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MBAs’ microinsurance premiums decline

THE NUMBER of lives insured by the microinsurance products of mutual benefit associations (MBAs) grew to 26.66 million last year, but total premiums earned declined due to the pandemic, the Microinsurance MBA Association of the Philippines, Inc. (MiMAP) reported on Tuesday.

MiMAP’s 18 MBA members covered 1.723 million more lives with their microinsurance products last year, increasing the sector’s coverage by 7% from the 24.93 million in 2019, its chairman emeritus Jaime Aristotle B. Alip said during the organization’s forum on Tuesday.

Premiums written, however, declined by 18% to P3.94 billion in 2020 from P4.81 billion the year prior after several clients found it more difficult to settle their dues during the pandemic, Mr. Alip said.

“Mahirap po kasi ang pagbabayad, maraming miyembro ang gustong magbayad (Many members found it difficult to pay their premiums even if they wanted to) because with this lockdown and mobility restrictions, (payments) became an issue,” he said.

Claims paid by MiMAP’s MBA members, meanwhile, rose by 12% to P1.6 billion from P1.43 billion in 2019 as companies continued to process payments and claims of clients, Mr. Alip said.

The average amount of death claims they received per day jumped by 12% to P4.38 million last year, while the number of payouts issued inched up by 2% year on year to 182 on average.

“This signifies the commitment of Mi-MBAs to prioritize addressing the needs of its members especially during this state of calamity in the country brought about by the COVID-19 pandemic,” he said.

Meanwhile, the Insurance Commission (IC) expects the MBA industry to remain the top-performing insurance sector in microinsurance after being so in the past five years.

IC data showed the number of lives covered by MBAs with their microinsurance products accounted for 69% of the total market share at end-June 2020, making it the top contributor in microinsurance.

MBA’s microinsurance premium production also accounted for the bulk or 58.8% of the total premiums recorded in the first half of 2020.

“The IC remains optimistic that the number of lives insured will continue to increase gradually now that the community quarantines are being eased up. Certainly, it will still involve our collective efforts to spread information and awareness about microinsurance, and other financial instruments in general,” said Insurance Commissioner Dennis B. Funa at the same event.

Mr. Funa said the industry’s shift to digital and wider adoption of insurance technology (insurtech) will support the promotion of microinsurance.

However, the IC chief himself admitted that communities in remote areas will still be difficult to reach due to connectivity issues.

“Another challenge is the fact that marginalized sectors, which are the target market of the microinsurance, are also the ones most affected by the pandemic,” he said.

“Nonetheless, we should still continue to reach out to them and educate them about the importance of insurance and microinsurance products, especially in times of crisis,” he added.

The estimated lives covered by microinsurance rose by 8% year on year to 39.67 million as of June last year, IC data showed. — Beatrice M. Laforga

Pepsi opens new line in Batangas to boost production

PEPSI COLA Products Philippines Inc. (PCPPI) has opened a new line in Santo Tomas, Batangas that it expects to improve the overall polyethylene terephthalate (PET) bottle production by 30%.

Frederick D. Ong, PCPPI president and chief executive officer, said in a statement on Tuesday that the new line aims to address the increasing consumer demand for drinks amid the coronavirus disease 2019 (COVID-19) pandemic.

“PCPPI’s investment in this new line is a testament to our commitment to helping stimulate the economy by generating more jobs, especially in the Santo Tomas area. We believe that our country is on its way to recovery and, by investing and expanding our business, we can support the economic upswing,” Mr. Ong said.

According to the company, it now has four operational lines in its Southern Tagalog regional office.

“The new line, inaugurated last Jan. 7, adheres to sustainable business practices, as PET remains one of the highly-recyclable and sustainable plastic materials in the world,” the company said.

The new line comes after PCPPI announced that it had implemented the SAP Enterprise Management System as part of its plan to improve business operations and operational management.

With the move, the company now has an end-to-end single data platform to process data, which translates information to real-time analytics and insights.

In December, PPCPI received approval from the Philippine Stock Exchange to delist its shares. The company decided to delist voluntarily after its public ownership declined to 2.1%, far from the 10% minimum requirement. — Revin Mikhael D. Ochave

Arts & Culture (01/27/21)

Flea market at a ‘palace’

AN OPEN fair inspired by European street markets, Palacio de Memoria opens its grounds to the “Flea Market at The Palacio,” a weekend of arts, antiques, and artisanal goods on Feb. 6 and 7, 10 a.m. to 5 p.m. There will be unique and curated finds from art galleries, private collections, and artisanal shops, Rue Angelique Gallery of Prints, ARCHIVO 1984, Galeria Lienzo, Vidro, and the Edd Fuentes Private Collection. In addition to the market, special events will be held over the weekend. On Feb. 6, there will be a talk, “Connoisseur Conversations” with Dr. Jaime Laya from 11 a.m. to noon, followed by a Cognac Masterclass by Remy Martin at 1 and 3 p.m. At 5 p.m., there will be a screening of the 1977 film Tisoy by ABS-CBN Restoration. On Feb. 7, there will be a cooking demonstration by Cibo de Marghi at noon to 1 p.m., followed by the Remy Martin Cognac Masterclasses at 1 and 3 p.m., followed by Cigar Night by Tabacalera and Don Papa Rum starting at 5 p.m. Pre-registration is encouraged but walk-ins are welcome subject to health protocols. Strict health and safety measures apply throughout the fair. RSVP at hello@palaciodememoria.com by providing the names and number of guests and their contact details.

James Clar joins Silverlens

SILVERLENS has announced Filipino-American artist James Clar has joined the roster of artists it represents, ahead of his presentation in the 14th edition of Art Dubai in March. The artist will also have a solo exhibition at Silverlens Galleries Manila in June. Clar’s artistic practice analyzes the effects of media and technology on the perception of culture, nationality, and identity. His body of work often overlaps non-physical spaces — dream world, virtual world, spiritual world — so that constants, such as gravity and space, become pliable material. Creating visual sculptural pieces that utilize light and technology, Clar’s art fosters the potential for narratives to exist. Clar received his Masters from New York University’s media art program ITP. There, he developed his own light and technology systems to create the installations that would come to characterize his practice. Clar then established his studio in Dubai, participating in the city’s developing art scene until 2012, before moving back to New York, where he furthered his studio practice from Brooklyn and taught a graduate course at his alma mater. In 2021, he opened a studio in Manila to work from the Asian region. Silverlens first worked with Clar in 2019, with a solo exhibition at the gallery entitled “Noise Field #1,” which was his first presentation in the Philippines. In 2020, he expanded this show with a laser and liquid installation, Noise Field #1B, which he created in partnership with AC Motors for Art Fair Philippines. Clar was also included in Silverlens’ first online exhibition, “Anticipating the Day” in June 2020, where his installation piece, The New Normal (Red/Green, 6×6) was presented alongside works by Nicole Coson, Frank Callaghan, and Mit Jai Inn. The gallery said that Clar’s innovative light and media artworks align with its “objective of working with artists that expand the boundaries of contemporary art production.”

8-year-old becomes an author

#RAJISMS, a book filled with funny quips and witticisms from an eight-year-old boy will be launched via zoom and livestreaming on Feb. 13, 3 p.m. The book covers the quips that young author Maharadya Miclat-Janssen, Raja for short, has been saying from the time he was two to the present. These cover diverse topics like food, bilingual mix-ups, religion and house rules, geography and travel, politics, learning to read, arts, historical and world views, gender and politics, literature and creating stories, and the “new normal.” In the book’s foreword, his mother, UP Professor Banaue Miclat-Janssen, writes: “Kids say hilarious things. I cannot help but keep a record of my son Raja’s quips as experienced by my parents, his father and me.” Finding his thoughts amusing, even unconventionally funny for a small kid, she started posting his quips on Facebook. Friends prodded her to compile them in a book. The book also features Raja’s stories entitled Hyperion and Mixels and highlights six of his paintings done at ages three and four. Book design and illustration is by Ivan Reverente of INK, Ilustrador ng Kabataan. Jointly published by the Maningning Miclat Art Foundation, Inc. (MMAFI) and Erehwon Center for the Arts, the book to be launched via Zoom live streamed at Maningning Miclat Artist Facebook page. The book may be ordered through maningningfoundation@gmail.com or viber/text 0999-504-2898.

Virtual exhibit opening at The Met

THE METROPOLITAN Museum of Manila presents a retrospective exhibit of  Manila-based Spanish artist Betsy Westendorp titled “Passages.” Over 100 artworks spanning more than 60 years of Ms. Westendorp’s painting career form the retrospective collection curated by Dannie Alvarez, and features in a catalogue written by art critic Cid Reyes. Her body of work includes portraits, Philippine landscapes, seascapes of Manila Bay, Philippine flora, and grand cloudscapes across Philippine skies. There will be a virtual exhibit opening featuring a brief interview with the artist and a 3D virtual tour of the exhibit on Jan. 29, 4 to 5 p.m. The event is free and open to all at http://bit.ly/PassagesBetsyWestendorp.

Atlantis to hold virtual theater workshop for adults

ATLANTIS Theatrical kicks of the new year with an online musical theater workshop for adults, featuring the fundamentals of acting, voice, and dance. The virtual setting will give students an intimate and focused learning experience aided by faculty members who have graced local and international stages. Acting classes will be taught by stage and TV actor Nelsito Gomez; voice classes will be taught by classically trained singer and Gawad Buhay and Aliw Awards winner Arman Ferrer; while Cecile Martinez, Atlantis Theatrical’s resident choreographer, rounds up the faculty as the Movement coach. The classes will be conducted from Feb. 22 to March 26, every Monday, Wednesday, and Friday. Sessions are an hour and 15 minutes long, with only two to three students to be accommodated per time slot. To conclude the course, there will also be an online recital with solo performances from all students on March 27, to be held live via Zoom. Students are expected to leave the workshop with rudimentary acting, singing, and dancing skills (with a focus on jazz dance); a polished musical theater song performance; applied understanding of song analysis and vocal techniques; and confidence that will help them shine wherever they go. A special class on basic makeup for theater and virtual meetings will also be conducted by make up designer Johann Dela Fuente. Visit www.atlantistheatrical.com/workshops for more information about the program. Contact Atlantis Theatrical at info@atlantistheatrical.com or at 0917-838-1534 to inquire. Slots are Limited.

BPI-BFSB merger to boost efficiencies — S&P

THE PLANNED merger between Bank of the Philippine Islands (BPI) and BPI Family Savings Bank (BFSB) will boost efficiencies and have little impact on the parent bank’s credit profile, S&P Global Ratings said.

“The integration will increase BPI’s operational efficiency by eliminating duplication of the physical network. The surge in popularity of mobile and internet banking due to COVID-19 has enhanced focus on having a robust digital infrastructure and rationalize the branch network,” S&P analysts Ivan Tan and Nikita Anand said in a report on Tuesday.

The merger will have “minimal impact” on BPI’s credit rating, which currently stands at BBB+ with a negative outlook, the analysts said. They noted BPI’s rating is already based on a consolidated level, with BFSB contributing 13% to 15% to the parent bank’s overall assets and profits.

BPI last week announced its plan to absorb its thrift unit, saying they hope to finalize the transaction within the year. It said the merger will put under one bank the two lenders’ 8.5 million customers.

It said the reduction in the gap in the regulatory reserve requirements between commercial banks and thrift banks was also a factor for the move. The reserve requirement ratio for big and thrift banks currently stand at 12% and three percent, respectively.

S&P said they do not see other big banks following BPI’s move to consolidate with its thrift arm.

“The 600-basis-point gap in RRR ratio is still significant for major banks to benefit from having a separate thrift bank subsidiary. Banks will likely continue to take advantage of lower regulatory costs at thrift bank subsidiaries and house riskier loans with them,” it said.

BFSB is the country’s largest thrift bank with P287 billion in assets, P235 billion in deposits and P227 billion in loans.

Meanwhile, its parent bank BPI’s net income declined 33.7% to P5.5 billion in the third quarter of 2020. This brought its net profit for the first nine months to P17.17 billion, down 22.1% from the P22.03 billion booked in the comparable 2019 period.

BPI’s shares slipped by 25 centavos or 0.3% to close at P82.95 apiece on Tuesday. — L.W.T. Noble

How PSEi member stocks performed — January 26, 2021

Peso ends flat ahead of Fed meeting

THE PESO closed nearly flat against the greenback on Tuesday as investors wait for the result of the US Federal Reserve’s policy meeting.

The local unit finished trading at P48.08 per dollar, almost unchanged from its P48.079 close on Monday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P48.07 per dollar. Its weakest showing was at P48.085, while its intraday best was at P48.05 against the greenback.

Some $1.0146 billion changed hands on Tuesday, up from the $763.05 million seen on Monday.

The trader said in a text message that the peso was steady as investors stayed on the sidelines ahead of the Fed’s policy meeting.

Fed Chairman Jerome Powell earlier said an interest rate hike will not come anytime soon as the central bank continues to provide support to the world’s largest economy.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said investors preferred the safe-haven dollar over the local unit amid worries over the delayed approval of a new stimulus package in the United States.

US President Joseph R. Biden said he is open to negotiate tweaks on the $1.9-trillion relief proposal to make it a more bipartisan deal, Bloomberg reported.

For today, the trader expects the peso to move from P48 to P48.10 versus the dollar while Mr. Ricafort sees it trading within a tighter band of P48.05 to P48.10. — LWTN

Shares sink on local transmission of virus strain

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE shares declined anew on Tuesday as the country confirmed the local transmission of the new coronavirus disease 2019 (COVID-19) variant from the United Kingdom (UK).

The benchmark Philippine Stock Exchange index (PSEi) dropped 94.34 points or 1.33% to finish the session at 6,977.16, while the broader all shares index fell 81.69 points or 1.92% to end at 4,168.96.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a mobile phone message that the market ended lower as investors unloaded shares amid the local transmission of the new COVID-19 variant in Bontoc, Mountain Province.

“The market closed in the red territory amid stricter lockdown measure worries after the mounting cases of a new COVID-19 variant. Stringent lockdown measures are not good for the economy, particularly that we are just in the beginning phase of recovery,” Ms. Alviar said.

Reuters reported that the Health department has confirmed the local transmission of the new COVID-19 variant first detected in Britain.

Dubbed B.1.1.7, the new variant has infected 12 people in Bontoc, bringing the total number local cases of the strain to 17.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the local bourse closed in negative territory as market sentiment remained cautious.

“The lack of optimism from investors may be coming from the lack of positive news from companies with regards to their fourth quarter performances. Most issues have lost all of their gains for 2021, with prices going back to where they were at the beginning of December,” Mr. Mangun said in an e-mail.

All sectoral indices at the PSE ended lower on Tuesday. Mining and oil declined 494.33 points or 5.36% to 8,718.37; financials went down 26.37 points or 1.79% to 1,444.51; holding firms retreated 127.7 points or 1.77% to 7,085.63; services shrank 24.66 points or 1.6% to 1,516.3; property decreased 46.89 points or 1.29% to 3,562.38; and industrials lost 21.83 points or 0.24% to 9,079.54.

Value turnover on Tuesday amounted to P11.56 billion with 74.53 billion issues switching hands, a jump from the P9.11 billion with 79.86 billion shares logged in the previous session.

Decliners dominated advancers, 209 against 29, while 31 names ended unchanged.

Net foreign selling climbed to P504.07 million yesterday from the net P311.43 million that left the market on Monday.

“Breaching the significant support area at 7,000, 6,700 now becomes the next support level to watch,” Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said via text.

“The next major support for the PSEi is at 6,740. The bloodbath continued for second and third liners as investors are now unloading positions at a massive scale. This trend may also continue until the end of the week,” AAA Southeast Equities’ Mr. Mangun said.

NEDA warns no FINL easing without economic reform bills

SOCIOECONOMIC planners warned Congress that failure to pass pending reform legislation will likely stall the opening up of the economy, adding that without such laws, it may not be possible to expand foreign investment to more industries.

If passed, pending legislation amending the Public Service Act, the Retail Trade Liberalization Act, and the Foreign Investments Act will allow for a more permissive Foreign Investment Negative List (FINL), the document which outlines industries foreign investors are allowed to participate in, according to National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon.

Speaking before the House Committee on Constitutional Amendments Tuesday, Ms. Edillon said legislative action is needed because NEDA has “exhausted” all possible action at the executive level to open up the economy.

“We really need the legislation to be able to come up with a more liberalized Foreign Investment Negative List,” she said.

She added that the pending reform bills will work “hand-in-hand” with the tax-reduction bill known as CREATE.

The proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which is currently being tackled by the bicameral conference committee, reduces corporate tax rates while rationalizing the incentives regime.

Originally a purely tax reform measure, CREATE has since been repositioned as an economic relief bill to help businesses recover from the pandemic.

“We should also know that these amendments actually complement the CREATE bill and the other reforms that have already been done with respect to the ease of doing business,” she said.

Members of the Cabinet’s economic team appeared before the committee Tuesday in the context of moves to amend the Constitution, to weigh in on whether charter change could play a role in effecting the proposed reforms.

“If there are things that we can do to open up the economy through administrative measures, we must implement them,” Finance Secretary Carlos G. Dominguez III said at the committee hearing. “If there are areas that we can liberalize by amending our existing laws then let’s do that.”

Trade Secretary Ramon M. Lopez said the timing of the campaign to amend the Constitution could be problematic because of the approach of the 2022 elections.

“We are just mindful (that) the current challenges, including the nearing 2022 presidential elections, might affect the focus of the deliberations, but we leave those concerns to the wisdom of the legislators.”

Also at the hearing, the Joint Foreign Chambers (JFC) of the Philippines said it supports Constitutional amendments. However, the JFC’s John D. Forbes, Senior Adviser with the American Chamber of Commerce, said it may take “several Congresses” to complete the desired reforms.

“We recommend the immediate enactment of other laws that provide new (foreign direct investment) opportunities… and programs that increase competitiveness to surpass FDI levels achieved by our neighbors,” he said.

The JFC said Philippine FDI as a share of gross domestic product averaged 1.6% a year between 2010 and 2019, the worst performance within the Philippines’ regional economic peer group, which includes Indonesia, Malaysia, Thailand, and Vietnam.

Economist Bernardo Villegas, a member of the commission that drafted the 1987 Constitution, told the panel that the pending legislation could be subject to challenge without actual amendments to the charter.

“I think there will be a lot of constitutional challenges… I don’t think it will be that easy to allow foreign ownership in public utilities,” he said at the hearing.

“We have to act right now with regard to the economic provisions” of the Constitution, he added. — Gillian M. Cortez

Infrastructure focus may have led PHL to neglect public health — Moody’s

THE Philippine focus on infrastructure investment has led to a corresponding lack of funding for social services like healthcare, with the resulting inability to efficiently deal with a public health crisis highlighting the country’s exposure to “highly negative risk,” Moody’s Investors Service said.   

“The pandemic has highlighted existing gaps in health infrastructure in some parts of Asia. For instance, health and safety have been identified as a source of ‘highly negative’ risk for India and the Philippines,” Moody’s said in a note Tuesday.

Moody’s said there is a “traditional emphasis” on supercharging growth through infrastructure spending, which in light of events may now need to expand to other areas like social spending, healthcare, and pensions.

The government hopes to spend P1.2 trillion on infrastructure in 2021 to revive the economy and create jobs.

“Improving healthcare access in emerging economies, alongside ageing populations across higher-income Asian economies, could spur demand for healthcare products and services,” Moody’s said.

Moody’s warned that the pandemic could still take an unpredictable turn, potentially straining the public health system and disrupt business activity.

“At the sovereign level, potentially weaker growth prospects stemming from continued uncertainty around trade, geopolitics and health outcomes, as well as exposures to commodities and tourism sectors, will weigh on revenue generation and shock-absorption capacity,” Moody’s said.

Moody’s expects the economy to grow by 7% this year, against the 6.2% forecast it issued in September. However, it expects the Philippine recovery to lag the region. — Luz Wendy T. Noble

Open dumpsites due for total shutdown by March — DENR

THE Department of Environment and Natural Resources (DENR) said Tuesday that its regional offices have been ordered to shut down all open dumpsites by March.

“Our EMB (Environment Management Bureau) regional director(s) will continuously undertake closure of open dumpsites within their respective areas… And this is my directive to them and my directive to you, Benny (D. Antiporda). All open dumpsites must be closed by the end of March this year,” DENR Secretary Roy A. Cimatu said during the anniversary of the signing of the Ecological Solid Waste Management Act of 2000 or Republic Act (RA) No. 9003.

Mr. Antiporda is the DENR undersecretary in charge of solid waste management and local government unit concerns. He is also the alternate chairman of the National Solid Waste Management Commission (NSWMC).

According to RA 9003, open dumpsites are defined as those where solid waste is deposited without planning and consideration for environmental and health standards, and are illegal to establish or operate.

Mr. Cimatu said his office received a report last night that the DENR shut down 38 open dumpsites in one region in a single day. He did not identify the region.

The NSWMC has so far shuttered 152 open dumpsites, most recently in Tanza, Cavite. The estimate for the number of open dumpsites still operating is 233 as of the end of 2020, down nearly 40% from the total operating in 2017.

On its website, the DENR said dumpsite closures form part of its solid waste management program, the other key component being the creation of material recovery facilities.

Mr. Antiporda told reporters that he is confident that the DENR will meet the March target for closures.

“If there’s a will, there’s a way… If we’re really serious, basically within one month kaya pa po (we can do it),” he said at a briefing.

He added that should he encounter uncooperative officials, he will “deal with them personally.”

On Jan. 15, the DENR sealed the entry points of a six-hectare open dumpsite in Tanza. According to a report from the department’s Provincial Environment and Natural Resources Office, the accumulated solid waste at the privately-owned dumpsite was estimated at about three meters high. — Angelica Y. Yang

Train cars for LRT-1 Cavite extension starting to arrive

THE Transportation department said Tuesday that it took delivery of the first batch of train cars from Spain and Mexico for use of the Light Rail Transit Line 1 (LRT-1) Cavite extension.

“This means that after 19 long years of waiting, the LRT-1 Cavite extension is finally turning into reality,” the department said in a statement.

Japan, through the Japan International Cooperation Agency, funded the manufacture of the 120 fourth-generation light rail vehicles.

The train cars will be provided to the LRT-1, with Mitsubishi Corp. as the implementing contractor, the Embassy of Japan in Manila said in a separate statement.

Light Rail Manila Corp. (LRMC), the private operator of LRT-1, said Spanish rail equipment manufacturer Construcciones y Auxiliar de Ferrocarriles started the production of the train cars in Spain and Mexico in 2019, after winning a tender conducted by the Transportation department.

“The train sets will arrive in batches, with at least one train set arriving every month until May 2022,” the company noted.

The Transportation department said on Jan. 18 that the LRT-1 Cavite extension project was 51.61% complete as of Dec. 31.

It also said the Cavite extension is expected to start partial operations by the end of 2021.

The P64.9-billion LRT-1 Cavite extension project, a public-private partnership venture that the National Economic and Development Authority board approved in November 2013, aims to add an 11.7-kilometer Baclaran-Bacoor, Cavite segment to the current 18.1-kilometer train line. The new stretch will have eight stations.

The first phase of the extension consists of a seven-kilometer segment with five stations between the Redemptorist Church area in Baclaran and Dr. Santos Ave. in Parañaque.

The remaining three stations are scheduled for completion in 2022.

Once LRT-1’s Cavite extension opens to the public, the DoTr expects daily ridership along the entire line to increase to 800,000 passengers from 500,000, and Baclaran-Bacoor travel time to be cut to 25 minutes from up to two hours.

LRMC is the joint venture of Ayala Corp., Metro Pacific Light Rail Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. It holds the P65 billion, 32-year PPP contract to operate LRT-1 and build its extension to Cavite.

Metro Pacific Investments Corp. 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, which it controls. — Arjay L. Balinbin

Meat processors push for zero-tariff emergency imports of pork products

THE GOVERNMENT should admit pork imports with zero tariffs on an emergency basis to ease the price increases for the commodity, the Philippine Association of Meat Processors, Inc. (PAMPI) said.

According to a letter addressed to Agriculture Secretary William D. Dar, PAMPI President Felix O. Tiukinhoy, Jr. said removing tariffs on pork imports can be done on an emergency basis to address high pork prices and tight supply.

Mr. Tiukinhoy said hog farmers and producers that are registered with the Bureau of Animal Industry (BAI) should be given the green light to directly import up to 50,000 metric tons of pork and more if needed, at zero tariff.

He added that it is not unusual for producers to import goods in emergency situations, in order to continue being able to supply consumers.

“Our recommendation, we believe, is a much better way of alleviating the plight of the hog sector at no cost to the government rather than giving them financial dole-outs,” Mr. Tiukinhoy said.

Mr. Tiukinhoy said the National Meat Inspection Service must temporarily ease a ban on the sale or display of frozen meat products in public markets which do not have refrigeration facilities, for the duration of the shortage.

He added that the Land Bank of the Philippines needs to provide financing and trade credit to qualified hog raisers and production at concessional rates.

This will provide “hog farmers and producers… the opportunity to generate income and compensate for huge losses arising from the African Swine Fever (ASF),” Mr. Tiukinhoy said.

According to the BAI, the Philippines imported 256.02 million kilograms of pork in 2020, down 23.8%. Spain accounted for 30.2% or 77.42 million kilograms, followed by Canada at 17.7% or 45.28 million kilograms, and the US at 17.4% or 44.56 million kilograms.

In a virtual briefing Tuesday, Agriculture Secretary William D. Dar said PAMPI’s recommendation will be discussed by the Committee on Tariff and Related Matters on Wednesday, Jan 27.

“We are also looking into reducing the tariff imposed on pork products imported inside minimum access volume (MAV) and those outside the MAV,” Mr. Dar said.

“Products inside MAV are charged with 30% tariff, while those outside MAV are at 40%. From there, we will make adjustments,” he added.   

According to Mr. Dar, the total number of pigs culled since the detection of ASF in 2019 has hit 500,000, with the majority of the animals owned by backyard hog raisers. — Revin Mikhael D. Ochave

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