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Corruption still a big problem — survey

Vote buying is highest in the Philippines and Thailand, where 28% have been offered a bribe in return for a vote, according to a survey by Transparency International. — PHILIPPINE STAR/MICHAEL VARCAS

By Jenina P. Ibañez, Reporter

MORE FILIPINOS are confident that the government is doing well in tackling corruption compared with Asian neighbors, although they also believe corruption in government remains a big problem, a survey from Transparency International showed.

The Global Corruption Barometer Asia 2020 released on Tuesday surveyed nearly 20,000 citizens from 17 countries, mostly between June and September 2020.

Results showed that 64% of Philippine respondents think that corruption has decreased in the last 12 months, while only 24% believe that it increased. Across Asia, 32% believe that corruption decreased and 38% said that it went up.

More Filipinos express confidence in government’s anti-corruption efforts

As much as 85% in the Philippines believe that the government is doing a good job in addressing corruption, better than the Asia average of 61% and third highest among the countries surveyed. 

Despite this, 86% of Filipinos believe that corruption in government is a big problem, above the regional average of 74%. This was also the sixth highest in the region, after Indonesia, Taiwan, Maldives, India and Thailand.

At the same time, 82% of Philippine respondents believe that their anti-corruption agency is doing well in tackling corruption, the fifth highest in the region after Myanmar, Bangladesh, Nepal and China. This is also better than the 63% regional average approval rating for anti-corruption agencies.

Philippine perception of corruption is divided by institution, with 18% saying that most government officials are corrupt, but only seven percent believe that the president is the same.

More are likely to believe local government, police, and business executives are corrupt, as opposed to bankers and army leaders.

Filipinos are also optimistic about ordinary citizens’ ability to fight against corruption, with 78% agreeing with the statement.

“Only in Myanmar (67%), the Philippines (61%) and Malaysia (53%) do a majority of citizens say that they can report corruption without fear,” Transparency International said.

Vote buying is highest in the Philippines and Thailand, where 28% have been offered a bribe in return for a vote. The regional average is 14%.

“Often one of the root causes of political corruption is election abuse, including fraudulent, undeclared funding of political parties, vote buying or the spread of fake news during campaigns,” the report said.

Transparency International Chair Delia Ferreira Rubio said protecting the integrity of elections is “critical to ensuring that corruption doesn’t undermine democracy.”

“Throughout the region, election commissions and anti-corruption agencies need to work in lockstep to counter vote buying, which weakens trust in government,” she said in a statement.

University of Santo Tomas political science professor Marlon M. Villarin in a phone interview said that Filipinos’ confidence in the government’s anti-corruption measures is based on the political side of the administration’s efforts in curbing corruption.

“If you look at the data, most of the references of the Filipinos that define confidence to the present administration’s efforts in fighting corruption — they are very limited only on the news such as the president sacking executive officials out, and these are purely political moves,” Mr. Villarin said.

He said that judicial and administrative aspects should be considered as well, such as the corruption cases that are filed and resolved in the court. Mr. Villarin added that reports on Philippine views on corruption should not just be quantitative surveys but also qualitative analyses that include the assessments of civil society and industry groups.

At the same time, nine percent of Philippine respondents said they have either experienced or know someone who experienced “sextortion,” or the abuse of power for sexual advantage.

Only around 19% of Philippine respondents said they have paid a bribe in the last 12 months, including for basic services like healthcare, education, utilities, and police.

This is lower than China and India, where 28% and 39% respectively said they have paid bribes in the past year. But it is consistent with the regional average of 19%.

Around 22% said they have used personal connections for public services in the last 12 months.

BoI-approved investments drop 17% in first 10 months

THE Board of Investments (BoI) approved P826 billion in investments in the first 10 months, nearly a fifth lower than the estimated P1 trillion in the same period last year.

“Though this will be slightly lower than the project approvals for 2019, we are still on course for the second-highest level in our agency’s history despite the pandemic,” Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said in an online event on Tuesday.

The BoI breached its P1-trillion full-year investment target by October last year. In 2019, approved investments reached a record P1.14 trillion, which the Trade department attributed to steady business and consumer confidence.

Despite the lockdown, BoI-approved investments doubled in the first half of 2020, led by a San Miguel Corp. subsidiary’s P740-billion airport project in Bulacan. Domestic investments at the time jumped by 166% to P626.7 billion due to the airport project, but foreign investments plummeted by 73% to P18.6 billion.

The government’s investment campaign will focus on the automotive, aerospace, electronics, copper and nickel, and business process outsourcing sectors, Mr. Rodolfo said in his speech.

“The new investments promotion strategy aims to address the value chain gaps and further the growth and competitiveness of our local industries, strengthening the country’s position as an investment destination of choice in the Southeast Asian region,” he said.

The BoI accounts for the bulk of planned projects registered with investment promotion agencies (IPA).

The Philippine Economic Zone Authority (PEZA) is aiming to exceed P100 billion in investment pledges this year, after falling by more than a quarter to P72.6 billion in the 10 months through October.

‘MAKE IT HAPPEN’
The government on Tuesday launched “Make It Happen in the Philippines,” an international investments promotion campaign that they are rolling out with assistance from the UK government.

The campaign will release digital, social media, events, and print marketing, and has launched a multilingual website.

“With the current health crisis affecting the world economy, we have acted swiftly with a range of incentives and measures to maintain ease of doing business and mitigate the impact of COVID-19 for businesses. A ‘roll-up-your-sleeves’ and ‘make-it-work’ mindset, as well as a service-orientated business ethic position the Philippines well for the future,” Trade Secretary Ramon M. Lopez said in a statement.

Mr. Lopez in his presentation said that there are 90 notable leads from potential investors from various countries like the United States, China, Taiwan, and Japan. The potential investments would be valued at $24.1 billion and create 134,855 jobs. The department is targeting 73 more companies.

Meanwhile, the UK Government’s Ambassador to the Philippines Daniel Pruce said that the Philippines is an important economic partner for the UK.

“The launch of the Philippines’ first sustained multi-sector and multi-market brand is designed to drive FDI inflows.  It underlines the significance of international partnership and cooperation in helping economies to grow and people to thrive.” — Jenina P. Ibañez

Gov’t eyes P73-billion coronavirus vaccine fund

The Philippines is nearing a deal with AstraZeneca to purchase at least 20 million vaccine doses. — REUTERS/DADO RUVIC/FILE PHOTO

THE government plans to borrow P73.2 billion to buy coronavirus disease 2019 (COVID-19) vaccine for around 60 million Filipinos.

In a televised Cabinet meeting on Monday evening, Finance Secretary Carlo G. Dominguez III said it will source P40 billion from multilateral agencies; P20 billion from domestic government financial institutions; and P13.2 billion from bilateral negotiations from countries where vaccines will come from such as the United States and the United Kingdom.

“So the total is about P73.2-billion financing — that is pretty much almost fixed. Most of it is already fixed. P13.2 billion is not yet completely negotiated,” he said.

Mr. Dominguez said the government estimates the average cost of a complete vaccine dose is around P1,200 each.

Health Secretary Francisco T. Duque III said in the same meeting that 60% to 70% of the country’s total population would need to be vaccinated to reach “herd immunity,” according to the World Health Organization (WHO). The Philippines’ population is currently at 108 million.

The WHO website defines herd immunity as a concept “in which a population can be protected from a certain virus if a threshold of vaccination is reached.”

In the same meeting, National Task Force Against the COVID-19 Chief Implementer Carlito Galvez, Jr. said they are in talks with several vaccine makers for advanced purchases.

Mr. Galvez said the government is looking to sign a deal with AstraZeneca for 20 million doses within the month. Talks are also ongoing with Sinovac Biotech Ltd., and Pfizer, Inc.

According to Reuters, AstraZeneca said on Monday its COVID-19 vaccine, which is cheaper and easier to distribute than other rival vaccines, may be as much as 90% effective.

Mr. Galvez said they may focus the COVID-19 vaccination drive in economic centers where infections are rising, namely Metro Manila, Davao, Cebu, and Bacolod.

The government has said poorest families will be prioritized in the vaccination program, as well as the police and military.

As of Tuesday, the Health department reported 1,118 new COVID-19 cases, bringing the total number to 421,722. — Gillian M. Cortez

BSP approves new ‘dirty money’ risk assessment system

A NEW SYSTEM for assessing “dirty money” and terrorism financing risks in financial institutions has been approved by the Bangko Sentral ng Pilipinas (BSP).

In Memorandum No. M-2020-084, BSP Deputy Governor Chuchi G. Fonacier said the Money Laundering/Terrorism Financing Risk Assessment System (MRAS) will replace the current Anti-Money Laundering (AML) risk rating system.

“The MRAS is a tool to assess the money laundering/terrorism financing and proliferation financing (PF) risk profile of BSP-supervised financial institutions (BSFIs), taking into account their risk and context, business models and operations, among others,” Ms. Fonacier said.

The new system will be used alongside the Supervisory Assessment Framework which take effect in January 2021.

“Enforcement actions shall be implemented as warranted, such as in cases of excessive risks that are not adequately managed, presence of serious weaknesses in the BSFI’s money laundering, terrorism financing, and proliferation financing risk management system and violations of anti-money laundering and counter-terrorism financing laws or BSP regulations,” it said.

The MRAS will use a four-point rating scale to gauge money laundering and terrorism risks, ranging from low to high.

Factors to be assessed include inherent risk, quality of risk management, self-assessment systems, and the net money laundering/ terrorism financing and proliferation risk in BSFIs.

To measure inherent risk, the nature of the business and relationships of BSFIs will be looked into, particularly the total size, value and nature of products and services, client base profile, delivery channels, and geographic locations.

“The large volume and high value of the product or activity make it easier to conceal the high amount of proceeds from illegal activities,” the BSP said.

The central bank identified correspondent banking services, electronic fund transfers, and private banking as some services with high inherent risk.

Meanwhile, the BSP will assess the quality of risk management by BSFIs using a four-point rating scale, ranging from weak to strong.

Factors that will be considered are the quality of board and senior management oversight, adequacy of the money laundering and terrorism financing program and its implementation, as well as the effectiveness of internal controls on key anti-money laundering, counter-terorrism financing, or counter proliferation processes.

In this regard, the BSP will monitor compliance with policies on suspicious transaction reporting, freeze orders and sanctions, and record-keeping of relevant documents, among others.

For the self-assessment system, the BSP will check compliance function and internal audit mechanisms relative to the complexity of the institution’s organizational setup.

The Financial Action Task Force placed the Philippines under an observation period until February 2021. The country needs to address gaps in addressing its anti-money laundering and counter-terrorism financing measures before the deadline or risk being gray-listed. — Luz Wendy T. Noble

BusinessWorld Virtual Economic Forum opens


THE BusinessWorld Virtual Economic Forum, the newspaper’s flagship and award-winning event, is set to open today with the theme, “Forecast 2021: ReBoot. ReThink. ReShape.”

The two-day forum, which goes online for the first time this year, will feature insightful keynote speeches, conversation panels, fireside chats, breakout sessions, “Ask the Expert” talks, virtual exhibits, and business networking.

Keynote speakers include Børge Brende, president of the World Economic Forum, and Bernardo Mariano, Jr., chief information officer of the World Health Organization (WHO), for today’s forum; and Ndiamé Diop, World Bank country director for Brunei, Malaysia, Philippines and Thailand, and Kelly Bird, Asian Development Bank country director, on Nov. 26.

DAY 1 (NOV. 25)
The Conversation Panel, with the topic “Responding to the Pandemic”, will feature Karl Kendrick T. Chua, acting secretary of the National Economic and Development Authority; Dr. Selva Ramachandran, resident representative of UNDP Philippines; Michael Peiyung Hsu, representative of Taipei Economic and Cultural Office in the Philippines; Dr. Edsel T. Salvaña, director of Institute of Molecular Biology and Biotechnology, National Institutes of Health University of the Philippines Manila; and Guillermo Mr. Luz, chief resilience officer of Philippine Disaster Resilience Foundation.

For the fireside chats, Jean-Antoine Zinsou, country general manager of Sanofi Pasteur Philippines, will discuss the race for a vaccine, while Bank of the Philippine Islands President and CEO Cezar P. Consing, will talk about banking in the new normal. Palafox Associates Principal Architect and Founder Felino A. Palafox, Jr. will discuss how cities will be reshaped by the crisis.

For the first breakout session, attendees can choose between “Bright Spots: The Future of Travel and Tourism” or “On the Rise: E-Commerce and Logistics.”

Tourism Secretary Bernadette Romulo-Puyat,  World Travel & Tourism Council Vice President Tiffany Misrahi, PwC Philippines Chairman and Senior Partner Alexander P. Cabrera, and AirAsia Philippines CEO Ricardo P. Isla will discuss developments in the tourism industry.

Meanwhile, Martin Cu, country head of Ninja Van Philippines; Ramakrishna Maganti, senior vice-president for marketing and innovation of Holcim Philippines; and Ray N. Alimurung, CEO of Lazada Philippines will talk about the e-commerce industry.

In the second breakout session, guests can attend “The Youth Market: Marketing to Gen Z and Millennials Post-COVID” or “High-Tech and Secured: IT and Cybersecurity in the Post-COVID Era.”

Gary C. de Ocampo, CEO of the Insights Division of Kantar Philippines; Pauline G. Fermin, managing director of Acumen Strategic Consulting, Inc.; and Elly V. Puyat, CEO of Ogilvy & Mather Philippines, will talk about marketing trends.

National Privacy Commission Chairman Raymund E. Liboro; Angel T. Redoble, first vice-president and chief information security officer of ePLDT Group, PLDT Group, and Smart Communications; and Andres Jomas Capellan, security services sales leader at IBM Philippines will discuss cybersecurity.

For the “Ask the Expert” session, Kristine A. Romano, managing partner of McKinsey & Company, Philippines, will answer questions from the audience.

DAY 2 (NOV. 26)
For the CEO Panel, top business leaders Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala, Manila Electric Co. President and CEO Ray C. Espinosa, and Magsaysay Group of Companies President and CEO Doris Magsaysay-Ho will discuss leadership and the country’s road to recovery.

Fireside chats will feature Bangko Sentral ng Pilipinas Deputy Governor Francisco G. Dakila Jr., who will talk about monetary policy; Willis Towers Watson Philippines Head James Matti, who will discuss the workforce of the future; and Bain & Company Asia-Pacific Regional Managing Partner Satish Shankar, who will discuss consumption trends.

The first breakout session will feature two panels: “Reimagining Mobility: How COVID-19 will Change Transportation and Connectivity” or “What We Need: Ensuring Food Security and Boosting the Agriculture Sector.”

The mobility session will include Christophe Vicic, country head of JLL Philippines, Inc.; Alfredo S. Panlilio, president and CEO of Smart Communications, Inc. and chief revenue officer of PLDT, Inc.; and Dr. Ting Wu, partner at McKinsey & Company, China.

Issues facing the agriculture sector will be discussed by Shahidur Rashid, director for South Asia, International Food Policy Research Institute; Paul Teng, senior fellow and adviser in food security at S. Rajaratnam School of International Studies; and Tamara Palis-Duran, assistant representative for Programmes at Food and Agriculture Organization of the United Nations.

The second breakout session will feature two topics: “Accelerating Digital Transformation” or “Towards a Cashless & Contactless Digital Payment Ecosystem.”

Discussing digital transformation will be Jeremiah B. Belgica, director-general of Anti-Red Tape Authority; Khor Chern Chuen, chief operating officer of SAP Southeast Asia; and Dorjee Sun, CEO of Perlin.net and co-founder of International Chamber of Commerce AOKpass.

Panelists for the digital payments session include Eduardo V. Francisco, president of BDO Capital & Investment; Martha M. Sazon, president and CEO of GCash; Hans B. Sicat, country manager of ING Philippines; Paolo Azzola, COO of PayMaya Philippines; and Mamerto E. Tangonan, digital payments expert.

Anthony Oundjian, managing director and senior partner at Boston Consulting Group (BCG), will take questions from the audience in the “Ask the Expert” session.

Attendees will receive free or discounted copies of the latest issues of BusinessWorld In-Depth — BusinessWorld’s on-demand digital magazine; Top 200 Consolidated Corporations in the Philippines; and the Quarterly Banking Report.

Held annually since 2016, the BusinessWorld Economic Forum serves as a platform for industry leaders and key figures in the society to tackle key issues and challenges affecting the country.

BusinessWorld Virtual Economic Forum is presented by BusinessWorld Publishing Corp., with co-presentor LT Group, Inc.; gold sponsors BDO, Globe Telecom, San Miguel Corp., SM Investments Corp.; silver sponsors Alveo, DivinaLaw, Meralco, Stradcom, Toyota, Turkish Airlines, and Vista Land; bronze sponsors Ayala Corp., Century Properties, Federation of Filipino-Chinese Chambers of Commerce & Industry, Inc., First Gen Corp., PAGCOR, Philex Mining Corp., Mega Global Corp., PLDT, Smart, Sanofi, and SGV & Co; and donor NutriAsia.

The event is open to BusinessWorld subscribers, readers, and the public. To register and for more information about the program and the access passes available, visit www.bworldonline.com/BWVirtualEcoForum

Megawide says NAIA rehab proposal still valid

MEGAWIDE Construction Corp. said its proposal to rehabilitate the Ninoy Aquino Airport (NAIA) remains valid.

The company issued the statement late Monday night after a news website reported that the National Economic and Development Authority (NEDA) had “junked” the proposal.

Megawide said, “The letter of Secretaries (Carlos G.) Dominguez and (Karl Kendrick T.) Chua, as chair and co-chair of the NEDA-ICC (Investment Coordination Committee), dated 19 November 2020, merely asked for the full submission of the requirements from the Megawide-GMR (GMR Infrastructure Ltd.) consortium to demonstrate capabilities to deliver a first-world NAIA.”

A paragraph from the letter, according to the company, stated: “May we request DOTr (Department of Transportation) to kindly ensure that all the requisite requirements…are complied with by the private proponent in form and substance, and evaluated by the DOTr in accordance with Rule 5 and Sections 10.5, 10.7 and 10.8 of the Amended BOT (build-operate-and-transfer) Law and its IRR (implementing rules and regulations), prior to the endorsement or resubmission of the unsolicited proposal for NEDA/ICC Board action.”

Megawide said it submitted on Nov. 20 additional documents to prove its financial capability to undertake the project.

“Under the new arrangement, Megawide will have a majority stake at 60% while GMR has agreed to provide forty per cent (40%) of the equity requirement for the project,” the company explained.

Messrs. Dominguez and Chua have yet to comment on the matter.

NEDA said in a statement on Monday: “NEDA can’t comment as the subject project is still in process. Thank you for understanding. We’re not also sure what’s the source of the site.”

On Nov. 16, Megawide Director Manuel Louie B. Ferrer said he was hoping the Swiss challenge for the project would be completed by the first quarter of 2021.

The company expects to spend P12 billion for the first phase of the project and P20 billion for the second phase in the first three to four years of implementation, according to Megawide Chairman and Chief Executive Officer Edgar B. Saavedra.

The project will involve improvements to airside and landside; construction of a new passenger terminal building; and apron and taxilane improvements. Also, the cargo terminal and fuel farm will be moved to accommodate the new passenger terminal building and prevent disruption in operations.

The company will also build a bus rapid transit and elevated railway that will ferry passengers within the NAIA complex.

Megawide shares on Tuesday closed 4.26% lower at P9.90 apiece. — Arjay L. Balinbin

Maynilad extends water service interruption to Nov. 29

WEST ZONE water concessionaire Maynilad Water Services, Inc. said the rotational service interruptions its customers are experiencing will be extended until Nov. 29.

In a service update on Tuesday morning, the water provider confirmed that the removal of sludge from one of its three sedimentation basins in La Mesa treatment plant due to the turbid, raw water caused by Typhoon Ulysses is taking longer than projected.

“We are therefore constrained to extend up to November 29 the rotational service interruptions that are currently in place, to ensure that all affected customers will still get water supply daily despite the reduced production of our treatment facilities,” Maynilad said.

“Per our latest estimate, it will take another five days to get the last basin working fully, ramp up production, refill all major reservoirs, and build up pressure in the pipelines,” it added.

However, Maynilad said one of its sedimentation basins is already fully operational while the other one is currently being refilled after having been cleared of sludge.

The water provider added that the actual service interruption schedules that will be experienced by its customers would shorten after the continuous build-up of water pressure in pipelines.

Water service will be fully restored in most areas in Maynilad’s concession before Nov. 29, Maynilad said, adding that only customers living in the highest and farthest points will experience interruption until the said date.

“We apologize to our affected customers for the inconvenience that this situation has caused. We are working without let-up to facilitate our clearing operations and restore water service sooner rather than later,” it said.

Maynilad provides water to areas in the west zone of the National Capital Region such as Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Manila, Makati, and Quezon City, as well as parts of Cavite province including Bacoor, Imus, Kawit, Noveleta, and Rosario.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

URC ventures into rubbing alcohol production

UNIVERSAL Robina Corp. (URC) is opening a rubbing alcohol business as the demand for sanitation products surged due to the coronavirus disease 2019 (COVID-19) pandemic.

In a statement on Tuesday, the Gokongwei-led food company said it is diversifying its product line to include two pharmaceutical-grade alcohol brands: Shield+ and BioSure.

The rubbing alcohol business will be handled by URC’s agro-industrial and commodities division. The La Carlota distillery of the company in Negros Occidental will supply the ingredients in the long term.

“This is aligned with our core values of looking after the Filipino community, in light of the ongoing pandemic. We have the capability, and we want to help. There’s demand out there. It just makes sense,” Vincent C. Go, managing director of URC’s agro-industrial group, said in the statement.

URC said that the alcohol category was valued at P4.1 billion last year. Because of the COVID-19 outbreak, its sales jumped 76% to P1.8 billion in the first quarter of 2020.

The BioSure products are already being sent out to community stores and institutions early this month, while the Shield+ alcohol brand will begin distribution in December.

As early as July, URC obtained approval from its board of directors to amend its articles of incorporation and include production of pharmaceutical-grade alcohol as its secondary purpose.

The goal is to leverage the company’s sugar distillery facilities in producing bio-ethanol fuel products from sugarcane.

URC generated an attributable net income of P7.5 billion in the first three quarters of the year, higher by 7% than last year, due to lower costs and expenses.

It shares closed at P147.20 apiece on Tuesday, down P4.80 or 3.16% from the last session. — Denise A. Valdez

IP E-Game Ventures’ investment unit eyes $50-million fund with Malaysian firm

A SUBSIDIARY of listed IP E-Game Ventures, Inc. is partnering with a Malaysian investment company to form a $50-million fund for startup investments in the ASEAN.

In a disclosure to the exchange on Tuesday, IP E-Game said its wholly-owned subsidiary New Wave Strategic Holdings Ltd. entered into an initial documentation with Emissary Capital Growth Fund 1 LLP for the plan.

New Wave and Emissary Capital will form a joint venture that will target technology companies with links or presence in Malaysia.

New Wave will have an investment of up to $7.5 million as a limited partner to the fund. Its purpose is primarily to build a stronger Malaysia-Philippines relationship for technology and venture capital, it said.

“We are looking to strengthen the corridor between Malaysia and the Philippines, as well as with the rest of Southeast Asia. Technology businesses today must have a regional outlook and entrepreneurs must demonstrate ability to scale this way,” New Wave Director Enrique Gonzalez said in the statement.

“Our fund is looking to invest in Southeast Asia’s growth companies led by founders that have proved resilience and success,” he added.

The companies said they both look forward to a stronger digital economy as a tool for post-coronavirus recovery. “[T]he investment firms are keeping a bullish outlook on Malaysia and the Philippines as growth hubs, especially for tech-based startups,” the statement said.

New Wave handles more than $40 million of assets under its belt, while Emissary Capital is a boutique investment firm with a focus in the ASEAN. The investment of the two companies is still  subject to definitive documentation and closing conditions. — Denise A. Valdez

Fruitas to introduce self-branded ice cream lines

FOOD and beverage kiosk operator Fruitas Holdings, Inc. is venturing into ice cream production with the addition of two new premium ice cream lines in its product portfolio.

In a statement on Tuesday, the company said it is introducing a dairy-based and a soy-based ice cream line under the brands Fruitas and Soy & Bean, respectively.

These will be distributed through the company’s Babot’s Farm and Soy & Bean physical stores, and eventually, its own delivery service CocoDelivery and select kiosks.

“Ice cream has long been the go-to dessert of Filipinos… Recognizing this customer need, Fruitas came up with two new premium ice cream lines which will certainly make Filipinos happy, yet keep them healthy at the same time,” Fruitas President and CEO Lester C. Yu said in the statement.

The company claims to use all-natural ingredients to make the ice cream. The Fruitas brand will have eight flavors: mango, mango melon, strawberry calamansi, four seasons, strawberry melon, mango pineapple, dark chocolate and Benguet coffee. The Soy & Bean brand will have three lactose-free flavors: classic, chocolate and coffee.

Earlier this year, Fruitas partnered with Carmen’s Best Ice Cream to carry its products across select locations. This is part of Fruitas’ plan to open more revenue streams by expanding its product offerings.

Fruitas currently has more than 20 brands in its portfolio, such as Fruitas Fresh from Babot’s Farm, Buko Loco, De Original Jamaican Pattie, Juice Avenue, Black Pearl, Shou La Mien Hand-Pulled Noodles, and Sabroso Lechon.

As of November, the company has re-opened about 800 kiosks and put up nearly 20 community stores under the Babot’s Farm and Soy & Bean brands. It targets to open 30 community stores by end-2020 and 100 by end-2021.

In the nine months through September, Fruitas booked an attributable net loss of P32.23 million, reversing last year’s profit of P52.98 million, due to a 55% drop in gross revenues from closing its stores during the coronavirus-related lockdown.

Shares in Fruitas at the stock exchange increased five centavos or 3.27% to close at P1.58 each on Tuesday. — Denise A. Valdez

Pumping stations, dredging spared some towns from flooding — SMC

MALABON AND NAVOTAS cities did not experience heavy floods during the onslaught of typhoons Rolly and Ulysses because of the presence of the government’s water pumping stations, which were complemented by San Miguel Corp.’s (SMC) Tullahan-Tinajeros river dredging project, the firm said on Tuesday.

“Based on the feedback we received from representatives of the local governments of Malabon and Navotas, no major floods were reported. This is largely due to the pumping stations installed by the government, particularly the Metro Manila Development Authority that easily channels flood waters out to the Tullahan River,” SMC President Ramon S. Ang said in a statement.

Mr. Ang said that the Tullahan River in Malabon did not overflow during that time.

“This is because we’ve already dredged and deepened the mouth of the river going to Manila Bay, to up to five meters,” he said.

The P1-billion Tullahan-Tinajeros river dredging project is an SMC initiative that aims to dredge the 27-kilometer river to boost flood mitigation efforts. Mr. Ang said that the company had extracted some 60,532 metric tons of silt and solid waste from Tullahan River, as of Nov. 14.

River dredging is one of the immediate safeguards that needs to be put in place to prevent widespread flooding, an Environment official said separately on Tuesday.

“As immediate action, we need to restore the river by doing dredging,” Department of Environment and Natural Resources Undersecretary for Climate Change Service and Mining Concerns Analiza Rebuleta-Teh said in a webinar hosted by international research organization Stratbase ADR Institute.

According to Ms. Teh, the planting of the appropriate tree species along the river bank, enhanced watershed management, and reforestation, among others, must also be done to prevent heavy flooding. — Angelica Y. Yang

ING launches account for electronic payments

DIGITAL mobile lender ING Bank N.V. Manila launched on Tuesday an account for electronic payments for bills and retail purchases.

ING Philippines on Tuesday introduced ING Pay, which allows customers to pay bills using its mobile app for more than 70 companies, including those in the utilities, insurance, and credit card industries, it said in an online briefing. Transactions do not require enrolment and no transfer fees will be charged.

The account also provides a free virtual debit card which customers can use to make digital retail payments. ING Philippines said it will also soon launch a physical debit card to enable withdrawals at BancNet-enabled automated teller machines (ATMs).

“With a strong focus on customer-centricity, we are able to leverage technology and make banking processes easy, so customers do not have to spend more time than necessary. We deliver personal and instant insights so customers can take actions or just have a peace of mind that their finances are being taken care of,” ING Philippines Head of Retail Banking Mohamed Keraine said in the briefing.

The bank is offering 5% cashback for purchases using its debit card until the end of December. Customers can spend up to P1 million and receive a total of P50,000 in cashback.

ING Philippines said only customers can access their account details and they can also freeze their debit cards on the bank’s mobile app as a security feature.

The bank also plans to launch consumer loan products next year to help expand online banking in the country.

“We are a really customer-centric company. You can expect that in the course of 2021. The ING’s lend offer is going to be introduced,” Mr. Keraine said.

Even with more financial technology firms offering various services in the country, ING Philippines said digital banking is only beginning to gain ground among Filipinos.

“There is a full transformation happening, but I think we’re just at the beginning of it. There will be more players in the long term, and ING is focused on offering complimentary services,” Mr. Keraine said.

ING last year rolled out its digital savings account. The bank said so far, its customer base has doubled and its balance in deposit accounts has grown by over 10 times.

Under its Digital Payments Transformation Roadmap for 2020 to 2023, the Bangko Sentral ng Pilipinas (BSP) wants 70% of adult Filipinos to have a bank account by 2023. It also targets 50% growth in the volume of electronic retail payments by that year.

BSP Governor Benjamin E. Diokno said on Tuesday that the central bank will roll out tools and initiatives to boost digital banking in the country.

The BSP will launch a person-to-merchant QR code system, which will allow payments from consumers to retail stores using smartphone cameras.

Another is a bills payment facility that will allow firms to collect from their customers, even if the payment service providers of the billers are different from those of the customers. Through its request-to-pay service, consumers will be able to pay in full or by installment.

The central bank will also open a direct debit facility, which will let consumers issue an electronic authority to billers to regularly transfer funds for their rentals, loan amortization, or insurance premiums.

“Recognizing that digital payment services are increasingly becoming indispensable in our daily lives, the Bangko Sentral embraces a governance approach where innovation is encouraged while the accompanying risks are effectively managed,” Mr. Diokno said in his speech at the online event.

The BSP also wants to implement an open banking system that uses application programming interfaces (APIs) to easily share financial data from customers, which will help banks design products, reduce charges, and speed up delivery of services.

“Open banking through APIs will allow the exchange of banking and associated financial data across software applications. It will assist in on-boarding financial consumers and ease the high costs associated with customer due diligence procedures,” Mr. Diokno said.

The volume of e-payments made up 10% of total transactions in 2018 from just 1% in 2013, according to a Better than Cash Alliance report. By value, digital transactions comprised 20% of the total in 2018 from only 8% in 2013. — K.K.T. Jose

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