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Policy rates to remain low — Diokno

The Bangko Sentral ng Pilipinas (BSP) may trim banks’ reserve requirements further to encourage lending and boost economic activity, Governor Benjamin E. Diokno said. — PHILIPPIINE STAR/ MIGUEL DE GUZMAN

THE Philippine central bank will keep benchmark interest rates low to support economic recovery amid a coronavirus pandemic, its chief said on Wednesday.

The Bangko Sentral ng Pilipinas (BSP) may also cut banks’ reserve requirements further to encourage lending and boost economic activity, Governor Benjamin E. Diokno said.

“It’s never too early at this time because the pandemic is not yet over. In fact our policy is that we will keep this policy for long until such time that we see economic growth at 6.5% to 7.5%,” he said during the BusinessWorld One-on-One online interview on Wednesday.

Economic managers expect gross domestic product (GDP) growth at 6.5%-7.5% this year, after GDP likely contracted by 8.5%-9.5% in 2020.

The BSP slashed rates by a total of 200 basis points (bps) last year, bringing down the overnight reverse repurchase, lending and deposit rates to 2%, 2.5%, and 1.5%. Some analysts, including Fitch Ratings, have said there is not much space left for further easing amid negative real interest rates as the BSP expects inflation to settle at 3.2% this year.

The BSP was one of the most aggressive in policy easing last year. The first rate cut was delivered in February, with the central bank citing uncertainty over the coronavirus disease 2019 (COVID-19) outbreak.

“I do not apologize for the speed at which the central bank acted. It calmed down the market and it reduced the borrowing costs for businesses and the National Government,” Mr. Diokno added.

He said there is still room for further cuts in banks’ reserve requirements this year.

“Whether we will cut further will depend on whether there’s still need for more liquidity but at the moment, there’s ample liquidity, so I don’t see the need for an additional cut in the reserve requirement at this time,” Mr. Diokno said.

Bank lending grew by less than a percent in November, the slowest in 14 years as lenders tightened credit standards.

This is despite BSP’s liquidity-infusing measures that have added about P2 trillion into the financial system, or equivalent to about 10% of the country’s gross domestic product.

“Maybe things will change once the economy starts recovering and with the speed of recovery, we may consider additional cuts in the reserve requirement,” the BSP chief said.

In 2020, big banks’ reserve requirements were slashed by 200 bps to 12%, while those for thrift and rural lenders were trimmed by 100 bps to 3% and 2%, respectively. Mr. Diokno has vowed to bring the ratio to a single digit by the end of his term in 2023.

Mr. Diokno, who is also a former Budget secretary, said the country is in a much better position than in the previous crises.

“I’ve seen that whenever we have a crisis in the Philippines, we run out of dollars because we have a huge foreign debt and because we do not want capital exiting the country, we raise interest rates,” he said.

The country’s gross international reserves as of end-November stood at a record $104.5 billion, enough to cover 11.2 months of imports and about 9.3 times the country’s short-term external debt based on original maturity.

“We’re now looking at around maybe $110 billion this year and even $120 billion next year — that is equivalent to close to a one-year import requirement,” Mr. Diokno said.

The BSP chief said the banking system remains stable, adding that they do not see any emerging problems based on data from individual banks and the industry.

The nonperforming loan ratio continued to rise for the 10th straight month to 3.81% as of end-November. This level is still manageable compared with its peak of 17.6% in 2002 due to the Asian financial crisis, Mr. Diokno said.

He said the passage of the Financial Institutions Strategic Transfer (FIST) bill would significantly cut bad loans. The measure, which will allow lenders to offload bad loans to asset management corporations, was approved by the bicameral conference committee in December and is awaiting the approval of President Rodrigo R. Duterte.

“It’s [FIST] just a fallback position. But we don’t see any situation worsening at this time. Even without the FIST bill, the banking industry can handle the crisis,” he said.

Banks’ capital adequacy ratio hovers around the 15% territory, which is well above the 10% minimum requirement of the BSP. Lenders also beefed up loan loss reserves by 65.4% to P352.733 billion in November.

COINLESS SOCIETY BY 2025
The BSP is aiming to make 50% of payments in value and volume done digitally, but Mr. Diokno admitted a totally cashless society is not possible “within my lifetime.”

“But I can assure you maybe a coinless society by 2025 for sure, because that will be replaced by the QR Code PH, which we are pushing to get our national ID,” he said.

In 2019, the BSP launched the P20 coin, which now coexists with the bill version of the denomination. — Luz Wendy T. Noble

Traffic congestion in Manila is 4th worst in the world despite lockdown

Metro Manila was the fourth most congested city in the world in 2020, even as traffic declined due to lockdown restrictions. — PHILIPPINE STAR/MICHAEL VARCAS

By Arjay L. Balinbin, Senior Reporter

ANNUAL TRAFFIC congestion in Metro Manila significantly dropped last year due to coronavirus lockdown, but the Philippine capital was still the fourth-most congested city in the world, according to data from a location technology company.

Latest data from Amsterdam-based TomTom International B.V. showed Metro Manila had a 53% congestion level last year, better than 71% congestion level in 2019. This means a 30-minute trip would take 53% longer than it would during baseline uncongested conditions in Metro Manila.

TomTom’s 2020 Traffic Index report showed Moscow was the most congested city last year.

The Philippine capital’s congestion level was the same as Mumbai, India and Bogota, Colombia, which ranked second and third on the Traffic Index. However, Metro Manila traffic dropped by 25% in 2020, while traffic in Mumbai and Bogota declined by 18% and 22%, respectively.

The TomTom traffic index covered 416 cities or regions across 57 countries on six continents.

Metro Manila saw consistent low traffic levels — or 50% less congested than their corresponding days in 2019 — starting March 15 until May 31, when strict lockdowns were in place.

February was the most congested month in Metro Manila with a 68% level in 2020, while April — the height of the lockdown — had the least congestion.

From 12% in May, Metro Manila’s average traffic congestion level rose to 42% in June, when the government eased travel restrictions. Traffic steadily increased, reading 60% congestion in December.

Motorists in Metro Manila lost 20 minutes per 30-minute trip during rush hour in the morning and 29 minutes per 30-minute trip during rush hour in the evening. This meant they lost 188 hours — equivalent to seven days and 20 hours — in 2020, or two days and 21 hours less than the previous year.

The decline in traffic congestion in Metro Manila last year was expected due to the lockdown, according Rene S. Santiago, a transport expert.

“School trips alone accounted for about six million trips disappearing in Metro Manila with no students going to schools. That is 25% of the total daily demand. The government also suppressed the supply, with the limited capacity and the limited number of public utility vehicles allowed on the roads,” he told BusinessWorld in a phone interview on Wednesday.

“So where is the easing of traffic in that sense?” he added.

He noted that there is a “short-term relief” from San Miguel Corp.’s (SMC) opening of Skyway 3, which may reduce traffic on EDSA and C5 by 20% to 30%.

SMC said on Wednesday it would fully open all the seven lanes of the 18-kilometer Skyway 3 after official ceremonies on Jan. 14. The elevated expressway is expected to reduce travel time from the South Luzon Expressway in Alabang to the North Luzon Expressway (NLEx) to about 30 minutes from about three hours.

Mr. Santiago noted Philippine officials have not come up with realistic solutions to address the traffic problem in Metro Manila.

“What they have are artificial solutions, which cannot be sustained. For example, the EDSA Busway system. It speeds up the travel of those on the buses, but they are actually in direct competition with the MRT-3. The moment you expand the capacity of the MRT-3 once we return to normal, the riders of the EDSA Busway will go back to the MRT-3,” he said.

Mr. Santiago said the government could reinstall or reopen the “signalized intersections,” instead of closing the U-turn slots along EDSA.

“Once the situation returns to normal, the good part is that not all workers will go back to their offices. A portion of them will still be working from home and some of the schools will adopt hybrid learning, and that is good. Telecommuting and tele-schooling are some of the solutions I have been recommending since 2014,” he added.

Infrawatch PH convenor Terry L. Ridon said Metro Manila’s traffic remains one of the worst in the world because the infrastructure and policies needed to ease the congestion “remain absent, despite record congestion reduction during the pandemic.”

“Further easing can be expected as soon as the NLEX Connector Road and Segment 8.2 projects proceed. These new toll roads can certainly unburden EDSA and other major roads currently experiencing moderate to severe congestion,” he said via e-mail.

“Congestion pricing has also been proposed by other groups, but support remains limited because public mass transport remains unreliable in the capital. Without effective public mass transport, this proposal may unfairly burden commuters not only in respect to money, but also to time,” Mr. Ridon added.

The pandemic is expected to weigh again on traffic congestion this year, said Nick Cohn, TomTom’s senior traffic expert.

“We’re going to see continued restrictions through the first half of the year, and I think we’re going to see a lot of ups and downs before we’re really getting back to any normal driving patterns and traffic activity levels,” he told Reuters in an interview.

The downturn in congestion in the United States was more prolonged compared with Europe last year because US coronavirus cases stayed relatively high during the summer and early fall, Mr. Cohn said.

In the United States, Los Angeles, New York and Miami were the most congested cities, though traffic in each city dropped from 2019 levels by 36%, 30% and 26%, respectively, TomTom data showed.

Overall, Moscow was the most congested city in 2020, but traffic fell by 8% from 2019. Bengaluru was the most congested city in the world in 2019, but it fell to sixth place in 2020 with nearly a 30% drop in traffic year on year.

Traffic in London and Paris was almost 20% lower than in 2019, and traffic in Madrid and Rome dropped by 35% and 29%, respectively. Berlin experienced only a 6% traffic fall compared with 2019.

Traffic patterns like the daily morning commute to work — a mainstay for decades — could shift because of increased flexibility around remote work for employees, Mr. Cohn said.

“In the US, Canada and Mexico, if you look at peak travel patterns, the morning peak seems to have melted away,” he said. “We have never seen that before.”

Traffic congestion during rush hours last year decreased by 25% globally, said Stephanie Leonard, TomTom’s head of traffic innovation and policy.

As more people return to office following vaccine distributions, congestion levels could rise if commuters choose to avoid public transit and drive to office instead, said John Kilduff, partner at Again Capital LLC in New York. — with Reuters

Metro Manila among cities with the worst traffic congestion

Metro Manila among cities with the worst traffic congestion

ANNUAL TRAFFIC congestion in Metro Manila significantly dropped last year due to coronavirus lockdown, but the Philippine capital was still the fourth-most congested city in the world, according to data from a location technology company. Read the full story.

Metro Manila among cities with the worst traffic congestion

PHL sees no jobs boost from free trade deals

The unemployment rate surged to a 15-year high of 17.7% in April, as many businesses shut down during the lockdown. — PHILIPPINE STAR/EDD GUMBAN

THE country’s free trade agreements (FTAs) have increased labor productivity but not jobs, a study from the Philippine Institute for Development Studies (PIDS) showed.

“Impact of FTA on Philippine Industries,” authored by Francis Mark A. Quimba, Mark Anthony A. Barral, Maureen Ane D. Rosellon, and Sylwyn C. Calizo, Jr., looked at Philippine trade agreements with Japan and regional agreements among the 10-member Association of Southeast Asian Nations (ASEAN) and partner countries like Australia, New Zealand, and South Korea. These agreements have allowed the Philippines to import products at zero duties.

The influx of imports under trade agreements allow for increased industry output as businesses heighten labor productivity, according to the report. However, these businesses are not hiring additional workers.

“Businesses are hesitant to increase employment despite benefiting from importation at lower rates,” the researchers said.

Government trade policies should be supported by employment policies to address the absence of new jobs, they said.

“Businesses are hesitant to increase employment because these tend to become long-term investments which would include in-house training and skills development,” the think tank said.

“Thus, the government needs to increase the confidence of industries and companies in the growth prospects of the country for them to translate their gains from tariff-free imports to employment.”

The government needs to add to labor supply, it added, by offering incentives for universities to work with industry in developing specialized skills among the workforce.

While FTA-based imports increase industry growth, the study noted that the effects on real gross value-added growth, or its contribution to the economy, are “not statistically significant.”

The Philippines recently joined the 15-country mega trade deal Regional Comprehensive Economic Partnership (RCEP), which the Trade department aims to ratify by next year.

Since the signing, the Trade department has been looking at participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which was signed by 11 countries in 2018.

The department is also targeting to finish FTA negotiations with South Korea this quarter, after talks stalled on items like bananas, for which Philippine producers are seeking lower tariffs, and South Korean auto exports, for which Seoul is seeking greater access.

The lockdown designed to address the health crisis led to a decline in jobs last year as the unemployment rate surged to a 15-year high of 17.7% in April, according to data from the Philippine Statistics Authority. The rate in October eased to 8.7%, translating to 3.813 million jobless Filipinos.

The PIDS report also said Philippine industry links are weak and the government should match smaller domestic firms with multinational affiliates. — Jenina P. Ibañez

Adding pleasure to life

When times are hard, a little truffle luxury goes a long way

WE all have things that we deem necessary, but what these necessities are might be different for different people. Counting on your fingers might seem enough for some when praying the rosary, but others can’t do without a lovely jeweled chain. Either way, when we can, it’s always best to inject a little bit of pleasure into our lives.

Rochelle Suzara Farrales, proprietress of Caprichosa and Bead Studio Manila has moved from one pleasure to another. Ms. Farrales had been making Faith Fashion Wearables (what may be described as wearable rosaries) which were sold at the home department and some Ladies departments of Rustan’s. But the coronavirus disease 2019 (COVID-19) pandemic has scuttled some of their plans. “Prior to the pandemic, we were all set for the roll-out in the Ladies Department of the Makati store. Well, that was put on hold obviously: sales went from quite decent to nada, and the pick-up since GCQ (general community quarantine, the third strictest of four lockdown levels) was announced has been slow but reassuring,” she told BusinessWorld in an interview.

“Things are looking brighter now,” she said. “That was not the outlook when the ECQ (enhanced community quarantine, the strictest quarantine level) was imposed. Our income was sliced in half at best, and things were bleak and gloomy. Our Bead Studio which is actually located at home was stocked well because we had full intentions of being very productive during the lockdown. Of course, that was not the case. During the ECQ there was zero income from all our sources and the insecurity of the times was not conducive to any creativity for us at all.”

But the quarantine couldn’t keep them down. In the interim between the initial lockdown and the holiday season, Ms. Farrales came up with Caprichosa, a line of luxury condiments that included truffle honey and butter, but also crab fat butter, fruit compotes, and pâté.

“I think what I am trying to say is while the obvious pivot was into food and I longed to put something fast moving and mass-based into the market for swift returns, our daughters inspired me to stick to what I love, and I love French truffles on everything!” she said.

Her daughters have also created their own ventures of macarons and chocolates during the lockdowns. “I’ll tell you this: one of the things I learned as a mother during this entire gourmet food adventure… is that the girls will survive and that they now have seen with their own eyes that family is truly important and together we are stronger.”

Talking about her fondness for the rare and expensive fungus she said, “There is just something beautiful about the elegant touch of black truffle in a well-prepared dish, black truffles can take a beautiful dish to even greater heights. I am particularly in love with black truffle honey, and with the delis closed, it was hard to come by. So I thought, that is what I want to do: make little jars of black truffle honey happiness for all to enjoy. I have been purchasing black truffle honey from stores and delis over the years, and gifting them to people we love. It was always hard to come by, small bottles of this delicious condiment, so it made sense to fill that scarcity.”

Truffles are rare and expensive because they are difficult to grow and cultivate. There have been several attempts to domesticate the truffle in Europe for centuries, but it’s mostly still a hit-and-miss game. That’s why truffle oil had become so popular in the last 20 years or so: it was a way to bring that delicacy to the masses through a light and affordable approximation of the taste and scent of real truffles. Ms. Farrales doesn’t go that way, and uses real truffles in her creations. “People assume that the difficult part of creating black truffle honey was sourcing the black truffles. It actually was not. With eBay and Amazon shipping in, and local distributors of imported brands readily available, that was not the difficult part at all. The more challenging hurdle was sourcing the honey.”

Honey is fast becoming a luxury itself. Authorities recently found that several supermarket brands which claimed to be pure honey were actually adulterated with syrup. The drop in populations of bees worldwide also poses a problem.

“We did not know that would be so difficult!” said Ms. Farrales. “We must have purchased dozens of liters of honey from various sources until we found honest distributors who represent the honey hunters. You see, some apiaries feed their bees raw sugar, not only so they can survive the rainy season when the bees cannot make honey, but all year-round. What is produced is a honey product which lacks the natural taste and endemic medicinal properties of real honey. Oh, they will pass all kinds of honey tests, but the taste will not lie. We are happy that [after] more than a month of sourcing we finally found a reliable source of honey from the different regions — all wild, pure, raw and beautiful. In order to infuse the black truffle essence, we needed a light and delicate honey that would lift, and not drown out, the black truffle,” she explained.

A little luxury goes a long way in difficult times like these. Ms. Farrales’ products start at relatively low prices for a little below P300 for 50 mL of the truffle butter and truffle honey. “These products, while luxuries, do not actually break the bank,” she noted.

Ms. Farrales went on to explain the necessity of little luxuries in difficult times. “During times of difficulty and insecurity, it is good to have little things to lift the spirits and provide satisfaction for the yearning for actual luxuries that we cannot afford due to financial and/or physical constraints or even limited mobility. We like to think our products provide that satisfaction. They also deliver on the emotional assurance that maybe things aren’t all that bad.”

She adds, “Of course, these do not take the place of the more important things in life — family, health, job security, as well as physical, spiritual and mental health — but they certainly help.”

For details and orders, contact Rochelle Farrales at 0917-5011372. The spreads can be combined as sets with prices ranging from P560 to P1,980. — Joseph L. Garcia

SEC warns against Masa Mart investment schemes

THE Securities and Exchange Commission (SEC) has advised the public not to invest or stop investing in any scheme offered by Masa Mart Business Center after it has solicited investments without proper registration.

In an advisory posted on its website, the SEC said Masa Mart and its other entities such as Masa Mart Business Center OPC and Masa Mart Enterprise OPC are not authorized to solicit investments since they have not secured the necessary approval from the government.

The corporate regulator said Masa Mart and its entities have registrations with the SEC and the Department of Trade and Industry (DTI) as a one-person corporation, but need a different license to solicit investments.

“Such registrations merely grant juridical personalities to the entities but do not authorize them to issue, sell or offer for sale securities to the public nor undertake business activities requiring a secondary license from the commission,” the SEC said.

The SEC said it issued an advisory in April 2020, which also warned the public from investing in TBCMMP Masa Mart, Inc., due to its unauthorized subscription and gains program.

However, the commission said it had found out that Masa Mart Business Center and its related entities have implemented the same scheme and offers almost the same compensation plan as TBCMMP.

“Under this program, a member may invest for as low as P1,250 up to P500 million and promises, depending on the selected lock-in period (i.e., 3 months, 6 months, and 1 year), a return ranging from P2,746 up to P11.65 billion, respectively,” the SEC said.

“Similar to the TBCMMP scheme, a subscription entitles the investor to a ‘gain’ ranging from 30% monthly up to 2,561.81% per annum,” it added.

Further, the SEC said Masa Mart Business Center and its related entities also offer cryptocurrency, namely: the United Masa Coin or the XUM Coin. It is promoted via a software-controlled application called UmcUSDTbot.

However, the commission said Masa Mart and its related entities do not appear among the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas.

“Both United Masa Coin and XUM are also not included among the list of the generally accepted virtual currencies posted on the World Coin Index and Coin Market Cap websites,” the SEC said.

“It appears that no open exchanges allow the trading of United Masa Coin and XUM, so Masa Mart seemingly manages its own digital exchange platform contrary to the law,” it added.

Other programs offered by Masa Mart include the “P5,888 combo package,” where the investment gains P20,000 after six months, and a rollover program that promises an income of P100,000 to P12 million after two years.

According to the SEC, persons who invite or recruit members to join or invest in Masa Mart’s venture may be criminally charged in violation of Republic Act No. 8799 or the Securities Regulation Code, and can face penalties such as a fine of up to P5 million, a 21-year imprisonment, or both.

BusinessWorld sought the side of Masa Mart Business Center, which has not given a comment as of deadline time. — Revin Mikhael D. Ochave

I gut you

Foods for your healthy gut microbiota

By Teddy S. Manansala, RND, D/MENRM, MSc

MICROBIOTA is the community of microorganisms that thrive in the gut and influence one’s health. By fermenting nondigestible food components, they contribute to the production of nutrients and energy and give us innate immunity.

The key is a diet that incorporates dietary fiber and probiotics. Meanwhile, negative impact may be caused by antibiotics and other medications, emulsifiers and high-intensity sweeteners. Even pesticides sprayed on produce may contribute to this undesirable effect.

The following food choices may aid in your overall gut health:

• Dairy Products. Cheeses such as Swiss, gouda, cheddar, and parmesan deliver intact probiotics because of their ideal pH level that facilitates survival and growth. Yogurt likewise contains Lactobacillus bulgaricus, while kefir is high in lactic acid bacteria, which aid digestion.

• Fermented Foods. Miso, sauerkraut, kimchi, tempeh, and pickles are rich probiotics sources. These may boost intestinal immunity and relieve diarrhea, abdominal pain and constipation.

• Fiber and Prebiotics. Dietary fibers are complex sugars which include inulin, fructo-oligosaccharides and other oligosaccharides. Fruits, leafy vegetables, cereals and whole grains are good sources for these, as they aid in the growth and diversity of these helpful microorganisms.

• Polyphenols. Dietary polyphenols are natural compounds present in coffee, tea, and wine, plus berries, cereals, dark chocolates and cocoa powder. They may likewise be found in vegetables such as artichokes, olives and asparagus. These ward off unwanted elements inside the body.

Teddy S. Manansala is a registered nutritionist-dietitian and a resident full-time faculty member of the School of Hotel, Restaurant and Institution Management, De La Salle-College of Saint Benilde Manila.

DITO CME, CloudSwyft to launch online learning platform

Dito CME Chairman Dennis A. Uy expects Luna Academy to help Filipino workforce become future-ready. — PHILSTAR/MICHAEL VARCAS

DITO CME Holdings Corp., the communications, media and entertainment arm of the Udenna Group, is set to launch an online learning platform called the Luna Academy.

Luna Academy is expected to provide “cost-effective” access to certifications and diplomas from known technology firms such as “Microsoft, AWS and Alibaba alongside the most prestigious local universities for our countrymen,” Dito CME President Eric R. Alberto said in an e-mailed statement on Wednesday.

The company, led by Dennis A. Uy, recently entered into a joint venture agreement with education technology firm CloudSwyft.

The online learning platform that they will develop will be “initially anchored on job-ready digital skills.”

Luna Academy will facilitate “the timely upskilling of a generation of Filipinos,” Dito CME noted.

“We endeavor to launch a range of job-ready courses and certificates to the whole population in the coming months. However, we will not stop there. We are working tirelessly to establish an extensive program that will link all successful learners, should they be interested, to exciting employment and internship opportunities with the leading global and local corporations in the Philippines,” Mr. Alberto said.

The listed firm saw its attributable net income for the first nine months of 2020 grow 38.73% to P69.95 million from the previous year’s P50.42 million.

Dito CME shares on Wednesday closed 1.003% higher at P12.08 apiece. — Arjay L. Balinbin

IBM leads in quantum computing, Ford in driverless car patents

ARTIFICIAL INTELLIGENCE, quantum computers and autonomous vehicles are among the fastest growing areas of technology, with American companies often in the lead, according to a new study of US patents issued over the past five years.

International Business Machines Corp. received the most patents in machine learning and quantum computers, while Ford Motor Co. is the most active in areas of vehicle navigation and control systems, according to the analysis by Fairview Research’s IFI Claims Patent Services.

The US Patent and Trademark Office issued 352,013 patents last year, a 1% decrease that’s likely attributable to workflow changes because of the coronavirus pandemic, said IFI Claims Chief Executive Mike Baycroft. IBM topped the list of patent recipients for the 28th year with 9,130 patents, while Samsung Electronics Co. of South Korea was second with 6,415 new patents issued last year.

Of the top 10 fastest growing fields, IBM also was No. 1 in areas of quantum computers, machine learning, and computer systems using neural networks that imitate how the human brain works. Alphabet Inc.’s Google and Microsoft Corp. also ranked in the top five of those three areas.

BIG IDEAS
“We are focused on areas where we think it will keep IBM competitive in the future,” said Kathryn Guarini, chief operating officer of IBM Research. “We see cloud, AI, and quantum as the trifecta of technologies for the IT industry.”

The company, based in Armonk, New York, has integrated artificial intelligence (AI) into all areas of its business, she said. One of its new patents is for ways AI can understand conversational tones, such as when a person contacts customer service. It’s just one example that backs up a Brookings Institution report that AI is likely to transform white collar and higher paid jobs.

“It’s never our intent to replace the human,” Ms. Guarini said. “Our hope and our intent is that it makes all of us more efficient and improves productivity.”

Quantum computers, which use the movement of subatomic particles to process data in amounts that modern computers can’t handle, could create new ways for drug and agriculture companies to discover new compounds and financial service companies to improve encryption.

With the classical computers, “we’ve made tremendous progress, making it more efficient and secure,” Ms. Guarini said. “But there has not been a revolution in how the technology works, for decades and decades. Quantum is on a whole new level.”

Other fast-growing areas include display technology, with Samsung Display Co. in the lead; data transfer technology in computer design led by Intel Corp. and China’s Huawei Technologies Co.; and plant and seed development led by Bayer AG’s Monsanto.

In the two areas involving autonomous vehicles, Toyota Motor Corp. and LG Electronics, Inc., were the next highest recipients behind Ford.

The second-fastest growth area, albeit with a small number of overall patents, was in the area of electrical smoking devices with Philip Morris International Inc. as the top recipient over the past five years.

“Patents are a significant mechanism for companies to develop intellectual property assets,” Mr. Baycroft said. “This is how you compete in the global market.” — Bloomberg

Yields on BSP’s term deposits decline despite lower demand

YIELDS ON term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) on Wednesday continued to inch lower as demand normalized after the holidays.

Demand for the BSP’s term deposit facility (TDF) amounted to P726.615 billion on Wednesday, well above the P550 billion on the auction block but lower than the P867.292 billion in bids seen a week ago.

Broken down, bids for the one-week papers reached P305.273 billion yesterday, surpassing the P200-billion offering but falling below the P380.918 billion in demand seen on Jan. 6.

Banks asked for rates ranging from 1.6% to 1.67%, a lower band compared with the 1.6105% to 1.7% yield margin last week. This caused the seven-day paper’s average rate to settle at 1.647%, falling by 2.65 basis points (bps) from the 1.6735% in the previous auction.

For the 14-day papers, tenders amounted to P421.342 billion, higher than the P350 billion auctioned off by the central bank but declining from the P486.374 billion worth of bids recorded a week ago.

Accepted rates for the two-week term deposits were from 1.6% to 1.7%, slightly lower than the 1.6125% to 1.7125% band seen last week. With this, the tenor’s average rate went down 1.46 bps to 1.6673% from 1.6819% previously.   

The BSP did not auction off 28-day term deposits for the 13th consecutive week. This follows the start of its weekly offerings of short-term bills with the same maturity.

The TDF and BSP securities are tools used by the central bank to mop up excess liquidity in the financial system and to better guide market interest rates.

“The results in the TDF auction continue to reflect ample liquidity in the financial system. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of liquidity conditions and market developments,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement on Wednesday.

BSP Governor Benjamin E. Diokno has said the central bank’s various moves to boost liquidity have infused about P2 trillion in cash into the financial system.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the demand for term deposits stabilized after the spike seen last week.

“Short-term interest rates also continued to ease in view of the end of the window-dressing and other balance sheet management for the accounting year end,” Mr. Ricafort said in a text message. — Luz Wendy T. Noble

Cold weather favorite

WITH PAGASA announcing that there will be cooler days ahead, it is time to bring out that traditional cold weather drink, salabat (ginger tea). Filipinos tout this tea for its antibacterial properties and throat-soothing effects and brew a cup of salabat to drink in the morning, for when they have a cold or a mild stomach ache. Healthy Options offers this simple recipe with additional options that give it a bit more of a kick.

SALABAT RECIPE

Ingredients

4 oz (114 grams)

fresh ginger, sliced

6 cups water

Optional ingredients

Honey (to the drinker’s taste)

A slice of lemon

2 tablespoons of apple cider vinegar

Procedure

Boil together water, ginger, and honey.

Lower the heat, cover and let simmer for 10-15 minutes

Strain and enjoy immediately. Add a slice of lemon or 2 tablespoons of apple cider vinegar if wanted.

Store the rest in the fridge.

Petron’s P3-B Bataan refinery infusion signals business resumption — analysts

PETRON Corp.’s additional investment of P3-billion in its Bataan refinery and its registration as an enterprise in the province’s freeport area are a big boost to the oil company’s operations while easing its tax concerns, analysts said.

“Petron’s infusion of a considerable amount of money to improve its refinery operations after it secured approval from the freeport authority of Bataan signals its interest in revitalizing its operations and pursuing future economic gains,” said Cid L. Terosa, senior economist at the University of Asia and the Pacific (UA&P) School of Economics.

“It’s a business opportunity that Petron won’t pass,” he told BusinessWorld in an e-mail on Tuesday, adding that the move signals the firm’s interest to continue operations.

Earlier this week, the Ramon S. Ang-led firm said that it had infused around P3-billion to improve refinery operations in its Bataan plant, after securing approval from the Authority of the Freeport Area of Bataan (AFAB) to register as an enterprise.

This came after Petron said last month that it would be halting its 180,000-barrels-per-day plant operations in Bataan starting mid-January for “maintenance activities on key process units.”

Rastine D. Mercado, research director at China Bank Securities Corp., told BusinessWorld in an e-mail on Tuesday that market factors and a sustained improvement in oil demand would play a role in determining the refinery’s financial viability.

“The AFAB registration of the firm’s refinery facility (which) allow(s) the firm avail certain tax perks and capital investment commitment is an encouraging sign with regard to the prospects of the Bataan facility’s continuing operations,” he said.

Christopher John Mangun, AAA Southeast Equities, Inc. head of research, said Petron’s decision to register as an enterprise in the Bataan freeport would help the firm mitigate its tax concerns.

“The Petron facility’s inclusion in the freeport of Bataan will address their concerns of higher taxes compared to importers of finished products, which is why the permanent closure was reduced to a temporary closure of 4 months,” he said in an e-mail on Tuesday.

He said, however, that the closure could be extended if the fuel demand remained low.

“The only reason for them to resume sooner is if fuel prices continue to rise. Gas prices are currently at a 12-month high and may continue to go higher,” he added.

BusinessWorld reached out to Petron for a comment about the schedule of its refinery’s shutdown, but has yet to receive a reply as of press time.

In the third quarter last year, Petron posted an attributable income of P1.33 billion, up 49.8% year on year and primarily driven by retailing margins. The quarter’s profit was a reversal of the second quarter’s net loss of P9.15 billion attributable to the parent equity holder.

For the nine months to September, the company recorded an attributable net loss of P12.44 billion, reversing the earlier year’s P3.11-billion income.

Shares in Petron on Wednesday inched down 0.5% to close at P3.95 apiece. — Angelica Y. Yang

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