the Regulatory Framework for Microinsurance in 2010, which envisions a “viable and sustainable private insurance market” for the poor.

The IC then came out with Insurance Memorandum Circular 1-2010 that defined microinsurance. Together with the Securities and Exchange Commission and the Cooperative Development Authority, it issued another circular closing down informal insurance or insurance-like activities. The Bangko Sentral ng Pilipinas (BSP) also came out with a circular allowing rural, cooperative and thrift banks to market and sell microinsurance products within their premises.

Based on current regulations, the premium on these products should not exceed 7.5% of the current daily minimum wage rate in Metro Manila and can be collected on a daily, weekly, monthly, quarterly, semi-annual or annual basis. Moreover, claims of beneficiaries should be processed within ten working days after the complete submission of requirements to ensure members’ immediate protection for their unforeseen needs.

Since then, the number of individuals covered by microinsurance has increased. From around 3.1 million policyholders registered in 2009, it grew to 45.13 million in 2019.

Citing the unaudited first quarter 2020 reports submitted by insurance firms, IC Commissioner Dennis B. Funa said there are around 48.22 million Filipinos covered by microinsurance in the country, around 29% from the 37.41 million recorded a year ago.

The government targets to bring this number to 42 million by this year, Mr. Funa said, adding that they intend to retain this target as well its target to bring the number of insured lives to 50 million Filipinos by 2022.

For the BSP, microinsurance has evolved in rural banks as they expanded their range of products beyond the traditional credit life insurance to include hospitalization benefits, endowment or saving-based insurance, and protection from natural catastrophes. The central bank said there are currently 50 rural banks acting as agents of these microinsurance products.

“[T]he country’s microinsurance system was put into test with Typhoon Haiyan (locally named Yolanda) in November 2013 whereby rural banks were able to facilitate claims payment for their clients,” the BSP said.

Citing data from the Microinsurance Network, the BSP noted the damage brought by Typhoon Yolanda resulted in 111,000 microinsurance claims with claims paid amounting to P532 million, or an average payout of P4,777 which were used for housing repairs and on restarting livelihoods.

The country’s experience in 2013 with Typhoon Haiyan-affected households became a model in increasing awareness of how microinsurance offers help during difficult times.

CURRENT CHALLENGES
Just like other industries, however, the microinsurance sector was not spared from the coronavirus disease 2019 (COVID-19) pandemic, which has constricted economic activity as governments were forced to impose lockdowns in order to contain the spread of the virus.

“We are still in the process of gathering pertinent data to have an overview on microinsurance this year in consideration of the events that transpired… However, we are expecting a significant increase in the number of claims for this year, not only for microinsurance policies, but also for entire insurance industry as a whole considering that 2020 is marred with a series of catastrophes such as the Taal volcano eruption, the COVID-19 outbreak, typhoon Rolly and recently, typhoon Ulysses,” IC’s Mr. Funa said.

Jun Jay E. Perez, executive director at Microinsurance MBA Association of the Philippines, Inc. (MiMAP) or also known as RIMANSI Organization for Asia and the Pacific, noted the decline in the revenues of their members, even as they continue to pay claims and fixed costs associated with their operations.

“As of September 2020, revenues of 18 microinsurance mutual benefit associations (Mi-MBAs) under the MiMAP network is down by a combined amount of P834 million compared with the same period last year, resulting from a loss of business and/or income by the members, as well as the suspension of collection of contributions aligned with Bayanihan I and II-provided grace period to members for at least 90 days combined,” Mr. Perez said in an e-mail to BusinessWorld.

Mr. Perez also noted some of their member firms have tapped their accumulated surplus or extended equity loan to their members in order to extend the members’ insurance coverage.

“Recruitment of new members is also a challenge given the difficult financial situation of the poor and low-income households, not to mention the restrictions in mobility of field staff, suspension of mass gatherings and the lack/limited access to the internet of the target market,” he added.

This has also been the challenge in processing claims, according to Mr. Perez, noting that their field staff were included as a frontliner by the IC for activities related to processing claims payment.

“The situation forced the Mi-MBAs to use alternative medium for gathering claims requirements such as e-copies, validation pictures, and payment of claims through e-wallets and remittance centers, to still pay the claims benefits within one to five days from the date of notice,” he said.

Pagasa ng Pinoy Mutual Benefit Association, Inc. President Genaro L. Kong shared the same challenges. As of 2019, the Association was third in the industry in terms of highest contributions and second in terms of persons insured.

“Our partner MFIs (microfinance institutions) are struggling to recruit members. In fact, some of the MFI members resigned from the MFI program and did not take loan and eventually dropped from our microinsurance program. People are still afraid to go out and venture into small businesses due to COVID-19 and the uncertainties ahead,” he said.

“To be able to survive, we have reduced some cost and benefits of employees to counter the reduced premium,” he added.

As of Sept. 30, total covered members for this year fell by 33% to 201,634 compared with 301,929 last year, in which Mr. Kong attributed it to the halting of the Association’s business operations during the pandemic from March 17 to June 15.

The number of claims for the nine-month period also declined by five percent and nine percent compared with the same period last year in terms of volume and value, Mr. Kong said.

Mr. Kong expects business operations to normalize by next year as vaccines become available, but also noted that it would be difficult for the industry should the situation deteriorate and stricter lockdowns would be imposed.

“We [would] need soft loans from the government, and tax breaks and exemptions,” Mr. Kong added.

For MiMAP’s Mr. Perez, it would help for the government to introduce capacity building support to help members build back their microenterprises, as well as provide low-interest wholesale funds for microfinance retail.

“COVID-19 presented opportunities in terms of forcing the Mi-MBAs to upgrade their operating systems and key processes towards digital platforms. Also, the pandemic has emphasized the competitive advantage of Mi-MBAs in terms of continuing and fast claims settlement, so we expect more poor and low-income households to join the Mi-MBAs when their income will start to stabilize again,” he said.

IC’s Mr. Funa assured that the whole industry, not just those in microinsurance, are being considered in inspecting the magnitude of the effect of the pandemic on industries they regulate such as insurance, pre-need, and health maintenance organizations.

“We have been keenly observing the situation and issued various circulars or regulations that include, among others, strengthening of COVID-19 claims management policies, extensions on the number of days for the payment of premium, extension of coverage or hold cover policies, guidelines in governing the initiatives of the selling of various life and non-life insurance policies including microinsurance policies, extensions in submissions of various documents, regulatory relief in the admittance of premium receivables from 90 to 180 days, etc,” Mr. Funa said.

“These various regulations are still in place and considering that the pandemic is not yet over, we are still observing the effects and trying to balance between those who are providing various insurance policies and the capacity of the insuring public to buy or continue to procure these kinds of products,” he added.

The BSP further sees it as an opportunity to widen both the reach of insurance coverage and other financial services among untapped Filipinos amid the push to go digital. It also noted that digital banks will also be allowed to present, market, sell and service microinsurance products.

“The use of digital or mobile platforms improves the delivery and outreach of insurance products to previously underserved and unserved market segments. Such digital microinsurance not only protects consumers from devastating risks, but at the same time serves as a key enabler of financial inclusion and market development,” the BSP said.

MPIC dips as NLEX issues eclipse petroleum storage acquisition

METRO PACIFIC Investments Corp. (MPIC) was among the most active stocks last week as investors reacted following news of its acquisition of a petroleum products terminal and the suspension of its toll operations’ business permit.

Data from the Philippine Stock Exchange showed a total of 173.64 million MPIC shares worth P765.28 million were traded from Dec. 7-11, making it the twelfth most actively traded stock in the local bourse last week.

Shares in the Manuel V. Pangilinan-led company closed lower by 3.5% week-on-week to P4.39 apiece from its P4.55 finish on Dec. 4. The stock has gone up 30.7% since the start of the year.

Local financial markets were closed on Dec. 8 to commemorate the Feast of the Immaculate Conception.

“[MPIC] was among the active stocks last week on its disclosure for the acquisition of the Petroleum Coastal Storage & Pipeline Corp. (PCSPC) in partner with Keppel Infrastructure Trust (KIT). Also, it was affected by the suspension of its toll operation in Valenzuela,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

“Investors reacted positively on the news of acquisition as price moved up,” Mr Pangan added.

“[T]he suspension of its toll roads subsidiary’s [permit] to collect toll payments at the Valenzuela interchange overshadowed news about the parent company’s latest acquisition,” Philippine National Bank (PNB) Senior Equity Research Analyst Jonathan J. Latuja said in an e-mail interview.

In a disclosure on Wednesday, MPIC said it partnered with KIT, a business trust listed in Singapore, to acquire a company that operates the “largest” petroleum products import terminal in the Philippines.

MPIC and its partner said they entered into a sale and purchase deal with the Philippine Investment Alliance for Infrastructure to acquire the Philippine Coastal Storage & Pipeline Corp.

MPIC said it would initially hold a 20% stake in the parent firm of the Philippine Coastal Storage & Pipeline, the Philippine Tank Storage International Holdings, Inc., for a purchase consideration of $67 million. KIT will indirectly hold 80% of the shares.

“In the long term, this acquisition will prove beneficial to the growth of the company as energy is among the needs of the country for the economy to grow,” added Mr. Pangan.

Mr. Latuja said management believes that the acquisition of PCSPC will be “profitable and earnings-accretive” especially with the country’s growing long-term demand for petroleum products and shortage in storage capacity.

“Although its contribution will not be as significant as the conglomerate’s power, water, and toll roads investments, MPIC sees PCSPC as an attractive business with high-margins, strong growth potential, and additional source of stable cash flows,” Mr. Latuja said.

Meanwhile, Valenzuela City Mayor Rex T. Gatchalian on Monday suspended NLEX Corp.’s business permit in the area amid the heavy traffic caused by the implementation of its cashless toll payment system.

NLEX Corp. is the builder-concessionaire of two major expressways that connect Metro Manila to North and Central Luzon — the North Luzon Expressway and the Subic-Clark-Tarlac Expressway. The toll operator is a subsidiary of Metro Pacific Tollways Corp., the toll operations unit of MPIC.

MPIC’s top line dipped by 15.6% year on year to P46.18 billion during the nine months to September. Likewise, its attributable net income declined by 57.6% to P5.01 billion.

Its toll operations have accounted for about a fifth of MPIC’s revenues so far this year, next only to water (40%) and power (35%) units.

The company expects its full-year core net income to finish at a little over P10 billion, down from its P15.6-billion finish last year.

“Definitely, revenue would be a challenge in this pandemic time due to mobility restrictions. Though MPIC has better performance in the third quarter as compared to the second quarter,” Mr. Pangan said.

“We forecast revenues to contract this year by 11.3% year-on-year primarily due to the impact of the lockdown on its toll roads business,” Mr. Latuja said.

Mr. Pangan said until MPIC resolves its problems in Valenzuela City, its share price will consolidate this week with support and resistance levels of P4.35 and P4.50, respectively.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group, which it controls. — Lourdes O. Pilar

Style (12/14/20)

A gift of health from Fitbit

WITH the ongoing pandemic, one of the best gifts one can give this Christmas is something that can help keep them healthy.  It is important to remind each other that although most of the year was spent indoors, maintaining a healthy lifestyle should still be a top priority. Giving a Fitbit can help — and Fitbit is available with some major discounts this holiday season. The Fitbit Versa 2 and Fitbit Versa 2 SE are now available for P10,890 and P12,590, respectively, which is P2,000 off. The Fitbit Versa 2 is an all-in-one wpremium smartwatch that uses heart rate, guidance and insights to help the user achieve a healthy lifestyle, with all-day reminders to move and reach step goals, plus advanced sleep tracking features. Get P500 off on the accessories of the Fitbit Charge 4. Featuring Fitbit’s most advanced combination of sensors and features, including built-in GPS and Spotify, the Charge 4 health and fitness tracker is paired with smart features and up to seven days of battery life in a sleek, swim proof design. The Fitbit Inspire and Fitbit Inspire HR are available for P3,020 and P4,720 (P1,570 off for both). The Inspire family comes packed with activity and sleep tracking, five-plus day battery life, sleep tracking, and advanced calorie burn tracking. The special offers will be available starting Dec. 18.

Skin care campaign raises funds for trees

SINGER-actress Nadine Lustre has partnered with skin care brand, Bioten, on The Green and Honest by the Numbers Campaign which hopes to raise funds for 88,000 trees to aid the 20-year reforestation project for the Aetas of Yangil, Zambales through For The Future and the social enterprise Make a Difference (MAD) Travel. The number 88 holds a symbolic significance for Lustre and Bioten: 88,000 is representative of the 88% ingredients of natural origin found in Bioten’s Skin Moisture line. Lutre, through her network and fans, has committed to raise enough funds for 44,000 seeds to be planted over a course of several years. And Bioten Skin Care will match the number, bringing the total to 88,000 fruit and forest trees. Each seedling costs P50. Interested parties can make a donation through www.forthefutureph.com/88k-trees. To learn more about the reforestation project, visit www.madtravel.org or www.madmarket.co.

A massage for Christmas

THIS Christmas, start and end your days feeling refreshed and re-energized with Ogawa’s range of innovative wellness massage chairs and mobile products. Ogawa has a wide range of items that can be added to a Christmas gift list. These include the Limited Edition Tapping Foottee Pilipinas and the all-new Mobile Cozmic Premium Massage Seat wellness bundle that can be ordered online and delivered to the recipient’s doorstep with free shipping nationwide. Both are designed for maximum mobility and adaptability to meet the demands of a digital and sedentary lifestyle while improving foot health through a reflexology experience. Then there is the Ogawa MySofa2, constructed with silicone foot rollers to provide a better and comfortable massage experience from the head down to the soles of the feet, and designed with a light rocking mode that replicates natural motions of a cradle. The Ogawa MySofa massage chair relaxes sore neck and shoulder muscles by focusing on specific pressure points. It incorporates Kneading, Tui Na, Tapping, and Rocking to effectively relieve stress and ease sore muscles. The OGAWA Master Drive is optimized for performance, leading to an extremely accurate massage chair that precisely targets acupuncture points from head-to-toe, including the knees, for optimal energy restoration through human-like full-body massages. It also features the M Drive Navigator, an intelligent feature which gives the user complete command through an All New OS 1.0 and 7” Touch screen, with an upgraded operating system and new user interface design that offers personalization options and with more than 20 massage techniques; and a Mood Enhancing Light Therapy function, consisting of seven themed led lights and mist settings. The Ogawa Smart Vogue Plus massage chair not only performs various intelligent massage methods and combinations controlled by a microcomputer, it is designed with a heating therapy that helps in increasing blood flow throughout the body, and a Zero Gravity Mechanism that allows you to feel like you’re floating in space with its three levels of zero gravity angles. Check out more details and order online by visiting https://www.ogawaworld.net.ph/ or send inquiries through the Facebook page (https://www.facebook.com/OGAWAPHILIPPINES/) to know more about its promos and offers. Ogawa has 38 pop-up and outlet stores nationwide, including the newest store in Ayala Malls Manila Bay.

Ayala Malls holds Holiday Trunk Shows

Ayala Malls partners with The Philippine Fashion Coalition for a series of trunk shows featuring the latest collections from top local designers and artisan labels. Joined by designers from Metro Manila, Cebu, Cagayan De Oro to Davao, the Filipino Fashion Fair at Ayala Malls is set to bring back the shopping experience in a safe environment, while raising funds to uplift the Filipino fashion industry as a whole. With a diverse line-up of offerings categorized into fashion, accessory, and home pieces, the participant in the holiday trunk show include Vittorio Barba, Noel Crisostomo, Rhett Eala, Tweetie de Leon-Gonzalez, Amina Aranaz-Alunan, Randy Ortiz, Carissa Cruz-Evangelista, Gina Nebrida-Ty, Jor El Espina, Dexter Alazas, Jun Escario, Philip Rodriguez, Tatah Costales, Aztec Barba, Benjie Panizales, Emi Englis, Dodjie Batu, Windel Mira, Egay Ayag, Edgar Buyan, Gil Macaibay III, Benjie Manuel, Juniel Doring, Melvin Lachica, Arnold Neri, Mavy de Leon, Ruvil Neri, Ann Semblante, Joshua Guibone, Mark Yaranon, and Alma Mae Roa. The Holiday Trunk Shows will be held at the Activity Centers of these Ayala Malls: Glorietta on Dec. 17-20; Market Market on Jan. 7-10; Ayala Center Cebu on Jan. 14-17; Manila Bay on Jan. 14-17; Centrio on Jan. 14-17; Abreeza on Jan. 28-31; and, the UP Town Center on Jan. 28-31. For more information about mall activity schedules and promotions, visit and follow @iloveayalamalls on Instagram and Ayala Malls on Facebook.

Grooming options for men

HOW about scent for the men in your Christmas list, like deodorant, shower gel, and EDT variants from Str8 Fragrances? With NBA’s 2019 MVP Giannis Antetokounmpo as the face of the brand, Str8 Fragrances offers a variety of scents to choose from. The Faith line features fruity top notes blended with fougere and oriental ingredients to create a masculine and elegant fragrance. The Rise line focuses on citrus scents made richer and warmer by base notes like cedar wood and sandalwood. Live True features marine top notes combined with lavender and fir balsam, while the Adventure line has fougere notes amplified by woody notes. Then there is the Ahead line, which has a punchy twist of bergamot and spicy top notes dry down to the more familiar vanilla and cedarwood; and Original, a masculine scent of precise woody and hearty orris base notes. Red Code has fruity top notes mixed with floral and strong base notes with amber and tonka beans; and Hero, which features earthy, sensual spice and cardamom, above a heavier woody base of cedar wood and sandalwood, as well as patchouli and vetiver. All the lines include EDT, Body Fragrance Spray, Shower Gel, and Deo Spray. Str8 Fragrances are available at Watsons, The SM Store, and online on Amorfia and Lazada.

Rustan’s has holiday gifts starting at P325

WHETHER online or offline, customers can find all sorts of holiday presents for loved ones at Rustan’s. With a wide selection of quality brands and merchandise that fit any budget, shoppers can put their mind at ease and find everything they need. Gifts below P500 include the Glass Teapot by WELUP (P325), meant for loose leaf drinkers because it allows them to steep the tea to their preferred taste and intensity; the Pear & Ginger Fragrant Disc by Aromabotanical (P330), which emits a fragrance for wardrobes, drawers, and linen cupboard, keeping all kinds of fabrics fresh 24/7; for the young-at-heart’s workspace, the funky Spartina Notebook (P395). Among gifts below P1,000, one can find the Aromabotanical Diffuser (P750) which fills a room with a scent of creamy vanilla using essential oils and pure extracts; a festive charcuterie board, The Fruit Garden Gift Box Set (P895) comes with three assorted fruit jams in 120 grams hexagonal jar each (choose from five flavours); Santeco Kolima Water Bottle (P990), a double-wall vacuum insulated bottle that keeps beverages hot for 12 hours and cold for eight hours; and The Kiss Bottle Opener by Bugatti (P995) features a romantic design of two faces kissing; LeSportsac also has a two stylish and functional pouches suitable for everyday use, the Volar 3-Zip Cosmetic Bag (P995) features built-in two front pockets with zippers and a main pouch for storage, and the Rectangular Cosmetic in Summer Sweets (P995), an easy-to-clean bag with versatile fabric; finally, the Microfiber Pillow by Rustan’s Home (P995) a fluffy and plump pillow. Of course Rustan’s has gifts available for those with bigger budgets. In addition to the many gift options Rustan’s is offering this season, customers can explore the various shopping programs and event schedules lined up. The Rustan’s Christmas Shop has a wide selection of traditional and modern trees, dazzling lights, colorful ornaments, and accessories. Rustan’s also has the Personal Shopper On-Call program for shop-from-home convenience using one universal number 0917-111-1952.  Fulfilled orders can be collected via curbside pick-up or items can be delivered for free, for a minimum purchase requirement of P5,000. Visit the Home for Christmas Virtual Microsite at http://christmas.rustans.com and view all of Rustan’s holiday content. Be the first to know about the latest updates and offers by joining the Rustan’s LIVE Viber Community http://rstns.shop/RustansViber.

Philips grooming gifts

JUST because the pandemic is making its mark on Christmas celebrations does not mean that we can neglect grooming. Philips has a whole list of gadgets that will work well on any Christmas gift list (and a gift for oneself). The Philips KeraShine straightener HP8316/00 (P4,000) has extra large plates designed for thick or long hair and to minimize damage, and uses ionic conditioning technology for smooth and frizz-free hair. For men, there is the Philips Hair clipper series 3000 HC3520/15 (P3,999), which has DualCut technology with self-sharpening blades that clip twice as fast, making it both efficient and easy to use. Its Trim-n-Flow technology features a comb designed to prevent clogging. The pandemic has led people to opt for dining in and creating homemade, healthy dishes. Eat guilt-free using the Philips Viva Collection Airfryer HD9228/10 (P15,999) which uses 80% less oil. Other Philips items to check out are the Steam & Go Handheld garment steamer GC350/40 (P3,599) for quick crease removal, the PowerPro Compact Bagless with Power Cyclone 5 FC9351/01 vacuum cleaner (P11,999); the Sonicare For Kids HX6231/03 electric toothbrush (P4,000); and the Series 800 Air Purifier AC0820/10 air filter (P12,999). Philips Home Living and Personal Care tools are available in Lazada, Shopee, Shop SM and Watsons online.

Christmas gifts from Marks and Spencer

IT’S the holiday rush of Christmas preparations and the gift-giving part of the tradition will always be a challenge. Marks and Spencer (M&S) makes it convenient, with everything in one place. Shop in stores or shop safely from home through the official website. The selection includes sustainably sourced cotton Christmas pajamas for men, holiday staple woven checked scarves for women, and a charming hat and booties set for the tiny tots. M&S also makes perfect gifts for the stylish who want to accessorize with a smart croc-effect clutch and the jokester who would like to keep it fun and take photos wearing a Naughty List cotton shirt. The little ones are not forgotten as there are pastel dungaree overalls and festive printed dresses for the holiday season. There are beauty products for her and for him — cruelty-free with many that are suitable for vegans and vegetarians. This includes the Floral Collection Mini Body & Shower Gel Set, that come in a dainty zipper pouch, and the Dark Spice & Vetiver Eau de Toilette for men. Shop for the holidays in stores, the Viber Community at tinyurl.com/MNSPH-VC or at marksandspencer.com.ph.

New watch from  Charriol

The latest design in the Charriol Celtic Collection, is an elegant timepiece called the Celtic Legacy. It is a simple, timeless classic that features new slim architecture while revisiting the shapes and codes of Charriol. Similar to its original iteration, The Celtic Legacy is offered in two versions: women’s and men’s, subtle variations that play with the established Charriol design codes — fine cable encircles each case. The updated design features a thinner bezel and therefore more open dial. The crown is set at 4:30 and the seconds sub-dial at 7:00 — proportions that set off a balanced and clear dial made with refined materials and details. For the Charriol Woman, the Celtic Legacy presents a slender silhouette, its mother-of-pearl dial decorated with 11 diamond indexes like a soft pastel partition. Signature to Charriol is the bracelet of twisted cable, which comes in two widths: five cables of 2 mm each for the 24 mm diameter case or six cables for the 30 mm case model. For its men’s counterpart, the Celtic Legacy comes in two variations — with a silver dial and opalin Roman figures, classical with a cool gray dial and simple hour index, or sporty with a blue “Clou de Paris” guilloche dial. The stainless steel case lugs allow wearing either a sober black calf strap or a stainless steel links bracelet. In the Philippines, Charriol is exclusively distributed by Stores Specialists, Inc., shops at Greenbelt 5, Power Plant Rockwell, Trinoma, Central Square Bonifacio High Street, Rustan’s Makati, Rustan’s Shangri-La Plaza, Alabang Town Center, The Podium, Newport Mall, Robinsons Place Manila, Robinsons Magnolia, Marquee Mall Pampanga, Rustan’s Ayala Cebu and Abreeza Davao. Also available online at Trunc.ph, Rustans.com, and Zalora.

DoST finds 82% of honey on sale in PHL to be fake

RESEARCHERS affiliated with the Department of Science and Technology (DoST) have found that about 82% of honey products sold in the Philippines are actually sugar or corn syrups.

Angel T. Bautista VII, a researcher with the Philippine Nuclear Research Institute, said nuclear-level analysis indicates that many honey products actually have near-zero honey content.

“Eighty-two percent or 62 out of the 76 of honey brands that were found to be adulterated were composed of 95% C4 sugar syrup. So, they are not actually adulterated but they are just (mostly) sugar syrup,” Mr. Bautista said in a statement.

Mr. Bautista said 75% or 12 out of 16 Philippine honey brands sold in groceries or souvenir shops are adulterated. The corresponding percentage for honey sold online is 87%.

None of the 41 imported honey products available in Philippine markets were found to be adulterated.

“You may be buying honey for its wonderful health benefits, but because of adulteration, you may actually just be buying pure sugar syrup. Consuming too much pure sugar syrup can lead to harmful health effects,” Mr. Bautista said.

Mr. Bautista said the protein content of honey can be determined by a process called stable carbon isotope ratio analysis.

He said carbon isotopes for real honey will match those of bees and flowering plants, while fake honey will match with sugarcane and corn.

“The carbon-13 signature is like a fingerprint of honey and common adulterants like sugarcane and corn are completely different from each other. Therefore, we can differentiate one from the other. This unique isotopic signature is what we are using to tell if honey is authentic or fake,” Mr. Bautista said.

Mr. Bautista said consumers are being misled, adding that adulterated honey can pose serious harm to the industry if left unchecked.

He estimated that the domestic honey industry is losing P200 million a year to fakes, which can sell for a little as one-third of the price of real honey.

The DoST said products labeled honey must not contain additives. Any such additions must be specified in the label, according to the Philippine National Standard for Honey enforced by the Bureau of Agriculture and Fisheries Standards.

The standard requires a declaration of the honey’s region of origin in the label.

Meanwhile, Mr. Bautista said the study’s findings have been relayed to the Department of Agriculture and the Food and Drug Administration.

“If we just release the names of the companies, they may stop for a while. But no one can stop them from faking honey again in the future. If we incorporate these isotope-based standards into our regulatory system and the Philippine National Standards, then we think it will be long-lasting solution to this problem,” Mr. Bautista said. — Revin Mikhael D. Ochave

LausGroup reopens upgraded Carworld Pampanga

THE LAUS Auto Group, the flagship arm of Pampanga-based conglomerate Laus Group of Companies, recently reopened the upgraded facilities of Carworld Pampanga in San Fernando.

A leading dealership of Mitsubishi Motors Philippines, Carworld Pampanga proudly said that it consistently adheres to Mitsubishi’s top showroom standards while introducing new services such as vehicle disinfection. It also boasts easy installation of accessories, and even bulletproofing services.

LausGroup maintains a bullish outlook on business amid the pandemic, and the conglomerate hopes to showcase this in the continuous improvement and expansion of its services. It also signifies the company’s commitment to its stakeholders, as it continues to provide support for the operational continuity and resilience of its partner businesses and customers.

“(We hope that) the refreshed look and new services in Carworld Pampanga’s showroom can help boost economic activity in the region. This reflects our optimism for new opportunities for the automobile industry that are yet to come despite the year that has been. This is our way of telling our customers that we are ready to work together to revitalize the economy and that we continue to be their partners as they ride towards growth again,” declared Laus Group of Companies President Paul Laus.

The newly renovated showroom serves as an addition to several renovations that the LausGroup has done on its main establishments to close the year. Recently, the company adorned the entire boulevard of its headquarters in Jose Abad Santos Avenue in San Fernando with light installations and Christmas decorations to spread holiday cheer, while supporting the livelihood of local Kapampangan craftsmen. On top of this, the group has also mounted new LEDs on the walls of its Mini showroom within the LausGroup complex.

Since 1978, the LausGroup of Companies has been a longstanding partner in the economic development of Central Luzon through its involvement in automotives, insurance, multimedia and other ancillary businesses.

With its Carworld Pampanga brand and other Mitsubishi dealerships in Tarlac, Marilao, Subic, and Malolos, LausGroup leads the industry with 65 dealerships that operate in Central Luzon, North Luzon and Metro Manila, carrying brands such as Ford, Hyundai, Mazda, Nissan, Suzuki, BMW, Volkswagen, Mini, Peugeot, Kia, Jeep, Chevrolet, Fuso, Haima and Changhe. The LausGroup has also further established itself in the auto industry by featuring prominent motorcycle brands such BMW Motorrad, Harley-Davidson, Aprilla, Motoguzzi and Vespa in its lineup.

From the strength of its automotive venture, the LausGroup has also expanded its insurance business, Corporate Guarantee and Insurance Company (CGIC), which offers various non-life insurance products catering to motor, fire, personal accident, casualty, marine and bonds requirements. CGIC is among the top 25 out of more than 60 non-life insurance players in the country and takes pride in providing quality service to its customers through its seamless purchasing journey from automotive to upkeep services.

According to Laus Group of Companies Chairman and Chief Executive Officer Lisset Laus-Velasco, the company stands on the legacy of its late founder, Levy P. Laus. “Our company’s thrust has always been to champion regional development as inspired by our founder’s vision. We are proud to be part of Central Luzon’s economic triumph and leadership. We are eager to lead more initiatives that will spur economic activity in Pampanga and beyond,” she said.

Yields end flat amid lack of fresh leads

YIELDS ON government securities (GS) ended flat on Friday from week-ago levels amid a lack of fresh leads that would spur demand for debt papers.

GS yields fell by 1.9 basis points (bps) on average week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Dec. 11 published on the Philippine Dealing System’s website.

“The overall condition of the market currently is that it’s waiting for more catalysts before it really swings,” said Security Bank Corp. Chief Investment Officer for Trust and Asset Management Group Noel S. Reyes in a telephone interview.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a mobile phone message that last week’s trading activity was characterized mainly by market players positioning ahead of the Bangko Sentral ng Pilipinas’ (BSP) monetary policy meeting and the Bureau of the Treasury’s upcoming auction of seven-year papers this Thursday.

“The external trade data release failed to distract the market’s focus on realigning positions consistent with upcoming events,” Mr. Asuncion added, referring to the government’s release of October foreign trade data last week.

Tomorrow’s auction of P30-billion worth of seven-year Treasury bonds (T-bonds) will be the last offering for the year, following today’s offering of P20-billion worth of 91-, 182-, and 364-day Treasury bills (T-bills).

Meanwhile, the BSP’s Monetary Board will have its final policy meeting for this year on Thursday, Dec. 17.

The central bank last month cut benchmark interest rates anew in a bid to support the economy amid continued uncertainties brought by the ongoing coronavirus pandemic and the recent typhoons.

The Monetary Board trimmed the rates on the BSP’s overnight reverse repurchase, lending, and deposit facilities by 25 bps to 2%, 2.5%, and 1.5%, respectively. The monetary authority has already lowered interest rates by 200 bps so far this year.

At the secondary market last Friday, yields on the 91-, 182-, and 364-day T-bills went up by 0.5 bp, 1.3 bps, and 3.1 bps, respectively, to 1.125%, 1.443%, and 1.732%. 

On the other hand, bonds at the belly of the curve rallied with yields on the two-, three-, four-, five-, and seven-year T-bonds going down by 2.7 bps (to 1.93%), 3.8 bps (2.188%), 6.2 bps (2.4%), 7.3 bps (2.577%), and 3.7 bps (2.831%).

At the long end, the 10- and 25-year T-bonds saw their rates go down by 2.1 bps (3.007%) and 0.6 bp (3.955%), respectively. Meanwhile, the yield on the 20-year debt paper marginally increased by 0.6 bp to 3.954%.

Security Bank’s Mr. Reyes expects a “slight flattening” in the yield curve ahead of expected window-dressing for the yearend.

“Since the [yield] curve is very steep [with rates on the short-end being very low and long-term yields being higher] pre-Monetary Board levels, I would likely expect a reversal of that trend,” Mr. Reyes said.

“There’s a steepening expectation, and [this] week would be the only complete week of trading, because the following week would be Christmastime and activity would drop significantly,” he added.

For UnionBank’s Mr. Asuncion: “Yields would likely move around the upcoming events mentioned [BSP meeting and seven-year auction] and contour itself with what has happened [last] week,” he said.

“Regardless of the BSP’s action, much of [this] week’s activity will be high on trimming durations as 2020 ends,” he added. — Ana Olivia A. Tirona