Inflation seen slightly faster in Oct.

November 2, 2020 | 12:33 am

An uptick in fares and cost of transport may have also contributed to faster inflation in October. — *PHILIPPINE STAR/MICHAEL VARCAS*

By Luz Wendy T. Noble, Reporter

INFLATION may have slightly picked up in October due to a rise in food prices and transport costs, as well as the impact of base effects.

A poll of 15 economists by BusinessWorld last week yielded a median estimate of 2.4%, close to the higher end of the 1.9-2.7% forecast given by the Bangko Sentral ng Pilipinas (BSP) and well within the 2-4% target this year.

If realized, the median estimate will be a tad faster than 2.3% in September and 0.9% in October 2019. The BSP’s latest average inflation forecast for this year is at 2.3%

The Philippine Statistics Authority will release October inflation data on Thursday.

Analysts said upside risks from higher prices of some food groups might have caused inflation to slightly quicken last month.

“The recent typhoons could affect the uptick of prices of some commodities such as vegetables. Prices of meat items such as pork and chicken remain high due to limited supply,” said Mitzi Irene P. Conchada, an economist from De La Salle University Manila.

Two typhoons hit the country in late October. The Department of Agriculture said agri-fishery damage from typhoons Pepito and Quinta reached P67.57 million and P2.2 billion, respectively. Hardest-hit areas include some provinces in Central Luzon, Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon), and the Bicol Region.

The agency last week raised the suggested retail price (SRP) for various cuts of pork sold in Metro Manila to account for shortages caused by the African Swine Fever. The new SRP for pork shoulder, known as kasim, is now at P260 per kilogram (from P230), while the SRP for pork belly, or liempo, was set at P280 per kilogram (from P250).

An uptick in fares and transport costs may have also contributed to faster inflation in October as travel restrictions were eased and more economic activities restarted, analysts said.

“Transport costs are expected to have provided some upward contribution as well as mobility, especially from public transport,” Security Bank Corp. Chief Economist Robert Dan J. Roces said.

He added that higher electricity rates in areas served by Manila Electric. Co. (Meralco) could be another upside risk to inflation. October power rates rose by P0.1212 per kilowatt-hour (kWh) to P8.55 per kWh from the previous month, Meralco said.

Other factors such as base effects and education expenses in October may have also led to quicker inflation, said ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa.

But a slightly faster inflation will not be enough to compel the central bank to further cut rates, according to analysts.

“A record low local policy rate of 2.25% would still remain unusually below the inflation rate that results in net negative interest rates, thereby making any further cut in policy rates more challenging at the moment,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“BSP will respond to the third-quarter GDP number rather than the inflation at this point. We expect that if the third-quarter GDP will remain worse than -8% to -9%, then the BSP will likely cut overnight policy rates further,” Sun Life Financial Economist Patrick M. Ella said.

The economy shrank by a record 16.5% in the second quarter as it succumbed to the impact of the tight lockdown during the period.

While a less steeper GDP contraction is expected in the third quarter as the economy gradually reopened, the government estimates GDP to fall by 4.5% to 6.6% this year. The official third-quarter GDP data will be released on Nov. 10.

Meanwhile, Alex Holmes, an economist from Capital Economics, expects the third-quarter growth data to underwhelm, adding that the BSP may be “too upbeat” on its economic outlook.

“We continue to expect another cut by the BSP before the end of the year. Just a 25-bp (basis point) cut, taking the policy rate down to 2%,” Mr. Holmes said.

The Monetary Board will hold its policy setting on Nov. 19, before its final meeting for the year on Dec. 17.

The BSP has slashed key policy rates by 175 bps this year to support the economy amid the pandemic. This has brought down the overnight reverse repurchase, lending, and deposit facilities to record lows of 2.25%, 2.75%, and 1.75%, respectively.

While the policy-setting body has opted for a “prudent pause” in its August and October meetings, BSP Governor Benjamin E. Diokno has said that the central bank continues to have room for further easing when the need arises. He said this would allow previous actions to be fully absorbed by the financial system.

Mr. Diokno has also said they would carefully assess the timing to unwind aggressive policy measures done in light of the crisis to prevent serious repercussions on the economy.

Foreign businessmen want concrete results from corruption probe

November 2, 2020 | 12:32 am

The Philippines dropped 14 spots to 113th place out of 180 economies in a global corruption index by Transparency International released earlier this year. — PHILIPPINE STAR/MICHAEL VARCAS

By Jenina P. Ibañez, Reporter

FOREIGN business groups are hoping to see concrete results from the Duterte administration’s new crackdown against corruption to increase investor confidence in the country.

The Department of Justice has formed a group to lead a probe of various government agencies for corruption, after President Rodrigo R. Duterte ordered them to investigate “the entire government” until 2022.

“Let’s see the results of the investigations and probes if they are thorough and will produce convictions,” American Chamber of Commerce Senior Advisor John Forbes said in a mobile message on Friday.

Reducing corruption is a top business concern, Mr. Forbes said, noting that it wastes business taxes and steals goods and services from citizens.

European investors would welcome Philippine government moves to eradicate corruption, EU-ASEAN Business Council (EU-ABC) Executive Director Chris Humphrey said in an e-mail.

“It is very important for investors from Europe to have increased certainty that they will not be subjected to extraneous demands that go beyond normal business practices,” he said.

Mr. Forbes said the work of the Office of the Ombudsman and Sandiganbayan could move faster, adding that “SALNs (Statement of Assets, Liabilities and Net Worth) and lifestyle checks are basic tools.”

Mr. Duterte had not released his 2018 and 2019 net worth statements, the first president not to do so in the past three decades, according to the Philippine Center for Investigative Journalism. Presidential spokesman Harry L. Roque last month said the decision to release the statements would be left to the Ombudsman.

Mr. Forbes said the Philippines should follow anti-corruption moves in other countries in the East and Southeast Asian region, including the imprisonment and fining of public and private senior officials.

Former South Korean President Park Geun-hye was removed from her post then jailed after a corruption scandal led to widespread protests, while former Indonesian Speaker of Parliament Setya Novanto in 2018 was sentenced to 15 years in prison for embezzlement.

FAILURE TO INSTITUTIONALIZE
Mr. Duterte can fire even his political allies, University of Santo Tomas political science professor Marlon M. Villarin said, citing the removal of former National Irrigation Administration chief Peter Laviña, the President’s campaign spokesman, in 2017.

“The problem here is that Duterte is only limited in axing the people, but at the same time, fails to sustain, to institutionalize an effective mechanism of making corruption in the Philippine administrative system high-risk and low-reward,” Mr. Villarin said.

An anti-corruption crusade is a “purely political” move to present to the public, he said, as probes could allow for the firing of appointed officials without creating sustainable measures such as legislation that collaborates with several anti-corruption agencies.

Unlike other countries, the Philippines does not suspend officials facing corruption allegations, which means that officials remaining in their posts can affect the outcome of investigations, he said. In some cultures, officials voluntarily leave their posts, he added.

The Ombudsman recently suspended Philippine Health Insurance Corp. executives for what it said were anomalous fund releases through an interim reimbursement mechanism, and Health department officials for delays in releasing workers’ benefits.

Mr. Villarin said that an anti-corruption campaign must have measurable outcomes.

“How many people were thrown into jail? With all the numbers of filed cases concerning graft and corrupt practices, how many were submitted to the proper court? How many were resolved?”

For the government’s anti-corruption campaign to succeed, Transparency International said investigations and prosecutions must be done without bias. Reforms must also build strong oversight institutions and allow for activism and journalism, it added.

“It is also essential that accountability doesn’t stop with low-level officials and bureaucrats but is pursued to the highest levels of office necessary,” Transparency International Asia-Pacific Director Alejandro Salas said in an e-mail.

The Philippines dropped 14 spots to 113^th place out of 180 economies in a global corruption index released by the organization in January. Countries with lower scores have weak election campaign transparency and their political power is concentrated on the wealthy few, according to the report.

Mr. Salas said the Justice department’s probe would not affect the country’s 2021 score because the data have already been compiled. A short-term anti-corruption campaign, he said, is also unlikely to make a big difference to the score.

“A significant improvement in the country’s score will only be achieved by long-term, sustained anti-corruption efforts aimed at building the strong democratic institutions necessary for successfully fighting corruption,” he said.

“Any anti-corruption drive is, in general, welcome. However, the real test for President Duterte is not expressing an intention or issuing a plan, but making it happen and showing how his intention translates into a more just society.”

DIGITALIZATION
University of Asia and the Pacific Professor Ramon N. Cabrera said that aside from fact-finding investigations searching for liable officials, the government could also be proactive in coming up with policies that can prevent corruption.

“In my view, most forms of corruption are demand driven usually brought about by red tape and unnecessary bureaucratic procedures. Addressing these two will significantly reduce the demand for corruption,” he said in a mobile message.

The creation of the anti-red tape body and digital transformation of government processes, Mr. Cabrera added, could help significantly reduce corruption.

Investors are looking at both digitalization and anti-red tape efforts, as well as moves to open up the economy to foreign direct investment, British Chamber of Commerce of the Philippines Executive Director Chris Nelson said.

“(Anti-corruption) is an important measure, but you have to look at it as part of one package… You’ve got to also look at the particular challenges all governments are facing within the economy, so for example what is going to happen in the stimulus, what is happening to the overall economy?” he said in a phone interview.

“Now when they come to establish, can they get permits quicker, can the process be quicker — which is the Anti-Red Tape Authority — and they deal in a very transparent way… With a more digital process, it’s a more transparent and a quicker process,” Mr. Nelson added.

The Philippines jumped to the 95^th spot from 124^th in the Ease of Doing Business 2020 report, but remained one of the lowest among Southeast Asian nations. The country’s lowest scores in the Worldwide Governance Indicators for 2018 was for control of corruption and rule of law indicators, while its government effectiveness and regulatory quality improved from previous years.

European Chamber of Commerce of the Philippines President Nabil Francis in a mobile message said the chamber supports efforts to promote good governance.

“We deem anti-corruption and transparency measures as key ingredients to sustaining economic growth and making the Philippines a more attractive destination for trade and investments.”

Japan approves technical aid for four PHL infrastructure projects

November 2, 2020 | 12:31 am

THE Japanese government has approved ¥3.1 billion (P1.44 billion) worth of technical assistance for four infrastructure projects in the Philippines as it reaffirms its commitment to support the administration’s “Build, Build, Build” program.

In a statement on Sunday, the Department of Finance (DoF) quoted Japanese officials as saying technical assistance would be given for the construction of a fourth Cebu-Mactan bridge and coastal road; Subic Bay masterplan; the Parañaque spillway, and the Cagayan de Oro-Malaybalay section of the central Mindanao highway project.

Philippine and Japanese officials held the 10^th meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation via video conference on Oct. 28.

The DoF said the two countries also plan to sign the second loan agreement for the first phase of the Metro Manila Subway Project in the first quarter of 2021.

Tokyo also pledged to provide more technical assistance and related grants to the Philippines with highly concessional payment terms, and could be taken from its Special Terms of Economic Partnership, before Manila becomes an upper-middle income economy by 2022.

Japanese officials also pledged their commitment to strengthen the country’s bilateral ties with the Philippines under the new leadership of Japanese Prime Minister Yoshihide Suga, who replaced Shinzo Abe in September.

“Our commitment to this long-standing partnership has proved beneficial amidst these trying times. Our cooperation in accelerating infrastructure development will be most critical in the country’s recovery from the adverse effects of the COVID-19 (coronavirus disease 2019) pandemic,” Finance Secretary Carlos G. Dominguez III said in the statement.

Between March and September, the two countries signed five loan agreements and three exchanges of notes amid the pandemic.

The agreements include a ¥50-billion (P23-billion) emergency loan for the Philippines’ pandemic response and another ¥50 billion (P23 billion) for a post-disaster standby loan; as well as the financing extended for the Metro Manila Priority Bridges Seismic Improvement project; ¥18.5 billion (P9 billion) for the Davao City Bypass Construction project; and ¥119 billion (P55 billion) for the Cebu-Mactan Bridge and Coastal Road construction project.

The Department of Finance said the two countries also considered the potential impact of the pandemic on the ongoing and pipeline infrastructure projects, especially on worker safety, a possible increase in total cost of projects, immigration concerns, and timeline.

They also discussed programs that will speed up the economic development and peace process in Mindanao, especially with the newly established Bangsamoro Autonomous Region in Muslim Mindanao.

The two countries have met regularly since March 2017 to discuss Japan-backed infrastructure projects in the Philippines.

Japan is the Philippines’ biggest source of official development assistance (ODA), with $10.1 billion worth of loan and grant commitments as of June, accounting for 38.53% of the latter’s total ODA portfolio. — B.M.Laforga

Decline in home pre-sales seen to go on until 2021

November 2, 2020 | 12:05 am

PRE-SALES of residential homes will be down until next year as the pandemic’s impact on households is likely to persist before showing some signs of growth in 2022, an analyst at J.P. Morgan Securities Philippines, Inc. said.

Secular demand and a low interest rate environment will drive growth, said Jeanette G. Yutan, head of the broker-dealer’s Philippine equity research department, in an online interview.

She said J.P. Morgan expects residential pre-sales — or homes sold before they are fully built — to fall by 37% this year before posting a softer 12% contraction in 2021 on the back of sluggish economic activity.

“Residential demand is primarily a tangible consumer item that people buy and are predominantly affected by the economic backdrop, and given that the pandemic has led to a serious knock-on impact on household income, we think residential sales will be affected by the impact of the pandemic (until next year)” Ms. Yutan said.

She said the sector might rise again starting in 2022 as the impact of the pandemic subsides while secular demand drives growth and strong liquidity in the market cushions risks.

The Philippines’ relatively young population, a big portion of which are under 30 years old, makes it one of the most favorable demographics for the property sector as more will eventually require homes regardless of the pandemic.

“Even during the pandemic, we have actually seen end-user demand in affordable segments still going. Also, we estimate about 60% of those new unemployed are primarily lower skilled workers and they typically won’t be the target market of property developers,” Ms. Yutan said.

“While our numbers suggest a decline in pre-sales, we are incrementally more positive on the sector. We think the downside risk from a collapse in property prices or a sharp correction in physical property prices and risk of rising sales cancellation because of people losing jobs etc., will all be mitigated by the abundant liquidity in the system,”

The central bank has unleashed P1.9 trillion of liquidity into the financial system so far this year through the monetary policies rolled out to cushion the pandemic.

Ms. Yutan said she does not expect physical property prices to collapse like what happened during the Asian financial crisis in 1997-1998.

However, residential sales may still not be able to go back to their pre-pandemic level in the next two years because the previous growth was primarily driven by higher prices and not a surge in volume.

“Our expectation is that property residential sales won’t be able to reach the 2019 level even in 2022 primarily because in 2017-2018, the demand was really driven by prices,” she said. “When you look at the volume, it is actually declining in those two years. It was price-driven growth in the last three years and the sector needs to digest that, but we don’t think prices will collapse.”

Property prices jumped to record highs between 2017 and 2018 after an influx of mainland Chinese nationals into the country, most of whom were involved in offshore gaming operations, and took up huge portions of properties in Metro Manila.

The recent exit of Philippine offshore gaming operators (POGOs) will have a negative, albeit not too big of an impact on office space as they account for 12% of the total, which may cause occupancy to fall by 6-7%, Ms. Yutan said.

The Chinese government said early last year that it would continue with its crackdown on cross-border gambling. At the same time, the Philippine government has been going after the unpaid taxes of POGOs and has been imposing stringent rules that forced some operators to end their businesses in the country. — Beatrice M. Laforga

SEC issues new warning against investing in Mining City

November 2, 2020 | 12:04 am

THE Securities and Exchange Commission (SEC) is warning the public that it has not given authority to a group named Mining City to solicit investments or offer securities in the Philippines.

In an advisory posted on its website, the corporate regulator reiterated its previous notice that there are no records with the commission for Mining City, Prophetek Mining City, OPC, or any variation of its name.

The repeat advisory came after reports that certain individuals have claimed on social media that Mining City has completed the SEC company registration process.

“This is apparently an effort by individuals or group of persons to mislead the public using such false representations to create a semblance of legality to the operations of Mining City for the purpose of enticing the public to invest in its scheme, which was subject of an advisory issued by the commission on Sept. 10,” the SEC said.

It noted Mining City remains unauthorized to solicit, offer, accept, or take investments from the public, nor issue investment contracts and other forms of securities.

“The public is again advised not to invest or stop investing in any scheme offered by Mining City or such other entities engaged in offering securities or smart contracts, cryptocurrencies and digital asset trading that are not registered with the commission and the Bangko Sentral ng Pilipinas,” it said.

In an Oct. 29 statement sent to BusinessWorld on Friday, which was also posted on its social media platforms, Mining City said there is a “new company successfully registered in the Philippines,” which has “applied for a secondary license… to allow Mining City to carry on with its business activities.”

It added it talked with the SEC last week regarding the application for a license to sell securities, and the approval is expected within a week. The SEC was not able to verify this information to BusinessWorld.

“Getting a secondary license with the SEC is a complicated process which requires a lot of work; however, it is one that is incredibly important to us. All of this effort is just a piece of a much larger plan that will be released once we are ready, and all the formalities are done,” Mining City said.

It also said it is aware of third parties “wrongfully presenting false information and potentially contributing — whether intentionally or unintentionally — to preventing the success of us receiving this license and damaging our brand.”

“Nevertheless, we will continue being honest and transparent about our business along with our ongoing efforts to adhere to full compliance [with] requirements,” Mining City said.

Mining City was first named by the SEC in a Sept. 10 advisory, where it identified the group as an investment operator using cryptocurrency or bitcoin vault.

The regulator likened Mining City’s operations to a Ponzi scheme, such that it collects money from new investors to repay “fake profits” to old investors, which it said is “inherently fraudulent and unsustainable.” — Denise A. Valdez

Reflecting on the GR Supra

November 2, 2020 | 12:03 am

Toyota’s pure sports car is getting a lot of much-deserved traction

THE ONGOING pandemic has clearly not held Toyota back in its pursuit to seed and support motorsport enthusiasm among drivers. By now, you would have already heard of Toyota Motor Asia Pacific’s very first virtual motorsport racing championship in Asia, the GR Supra GT Cup Asia 2020, which engages participants from Thailand, Singapore, Malaysia, India, and, of course, the Philippines. Virtual racing has indeed become the next best thing for motorsports in this time of social distancing, and what better vehicle is there to enjoy e-driving than Toyota’s powerful, extremely well-balanced and agile sports car, the GR Supra?

The GR Supra GT Cup Asia 2020 had participants e-racing through one of the world’s most demanding circuits: the Nürburgring’s Nordschleife track in Germany. The track is known to be so merciless — riddled with steep inclines and gradients, constantly changing road surfaces, treacherous crests, and more — that Formula One world champion Sir John Young “Jackie” Stewart dubbed it “The Green Hell.”

Emerging as finalists from the multi-stage online race series were drivers from Thailand, Singapore and Malaysia. In the last race, Taj Aiman from Malaysia crossed the finish line first, with Sirigaya from Thailand coming in second, and Aleef from Singapore finishing in third. However, when the season’s overall points were computed, Aleef emerged three points ahead of Taj Aiman (thanks to Aleef having won the first two races), deeming Aleef the overall race champion.

As the season champion, Aleef won a cash prize of US$6,000 plus a seat in the global finals of the GR Supra GT Cup 2020 which will be held sometime in December. Meanwhile, for ranking second place, Taj Aiman was awarded US$3,000 and Sirigaya, who came in third, won US$1,500. Of course, all three winners also got their prestigious trophies.

One of the key pillars of Toyota Gazoo Racing (TGR) is now e-motorsports, and Toyota has made the e-races easily accessible via playing Gran Turismo Sport on the PlayStation 4 gaming platform. The concept was so well received that it gained about 2.7 million views in the national rounds. And delightfully, all data and learnings from TGR’s activities are used for Toyota’s development of even better vehicles.

Prior to the race in the Nürburgring, there were two previous races held first at Fuji Speedway — Toyota’s home ground — and then at the night “Shuto” expressway of Tokyo.

Toyota Motor Asia Pacific Vice-President David Nordstrom shared, “The GR Supra GT Cup Asia is a feat made possible by the power of passion, cars and limitless possibilities, and we were happy to share the thrill of the regional final with e-motorsport fans and racing enthusiasts. The regional finalists were all incredible players and they made us feel the exhilaration of racing the iconic GR Supra on some of the most amazing racetracks around the world. Congratulations again to all the winners, and I wish Aleef all the best in the ‘GR Supra GT Cup 2020’ global final.”

“Indeed, the Toyota Supra is an exhilarating car to drive. I tried it for myself, driving through our regular highways and city roads, enjoying its strong pulling power and exceptional handling. To my surprise, the rear boot was even more spacious than I thought! And it’s super exciting for car enthusiasts to own, because this is the first-ever Toyota Supra to be retailed in the Philippines!”

The Toyota GR Supra is an authentic sports car in the way it looks and the way it performs. It is smaller, a lot lighter, more powerful, and has a much wider range than its predecessors with four additional gears. It is delightfully well-balanced and definitely one aspirational car for many.

Agriculture damage caused by Typhoon Quinta hits P2.2 billion

November 2, 2020 | 12:03 am

AGRICULTURAL damage caused by Typhoon Quinta (international name: Molave) has hit P2.20 billion, up from the previous estimate of P1.81 billion, according to the Department of Agriculture (DA).

In a bulletin, the DA said that 44,017 farmers and fisherfolk were affected by the typhoon, with production losses reckoned at 124,462 metric tons (MT), while 86,271 hectares of farmland were damaged.

Affected regions include Ilocos, Cagayan Valley, Central Luzon, CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), MIMAROPA (Mindoro, Marinduque, Romblon, and Palawan), Bicol, Western Visayas, Eastern Visayas, and Zamboanga Peninsula.

“The increase in values is attributed to the updated reports in rice, corn and livestock from Central Luzon and Bicol Region,” the DA said in the bulletin.

Damage to the rice crop amounted to P1.51 billion, with some 99,986 MT lost and 75,529 hectares affected.

Losses to high-value crops were reckoned at P446.7 million. Some 18,718 MT worth of produce across 5,447 hectares of damaged farmland.

Damage to the corn crop was P137.8 million, followed by fisheries at P79.9 million, and livestock P8.1 million.

Damage to irrigation and agricultural facilities was P18.3 million, while losses of agricultural machinery and equipment amounted to P875,000.

The DA said that affected farmers can avail of government assistance such as P300 million worth of loans under the survival and recovery loan program from the Agricultural Credit Policy Council, and a total of 77,379 bags of rice seed; 9,817 bags of corn seed; 2,530 kilograms of vegetables; and 440,400 fruit tree seedlings.

Other assistance that can also be tapped include indemnification funds from the Philippine Crop Insurance Corp., and quick response funds for the rehabilitation of affected areas.

In a separate bulletin, the DA said that it has saved a total of P16.96 billion worth of rice across the regions of Ilocos, Cagayan Valley, Central Luzon, CALABARZON, and Bicol were harvested early following an advisory to farmers before Typhoon Rolly (international name: Goni) made landfall.

Some 242,638 hectares equivalent to 1.07 million MT of rice were harvested early.

Meanwhile, P579.07 million worth of corn or 45,703 MT across 11,132 hectares has been brought in and stored ahead of Rolly’s arrival.

“Continuous rain increases the water level of dams and rivers, which leads to flooding in low-lying agricultural areas,” the DA said.

“Damage and losses in the agriculture sector are expected from Cordillera Administrative Region, Ilocos Region, Cagayan Valley, Central Luzon, CALABARZON, MIMAROPA, Bicol Region, and Visayas Region due to the typhoon,” it added. — Revin Mikhael D. Ochave

Tax appeals court clears AsianLife-BIR compromise deal

November 2, 2020 | 12:03 am

THE Court of Tax Appeals (CTA) approved the compromise agreement between AsianLife and General Assurance Corp. and the Bureau of Internal Revenue (BIR) over its 2009 tax deficiency assessment.

AsianLife, now known as “Etiqa Life and General Assurance Philippines, Inc., in November 2017 challenged the validity of BIR’s final decision on disputed assessments, amounting to P62.6 million.

In January 2019, AsianLife filed a motion to refer the case to the Philippine Mediation Center-CTA, which eventually led to a compromise settlement worth P25.04 million. The amount represents 40% of the basic tax assessed as the final settlement for the tax deficiency.

“The Judicial Compromise Agreement entered into by the parties is approved,” the tax court ruling read. It also declared the case is closed and terminated.

It was noted that AsianLife paid the settlement amount in September 2019, but the approval of the compromise agreement was delayed due to some documentary requirements.

“The Court observed that the parties failed to submit the original or certified true copy of the Compromise Agreement dated September 17, 2019 as required per Resolution dated October 24, 2020,” the ruling also stated.

This was later settled by the petitioner through the submission of a certified true copy of the compromise agreements.

Insurance company AsianLife launched its rebranding as Etiqa Philippines, largely owned by Etiqa International Holdings Malaysia, in 2019. The Malaysia-based firm has regional offices, located in the Philippines, Indonesia, Singapore, and Cambodia.

It offers corporate and individual life and non-life life insurance, as well as auto and travel insurance. It has over 1,400 partner hospitals and clinics across the country with 25,000 doctors and 24/7 in-house call centers. — Charmaine A. Tadalan

Black is beautiful

November 2, 2020 | 12:03 am

“BLACK maintains its edge because of its standard connotations of the sinister. Black conjures fear of the blind darkness of night and the eternal darkness of death; and in small, carefully flavored doses, such deliberate conjuring is always attractive,” Anne Hollander writes in Seeing Through Clothes in a segment devoted to the history and defense of black clothing.

An exhibit by CITEM (Center for International Trade Expositions and Missions) has been pulled back from oblivion and given new life. While black usually represents death, ITIM: Material Manipulations in Black signifies rebirth during this pandemic. It serves as one of the anchor exhibits of the reimagined Manila Fame. Manila Fame, prior to the pandemic, was the country’s biggest lifestyle fair, made to exhibit the country’s best products borne of design. Due to the pandemic, it has moved online to Fame+ (fameplus.com). In a statement, CITEM Executive Director Pauline Suaco Juan said, “Our lofty ambition, after all, is to build a home, a database if you will, for our Home, Fashion and Lifestyle Community, so that the whole world may find them — and connect with them — online.” The website will display a product catalogue, while also displaying a calendar of events that consist of workshops and seminars.

ITIM, which had been on view at Aphro Living in Karrivin Plaza until Saturday, lives online through the Fame+ website. It had been in limbo due to the pandemic, as it was supposed to have been shown to an international audience last summer. “ITIM: Material Manipulations in Black was supposed to be our presentation in Milan Design Week; the container bearing our products was already at sea, when Italy locked down. Instead, we’ve produced a hybrid presentation,” she said, pertaining to the online and real-life exhibit.

During a webinar held on Oct. 22, ITIM curator and creative director Rita Nazareno (also the creative director behind handwoven bag and home accessories brand Zacarias 1925) explained that the exhibit in Italy had been conceptualized “as an exhibit that will show another side of the design, creative, and manufacturing process of the Filipino, and really be seen.” After all, a preview of the exhibit urged one to look more closely: “Awashed in black, the objects ask that you take pause, that you come closer. If you move too quickly — as the world does — you’ll miss its intricacies, and consequently, the stories embedded in the materials,” a narrator read.

The exhibit features products coated in black by firms such as CSM Philippines, Weave Manila, Industria, Vito Selma, JB Woodcraft, Schema, E. Murio, Nature’s Legacy, Zacarias 1925, and Vic Balanon. It is a mix of the mundane and surreal: doghouses in solihiya (rattan weave) by E. Murio are displayed along with chairs made to look like pancit, a Filipino noodle dish, by Industria. A monolith panel by Zacarias 1925 offers either the sinister or the silent. All are made beautifully, of course, using materials available in the country, and are lent a new dimension of mystery by having been made in black.

During a webinar held on Oct. 22, Ms. Nazareno spoke about bringing things out of the shadows: literally, such as in pieces brought out of warehouses and given new life for the exhibit. “We also designed new pieces that were out of this mindset of things that were discarded,” said Ms. Nazareno, this time pointing out an installation by bone china manufacturer CSM Philippines, featuring bone china sculptures made to appear like crumpled paper — and of course they were black.

“I had always been interested in things that were kept in the shadows,” she said.

ITIM can be viewed on fameplus.com/itim/. — Joseph L. Garcia

T-bill, T-bond rates may inch up

November 2, 2020 | 12:03 am

THE RATES of the government securities on offer this week will likely increase ahead of the presidential election in the United States and as uncertainties linger due to the coronavirus disease 2019 (COVID-19).

The Bureau of the Treasury (BTr) will borrow P20 billion in via Treasury bills (T-bills) on Tuesday: P5 billion each in 91-day and 182-day papers and P10 billion in 364-day securities.

On Wednesday, it will auction off reissued three-year Treasury bonds (T-bonds) worth P30 billion. The papers have a remaining life of two years and 10 months.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the rates of the T-bills on offer will likely be steady amid expectations of benign inflation.

“Our trader senses muted October inflation at 2.3% year on year and a survey result of 2.4%, which is priced in and consistent with our benign inflation [forecast] for the rest of the year at 2.4%,” Mr. Asuncion said in an e-mail.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the rates of the short-term debt papers may move marginally as investors remain awash with cash.

Meanwhile, for the reissued three-year bonds, UnionBank’s Mr. Asuncion expects its average rate to increase by 5-10 basis points (bps) as investors consider the impact of the US presidential election on Nov. 3 on the local debt market.

“Local market will be distracted by offshore developments led by the US elections results. Yields are expected to trade with upside risks,” he said.

Mr. Asuncion added that demand for short-term bonds may strengthen amid a better economic outlook on the back of the possible victory of Democrat candidates in the US.

“Improved growth prospects next year reinforce duration cutbacks. Additional supply of three-year bonds in November doesn’t argue for a flatter belly,” he said.

The Treasury last week made a full award of its offer of T-bills, awarding P20 billion as planned as the auction was more than four times oversubscribed, with bids amounting to P81.825 billion.

Broken down, the BTr awarded the programmed P5 billion in 91-day papers as tenders reached P23.44 billion. The three-month debt fetched an average rate of 1.079%, down by 0.7 bp from the 1.086% seen at the previous auction.

The government borrowed another P5 billion as planned in 182-day T-bills as bids stood at P27.576 billion. The six-month papers were quoted at an average rate of 1.543%, declining by 5.4 bps from 1.597% previously.

The Treasury also made a full P10-billion award of the 364-day debt as bids reached P30.809 billion. The one-year T-bills fetched an average rate of 1.791%, inching down by 0.2 bp from the 1.793% quoted during the previous offering.

It also opened its tap facility and borrowed another P5 billion each in 182-day and 364-day papers.

Meanwhile, the government made a full P30-billion award of reissued three-year T-bonds on Oct. 6 as the offer was almost four times oversubscribed, with tenders reaching P114.488 billion.

The debt papers fetched an average rate of 2.182%, declining by 9.7 bps from the 2.279% in the Sept. 8 auction, where the series was first offered. The T-bonds have a coupon rate of 2.375%.

At the secondary market on Friday, the 91-day, 182-day and 364-day T-bills were quoted at 1.14%, 1.551% and 1.821%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website. On the other hand, the three-year T-bonds fetched a yield of 2.325%.

The Treasury plans to borrow at least P140 billion from the domestic market this month: P80 billion in weekly T-bill auctions and P60 billion in fortnightly T-bond auctions. It will also look to raise at least P3 billion from an offering of Premyo bonds.

The government wants to raise 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

Start your search engines, here comes ‘MIAS Wired’

November 2, 2020 | 12:02 am

The country’s largest and longest-running auto spectacle goes online

By Kap Maceda Aguila

ORIGINALLY scheduled to ensue last April 2 to 5, this year’s Manila International Auto Show (MIAS) was sadly (but understandably) aborted due to the onslaught of the COVID-19 pandemic. This was a painful but necessary move to assure the safety of participants and attendees. “In light of the recent turn of events concerning COVID-19, which has led the Philippine government to declare a state of public health emergency, the management of Worldbex Services International has come to the decision to temporarily postpone MIAS 2020,” the show organizers had said in a statement.

But now, the country’s longest-running and largest car show is back on track — albeit digitally — as it sets to serve up its expected smorgasbord of everything automotive from Nov. 26 to 30.

Rechristened “MIAS Wired,” this now takes the place of what should have been the 15^th staging last summer. “It’s a milestone year for us, so we felt disappointed we could not push through with a live event,” said event co-organizer Alvin Uy to “Velocity” in an interview. “We decided to try out this virtual platform so that we get to continue the tradition of holding MIAS, albeit on a virtual space this year.”

It should be noted, too, that the organizers are still hoping for better days ahead, and have booked the old MIAS haunt, the World Trade Center in Pasay City, for April 5 to 8 next year. “But we will, of course, abide by the guidance of IATF and related agencies if we can push through or not. Hopefully we can see a clearer picture by end of the year,” stressed Mr. Uy.

Back to MIAS Wired, we asked Mr. Uy to describe the reception of participating brands when they broached the idea of a virtual auto show. “They had many questions like how it will be conducted, what are the tech requirements, how will we reach out to the viewers, etc. We explained to our exhibitor partners that having a virtual event allows the event to have a much wider reach on a national scale which will benefit their regional dealers and customers,” he revealed. While the lineup of marques has not been revealed yet, Mr. Uy did say that they’ve approached all the companies who had signed up for the original (physical) event that should have happened last April.

He admitted that since this is a first for MIAS, there are concerns on how “seamless” the experience will be. “Hopefully we can fully address these and perform up to expectations. We made the costs very reasonable as well so more brands can join. Since MIAS has a strong track record of gathering visitors to the live event in the past, and we hope to translate this in the virtual world.”

MIAS was first held in 2005 over a modest footprint of 6,000 square meters of indoor space and an additional outdoor area of 3,000 square meters. According to Mr. Uy and co-organizer Jason Ang, the yearly event is “envisioned to be a world-class spectacle competitive with the region’s best.” Last year, the exhibition drew a record 142,000-plus attendees.

While there are obvious limitations with virtual events, Mr. Uy and company hope to leverage the opportunities inherent to the digital medium. “Aside from having a nationwide reach, we extended the show dates from four to five days. And the 360-degree 3D virtual showcase will be made available to the brand’s visitors for six months, not just days,” he related. Still, Mr. Uy maintained that other features of MIAS Wired will cease after the end of the show, so there’s a definite premium in attending the free event.

Other benefits include a chat feature so potential customers can reach out to the participating brands directly for inquiries, and guests can drop in at any time to check out the goings on. For the organizers, “the cost of running the show is much less than a live event, and at this time of the pandemic, we believe it is the best platform to reach out to our car-loving audience and market.” Attendees missing the live staging of a launch need not fret as these can be viewed later, on demand, during the five-day run.

For updates, visit manilaautoshow.com.

Agriculture dep’t blames swine fever outbreak on rampant pork smuggling

November 2, 2020 | 12:02 am

AGRICULTURE Secretary William D. Dar said pork smuggling is to blame for the outbreak of African Swine Fever (ASF) in the Philippine hog industry.

Mr. Dar said the Department of Agriculture (DA) only approves meat imports from countries that are free from ASF, suggesting the entry of the disease through pork from unapproved sources.

“The DA assures the public of its support to the implementation of Republic Act No. 10611 or Food Safety Act of 2013, including the provisions for the ‘quarantine first policy’ to ensure that agricultural products are safe, hygienic and fit for consumption of every Filipino family,” Mr. Dar said.

According to the DA, the Bureau of Customs has partnered with other government agencies to improve border controls against smuggled pork.

The DA said it issues timely bans on pork from any country that reports outbreaks, while observing accreditation protocols for exporters without any such outbreaks.

Mr. Dar said the construction of the country’s first meat inspection facility remains “on track,” but has been slowed by the process for obtaining approvals.

“While waiting for the facility, the DA adopts a stringent two-stage inspection process upon entry of imported agricultural commodities. This is a science-based regulatory procedure that we strictly follow both for local and international shipment of agricultural products,” Mr. Dar said.

The DA said that quarantine officers of the Bureau of Animal Industry (BAI) inspect meat imports at all ports of entry. After BAI inspection, meat products are examined at cold storage facilities accredited by the National Meat Inspection Service.

The DA plans to establish the first meat inspection facility or agricultural commodity examination area (ACEA) at the Port of Manila.

BAI Director Ronnie D. Domingo said the facility’s construction has to hurdle various legal and logistical barriers.

“Building a government structure in a privately-operated congested port area is not an overnight task to accomplish. The identification of a 2,000-square meter area for the ACEA will be settled soonest,” Mr. Domingo said.

Mr. Domingo said contractors are set to be hired to finish the detailed architectural and engineering designs required by the Department of Budget and Management (DBM) before the release of funds.

“Although the concept designs are done, the DBM needs the detailed designs to effect fund release,” Mr. Domingo said.

Mr. Domingo added that the DA has been working with the Department of Transportation, Philippine Ports Authority, International Container Terminal Services, Inc., and Asian Terminals, Inc. to fast-track the process.

“The BAI has started the groundwork for the establishment of other ACEA facilities at the international ports of Subic, Batangas, Cebu, and Davao,” Mr. Domingo said.

In December, some P2 billion was allotted for the establishment of meat inspection facilities. — Revin Mikhael D. Ochave

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