Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7360

Banks to continue digital shift in post-pandemic world

Bank of the Philippine Islands (BPI) President and Chief Executive Officer Cezar P. Consing

BANKS will continue to beef up digital capabilities and rethink branch strategies as consumers are likely to keep engaging in off-the-branch transactions in a post-pandemic world, Bank of the Philippine Islands (BPI) President and Chief Executive Officer Cezar P. Consing said on Wednesday.

Mr. Consing said during the BusinessWorld Virtual Economic Forum that the lockdown caused a massive shift in banking behavior among clients and “there is no going back” to old habits for some who have experienced the convenience of transacting digitally.

“I think the baseline was about 70% of transactions [by volume] were done via ATMs (automated teller machines), online or mobile pre-COVID (coronavirus disease 2019). The moment you had the lockdown start in the middle of March, that percentage grew to over 90%,” Mr. Consing said.

Mr. Consing said they saw about 20,000 to 30,000 clients enrolling in the bank’s online banking facility during the lockdown. To date, he said more than half of BPI’s about eight to nine million clients now have online accounts.

As restriction measures were gradually eased, off-the-branch transactions dropped to about 80%, which is “still very, very high” considering the baseline before the pandemic was at 70%, he said.

He noted that the bulk of transactions in terms of value are still being done in branches. However, the volume of branch and ATM transactions remained lower than pre-COVID levels.

This became the trend as people realized the convenience of transferring money digitally, Mr. Consing said.

“It [branch transactions] may never recover, so it raises the issue of branch network. How do you configure the branch network?” he said.

“I don’t think there’s any real turning back… Come the vaccine, I think it’s a combination of high tech and high touch… “phygital”, which is physical and digital.” Mr. Consing said.

He noted that most Filipinos prefer to make payments in person as they are “one of the most tactile people in the world” and they value physical contact.

“So if you can combine both high tech and high touch, I think that will be the answer for the future, at least for Filipinos,” Mr. Consing said.

The central bank targets to make the country a cash-lite society by 2023, where 50% of payments are done digitally both in terms of value and volume.

A study by the Better Than Cash Alliance found that 10% of total transactions in terms of volume were done digitally in 2018 from a mere 1% in 2013. By value, e-payments made up 20% of the total in 2018 from 8% in 2013.

With online banking transactions growing exponentially, Mr. Consing added that cybersecurity is of utmost importance as threats have also evolved.

He said BPI has had to take down an average of 10 phishing sites every day. These sites usually try to convince clients to give away account details, the official said.

“So the way to battle that really is with customer education. You have to continuously repeat that responsible banks will never ask customers for their information,” he said.

The BPI chief added that there is also a need to review current regulations and laws on cybersecurity as new fraud trends emerge.

“Our cybersecurity laws, when they were first drafted, were targeted at the hardware. They have to adjust now that they [scams] happen to be targeted towards this kind of social engineering,” he said. — LWTN

Palo Alto seeks to protect 5G-enabled PHL enterprises from threats

AMERICAN multinational cybersecurity company Palo Alto Networks, Inc. is seeking to work with Philippine businesses for protection against cyber threats as they adopt 5G technology to accelerate their digital transformation journey.

In an e-mailed press release on Tuesday, the company introduced its 5G-native security offering.

“This new offering enables service providers and enterprises to turn 5G networks into highly secure networks,” the company said.

Anand Oswal, senior vice president and general manager at Palo Alto Networks, said: “For 5G to live up to its promise of transforming industries, companies need the confidence that 5G networks and services have enterprise-grade security.”

Also among its security solutions is containerized 5G security, which is “designed to secure the 5G core and edge clouds even across multi-cloud and multi-vendor environments.”

It also offers “real-time visibility, prevention and correlation of 5G user/device threats.”

“Real-time correlation of threats can help identify which subscriber, device or machine might be the target of an attack, or where the root cause of threats might be,” Palo Alto Networks said.

This cybersecurity solution can also help in “forensics and accelerated security event investigation,” it added.

As for its 5G-native security offering, the company said: “5G networks allow service providers to offer a dedicated end-to-end piece of the network that gives enterprises the reliability and confidence to use 5G for their core business activities.”

“Palo Alto Networks 5G-native security lets service providers offer secure versions of these slices to their customers as a new product,” it added. — Arjay L. Balinbin

Dining In/Out (11/26/20)

BCN by Las Flores opens in BGC

ENJOY the best of Barcelona in every bite at BCN by Las Flores’ new home in BGC. Another concept of the Bistro Group, this 70-seater restaurant, is a spin-off of the popular Las Flores restaurant. The menu ranges from appetizers like Mixto Platter, croquettes, salmon tartar, chipirones, and bite-sized starters called pintxos (morcilla & foie, octopus and confit potato; Patata Brava 2.0, and tuna tartare and avocado cone); paellas, including paella negra, duck, crab and uni, and seafood fideua; and rice dishes and pastas such as wild mushroom risotto, linguine vongole, spaghetti carbonara, and spaghetti nero. Seafood and meat take center stage with Bacallao with callos stew; Grilled tuna belly, Grilled tenderloin, Iberian pork ribs, USDA prime ribeye, Crispy pork belly, Roast chicken, and Grilled lamb chops. For lighter choices there are assorted soups and sandwiches, as well as Lunch Selections such as Callos stew with garlic rice, Seafood pasta with Green salad, Grilled tuna Loin, Grilled salmon or Roast chicken that comes with vegetables and garlic rice. Desserts like Torrija, Lemon Cheesecake and more provide a sweet ending to one’s meal. There is a Buy One Get One promo on selected best-selling items plus 40% off on all wines, cocktails, and beers. BCN by Las Flores is located at 9th avenue corner 26th street Ground Level, Tower 1, High Street Corporate Plaza, BGC, Taguig. Open for dine-in, take-out and delivery from  noon to 11 p.m. For details follow them on Facebook and Instagram @bcnbylasflores. For inquiries, call 0927-118-1030.

Free pizza from Yellow Cab

ON Nov. 27, for every nine-inch pizza ordered, get another pizza of the same size and flavor for free as Yellow Cab celebrates the Black Friday Pizza Sale. Choose from Yellow Cab’s selection of Classic and Signature Edge-to-Edge Pizzas: Pepperoni, Hawaiian, BBQ Chicken, Manhattan Meatlovers, Roasted Garlic and Shrimp, Garden Special,  #4 Cheese, and its newest flavor, Patty Melt. The offer is available from midnight to 11:59 p.m. on Nov. 27 for dine-in, take-out, Curbside pick-up, and delivery. This deal is also available via GrabFood, foodpanda, and LalaFood.

Sofitel presents Spiral at Home

AMIDST global lockdowns, Sofitel Philippine Plaza Manila is starting to reopen, first with its flagship Spiral restaurant and its newest food concept, Spiral at Home. Executive Chef Bettina Arguelles showcases Spiral’s distinctive gastronomic flair with an elevated menu that includes truffle and foie gras wellington, cheese fondue, and a crudo bar to name a few, with guaranteed cleanliness and COVID-19 prevention standards in place at the restaurant. Spiral also presents a limited offering of Spiral at Home, a specially curated menu of the restaurant’s signature dishes from across its 21 dining ateliers. These specialties are offered in two sets: the Classic Christmas Dinner that includes a five to seven kilo whole roasted turkey or 3.5kg US prime rib with sides like sausage and herb bread stuffing, potato gratin, and French beans with pickled mustard seeds to name a few; and the Ilustrado Christmas Dinner that includes a cochinillo (four to six kilo roast suckling pig) and paella valenciana with patatas bravas, roast Mediterranean vegetables, and pan con tomate as sides. The Classic Christmas Dinner is available at P18,000 net while the Ilustrado Christmas Dinner is available at P22,000 nett. For a special pop to the celebration, an add-on of two bottles of champagne is available for P5,000 nett. Advanced payment and three days pre-order are required. In a unique twist to the traditional Christmas hamper, Spiral at Home presents the signature Spiral gastronomic experience in boxed sets and features a variety of regional favorites from France, India, Japan, South Korea, and USA. The first installment of specialties includes the Grazing Box, Indian Thali, Japanese Omakase Set, Japanese Chirashi Don Tray, Japanese Sushi Platter, Korean Signature Set, Churrasco, and Spiral Burger Royale Kit presented in a self-heating hotbox for a hassle-free food preparation this Yuletide season. Advanced payment and three days pre-order are required. On Christmas Eve and New Year’s Eve, Sunset Bar makes an exclusive return with a poolside food truck festival. Live musical entertainment adds to the festive cheer. The food truck festival at Sunset Bar is set at P4,299 nett inclusive of free-flowing champagne, wine, beer, juices, and soda. For restaurant reservations, inquiries, and Spiral at Home orders, call F&B Reservations at 0917-309-2161, 8832-6988 or e-mail H6308-FB12@sofitel.com.

Grand Hyatt Manila offers Christmas High Tea

A FESTIVE Afternoon Tea for two is now available until Jan. 3, 2021, at the Grand Hyatt Manila at BGC for P1,800 net. Tuck into the Yuletide confections such as homemade Christmas cookies and Baked rice cake bibingka, plus savory pastries such as mushroom and truffle quiche and tartine sandwiches. Visit The Lounge from 2:30 to 5:30 p.m. daily to enjoy High Tea while admiring the hotel’s Christmas Tree. The Lounge is also serving its version of halo-halo, made special with Christmas-inspired toppings for P450.

Noche Buena from Lemon Grass

LEMON Grass Food Services, Inc., a catering, canteen and fine dining business specializing in gourmet Filipino and intercontinental food, believes nothing can stop families from continuing the tradition of sharing stories and love through food on Christmas. Lemon Grass offers gourmet-style Filipino favorites such as beef caldereta and pork barbeque and best-sellers such as fish salad and roast beef that can be enjoyed by the whole family and delivered to loved ones around the metro and nearby cities. This way, food and stories can be shared with the family — via a video call that is. Other dishes available include fettuccine carbonara, shrimp picante and parmigiana pasta, and for dessert, cream puff, mango crepe and chocoflan cake. To learn more about the services and menu offered by Lemon Grass Food Services, check its Facebook and Instagram accounts.

Christmas at Conrad Manila

OVER at the Mall of Asia (MOA) Complex in Pasay City, Conrad Manila’s Brasserie on 3 is offering Filipino end-of-the-year festivities focusing on fresh, sustainable and local ingredients. The Dec. 24 dinner is priced at P3,500 net per person. On Christmas Day, Dec. 25, lunch is priced at P2,900 net with dinner at P2,200 net. On New Year’s Eve, Dec. 31, dinner is priced at P 4,300 net. Meanwhile, China Blue by Jereme Leung welcomes the holidays with a modern interpretation of traditional Chinese recipes, feasts and specially curated set menus. China Blue by Jereme Leung’s Majestic Holiday Set Menus start at P4,200 net per person (minimum of five persons) and is available on Dec. 20 to 25 and Dec. 27 to Jan. 1. Share the joy of the season with gift boxes from Bru Coffee Bar brimming with savory gourmet items, homemade goodies, and its Signature Carey the Carabao plush doll. Choose from two Christmas Hampers: Holiday Sparkle at P3,800 net and Yuletide Cheer at P5,800 net. Bring home Conrad Manila’s designer Christy Ng bag complete with an ESPA Luxury Travel Kit and premium gift vouchers for rooms, dining and spa. The Gift of Luxury package is priced at P9,000 net. Conrad Manila also has special holiday gift vouchers and dining and spa credits available for purchase until Dec. 31. On New Year’s Eve, rock the year away with tunes and mixes at C Lounge. Sip and savor premium spirits and more, while indulging in the Manila Bay’s New Year’s festivities. Price starts at P1,100 net per person, inclusive of one drink. For “Joyful Christmas” inquiries or reservations, call  8833-9999 or e-mail conradmanila@conradhotels.com.

VegFest Pilipinas goes virtual

NO pandemic can stop the 5th VegFest Pilipinas — it is going virtual. With “Vegan is the better normal” as this year’s theme, VegFest Pilipinas V has prepared a fun and educational program. There will be guests from Sea Shepherd and Mercy for Animals which are both international organizations dedicated towards prevention to cruelty to animals, cooking classes from RG Cruz also known as Astig Vegan, Cassie from Veg on the Edge, stories of animal rescues and activism with guests from the vegan community. Every year, VegFest Pilipinas chooses beneficiaries to help raise awareness and to donate the proceeds of the festival. This year, it’s Go Palakas, a feeding and nurturing program for malnourished children, and Animal Rescue Family (ARF) and Pasay Pups, which are local animal rescue groups. VegFest Pilipinas V will be held on Nov. 28, from 9 a.m. to 6 p.m. For more information, visit https://www.facebook.com/VegFestPilipinas/.

New bulalo dishes from Max’s

CHRISTMAS is coming and Max’s Restaurant and Max’s Corner Bakery have new ways to make holiday feasts merrier. Introducing Calderetang Bulalo and Sizzling Bulalo, two new dishes that offer a fresh take on the sabaw (broth) staple, and Pinoy Holiday Cheesecakes — Puto Bumbong Cheesecake and Bibingka Cheesecake. Calderetang Bulalo is a fusion of two favorite Filipino dishes in one, made with a rich tomato-based beef shank stew with boiled vegetables and topped with melted cheese and sautéed peppers. Sizzling Bulalo features tender beef shank lathered in rich gravy, and sprinkled with crispy fried garlic. Starting at P549, these new dishes are available for dine-in, take-out, and delivery. Meanwhile, Puto Bumbong Cheesecake from Max’s Corner Bakery is a special take on the classic Simbang Gabi kakanin made with glutinous rice flour with ube (purple yam) flavor, smooth and silky cheesecake, and topped with ube crumbs, coconut, and muscovado sugar. Bibingka Cheesecake is made with vanilla chiffon, cheesecake, and topped with salted egg slices. These Pinoy Holiday Cheesecakes are available for dine-in, take-out, and delivery starting at P289. Order via delivery.maxschicken.com or call the Metro Manila hotline at 888-79000. For more information, visit https://www.facebook.com/maxsrestaurant.

Swagat marks Diwali

AS restaurants in Metro Manila slowly open up with more relaxed quarantine regulations, lovers of authentic and homestyle Indian dishes can continue to savor the specialties of Swagat Indian Cuisine. Swagat recently celebrated Diwali, India’s biggest religious observance dedicated to Lakshmi, the goddess of prosperity, and is regarded as the “festival of lights.” The five-day festival symbolizes new beginnings and the triumph of good over evil, and light over darkness. But with quarantine restrictions still in place, Swagat marked the event in a low-key fashion, minus the traditional colorful rangoli adornments, by feasting on authentic dishes. For appetizers, start off with bhel puri and sev puff rice, or methi aloo matter potatoes with green peas cooked with fenugreek leaves and flavored spices or palak pakora, deep fried spinach and spices rolled in chickpea flour. Must-try main dishes are malai kofta dish of cheese and vegetable patties cooked in butter sauce; chicken tikka, tender, skinless and boneless chicken marinated in ginger and garlic; fish palak, cooked in mild spices, with spinach and sauce; mutton masala, goat meat cooked in onions, tomatoes and spices. For rice, there is the flavored sangam biryani with lean, tender pieces of chicken, lamb, cooked in herbs and spices. Its variants are chicken, mutton, scrambled egg, and shrimp. Dishes are halal which make them ideal for Muslims. Sample the three combo meals for one, three and a family desi feast. Ice cream lovers can try Swagat’s pint-size and home-made kulfi. After celebrating 17 Diwali festivals and one pandemic in the country, owner Komal Khanchandani poses the same confident challenge on the restaurant’s day one: “Don’t pay if you are not satisfied with the food.” Swagat is at The Columns at Amorsolo St. cor. Arnaiz Ave., Legazpi Village, Makati City, and is only available for pick up or food delivery service. For more information, visit www.swagatph.com or follow Swagat Indian Cuisine on Facebook or Instagram.

Marks & Spencer’s food  and wine Christmas gift sets

THIS season, Marks & Spencer (M&S) makes gift-giving easy with the launch of its food and wine gift sets. Choose from 14 food and wine bundles arranged in a metal tray, or six food and wine gift boxes in the signature M&S package. The selection offers several themed collections such as the Lavish Luxury gift set and Chocolate Indulgence. It also includes wine duo sets. M&S Food and Wine Gift Sets are now available in stores nationwide while M&S Food & Wine Gift Boxes are exclusive at https://marksandspencer.com.ph/collections/food-gift-boxes. For corporate orders, contact edhalili@rgoc.com.ph, cpyao@rgoc. com.ph or GMTayo@rgoc.com.ph. Orders can also be placed directly to any M&S store or its Viber Community at tinyurl.com/MNSPH-VC.

Christmas gift from Casa Nespresso

FILLED with a range of exclusive limited edition coffees and accessories, Casa Nespresso  is arming coffee lovers with gifts to surprise loved ones. Nespresso’s Festive Variations Italia Limited Edition collection features two flavored coffees (Variations Italia Amaretti Flavor and Variations Italia Torta di Nocciole Flavor), one non-flavored coffee (Il Caffè), and a range of accessories. Nespresso has also launched a range of luxury coffee and homeware accessories. These include the 2020 Variations Italia advent calendar that allows Nespresso fans to enjoy a Nespresso coffee each day from Dec. 1 to 23 and a gift on the 24th; and the Lume Collection, designed by Milanese designer Federica Biasi, a twist on the traditional white porcelain coffee cup set that comes in four sizes, starting from Espresso to Gran Lungo. Nespresso is also offering two limited edition gifts that are only available to coffee lovers with select purchases: a Limited EditionTouch Travel Mug or Café Absolu scented candle. The exclusive Limited Edition coffees and accessories are available in Nespresso retail stores in Metro Manila located in newly opened boutique in The Podium, the flagship store in Power Plant Mall, and pop-up stores in Greenbelt 5, One BHS, Alabang Town Center, Shangri-La Mall, Robinson’s Magnolia, and TriNoma. Visit www.nespresso.ph, @nespresso.ph on Instagram, or @nespresso.phl on Facebook for more details.

Oreo’s Christmas cookies

OREO is sweetening the world’s longest Christmas celebration by unveiling limited-edition Oreo holiday products. There are holiday-inspired Oreo tin cans in 228g and 342g variants, filled with an assortment of Oreo favorites: vanilla, chocolate, strawberry, and red velvet cookies. Then there is the Oreo Gifting Box, featuring two Oreo slugs and a money box with four different designs to choose from. With the Gifting Box, recipients can drop their wishes for next year into the money box, save their money in it, and make their wishes materialize through the money they saved. The limited-edition Oreo holiday products will be available in the Philippines in all leading physical and e-commerce stores nationwide (bit.ly/ShopOreoPH) from November until December until supplies last.

Doña Elena Olive Oil gets a new look

DOÑA Elena, the country’s no. 1 olive oil,  has a new olive oil bottle that’s recognizable for patrons and accommodating for first-time users.  Made with premium-quality olives directly sourced and harvested from the farms of Andalucia in Spain, Doña Elena Olive Oil has been dominating the market for a full decade now. Doña Elena Olive Oil’s new bottle design is a stand-out for its elegant and functional design. The new packaging includes two significant, fine engravings on the bottle that are exclusively Doña Elena: the Doña Elena insignia near the top, and the olive fruit near the base. Another detail is the usage recommendation per variant that is printed on the label, making it easier to choose the right olive oil for your cooking needs. Doña Elena’s offerings are rich in good fats and oxidants through the combination of two types of olives, hojiblanca and picual. Each bottle contains 80% monounsaturated oleic acids, which is proven to regulate insulin and support weight management according to research. The heart-friendly fat is also known for supporting the health of the heart and enhancing brain function. Doña Elena Olive Oil comes loaded with high levels of antioxidants like polyphenols and is packed with vitamins E, K, and A that helps lower bad cholesterols. Doña Elena Olive Oil comes in three variants: Extra Virgin for dips and salad dressing, Pure Olive Oil for pasta and everyday cooking, and Pomace for roasting and frying. The three variants are conveniently available in 250 ml, 500 ml, 1 liter, and 5 liter PET bottle sizes so you have all the options for every purpose and need. Doña Elena Olive Oil is available in all groceries and supermarkets nationwide. Buy online beginning Nov. 20 at www.AceMarket.ph.

Mortlach comes to the Philippines

USED as the cornerstone of the 20th Century’s most iconic blends, Mortlach was the best kept secret of the world of whisky for 70 years. This single malt whisky defied the taste conventions defined by its origin region. Hailing from Scotland’s Speyside region, one that is known to produce whiskies with a light-bodied taste profile, Mortlach earned its reputation as the “Beast of Dufftown” because of its distinct and thick character spirit. Mortlach’s flavors are the result of an enigmatic distillation process called “The Way,” drilled down and perfected to a science. Mortlach is distilled exactly 2.81 times — 0.81 times more than its Scotch tradition. A closely guarded secret handed down through generations of Mortlach distillers, this process unleashes the most primal essence of Scottish water and malt, creating a beastly whisky. Its range of single malts — Mortlach 12, Mortlach 16, and Mortlach 20 — present full-bodied flavors without the big smoke. Mortlach 12 Years Old is available for P4,045 SRP, Mortlach 16 Years Old at P7,635 SRP, and Mortlach 20 Years Old at P16,960 SRP.

How PSEi member stocks performed — November 25, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, November 25, 2020.

PSEi tests support level on extended profit taking

By Denise A. Valdez, Senior Reporter

STOCKS CONTINUED to decline on Wednesday as investors kept taking profits and preferred markets that are expected to beat others in getting the coronavirus disease 2019 (COVID-19) vaccine.

The 30-member Philippine Stock Exchange index (PSEi) lost 107.16 points or 1.5% to close the session at 7,001.51. The wider all shares index likewise gave up 44.27 points or 1.04% to end at 4,184.28.

“Local shares were sold ahead of the Thanksgiving holiday, while foreign funds continued to flock back to regions, which they believe would be the first ones to receive the vaccine upon mass production,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

US and European markets closed with gains on Tuesday’s trading. In Wall Street, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices picked up 1.54%, 1.62% and 1.31%, respectively. In Europe, the Euro Stoxx 50, FTSE 100 and Dax indices also increased 1.30%, 1.55% and 1.26%, respectively.

At home, net foreign selling jumped to P1.39 billion on Wednesday against the previous session’s P621.19 million. It also marked the third straight day that foreign investors in the local bourse posted net outflows.

While optimism reigned in the PSEi in the past weeks because of news of developments by companies making a COVID-19 vaccine, the Philippine government expects that it may take about another year before any vaccine reaches the country.

This added to the selling pressure from investors that pocketed profits from the local market, Timson Securities, Inc. Trader Darren T. Pangan said.

“The bourse ended lower for the second straight day as the market experienced some profit-taking activity after briefly visiting the 7,200 levels,” Mr. Pangan said in a text message.

“Investors may be taking a step back to assess their positions before we move to the last month of the year 2020,” he added.

Five of six sectoral indices at the PSE ended Wednesday’s session lower. Property dropped 93.25 points or 2.61% to 3,473.37; holding firms cut 92.06 points or 1.25% to 7,222.34; industrials lost 104.08 points or 1.13% to 9,074.24; services shed 13.62 points or 0.88% to 1,526.74; and financials trimmed 2.13 points or 0.14% to 1,472.27.

Mining and oil was the only index that increased, climbing 281.81 points or 3.4% to 8,558.24 at the end of trading.

Some 8.03 billion issues valued at P14.07 billion switched hands on Wednesday, against the previous day’s 8.27 billion issues worth P12.95 billion.

Decliners outnumbered advancers, 120 against 97, while unchanged names ended at 40.

Peso inches up vs dollar as Biden begins transition

THE PESO inched up versus the dollar on Wednesday after US President-elect Joseph R. Biden, Jr. started his formal transition to the White House and amid the race for the development of a vaccine against the coronavirus disease 2019 (COVID-19).

The local unit closed at P48.13 against the dollar on Wednesday, rising by 1.5 centavos from its P48.145 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso opened Wednesday’s session stronger at P48.11 per dollar and climbed to as high as P48.09. Meanwhile, it sank to as low as P48.15 against the greenback.

Dollars traded dropped to $565.27 million on Wednesday from $747.75 million the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso rose as global economic sentiment improved following Mr. Biden’s victory over incumbent US President Donald J. Trump.

“The peso was stronger after the start of the formal transition process for the US President-elect Joe Biden, along with continued market optimism on various vaccine developments recently,” Mr. Ricafort said in a text message.

Meanwhile, a trader said markets see a better economic outlook under Mr. Biden’s administration.

The formal start of Mr. Biden’s transition to the White House and increasing confidence a COVID-19 vaccine would be ready soon ushered in renewed appetite for global shares, Reuters reported.

After weeks of waiting, Mr. Trump’s administration on Monday cleared the way for Mr. Biden to prepare for the start of his administration, giving him access to briefings and funding.

Investors also bet forthcoming virus vaccine shots could ease the pain on various industries that have been hit hardest by the pandemic, from tourism to energy.

In the foreign exchange market, risk-sensitive currencies held an upper hand against safe havens, including the US dollar.

For today, Mr. Ricafort sees the peso moving from P48.08 to P48.18 versus the dollar, while the trader expects a range of P48.10 to P48.17. — with Reuters

Fourth quarter marks start of economic pickup — FMIC, UA&P

CHINA DAILY VIA REUTERS

SIGNS OF an economic recovery are emerging this quarter based on readings of recent industrial activity and trade data, First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said in a joint report.

In the November issue of their Market Call, FMIC and UA&P said the improving economic indicators include the narrower decline in Volume of Production Index of minus 6.5% following the minus 9% posted in August. They said the industrial sector will likely sustain these gains.

“The Philippine economy will likely perform better starting Q4 as industrial production and exports have slowly improved. The robust recovery of China, other ASEAN countries and the US economy should support exports moving forward,” they said.

Merchandise exports snapped a six-month losing streak in September with a rise of 2.2% year on year to $6.22 billion. However, goods imports still declined by 16.5% to $7.92 billion.

FMIC and UA&P said they expect government spending to ramp up in the last three months of the year amid pressure on agencies to disburse funds faster for government projects.

However, overall spending was still down 7.84% year on year at P290 billion in October, the first month of the quarter.

The recession continued after an 11.5% contraction in gross domestic product in the third quarter, with household spending remaining weak and the much-needed stimulus from the government not showing up in the results.

To encourage banks to lend more, the Bangko Sentral ng Pilipinas (BSP) last week slashed benchmark rates by 25 basis points to new record lows of 2%, 2.5%, and 1.5% for the overnight reverse repurchase, lending, and deposit facilities, respectively.

“Apart from taking advantage of the low and softer interest rates after the BSP policy rate cut, corporates will rely on mild government borrowing for the rest of 2020 to issue more sizeable bonds,” they said.

“The passage of crucial recovery bills such as the 2021 budget, Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the Financial Institutions Strategic Transfer (FIST) Act and Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act, should address specific needs of businesses, while authorities pursue efforts to avoid virus surges and to ease restrictions for businesses and transportation for near term growth,” they added. — Beatrice M. Laforga

SSS reluctant to implement expanded pension proposal

THE Social Security System (SSS) said going ahead with a plan to expand benefits for retirees affected by the coronavirus disease 2019 (COVID-19) pandemic will likely erode the pension fund’s finances.

In a Laging Handa briefing Thursday, SSS President Aurora C. Ignacio said the pension fund is considering the proposal from legislators and senior citizen groups to expand such pensions by P1,000 a month, but warned that the fund’s financial position could deteriorate if such a plan goes through.

“Pinag-aaralan po siya dahil ang ating requirement sa batas ay kailangan actuarially sound ang pondo po ng SSS. And right now, sa pag-aaral natin ay hindi siya makakabuti sa pondo ng SSS in the coming years (We are studying it because the law requires that the SSS be actuarially sound. Based on our studies, this might not be good for the fund in the coming years),” she said.

Senior Citizens Party-list Representative Rodolfo M. Ordanes in House Resolution No. 1366 called for the immediate release of the second tranche of pension increases. The first tranche was approved in 2017 while the second was supposed to take effect in 2019.

A little over two million pensioners will benefit from the hike, which Mr. Ordanes added that the approval is necessary since they are vulnerable not only to the ongoing pandemic but also the recent events of typhoons and flooding.

In a letter addressed to the Palace dated Nov. 18, Mr. Ordanes said the expanded pension benefit “would not just greatly lighten the economic difficulties that our around two million senior citizen pensioners are facing today but would even determine the survival of some of them who depend on the additional P1,000 for their subsistence.”

Due to the COVID-19 crisis, Ms. Ignacio said the SSS expects benefit payouts to outstrip contributions, which will shorten the pension fund’s actuarial life. — Gillian M. Cortez

Gov’t borrowing to fund pandemic expenses driving bond market

BOND MARKET growth accelerated in the third quarter to meet government demand for funds to finance its coronavirus disease 2019 (COVID-19) containment efforts, the Asian Development Bank (ADB) said Wednesday.

According to the ADB Bond Monitor, the peso bond market grew 8.8% from a quarter earlier to P8.136 trillion in the third quarter, outpacing the 5.2% growth rate in the second quarter. Year on year the growth rate was 21.5%.

The bond market consisted of 79.9% government bonds and 21.1% corporate bonds.

Outstanding government securities totaled P6.503 trillion at the end of September, up 10.1% quarter on quarter and 23.8% year on year. The ADB said Treasury bills and bonds amounted to P1.106 trillion in the third quarter, up 65.4% year on year, after a decline of 6.9% in the second quarter.

Treasury bonds issued totaled P651.3 billion, more than thrice the amount issued in the second quarter.

“The timing has been conducive for the government to secure a good portion of funds for its spending needs amid the COVID-19 pandemic as interest rates remain low while high liquidity in the market drew in strong demand from investors,” the ADB said.

Treasury bills totaled P488.6 billion, declining 17.2% year on year after posting nearly 50% growth in the second quarter.

“The drop in debt sales was traced to lower offer volumes during the quarter. The BTr [Bureau of the Treasury] also rejected bids for 365-day Treasury bills in one of the auctions as investors demanded higher rates,” the ADB said.

The BTr also canceled samurai and panda bond issues this year after the Bangko Sentral ng Pilipinas (BSP) approved an advance credit to the National Government to manage liquidity in the market.  Instead, the BTr will issue a second tranche of Premyo bonds to retail investors in November.

“The BTr deferred its plan to issue samurai and panda bonds in 2020 as funds raised domestically were enough to cover the government’s financing requirements. The government’s P540 billion advance credit from the BSP allowed the BTr to shelve this plan,” the ADB said.

The central bank also issued in September a 28-day paper worth P50 billion. Auction volumes started small and were gradually increased based on market response.

Corporate bonds outstanding grew 3.8% quarter on quarter to P1.633 trillion. Year on year the growth rate was 12.9%. Bond issues totaled P126.3 billion, up sharply from P27.6 billion a quarter earlier.

“As the economy gradually reopened, even amid continued uncertainty from the COVID-19 pandemic, firms returned to tap the capital markets to fund their business operations and recovery plans,” the ADB said.

The banking sector issued the most bonds, accounting for 41.7%, against the 37.9% share posted a year earlier.

In emerging East Asia, the Philippine bond market was the third-fastest growing on a quarter-on-quarter basis, behind Vietnam’s 11.6% and Indonesia’s 9.9%. The sub-region consists of China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Thailand and Vietnam.

The sub-region’s bond market was valued at $18.7 trillion at the end of September.

“Governments continued to issue sovereign debt to finance economic relief measures amid the economic fallout brought about by COVID-19. Meanwhile, risk-off sentiment amid the protracted economic slowdown led to weaker growth in the region’s corporate bond markets,” the ADB said. — Kathryn Kristina T. Jose

BoI auto-industry investment campaign to focus on wiring

THE Board of Investments (BoI) said it is seeking to attract investment in electric vehicle manufacturing, including production of wiring materials, in which the Philippines enjoys advantages in terms of access to supply.

“There’s also a special focus within automotive on electric vehicles… electric vehicles will be dependent on copper wire, so it’s really filling in the value chain gap,” BoI Managing Director Ceferino S. Rodolfo said in a news conference Tuesday.

The government’s “Make It Happen in the Philippines” international investment marketing campaign will focus on the automotive, aerospace, electronics, copper and nickel, and business process outsourcing sectors.

Mr. Rodolfo said that the government selected sectors that could generate the most investment post-pandemic, noting that the Philippines can leverage its strengths in electronics production to become competitive against other automotive producers.

“Plus also, (we have an) advantage when it comes to copper, nickel, and other products that are needed for batteries.”

Trade Secretary Ramon M. Lopez said the areas of focus were selected based on how they could fill value chain gaps.

“It’s not a complete value chain. Some sectors or stages are being done here. We have to export, and then reimport. So we’re trying to address those and really encourage certain activities.”

A roadmap developed by the Trade department and EV Association of the Philippines has set a target for electric vehicles of a 21% share of the car fleet in the Philippines by 2030.

BoI-approved investment fell by almost a fifth to P826 billion in the first 10 months, compared to the agency record of P1 trillion a year earlier. — Jenina P. Ibañez

DoE urged to expedite clean energy transition

THE Department of Energy (DoE) must step up its clean energy efforts and implement policy that will bring about the “full and swift” transition of the power sector, an environmental think tank said Wednesday.

“The economic impact of the pandemic and the devastation from climate calamities we recently experienced are all the more reason for DoE to hasten its clean energy efforts… Until the DoE sets in place policies that paves a path for a full and swift transformation of the power sector, all it can expect are watchful eyes and voices demanding for its accountability,” Center for Energy, Ecology, and Development Executive Director Gerard C. Arances told BusinessWorld.

Energy Secretary Alfonso G. Cusi on Tuesday outlined a low-carbon scenario for energy policy which had a power supply mix increasing the share of renewable energy, natural gas and other emerging clean energy technologies.

Mr. Cusi, in an earlier statement, said he sees the possibility of clean energy sources accounting for 66% of the energy mix within 20 years.

Mr. Arances said Mr. Cusi’s position represents a turnaround from his previous stance of “technology neutrality,” a position which did not discriminate against power sources like coal or nuclear.

“In the last two years, Secretary Cusi held out against the president’s State of the Nation Address (SONA) 2019 marching orders to reduce coal dependence, insisted on declaring detrimental forms of energy like nuclear and waste-to-energy as clean and renewable, and announced a coal moratorium that seemingly would leave the coal project pipeline untouched,” Mr. Arances said in an e-mail interview.

He added that the current Philippine Energy Plan (PEP), which aims to “expand the country’s coal and fossil fuel fleet, is not compliant with climate and economic imperatives set by experts.”

On Tuesday, Mr. Cusi announced that the DoE approved the updated PEP 2018-2040, and submitted this to Congress. “The updated version will help the energy family and our stakeholders better understand what the energy situation will be 20 years from now,” he said in a statement.

The updated PEP aims to increase production of clean indigenous sources of energy; encourage energy efficiency; and balance reliable and reasonably priced energy services, with support for economic growth and environmental protection.

He added that the DoE is currently prioritizing the National Renewable Energy Program 2020-2040, which aims to hit 34,000 megawatts of new renewable energy capacity in 20 years’ time.

Last month, the DoE ordered a moratorium on new coal-fired projects with the intent of making the power supply mix more flexible. — Angelica Y. Yang

House passes on second reading bill banning ‘endo’

THE House of Representatives on Wednesday approved on second reading a bill banning contractualization in the private sector.

Following a voice vote, the chamber approved House Bill (HB) No. 7036 or the proposed Security of Tenure Act.

HB 7036 seeks to strengthen the security of tenure of private-sector employees by amending Presidential Decree No. 442 or the Labor Code of the Philippines.

The measure prohibits labor-only contracting, while granting the Secretary of Labor, after consultation with the National Tripartite Industrial Peace Council, the right “to make appropriate distinctions” between labor-only contracting and legitimate job contracting.

Under the measure, labor-only contracting exists when the contractor does not have substantial capital or investment in the form of tools, equipment, machinery in the work premises; the contractor has no control over the workers’ methods and means of accomplishing their work; or the contractor’s workers are performing activities which are directly related to the principal business of the employer.

The bill mandates regular employment as a general principle and prohibits “fixed-term employment except in the cases of overseas Filipino workers, workers on probation, (and) relievers who are temporary replacements of absent regular employees.”

The measure also requires the rights and benefits of relievers, project and seasonal employees to be at par with regular employees. All workers must be treated equally and enjoy equal rights and obligations, according to the bill.

The bill also provides for the licensing of job contractors, with corresponding penalties for unlicensed entities.

President Rodrigo R. Duterte in 2019 vetoed an anti-endo measure, saying that it “broadens the scope and definition of prohibited labor-only contracting, effectively proscribing forms of contractualization that are not particularly unfavorable to employees involved.” — Kyle Aristophere T. Atienza

1...7,3597,3607,361...12,821Page 7,360 of 12,821
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube