Facebook Instagram Linkedin X Youtube
Home Blog Page 7322

Sept. budget gap widens to P181B

PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Reporter

THE National Government’s deficit widened in September as spending outpaced a smaller increase in revenue collection, the Bureau of the Treasury (BTr) reported.

Preliminary data from the BTr showed the fiscal gap expanded by 30% to P180.9 billion in September from P138.5 billion a year earlier. The figure was also 49.6% higher than the P120.9-billion deficit in August.

Government spending jumped by P17.5% to P412.4 billion in September from a year earlier, and was higher than the P380.2 billion in August.

“The outturn for the month includes the transfer of P10 billion to the Coconut Farmers and Industry Trust Fund in compliance with the R.A. 11524,” BTr said.

The government under Republic Act No. 11524 or the Coconut Farmers and Industry Trust Fund Act allows coconut farmers to benefit from taxes collected from them during the Marcos administration.

Primary spending — which is total expenditures minus interest payments — went up by 18.51% to P364.5 billion compared with last year’s level. Interest payments grew by 10.36% to P47.9 billion.

Meanwhile, state revenues increased by 8.96% to P231.4 billion in September.

Tax revenue went up by 10.4% to P212.7 billion year on year. Collections by the Bureau of Internal Revenue (BIR) rose by 9.69% to P154.2 billion, while collections from the Bureau of Customs increased by 13.42% to P57.6 billion.

Other tax collecting offices generated P891 million last month, or 37.2% lower than a year earlier, while non-tax revenues slipped 4% to P18.8 billion.

The government runs on a budget deficit when it spends more than it makes to fund programs that support economic growth. It borrows from foreign and local sources to plug the gap.

The P1.1-trillion budget deficit in the nine months to September is 29.56% higher than the shortfall last year, but was still 20.11% lower than the P1.4-trillion adjusted year-to-date goal.

The nine-month total was 61% of the revised P1.8-trillion full-year deficit ceiling set by economic managers.

Total spending increased by 11.7% to P3.4 trillion as of end-September, or around 72% of this year’s P4.7-trillion disbursement plan.

“However, this is still below the program for the 9-month period by 5.22% or P186.1 billion, of which P73.6 billion or 39.5% was due to the lower-than-programmed interest payments,” BTr said.

Revenue collection growth in the nine-month period inched up by 4.37% to P2.2 trillion as tax collections representing 91% of the total jumped by 9.3% to P2.02 trillion. Customs collections rose by 18% to P469.8 billion and the BIR generated P1.5 trillion, or 6.86% higher than a year earlier.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said steady growth for both spending and revenue collection was a positive development, although growth may have been due to the low base after contractions in September 2020.

“Nonetheless, rising revenues show that economic activity has improved compared to the same period last year. Meanwhile government spending has sustained its momentum, which will likely continue to close out the year,” he said in an e-mail.

“This will be a positive in terms of GDP (gross domestic product) as government spending will need to compensate for consumption and capital formation, which may yet to revert to pre-COVID pace of expansion,” Mr. Mapa said.

But Mr. Mapa also said the widening deficit suggests continuously increasing overall debt.

“Currently the debt-to-GDP ratio is at roughly 63%, beyond the (60%) threshold that credit ratings agencies may view as sustainable,” he said.

Cid L. Terosa, a senior economist at University of Asia and the Pacific School of Economics, said in an e-mail that he expects the National Government deficit to continue to widen in the fourth quarter as the government continues to increase spending to boost economic recovery.

“At this rate, spending outpacing revenue growth bodes well for economic recovery given that the economy needs all possible ‘stimulants’ to counter the deep and prolonged negative effects of the pandemic on the economy,” he said.

“Deficit spending by the government is a powerful tool to reinvigorate the flagging trajectory of economic growth since last year.”

BSP eyes testing banknotes made of polymer in 2022

BW FILE PHOTO

By Luz Wendy T. Noble, Reporter

THE Bangko Sentral ng Pilipinas (BSP) is considering testing P1,000 banknotes made of a “more durable” polymer material next year.

The central bank is also looking at how limited testing circulation of these polymer banknotes could impact the domestic abaca industry as abaca has been used for banknotes since 2001.

“We’re considering testing with a few hundred million pieces of banknotes…If everything goes well, we’re looking at hopefully even by next year to start the test,” BSP Deputy Governor Mamerto E. Tangonan said at an online briefing on Monday.

If the plan pushes through, these limited polymer banknotes will coexist with the existing ones.

Mr. Tangonan said they are looking at data from Canada, Australia, New Zealand, United Kingdom, and Mexico to weigh the benefits of using polymer for the banknotes and to see if their experiences can be applied in the local context.

“We say limited [banknotes first] because we want to see, to test that under local Philippine conditions these polymer banknotes will perform similarly or close to those experiences in other countries,” he said.

“Because, we can argue that, those countries have conditions that are less challenging than what the Philippine banknotes are exposed to,” he added.

For instance, he noted the Bank of New Zealand saw reduced opportunities for counterfeiting when it used polymer banknotes.

“While the Philippines does not have a major counterfeiting problem, crime syndicates keep improving their techniques in counterfeiting the New Generation Currency banknotes that are in circulation,” the central bank said in a statement on Monday.

The BSP noted polymer banknotes are difficult to counterfeit “due to the complexity of their printed images and the advanced technology used in incorporating security features.”

Mr. Tangonan said the pandemic also prompted the central bank to consider the shift to polymer, after counterparts in the UK and Australia reported that polymer banknotes are less likely to host bacteria and viruses and can also be sanitized without damage.

The BSP also noted polymer banknotes are more durable and can last 2.5 to four times compared with paper money, aside from being water and dirt-resistant.

Given their longer lifespan, the BSP said polymer banknotes have lower environmental impact compared with regularly produced money and a smaller carbon footprint as well. Eventually, more durable banknotes mean lower production costs as well, it added.

“The BOE (Bank of England), for instance, estimated that the printing of the £5 and £10 notes on polymer rather than on paper reduces production costs by 25% amounting to savings of around £100 million over a ten-year period,” the BSP said.

Meanwhile, Mr. Tangonan said they will abide with the principles of other central banks to minimize the design change when transitioning to polymer banknotes to help the public recognize the bills easier.

Mr. Tangonan said the testing of polymer banknotes will determine the next step for other banknotes.

“After successful testing, we have to present to the next set of policy makers to determine…Where do we go [once] we already have the actual data under Philippine local conditions. It’s for the policy makers to make a very well-informed decision on what to do next,” he said.

Meanwhile, the central bank said it is working with concerned agencies including the Department of Agriculture regarding concerns of how such shift could adversely impact local abaca producers.

“Even if we say that the impact is minimal, we are cognizant of it. And we are proactively finding alternative markets or products for the abaca fiber,” Mr. Tangonan said.

He said they have reached out to various agencies that could switch to abaca paper for documents including the Land Registration Authority for land titles, the Department of Foreign Affairs for passports, and the Philippine Statistics Authority for birth certificates.

The BSP said latest data showed their limited testing could displace around 0.1% or 0.2% of total abaca exports, representing 210 to 481 number of jobs.

“The central bank will continue to support and engage the relevant government agencies and industry representatives to address our shared concern for the livelihood of abaca farmers,” it said.

Gov’t to release P1-billion cash aid for PUV drivers

PHILIPPINE STAR/ MICHAEL VARCAS

THE government plans to release P1 billion in cash grants for public utility vehicle (PUV) drivers this year in response to soaring pump prices.

The funds will be distributed under the Pantawid Pasada Program of the Land Transportation Franchising and Regulatory Board (LTFRB), the Development Budget Coordination Committee (DBCC) said in a statement on Monday.

DBCC said the funds will be charged against the support for infrastructure projects and social programs under the unprogrammed appropriations for 2021.

Global oil prices climbed on Monday amid tight supply and strong fuel demand in the United States and other economies rebounding from the effects of the pandemic, Reuters reported. Brent crude futures went up 56 cents or 0.7% to $86.09 a barrel.

Locally, pump prices went up for the ninth straight week as oil firms on Monday raised gasoline prices by P1.15 per liter (/L), and increased diesel prices by P0.45/L.

The Department of Transportation in a separate statement said the fuel subsidies will be released to drivers’ cash cards through the Land Bank of the Philippines. The department committed to distribute the funds during the last two months of the year.

Mar S. Valbuena, president of the Samahang Manibela Mananakay at Nagkaisang Terminal ng Transportasyon, said the funds are not enough.

Around 200,000 PUV drivers work in Metro Manila, he said, which means that a P5,000 fund each might only cover around 10 days given the P9 per liter increase seen over the last few weeks.

“Kulang na kulang, hindi naman natin sinasabi na bigyan ng bigyan, baka may magawa silang ibang paraan katulad ng pag-suspend ng excise tax on fuel sa TRAIN Law at ’yung 12% VAT. (This is not enough. I’m not saying they should keep on being funded but perhaps the government can suspend excise tax on fuel),” he said in a phone interview.

He also asked about the speed of the rollout, noting the release of the servicing contracting program fund of P5.5 billion.

LTFRB, in a statement, said the payouts under the program reached P4.7 billion.

As pump prices continue to rise, the Department of Energy has asked Congress to amend the oil deregulation law to allow the government to intervene. Energy Secretary Alfonso G. Cusi proposed that the department be given the authority to suspend the collection of excise tax on fuel products. He said such a move would help reduce pump prices by P8 to P10 per liter.

Pampanga Rep. Juan Miguel M. Arroyo, chairman of the House Energy Committee, said that he would hold a committee hearing to consider the suspension of excise tax.

However, the Department of Finance said the suspension of excise tax would result in as much as P131.4 billion in foregone revenue for 2022, which it said could limit the country’s budget for economic recovery.

Meanwhile, Malacañang on Monday said it is still studying a proposal to suspend the excise taxes on fuel products.

“As we speak, these matters are being discussed,” Palace Spokesperson Herminio “Harry” L. Roque, Jr. told a televised news briefing in mixed English and Filipino. “The government is heeding and we are evaluating.” — Jenina P. Ibañez with reports from Kyle Aristophere T. Atienza and Arjay L. Balinbin

DBM says it released P690 billion for pandemic response

PHILIPPINE STAR/ MICHAEL VARCAS

THE Department of Budget and Management (DBM) said it has released P690.26 billion in funds supporting the government’s coronavirus response programs.

As of Sept. 30, or the end of the third quarter, the government has disbursed P570 billion or 89.4% of the total, DBM said in a press release on Monday.

Meanwhile, P637.97 billion or 92.4% of the total has been obligated for coronavirus disease 2019 (COVID-19) response programs.

Additional releases during the third quarter came from the 2021 General Appropriations Act after funds under the Bayanihan I and Bayanihan II laws expired.

“These include the payment for the COVID-19 special risk allowance of public and private health workers, purchase of COVID-19 vaccine ancillaries, procurement of RT-PCR testing kits and renewal of contracts for hiring of healthcare professionals, among others,” DBM said.

According to DBM, government agencies obligated P204.07 billion or 95.3% out of the P214.12 billion allotment released under the Bayanihan to Recover as One Act or Bayanihan II.

“This leaves a balance of P10.05 billion, of which only P4.56 billion can still be utilized by implementing agencies until Dec. 31, 2021,” DBM said.

“The rest was reverted to the General Fund, following the expiration of the Special Appropriations and FY 2019 Continuing Appropriations last June 30, 2021.”

Another P369.08 billion has been obligated under the P387.93 billion released under the Bayanihan to Heal as One Act or Bayanihan I. A total of P10 billion charged against the 2020 General Appropriations Act can still be disbursed until the end of 2021.

Other releases outside the Bayanihan laws have reached P88.21 billion, the bulk of which was charged against the 2021 General Appropriations Act.

Government agencies have until Dec. 31, 2021 to obligate P23.38 billion and disburse P42.84 billion in funds.

“The DBM commits to continuously support all implementing agencies as they respond to the pandemic to ensure that all Filipinos are given the assistance and services they need, especially during these challenging times,” the agency said. — Jenina P. Ibañez

Meralco core income up nearly 30% to P6.7B

MANILA Electric Co. (Meralco) posted a core net income of P6.66 billion in the third quarter of 2021, up by 29.7% from a year ago, brought in part by higher energy sales with the easing of quarantine restrictions, the country’s largest power provider said on Monday.

Its reported net income, which excludes one-off items, also went up nearly 49% to P6.57 billion during the July-September quarter when it recorded higher contribution from subsidiaries and increased availability of its power generation unit.

For the nine months to September, Meralco’s core net income went up by 15% to P18.06 billion. Its reported net income also went up by 47% to P16.52 billion.

“Our financial results through September are encouraging, and there is indication that we will exceed the CCNI (consolidated core net income) achieved last year,” said Meralco Chairman Manuel V. Pangilinan in a media release on Monday.

He gave the same guidance during the company’s virtual briefing on the same day to present its quarterly financial performance.

The National Capital Region was downgraded to a modified enhanced community quarantine (MECQ) classification on Aug. 21 after it was placed on the stricter ECQ from Aug. 6 to 20.

In Sept. 16, the capital was placed under the more lose “alert level system,” specifically Alert Level 4.

A month later, it was placed under the lower alert level 3 allowing 30% indoor capacity and 50% outdoor capacity for establishments. Tourist attractions and recreational venues such as libraries, museums, amusement parks, swimming pools, movie theaters, and others were also allowed to operate.

The country’s Health Department on Thursday also said the capital may soon be downgraded to Alert Level 2 as coronavirus cases continue to decline.

As more establishments open, Meralco’s gross revenues for the January-September period increased by 11% to P231.71 billion from P208.79 billion the previous year. Its power distribution revenues rose 5% to P47.39 billion from P45.28 billion.

Meralco’s consolidated energy sales also grew 6% to 34,398 gigawatt-hours (GWh) from 32,539 GWh last year.

Residential households accounted for 37% or 12,746 GWh of the sales mix, while commercial and industrial establishments made up 33% or 11,281 GWh, and 30% or 10,263 GWh respectively.

Meanwhile, as of September 30, Meralco reported to have spent P18.52 billion on capital expenditures (capex) for 2021, which is 70% higher than P10.92 billion the previous year.

“Over the past months, Meralco had been called to provide continued quality service under unprecedented situations,” said Meralco President and Chief Executive Officer Ray C. Espinosa.

With the ongoing coronavirus pandemic, many Meralco customers are unable to pay their electricity bills which prompted the national government and Meralco to temporarily postpone disconnection activities in areas placed under enhanced community quarantine (ECQ), modified ECQ, and granular lockdowns.

Meralco also offered installment plans for those who cannot pay their bills in full. As of end-September, Meralco has P1.8-billion worth of accounts receivables under its installment arrangements.

The company said further that its target is to have 1,500 megawatts (MW) renewable energy capacity in the next five to seven years.

Projects related to this include the construction of solar power plants in Baras, Rizal (78 MWac); Cordon, Isabela (45 MWac); Nueva Ecija (19 MWac); and Ilocos Norte (50 MWac) this year.

For next year and beyond, the company aims to construct its first large-scale wind farm and to have solar and storage developments.

The company’s shares on Monday inched down by 0.41% or P1.20 to finish at P293.40 apiece.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorldthrough the Philippine Star Group, which it controls. — Bianca Angelica D. Añago

Megaworld’s office leasing up 12% despite restrictions

Southwoods Office Towers in Biñan, Lagun

MEGAWORLD Corp. said it had surpassed its office lease target in the three quarters to September, with 214,000 square meters (sq.m.) of office take-ups logged despite quarantine restrictions.

In a disclosure to the exchange on Monday, the company said office leasing was 12% higher than the 191,000 sq.m. recorded by Megaworld Premier Offices in the same period last year.

“The demand still remains despite earlier speculations that the work-from-home arrangements will lead to massive vacancies,” said Roland B. Tiongson, first vice-president of Megaworld Premier Offices and president of MREIT Fund Managers, Inc.

“With eased restrictions and the reopening of our borders for international travelers, we are optimistic that we will be able to achieve a better full-year performance for our office leasing business this year,” he added.

New deals made up for 36% of the leases, which were mostly in Uptown Bonifacio, McKinley Hill, Southwoods City, and Davao Park District, and 79% of which are new take-ups from firms in the information technology and business process management (IT-BPM) sector.

Eastwood City, McKinley West, and The Mactan Newtown also recorded new office lease transactions.

“It is exciting to note that several tenants opted to retain their spaces, and even expanded during the pandemic,” Mr. Tiongson said.

Megaworld said 64% of the leases in the nine-month period were renewals of business process outsourcing (BPO) firms in Eastwood City, Uptown Bonifacio, McKinley West, McKinley Hill, and Iloilo Business Park.

In Iloilo Business Park, US-based BPO firm Nearsol renewed its lease on spaces in Three Techno Place spanning nearly 3,000 sq.m. Nearsol also signed up for around 2,000 sq.m. of additional office space in Two Fintech Place.

Over in Southwoods City in Laguna, one more US-based BPO firm, Valor Global, Inc., signed to lease three floors spanning almost 8,000 sq.m. of Southwoods BPO Tower 1 and another three floors with nearly 6,400 sq.m. in One Campus Place in McKinley Hill.

According to real estate consulting firm Leechiu Property Consultants, Megaworld has around 1.4 million sq.m. of leasable office space across its townships in the country.

The listed company said it is planning to build more office towers in the next 10 years in new townships, such as The Upper East in Bacolod City, Maple Grove in Cavite, Capital Town in Pampanga, and Northwin Global City in Bulacan.

Megaworld also plans to inject another 100,000 sq.m. of office assets into its real estate investment trust (REIT), MREIT, Inc., which currently has 10 office assets from its “three fastest-growing townships,” namely: Eastwood City, McKinley Hill, and Iloilo Business Park.

MREIT made its market debut earlier this month. For the quarter ending September, it recorded profits of P469.42 million, while its topline was at P711.2 million driven by higher rental income.

On Monday, shares of Megaworld at the stock exchange declined by 2.86% or nine centavos to close at P3.06 apiece, while MREIT inched up by 0.11% or two centavos to close at P17.82 each. — Keren Concepcion G. Valmonte

LRMC to deploy newest trains for revenue use by mid-2022

LIGHT Rail Manila Corp. (LRMC), the private operator of Light Rail Transit Line 1 (LRT-1), announced on Monday that it received more fourth-generation (Gen-4) trains, which will be deployed for revenue use by mid-2022.

“Each Gen-4 train set consists of 4 light rail vehicles (LRVs) with a total capacity of 1,300 passengers per trip,” LRMC said in an e-mailed statement.

The company received its 12th brand-new Gen-4 train set on Oct. 25.

It has been receiving Gen-4 train sets in batches this year since the arrival of the first train set in January.

The newest trains, which will be used for the existing LRT-1 system and the Cavite Extension project, will undergo complete safety checks, inspections, and required test runs with minimum kilometers and acceptance tests, LRMC said.

SMC INSTALLING MRT-7 TRAINS

San Miguel Corp. (SMC) also announced on Monday that it recently installed two more new train sets on the tracks of its 22-kilometer Metro Rail Transit Line 7 (MRT-7) project.

“Work continues nonstop on the MRT-7 project, so we can meet our target start of operations by end of 2022. I’m glad to report that we’re on track to meet all the key milestones we expect this year,” SMC President Ramon S. Ang said in an e-mailed statement.

“Our ongoing MRT-7 project and other existing and planned mass transport systems should remain the backbone of mobility solutions in the city, but we need to integrate these with other sustainable means of moving around to truly address the immediate concerns of the metropolis and best meet the needs of everybody,” he added.

The P63-billion project has three major components: a 24.7-kilometer mass rail transit system from North Avenue, Quezon City to San Jose del Monte, Bulacan, which is composed of 14 stations; an intermodal transportation terminal that will serve as a transportation hub catering to other types of public transportation; and a 19-kilometer highway from San Jose del Monte to Bocaue, Bulacan.

It is expected to accommodate up to 850,000 passengers daily and cut travel time between Quezon City and Bulacan from four hours to 34 minutes. — Arjay L. Balinbin

Fertilizer SRP scheme under consideration amid rising prices

THE DEPARTMENT of Agriculture (DA) said it is studying a suggested retail price (SRP) scheme for fertilizer as prices rise in the wake of China’s export curbs and as food demand surges alongside a recovering global economy.

Agriculture Undersecretary Leocadio S. Sebastian said in a virtual briefing Monday that the trigger event could be a large difference between landed cost and retail prices of fertilizer.

“The DA is looking at the possibility of setting an SRP if the gap between the landed price and retail price of fertilizers is too big,” Mr. Sebastian said.

The Fertilizer and Pesticide Authority (FPA) has said that the Philippines sources around 95% of its fertilizer from overseas.

The FPA estimates that the average price of urea fertilizer on Oct. 11-15 was P1,630.95 per 50-kilogram bag, up 55.6% year on year.

Mr. Sebastian said the DA is working with the Bureau of Soils and Water Management on a “balanced fertilization” strategy to make fertilizer use more efficient.

The strategy will require a combination of organic and inorganic fertilizers, depending on the crop and soil nutrient characteristics.

Mr. Sebastian added that the FPA is assisting farmers’ cooperatives that are interested in importing fertilizer to reduce costs.

“We are also exploring whether Planters Products, Inc., a government corporation, can import more fertilizer and other biologics,” Mr. Sebastian said.

DA IN TALKS WITH DOE ON FUEL DISCOUNTS FOR FISHERFOLK 

Separately, Agriculture Undersecretary Cheryl Marie Natividad-Caballero said at the virtual briefing that the DA is in talks with the Department of Energy (DoE) for a “gasoline discount mechanism” to help fisherfolk deal with surging fuel prices.

Ms. Natividad-Caballero said the fuel discount will be targeted at 30,000 municipal fisherfolk and 938 commercial fishing vessels plying the West Philippine Sea.

She said small fisherfolk in the capture fisheries sector pay 50% of their production costs for fuel.

“Fuel companies have already talked with us such as Shell, Caltex, and Petron. We are just waiting for their due diligence,” Ms. Natividad-Caballero said.

“The discussions are ongoing. We do not have an idea yet on the cost structure. We are still fixing the specific details,” she added. — Revin Mikhael D. Ochave 

Netflix pushes back against Squid Game-juiced Korea usage fees

STILL from the Netflix series Squid Game

NETFLIX, Inc. is pushing back against a South Korean Internet provider’s demand that it pay to use their network after hits like Squid Game caused a surge in data traffic, saying the move could prevent entertainment firms from working profitably in the country.

SK Broadband Co. is suing Netflix to claim fees for using its network, while the streaming giant is appealing an earlier refusal by a Korean court to confirm it’s not liable for such payments. While the immediate financial impact of a network usage fee on Netflix remains unknown, it’s likely to grow “exponentially” over time, the streaming platform’s Vice-President of Public Policy Dean Garfield told Bloomberg in an interview.

SK Broadband estimates Netflix needs to pay 27.2 billion won ($23 million) for using its networks in 2020 alone, local media including the Korea Times reported in June, citing a local court. That would amount to more than 6% of the firm’s revenue in the country last year.

Netflix’s legal battle in South Korea — which accounts for 15% of the company’s customers in Asia, and roughly the same proportion of its revenue from the region — highlights the challenges it faces in one of the world’s most coveted streaming markets.

Netflix has spent more than $1 billion developing shows since entering South Korea in 2016.  But cost hikes could hurt returns at a time when companies including Walt Disney Co. and Amazon.com, Inc. are also stepping up streaming investment in the country.

STILL from the Netflix series Squid Game

Network usage fees would create “an unfair, anti-competitive environment” where Internet providers could charge companies whatever they wanted, Mr. Garfield said. That could “potentially limit the ability of Korean customers to get exactly what they want if the price becomes so prohibitive that services like us are just unable to afford it,” he said.

Mr. Garfield said he was also worried that Internet providers in other countries could follow suit.

“There is no doubt the risk that network operators will see what happen in Korea and will try to replicate it because it serves their interest,” he said.

If Netflix expects network usage cost to grow exponentially, that means its users will also increase at the same scale — providing it enough revenue to pay — a spokesman for SK Broadband said in an e-mailed response. The spokesman said that while Korean content providers are paying network providers, it’s unfair that Netflix doesn’t as its subscribers and traffic in the country increase.

“Internet network is not for free,” he said. “Not only individuals, but also public institutions, government agencies and universities pay for using the Internet network.”

OPEN CONNECT

A Korean court in June dismissed Netflix’s request to confirm it’s not liable for such payments to SK Broadband, a subsidiary of the country’s largest mobile operator SK Telecom Co., according to Yonhap News. Netflix is appealing the decision.

SK Broadband filed a countersuit late last month to obtain payment for bandwidth the streaming platform used over the past three years, TechCrunch reported, in which it said Netflix had generated 24 times more network traffic as of Sept. 2021, from May 2018. The move came weeks after Squid Game debuted and became a surprise international sensation.

SK Broadband and some other local network operators have declined to use a free system developed by Netflix which could absorb more than 95% of data traffic, Mr. Garfield said, without naming the other providers.

Through the system, called Open Connect, Netflix would store shows on its own servers, then deployed to Internet operators’ local data centers. The programs would then be transmitted to nearby customers, bypassing remote data transmission.

Open Connect doesn’t change the fact that Netflix has to use providers’ network to reach users, and doesn’t help reduce traffic costs in the section where providers transmit Netflix’s content to users, the SK Broadband spokesman said.

While the Korean court said Netflix pays Internet operators in the US, Mr. Garfield maintained that the California-based company does not pay any fees for using networks anywhere. In some partnerships, he said, Netflix and network providers share some technology and marketing costs for the system. — Bloomberg

SSI, VMC, Filinvest, RRHI included in CWDI’s list of top women-led firms

FOUR publicly listed companies in the Philippines have been included in a US-based nonprofit organization’s 2021 report of the top 10 women-led firms in a field of almost 3,000 companies across 55 countries.

Corporate Women Directors International (CWDI) ranked firms “to generate baseline data on women in leadership roles.”

Details of its “Women CEOs: Opening Doors to Boards and C-Suites” report was sent by Filinvest REIT Corp. (FILREIT) via e-mail on Monday.

SSI Group, Inc. was listed first among Philippine firms with women making up 80% of its leadership and management, followed by Victorias Milling Co., Inc. (VMC) with 60%, while both Filinvest Development Corp. (FDC) and Robinsons Retail Holdings, Inc. (RRHI) have women filling up 50% of company leadership roles.

Zenaida R. Tantoco leads SSI Group as its CEO and chairman of the board; Minnie O. Chua is VMC’s board vice-chairman, president, and CEO; Lourdes Josephine Gotianun-Yap is one of FDC’s directors as well as the company’s president and CEO; and Robina Y. Gokongwei-Pe is RRHI’s director, president, and CEO.

“Too few women have reached the CEO level of the largest companies in each country,” CWDI Chair Irene Natividad was quoted as saying.

In its report, CWDI noted that only 143 out of the 2,994 publicly listed companies surveyed have a woman sitting as their chief executive.

“This paltry number accounts for only 4.8% of these companies in the world’s biggest economies. The top leadership role in the most influential companies globally overwhelmingly remains the domain of men,” CWDI said.

CWDI said that firms with a woman sitting as their CEO “tend to have more women board directors,” often ending up with 34.1% of women-held board seats versus the 23.3% for companies with male CEOs.

It also noted that the percentage of women board directors would increase once a woman is appointed as the company CEO.

“The average percentage of women’s board representation prior to a woman being named CEO was 21.9% compared to the current percentage of 34.1%,” CWDI said, adding that firms with female CEOs would also have more female executive officers.

FDC and its other units are also led mostly by women. Property arm Filinvest Land, Inc. (FLI) is also led by Ms. Gotianun-Yap, who sits as director, president, and CEO. Filinvest said women account for 60% of FLI’s leadership.

Meanwhile, FLI-sponsored real estate investment trust (REIT), FILREIT, also has a woman at the helm with Maricel Brion-Lirio as its director, president, and CEO. Other Filinvest firms such as Filinvest Alabang, Inc. and Filinvest Cyberparks, Inc. are also led by women, accounting for 71% and 79% of their respective teams.

“Although knowledge, experience, and technical skills are fundamental to a successful leader, having the emotional soft skills of a woman is a big advantage,” FILREIT’s Ms. Brion-Lirio said.

“Our soft skills include the ability to easily collaborate, having more empathy and emotional quotient, and having to express ourselves more openly,” she added.

Meanwhile, CWDI’s Ms. Natividad noted that although it is known “through dozens of studies” that having women leading companies will lead to a “positive impact on a company’s bottom line” and are also good for all stakeholders, there aren’t enough companies appointing women in CEO roles.

“Clearly, companies need to proactively commit to speeding up the pipeline of women corporate leaders to achieve future growth,” said Ms. Natividad. — Keren Concepcion G. Valmonte

Gov’t urged to expedite delayed port projects to unlock private capital

Iloilo City

THE TRANSPORTATION department has not done enough to mobilize private sector participation in its projects as mandated, a key Senator said, noting delays to the privatization of the Port of Iloilo.

At a finance committee hearing on the Transportation department’s 2022 proposed budget, Minority Leader Franklin M. Drilon said International Container Terminal Services, Inc. (ICTSI) had committed to invest P8 billion as far back as five years ago, but no action had been taken.

Discussions on the ICTSI unsolicited proposal have stalled amid back-and-forth between the Department of Transportation (DoTr) and the National Economic and Development Authority’s (NEDA) Investment Coordination Committee, Transportation Secretary Arthur P. Tugade said.

The Secretary said he expects contracts to be signed by the first quarter of 2022, giving the various participants six months to firm up the unsolicited proposal, which by government procurement rules must undergo a Swiss challenge to bring out any other competing proposals.

“In the next six months, can we have a signing of the operation of the port by the private sector, so that we can at least look forward to the private sector investing the committed P8 billion, to start with, for the improvement of the port?” asked Mr. Drilon, whose constituency is Iloilo, to which Mr. Tugade agreed.

Senator Maria Lourdes Nancy S. Binay-Angeles also asked whether other projects have been on hold. The DoTr noted similar situations in the General Santos Port and the Davao Sasa Port.

Ms. Binay asked for the status of the two other ports and the details of the delays to be sent to the committee.

The department also said that overall, more than 450 seaports have been established and developed in the past five years.

Ms. Binay also said P726.8 million for the maritime infrastructure program posted disbursement rates of between zero and 20%, according to the Commission on Audit.

Transportation Finance Undersecretary Giovanni Z. Lopez said there were some social tourism port projects that remained unimplemented or delayed. — Alyssa Nicole O. Tan

National Competition Policy seen to improve market efficiency

THE implementation of the National Competition Policy (NCP) will help improve the country’s market efficiency and spur economic recovery, according to the Philippine Competition Commission (PCC).

“By ensuring that government responses and interventions follow competition principles, we can prevent policies which may exacerbate market failures and distortions,” PCC Chairperson Arsenio M. Balisacan said in a statement on Monday.

On Oct. 20, President Rodrigo R. Duterte issued Administrative Order No. 44 mandating the nationwide adoption and implementation of the NCP.

Under the said administrative order, all national government agencies, government-owned or controlled corporations (GOCCs), and local government units (LGUs) are required to comply with the NCP by implementing pro-competitive policies and interventions, creating a level playing field between public and private sector businesses, and helping the PCC in enforcing competition law.

The NCP was issued through Joint Memorandum Circular No. 01-2020 dated July 30 last year signed by the PCC and the National Economic and Development Authority (NEDA).

According to the PCC, the NCP gives the framework for government agencies in creating and adopting pro-competitive policies, rules and regulations, and issuances to avoid an uneven playing field for businesses.

The NCP also directs government agencies to support the PCC against cartels, market dominance abuses, and anti-competitive mergers and acquisitions.

“It complements Republic Act No. 10667 or the Philippine Competition Act and the Philippine Development Plan 2017-2022 in guiding the design of government interventions, especially those relating to the economic recovery of vulnerable sectors like micro, small and medium enterprises (MSMEs),” the PCC said.

Meanwhile, Mr. Balisacan said mainstreaming a culture of competition needs a “whole-of-government” effort.

“While the importance of competition is mainly felt by businesses and consumers, its success requires appreciation of competition principles by leaders, regulators, policymakers, and the entire bureaucracy,” Mr. Balisacan said. — Revin Mikhael D. Ochave

1...7,3217,3227,323...14,251Page 7,322 of 14,251
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube