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Jollibee raises stake in Tim Ho Wan holding firm

GLOBAL fast food chain operator Jollibee Foods Corp. (JFC) is investing S$36.3 million (about P1.3 billion) to increase its stake in the holding entity and private equity fund behind restaurant brand Tim Ho Wan.

In a disclosure to the stock exchange on Tuesday, JFC said its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. is buying the 25% interest of Aragon Investments SPC in Titan Dining LP, the holding entity of Tim Ho Wan.

The transaction is set to be completed by the end of the month, and will increase Jollibee Worldwide’s stake in the Titan fund to 85% from 60% at present.

Jollibee Worldwide’s investment in the Titan fund allows it to buy a substantial ownership in Tim Ho Wan’s master franchise in the Asia-Pacific region in seven years.

This is part of the company’s S$45-million (about P1.6-billion) investment in the Titan fund in 2018, which represents 45% of the fund’s S$100-million size at the time. The deal allows JFC to acquire the Tim Ho Wan franchise in region when the term ends in seven years.

As preparation, JFC has to operate as a franchisee of Tim Ho Wan in Shanghai, China. At the time of the transaction, the Tim Ho Wan brand was owned and operated by Tim Ho Wan Pte. Ltd. and its affiliate Dim Sum Pte. Ltd. It has 40 outlets across Singapore, Cambodia, Indonesia, Japan, Macau, Taiwan, Thailand, Vietnam, Australia, and the Philippines.

In 2019, Jollibee Worldwide increased its investment in the Titan fund to S$120 million (about P4.3 billion) after the fund size grew to S$200 million. This expanded the company’s investment in the fund to 60% from 45%.

“The increase in fund size and additional capital commitment of (Jollibee Worldwide) are in furtherance of certain strategic projects currently being undertaken by Titan, consistent with its mandate to invest in the food service sector and grow strong Asia Pacific food service brands,” JFC said.

Last year, JFC formed a $13-million joint venture with Dim Sum Pte. Ltd. through its wholly owned subsidiary Golden Plate Pte. Ltd. to bring the Tim Ho Wan brand in China. Golden Plate infused $7.8 million to own 60% of the joint venture, leaving 40% to Dim Sum Pte. Ltd.

JFC eventually opened its first Tim Ho Wan restaurant in Shanghai, China last September, boosting its portfolio of overseas brands it directly operates.

The company currently has 5,813 stores in its global network, 3,247 of which are located in the Philippines. The rest are spread across China, Vietnam, Brunei, Hong Kong, Singapore, Macau, Malaysia, United States, Canada, Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain, Oman, Italy, United Kingdom, Guam, and Indonesia.

Aside from Tim Ho Wan, JFC controls Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, PHO24, Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Highlands Coffee, Hard Rock Cafe, Smashburger, and The Coffee Bean & Tea Leaf.

JFC has allocated P5.2 billion for capital spending this year. It swung to an attributable net loss of P12.99 billion in the first half of 2020, a turnaround of last year’s P2.18 billion income, due to store closures because of the coronavirus pandemic.

Shares in JFC at the stock exchange rose P14.40 or 9.31% to close at P169 apiece on Tuesday. — Denise A. Valdez

PCC approves joint venture funded by Rockwell-TGN

THE Philippine Competition Commission (PCC)  has greenlit a joint venture to develop more than 36,000 square meters in mixed-use property in Pampanga funded by Rockwell Land Corp. and TGN Realty Corp.

Under their agreement, Rockwell and TGN will infuse capital, while NepWell Property Management, Inc. and siblings Hilda Aurora N. Valdes, Patrick Adrian N. Valdes, and Theresa Gracia N. Valdes will contribute land in Angeles City.

PCC in a press release on Tuesday said that the project involves the development of residential, commercial, and retail use through a joint venture company. Rockwell, TGN, and the Valdes siblings will buy shares in the joint venture company.

The commission said that the project will not result in substantial lessening of competition in the real estate market, either in Pampanga or nationwide, calling the transaction “a joint venture formed purely for the construction and development of a residential and/or commercial real estate development.”

Rockwell is a real estate firm under the Lopez group of companies, while TGN is under the Nepomuceno business group. The Valdes siblings are minority shareholders in J Ten Equities, Inc., the parent company of NepWell.

The commission in its decision signed Oct. 13 said it will take no further action.

PCC has three more transactions under its review, as they were filed before Republic Act No. 11494 or Bayanihan To Recover As One Act (Bayanihan II). Parties in mergers and acquisitions with transaction values below P50 billion are exempted from notifying the competition regulation body within two years from the effectivity of the law.

PCC review of said transactions, conducted on its own initiative, is also suspended for a year. — Jenina P. Ibañez

IT firms’ budget for cloud to grow further

But Bain & Co. says maintenance spending to ease

SPENDING of technology companies on cloud computing will continue to grow over the next year and beyond, global management consulting firm Bain & Co. said.

Technology firms paused many of their IT-related investment plans at the onset of the coronavirus crisis, the firm said in its latest report.

“Early in the pandemic, IT decision makers said they expected decreased spending on software maintenance contracts and on-premise IT to continue at least through 2021. The expected spending reductions have only grown more pronounced as the pandemic has unfolded,” it added.

However, companies’ IT decision makers immediately increased spending on cloud-based security and software-as-a-service for remote work, the consulting firm said, noting that cloud budgets are also expected to continue growing “over the next year and beyond.”

Technology firms have been reshaping their businesses in response to the pandemic crisis. Employees work from home, companies aim to reduce costs, artificial intelligence and analytics guide most of their decisions, and the use of virtual sales has accelerated.

The consulting firm noted that technology companies are actually “12% more likely to be disrupted” than those in the retail rector.

Technology firms are also 25% more likely to be disrupted than those in financial services.

The US-based company said further that only advanced manufacturing and services firms have a “higher likelihood of being disrupted than technology companies.”

It warned technology companies that once they fall behind, it “can be difficult to repair.”

“A technology company that has been disrupted is 12% less likely to return to sector-average revenue growth or higher than companies in retail and 17% less likely than those in healthcare,” Bain and Co. noted.

Hence, industry players should innovate if they want to survive, it said.

“Tech is not an industry where there are many second chances,” David Crawford, global head of technology practice at Bain & Co. and a lead author of the report, said in an e-mailed statement on Tuesday.

“The longer a technology company lags its sector, the less likely it is to recover. This makes it all the more important for tech companies to understand what will make their business different in just a few years,” he explained. — Arjay L. Balinbin

PMFTC to buy $130-M tobacco leaves locally

PMFTC, Inc. will be allotting $130 million (P6.3 billion) to buy tobacco leaves from Filipino farmers who will supply more than 45,000 tons of its leaf requirement over the next three years to help boost the sector’s growth.

“Despite these developments (declining leaf production), Philip Morris Fortune Tobacco Corporation (PMFTC) remains committed to purchasing a substantial size of our local tobacco leaf through our suppliers. While dependent on tobacco industry dynamics and the government’s excise tax policies, we anticipate spending approximately $130 million for more than 45,000 tons of Philippines green tobacco leaf over the next three years,” said PMFTC President Denis Gorkun in a letter addressed to the secretaries of Finance and Agriculture departments.

Mr. Gorkun said leaf production volume in the country had been falling because of the recent tax hikes on tobacco products and the expected surge in the illicit trade of cigarettes because of an increase in prices.

A new round of increases in excise taxes slapped on tobacco products, electronic cigarettes, and vapor products took effect this year after Republic Act No. 11467 was signed into law in January.

Mr. Gorkun said PMFTC, the Philippine affiliate of Philip Morris International, sourced 43% of its leaf purchases from local farmers last year, both directly and through suppliers. The volume supplied a portion of the firm’s production in the Philippines and in 15 other countries.

PMFTC is also working on a possible $1-million investment to boost the capacity of the National Tobacco Administration’s quality assurance and physico-chemical laboratory to conduct aerosol testing and check the compliance of products.

The company will continue its program that helps 15,000 tobacco farmers in tobacco-producing provinces become more competitive and yield quality output, he said.

“We would also like to take this opportunity to assure PMFTC’s support for reasonable regulations applicable to tobacco products. The development of balanced and fair regulations will not only protect the interest of various stakeholders but also ensure the sustainability of the tobacco industry and the livelihood of our Filipino tobacco farmers, especially with the economic challenges we are facing today,” he said in his letter.

Finance Secretary Carlos G. Dominguez III and Agriculture Secretary William D. Dar earlier asked tobacco manufacturers to buy more from local farmers and help the industry recover from the impacts of the coronavirus disease 2019 (COVID-19) pandemic.

The lockdowns and other restrictions imposed to curb the spread of the disease has affected the flow of agricultural goods including tobacco, which is among the most adversely affected crops as it is a non-food item.

Japan Tobacco International (Philippines), Inc. on Monday also said it would increase its purchases of tobacco leaves to 4.6 million kilograms next year.

Republic Act No. 10351, or the excise tax reform law on alcohol and tobacco, requires manufacturers or vendors selling tobacco products in the country to buy at least 15% of their needed tobacco leaf raw materials from local farmers. — Beatrice M. Laforga

JG Summit approves 5% stock dividend

JG SUMMIT Holdings, Inc. is paying a 5% stock dividend to stockholders as it reclassifies its preferred non-voting shares into preferred voting shares.

In a special meeting held virtually on Tuesday, stockholders of JG Summit approved the declaration of stock dividends equivalent to 5% of its total issued and outstanding shares, which will be additional to the declared cash dividends of 38 centavos per share for 2020.

This is equivalent to 358,142,083 common shares and 200 million preferred voting shares, which will be issued and paid for out of the unrestricted retained earnings of JG Summit as of end-2019 to all stockholders as of Oct. 30, 2020. The dividends will be distributed on Nov. 25.

“The preparation considers the declaration of 5% stock dividends as further remuneration to the stockholders given the growth of the corporation. This will also strengthen our capital base and ensures that the corporation remains tax compliant,” Maria Celia H. Fernandez-Estavillo, JG Summit corporate secretary, said during the meeting.

In line with this, the stockholders also approved reclassifying the company’s non-voting shares, which increased its preferred voting shares to 204 billion with a par value of 1 centavo each.

The company said the decision will strengthen its capitalization by minimizing stock issuance costs. It will also facilitate issuing proportionate stock dividends to both common and preferred voting shares, and maintain the cash and property dividends of preferred voting shares to 1/100 of common shares.

JG Summit noted that the proposed amendments, which are still subject to the approval of regulators, are not expected to have any adverse effect on its business operations nor its capital structure.

The company posted an attributable net loss of P720.25 million in the first semester, reversing its profits of P17.4 billion last year, due to the effect of the coronavirus pandemic to its airline, petrochemical and property businesses.

JG Summit shares closed at P64.10 each on Tuesday, up P1.60 or 2.56% from the last session. — Denise A. Valdez

Newly completed Skyway 3 will be toll-free in Dec. — San Miguel

SAN MIGUEL Corp. (SMC) on Tuesday said it will soft-open the newly completed Skyway Stage 3 project in December.

“For the first month, motorists can use the entire 18-kilometer length of Skyway 3 from Buendia to NLEX (North Luzon Expressway) for free,” SMC said in an e-mailed statement.

The P70-billion project links Gil Puyat Ave. in Makati City to the North Luzon Expressway toll plaza in Balintawak, Quezon City.

The company announced on Oct. 13 that it had completed the project ahead of the original Oct. 31 schedule.

“While we’re still doing a few finishing works, we want the public to be able to use Skyway 3 already and benefit from the convenience and ease of travel that it will bring,” SMC President and Chief Operating Officer Ramon S. Ang said.

The project has five sections: Gil Puyat Ave. (formerly Buendia Ave.), Makati – Quirino Ave. – Nagtahan; Nagtahan – Aurora Blvd./Ramon Magsaysay Ave.; Ramon Magsaysay – Quezon Ave.; Quezon Ave. – Balintawak, Quezon Ave.; and Balintawak, Quezon City – NLEX Footbridge.

SMC also plans to finish the northbound section of the Skyway Extension project, which aims to provide additional lanes and connect SLEX to the Skyway near Susanna Heights and the Muntinlupa-Cavite Expressway by December.

“With this, travel from Susanna Heights through the Skyway System including Skyway 3, all the way to the Balintawak toll plaza of the NLEX, will only take 20 minutes,” SMC said.

“Travel time from Magallanes to Balintawak will be just 15 minutes, Balintawak to NAIA will be just 15 minutes, and Valenzuela to Makati will only take 10 minutes,” it added. — Arjay L. Balinbin

PayMaya says merchants accepting cashless payments increase 1,400%

DIGITAL payments firm PayMaya Philippines, Inc. said on Tuesday the number of merchants it has enabled to accept contactless payments grew by more than 1,400% year-on-year as of September.

The increase signifies that cashless and contactless payment and money transfer technologies are now “part of the world’s arsenal” against the coronavirus pandemic, PayMaya Founder and Chief Executive Officer Orlando B. Vea said in an e-mailed statement. 

PayMaya said it is also providing up to P60 million worth of support to small businesses to help them digitize amid the pandemic crisis.

Among the businesses that use PayMaya’s cashless technology are Megaworld, McDonald’s Philippines, Jollibee Foods Corp., Goldilocks, Unilever, Petron, Shell, Robinsons Malls, SM Supermalls, Smart Communications, Angkas, and Food Panda, among others.

PayMaya is a subsidiary of Voyager Innovations, Inc., the digital arm of PLDT Inc.

PLDT, China’s Tencent Holdings Ltd., Kohlberg Kravis Roberts & Co., International Finance Corp., and IFC Emerging Asia Fund had signed agreements in April to commit up to $120 million in new funding towards Voyager’s expansion plans.

PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan expects PayMaya to be profitable by 2024.

Voyager’s portfolio, aside from the PayMaya e-wallet and app for consumers, includes PayMaya Enterprise for end-to-end merchant-acquiring solutions and Smart Padala, which has over 30,000 partner agent touchpoints nationwide.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Traditional weaving enters the new normal as Habi fair goes online

MERCIFULLY, the world doesn’t stop for weavers. Even a pandemic can’t freeze the movement of looms around the country. The well-loved Likhang Habi Market Fair of years past — showcasing handwoven items for the home and self using local fabrics, fibers, and textiles — is going online this week, from Oct. 21-27, via the website www.shophabifair.com.

“In these pandemic times, we cannot gather in numbers,” said HABI: The Philippine Textile Council president Adelaida Lim from her Baguio home during a webinar early this month. “Things have to be done differently,” she said, also noting that the previous fairs, which began in 2009, were held over a weekend in Glorietta. She summarizes Habi’s purpose: “It was really to help the weavers to get their products to a buying market.”

Over 30 merchants will join this year, with their products sourced from and made in all corners of the country. “There are many beautiful fabrics from the different areas in our country. One of our main goals at HABI is to make sure that our traditional textiles will still be a part of our modern lifestyle as we transition to the new normal,” says HABI chairperson Maribel Ongpin.

HABI also continues its long-term commitment and advocacy of reviving the use of pure Philippine cotton, a fiber that is very much a part of the Filipino culture. HABI has partnered with the Philippine Fiber Industry Development Authority (Philfida) to give local weavers organic cotton seeds and threads for its Cotton Adoption Project to boost its position in the handloom weaving industry.

“This is how HABI: The Philippine Textile Council proposes to start that creative economy. We urge our HABI friends to sustain that economy purchasing online. You will have the option to acquire beautiful things, and things that speak of identity and tradition,” said Ms. Lim.

Another highlight of the annual Likhang HABI Market Fair is the Lourdes Montinola Piña Weaving Competition. Now in its third year, this competition recognizes exceptional craftsmanship and mastery of the delicate process of turning pineapple threads into works of art. “The competition has encouraged us greatly over the years because it brings out new talent and revives old techniques. So, we always look forward to the surprises that this competition will bring,” says Ms. Lim. The judges for the third Lourdes Montinola Piña Weaving Competition are Filipino fashion designers Leslie Mobo and Len Cabili, and piña textile expert and food historian Felice Sta. Maria.

Ms. Ongpin said, “The modern world is realizing the beauty of handwoven items and the beauty of tradition.”

When we think of going online, we think of new worlds and the youth. It’s hard to associate those two things with the age-old craft and art of weaving. HABI members shared their thoughts on the matter of getting a new generation interested in weaving. “The problem is, people [aren’t] interested anymore in these crafts, which is discouraging. Working with the hands is something that develops the intellect as well. Maybe this should be the focus of education. Rather than just developing intellectual skills, you have to also develop hand skills,” said Ms. Lim.

Ms. Ongpin pointed out that some institutions, particularly the Aklan State University, offer courses in weaving, with some programs devoted to teaching about natural dyes. “The only thing that’s necessary is perhaps new designs, perhaps competitions, and a more available market. If there’s a market, there will be people who will provide for that market.”

Aside from the online trade fair, there will also be a series of webinars and a four-day online summit in line with HABI’s mission to promote Filipino culture and heritage.

For this year, HABI is supporting Nayong Pilipino for Mga Hibla ng Pamana: A Summit on Weaving as Intangible Cultural Heritage. The four-day online summit aims to discuss how different sectors in the country are coming together to protect and conserve traditional weaving practices and traditions.

HABI is also collaborating with CulturAid, Kularts, House of Gongs, and Museo ng Muntinlupa to present the first-ever international Voices from the Field Program that will feature a series of webinars on the topic of Filipino Identity and Contemporary Cultural Practice in the Philippines and the Diaspora.

Aside from the webinars, the latest work of Philippine textile experts Dr. Norma Respicio and Gayle Zialcita, Weaving Ways: Filipino Styles and Techniques, will also be available at the online fair. The book discusses the different weaving communities in the Philippines, their history and traditions, and the different weaving styles and techniques of Filipino weavers.

For more information on Likhang HABI Online Market Fair, the series of webinars, and other HABI advocacies, visit www.habitextilecouncil.ph or follow www.facebook.com/HabiThePhilTextileCouncil and Instagram @habifair.  — Joseph L. Garcia

BTr fully awards 10-year bonds on lower yield, strong demand

THE GOVERNMENT made a full award of the reissued 10-year Treasury bonds (T-bonds) it offered on Tuesday as its yield dropped on expectations of benign inflation in the next two years.

The Bureau of the Treasury (BTr) raised P30 billion as planned from the T-bonds as the offer was more than twice oversubscribed, with bids amounting to P68.664 billion.

The reissued 10-year papers, which have a remaining life of four years and 10 months, fetched an average rate of 2.782%, down by 40 basis points (bps) from the 3.182% quoted when these papers were last offered on June 23, where the BTr likewise awarded P30 billion as planned.

The bonds on offer yesterday were originally issued on Sept. 9, 2015 with a coupon of 3.625%. Yesterday’s full award brought the total outstanding volume for the series to P203.7 billion.

The five-year T-bonds — the tenor closest to the remaining life of the issue — were quoted at 2.672% at the secondary market yesterday, based on the PHL Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said the tenor’s average yield declined as investors remain awash with cash and amid lower inflation expectations in the coming years.

“The inflation outlook is benign. There is also strong liquidity [in the market] with a heavy bias on the belly tenors,” Ms. De Leon told reporters via Viber after the auction on Tuesday.

A trader said the central bank’s lower inflation forecasts kept yields low even as investors await more signs of economic recovery.

The Bangko Sentral ng Pilipinas (BSP) left benchmark rates unchanged at its Oct. 1 policy meeting, citing easing inflation and ample liquidity in the financial system.

At its fifth policy review this year, the Monetary Board kept the rates on the BSP’s overnight reverse repurchase, lending and deposit facilities unchanged at their record lows of 2.25%, 2.75% and 1.75%, respectively.

At that meeting, the BSP said its inflation forecast for this year was revised downwards to 2.3% from the previous 2.6% estimate. It also lowered its inflation outlook for 2021 and 2022 to 2.8% (from three percent) and three percent (from 3.1%).

Inflation eased for the second straight month in September to its slowest level in four months on the back of moderating prices in the heavily weighted food and nonalcoholic beverages, the Philippine Statistics Authority (PSA) reported earlier this month.

Preliminary PSA data showed headline inflation stood at 2.3% in September, the slowest since May’s 2.1%. This was also slower than the 2.4% seen in August, but faster than the 0.9% print in September 2019.

Headline inflation averaged at 2.5% in the first nine months, within the BSP’s 2-4% target for the year.

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

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

LRMC to release scientific study on safety protocols for its trains

LIGHT RAIL Manila Corp. (LRMC), the private operator and maintenance provider of Light Rail Transit Line (LRT)-1, is conducting a study on the safety protocols for its trains to ensure passengers’ safety after the Transportation department allowed train operators to gradually increase their capacities to 50%.

“The LRMC study performed the dispersion experiment using Glo Germ® Mist to simulate sneezing and coughing. Glo Germ is commonly used to simulate bacteria of 0.5 micron size,” Louernie de Sales, officer in charge of LRMC’s health, safety, environment, and quality department, said in an e-mailed statement on Tuesday. 

LRMC said its study is limited to the measurement of respiratory droplet dispersion. The airborne transmission of the coronavirus disease 2019 (COVID-19) was not taken into consideration, it added.

“An experiment using SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2) or similar specimen was not carried out for the safety of the researchers and the participants,” the company said further.

The study is being peer-reviewed by experts from the University of the Philippines, it said.

The Transportation department announced on Sunday that it had instructed railway operators to increase their passenger capacities to 30%. They previously operated at 13% to 18% capacities amid the travel restrictions.

From 30%, their capacities will be gradually increased to 50%, the department said.

“Rail public transportation is an enabler of our consumer driven economy. Our mission remains to provide safe transportation, and we achieve this using best in class safety protocols,” LRMC President and Chief Executive Officer Juan F. Alfonso said.

He added that the company studies the passenger behavior and targets disinfection on the places most in contact with the passengers.

“These are measured by our team weekly, and adjustments are made to the priority areas for cleaning. I can assure our commuters that the LRT-1 system is safe,” he said.

LRMC is a consortium composed of Ayala Corp., Metro Pacific Light Rail Corp. (a unit of Metro Pacific Investments Corp.) and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.

Metro Pacific is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Arjay L. Balinbin

Influencers, creators to hold an online convention

WE’LL have to give our influencers and creators their due: their Tiktoks, DIY instructions, and all the content they’ve put out have kept us from snapping during this pandemic.

The CICP (Creator and Influencer Council of the Philippines) is holding its second BaiCon on Oct. 23-24, the largest gathering of creators and influencers in the Philippines, with this year’s theme being “BaiCon InFest 2020 The Space Invasion.” It will be held over a plethora of virtual platforms — from Facebook, TikTok, and Zoom.

It will be attended by over 50 of some of the most influential influencers and creators in the country, including Mikey Bustos, Erwan Heussaff, Inka Magnaye, Bogart the Explorer, Gino Quillamor, Ranz and Niana Guerrero, Kimpoy Feliciano, Gie Cayetano, Haidee and Hazel Quing, Chinkee Tan, Dani Barretto-Panlilio, Xavi Panlilio, Kyo Quijano, Luigi Pacheco, Rozel Basilio, Echo Calingal, Jen Barangan, Shaine Buhat, Ali King, Alec Kevin, and many more. It will also feature VisMin creators and influencers like Phillip of Davao Conyo, Alem Garcia, David Wilde X, Malaya Macaraeg, Sarah del Mar, Aicy and Trishia Fabe.

“We just really wanted to have that platform where creators and influencers could inspire and push other aspiring influencers to start their content creation journey,” said Bea Evardone, CICP Board of Director and COO of Republiq Group of Companies (RGC) and BAI TV during a webinar early this month. “We want to be able to elevate the digital entertainment industry.”

The conference will also serve as a fundraiser for its CSR projects. This year, they’re planning to distribute 100 digital learning kits (a ring light, pocket wifi unit, flash drive, and mobile phone) to 100 teachers across the nation. “Our teachers are the new wave of influencers,” said RJ Garcia, CICP Director for CSR. Earlier this year, they also had fundraisers for medical frontliners to procure PPEs.

To join BaiCon, register via www.baicon.ph or follow BaiCon InFest 2020 The Space Invasion’s Facebook, Instagram, and TikTok @baicon.ph. — JLG

Inflation seen settling near lower end of BSP goal

HEADLINE INFLATION this year could be lower than expected as risks remain tilted towards the downside amid the ongoing pandemic, a senior central bank official said.

“We see chances that inflation will be lower than what we had projected to be slightly higher than the chance that the inflation will be higher than the projected levels,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco G. Dakila, Jr. said in an online forum on Tuesday.

Earlier this month, the BSP Monetary Board revised its average inflation forecast for the year to 2.3% from 2.6% amid easing oil prices and the slower-than-expected inflation seen in August.

Meanwhile, the inflation forecasts for 2021 and 2022 were also lowered to 2.8% (from three percent) and three percent (from 3.1%), respectively.

In September, headline inflation stood at 2.3%, easing from the 2.4% in August but still faster than the 0.9% tallied in the same month a year ago. Year to date, inflation averaged 2.5%, within the 2-4% target of the BSP.

“We see inflation within target over the policy horizon but we will be at the lower point of the target band. We will be approaching the mid-point of the target band as we go longer into the policy horizon,” Mr. Dakila said, noting risks remain tilted to the downside due to the impact of the pandemic on global and domestic growth prospects.

“Our market determination [of the exchange rate] is very beneficial to us. It provides correct pricing of risks,” he said.

The peso has been hovering around the P48-per-dollar range in recent weeks. The local unit closed at P48.62 on Tuesday, depreciating by two centavos from the P48.60 finish seen on Monday, data from the Bankers Association of the Philippines showed.

The local unit is currently among the strongest currencies and this was partly on the back of the decline in imports, Mr. Dakila said.

“Looking at the year-to-date performances of selected currencies, the peso is second in strength to the euro. The euro has appreciated year to date by 5.2%, the peso by 4.7%, followed by the Taiwanese dollar at 4.5%, the yen by 2.8%, and Chinese yuan by 2.2%,” he said.

On the other hand, he noted that some currencies of neighboring countries, such as the Indonesian rupiah and the Thai baht, have depreciated by 11.3% and 4.8% year to date, respectively.

“Economic activity has fallen and because of that, the demand for foreign exchange has also fallen,” Mr. Dakila said.

“Going forward as we reopen our economy, then we can expect there will be recovery in the demand of foreign exchange,” he said, noting the gradual comeback of the infrastructure push of the government will also boost imports. — L.W.T. Noble

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