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SunPower to spin off solar panel manufacturing

U.S. solar company SunPower said on Monday it will split into two publicly traded companies, separating most of its solar panel manufacturing operations from storage and energy services, sending its shares up as much as 15%.

The move was intended to boost value in SunPower shares, which are trading at the same level they were at two years ago. Monday’s news was welcomed by investors, with shares up nearly 3.7% at $8.68 in afternoon trade.

The new solar panel company, named Maxeon Solar Technologies, will be headquartered in Singapore, with manufacturing operations in France, Malaysia, Mexico and the Philippines.

The remaining company will still be based in California and will retain the SunPower name. It will focus on catering to the growing residential and commercial rooftop solar installation markets in the United States through the company’s network of hundreds of dealers. That company will also keep SunPower’s new solar panel factory in Oregon.

“This transaction will also simplify both organizational structures, lowering costs, while improving efficiency and creating (two) more nimble companies,” Chief Executive Officer Thomas Werner said on a conference call with analysts.

Werner will retain the CEO role at the company, while Jeff Waters, CEO of SunPower’s Technologies business unit will head of Maxeon.

The separation will be through a tax-free spin off of all Maxeon Solar shares held by SunPower to the company’s shareholders.

SunPower is majority owned by France’s Total.

As part of the deal, SunPower’s long-time partner Tianjin Zhonghuan Semiconductor Co. will invest $298 million in Maxeon Solar and hold a 29% stake in the company, while SunPower shareholders will hold the rest.

At the time of separation, expected to be completed in the second quarter of 2020, the two businesses will enter into a multi-year exclusive supply agreement covering sales within the United States and Canada of products manufactured by Maxeon Solar.

Raymond James analyst Pavel Molchanov said the brokerage had a mixed perspective to the news.

“We have long looked at SunPower’s vertical integration and broad geographic diversification as differentiating strengths rather than weaknesses: put another way, ‘a feature, not a bug.’” — Reuters

Léon Gallery holds the Ang Kiukok video and essay tilt

FOUR WINNERS will be chosen by Léon Gallery for its Many-Faced Ang Kiukok and His Role in Filipino Art Video & Written Essay Competition, held in collaboration with The Philippine Star. The winners will be announced during the Kingly Treasures Auction 2019 Cocktails on Nov. 27. The first dual media competition of its kind in the Philippines, it was established in honor of National Artist for the Visual Arts, Ang Kiukok (1931– 2005). Meant to promote not only the writing of criticism on, and the production of commemorative videos about, the late National Artist, the competition encourages further appreciation of the master Cubist known for his highly expressionist depictions of violence, conflict, madness, and struggle. The competition is open to all professional and amateur artists and writers as well as to students, art aficionados, and bloggers who are encouraged to prepare a five-minute video or a 250 word essay on one of the Ang Kiukok paintings featured in the Kingly Treasures Auction 2019 — Seated Figure, Screaming Figures, Mother and Child, and Table with Fruit. Prizes will be given for the Best Creative Video Essay Award and the Best Essay Award. The Audience Choice Award for Best Video Essay and Audience Choice Award for Best Written Essay Award will be awarded to the posts garnering the most number of aggregated likes on Facebook, Instagram, and Twitter. Winners of the Best Creative Video and Essays will each get P20,000 while the Audience Choice awardees will each receive P10,000. Participants are encouraged to post as many entries on their social media accounts with the hasthtags #KinglyTresuresAuction2019 and #ManyFacedKiukokLeonGallery until Nov. 21. The Kingly Treasures Auction 2019 will be held at 2 p.m. on Nov. 30 at Eurovilla 1, Legazpi St., Legazpi Village, Makati.

Which segments contributed to Philippine economic growth last quarter?

Which segments contributed to Philippine economic growth last quarter?

How PSEi member stocks performed — November 12, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, November 12, 2019.

 

Palace rejects claim of slow start to infrastructure projects

THE Palace said the government’s infrastructure program is making progress and defended the slow going on some public works as due to “caution” in completing preliminary activities like acquiring right-of-way.

The President’s Spokesperson Salvador S. Panelo said Tuesday at a briefing: “Maraming ginagawa ng administrasyon (The government is doing a lot)… It’s not only nine (projects).”

Mr. Panelo was referring to claims that the government has started construction on only nine of 75 key projects.

He also dismissed as “baseless” the claim by Senate Minority Leader Franklin M. Drilon that the infrastructure program was a “dismal failure.”

Mr. Drilon told reporters Tuesday that the “Build, Build, Build” program is underperforming, adding that only nine out of the total 75 projects have begun construction. He also said the Department of Public Works and Highways (DPWH) and Department of Transportation (DoTr) have been slow to disburse project funds.

On the progress of the building program, Mr. Panelo said: “Mabagal kasi siguro maingat. For instance, kung meron kang isang project na hindi mo maumpisahan kasi meron kang right-of-way issues bakit ka re-release ng funds? The fact remains that maraming projects (It is slow maybe because the agencies need to be cautious… Projects may not have started because of right-of-way issues. If that’s not resolved, then why release funds? The fact remains that there are a lot of projects.”

He also said that President Rodrigo R. Duterte thinks highly of Public Works Secretary Mark A. Villar because he has “done a lot.”

As a rejoinder to Mr. Drilon’s claim of nine projects under construction, Mr. Panelo said he is aware of the following projects under construction: the LRT 1 commuter rail line Cavite Extension (Baclaran-Cavite), MRT-3 commuter rail line rehabilitation, the Metro Manila Subway, the MRT-7 Common Station, the LRT-2 East Extension, the Philippine National Railways (PNR) Clark line Phase 1 from Tutuban to Malolos, the PNR Clark Phase 2 from Malolos to Clark, the PNR Bicol line from Manila to Sorsogon, the PNR Calamba line, the Subic-Clark Railway, Bulacan Airport, Sangley Airport, the Mindanao Railway from Tagum to Davao and Digos, the Clark Airport Expansion, and the Ninoy Aquino International Airport rehabilitation.

Some major projects are expected to be completed by the time the government completes its term in 2022, he said.

As of July, the total financing requirement for “Build, Build, Build” projects was P2.40 trillion. — Gillian M. Cortez

Drilon proposes urgent status for military pension reform bill

SENATOR Minority Leader Franklin M. Drilon said legislation reforming the pension system for military and uniformed personnel (MUP) needs to be certified as urgent in light of the ballooning payouts to armed forces and police retirees.

“Another risk to our growth… is this pension cost of military and uniformed personnel… In 2020, we will be allocating more for pensions than the salary of those in the active service,” Mr. Drilon said during the plenary debate on the proposed 2020 budget on Tuesday.

He said that the proposed 2020 budget provides for P71.8 billion for MUP salaries against pension costs of P114.7 billion.

“Would the Secretary of Finance recommend to the President the designation of this measure as an administration measure in order to push it through the legislative mill,” he said.

Mr. Drilon said 61.5% of the personal services budget for MUP is allotted for retiree payments while only 39.5% will go to those in active service.

“This cannot go on. Under our laws, the retirees have a corresponding increase whenever there is an increase in the active service (salaries) so as we go down the years, this will become worse,” he said.

Congress Joint Resolution (JR) No. 01, Series of 2018, increased MUP base pay, thereby braising the corresponding pension costs, which are indexed to the salaries of serving personnel.

Senate Finance Committee Chairman Juan Edgardo M. Angara said at the plenary debate that a bill pending in the House of Representatives seeks to change the system of indexation, retirement age and contribution scheme, as means of addressing pension costs.

House Bill. No. 05233, as filed, seeks to adjust the retirement age to 60 for those with the rank of Colonel and below, and to 65 for those with rank of Brigadier General and up, from the current 56 years old.

In February, President Rodrigo R. Duterte indicated his intent to certify the MUP Pension Reform Bill as urgent.

“Can we expect that after this budget is signed that the bill in the House be certified as an urgent measure?” Mr. Drilon said. — Beatrice M. Laforga

Senate backs resolution vs liberalized sugar imports

THE Senate unanimously passed a resolution opposing the liberalization of sugar imports, citing the potential impact on more than 800,000 sugar farmers and workers across 20 provinces.

Senate Resolution No. 213 states that liberalizing imports will not make the food industry more competitive, adding that the Sugar Regulatory Administration (SRA) allows sugar imports tax and duty free if the resulting products are exported.

The Department of Finance (DoF) officially proposed the liberalization of sugar imports in September to help the food processing industry be more competitive in the global market.

“As it is hereby resolved by the Senate to urge the appropriate Senate Committee to conduct an investigation, in aid of legislation, into the impending liberalization of the sugar industry with the end view of safeguarding the welfare of 84,000 sugar farmers and 720,000 industry workers in twenty provinces,” it said.

The deregulation of the industry is also expected to be “disastrous” for the sugar industry, which accounts for about P96 billion to gross domestic product (GDP). It said sugar farmers are mostly small and agrarian reform beneficiaries tilling less than a hectare.

The major sugar-producing provinces include Cagayan, Isabela, Tarlac, Pampanga, Batangas, Cavite, Camarines Sur, Leyte, Iloilo, Capiz, Antique, Negros Occidental, Negros Oriental, North Cotabato, Davao del Sur, and Bukidnon.

“This proposal of the economic managers is actually contradicting the thrust of our President Rodrigo (R.) Duterte towards food security and sustainable Philippine agriculture,” Senate Majority Leader Juan Miguel F. Zubiri said in a statement.

He added that instead of the economic team focusing on liberalizing the industry, it should instead ensure the full implementation of the Sugar Industry Development Act (SIDA) to fund projects to make the sugar industry more competitive.

The resolution also noted the underutilization of the SIDA fund, which points to a course of action as an alternative liberalization.

“The SIDA of 2015 is barely four years into effect, and many of the programs and projects it envisions to implement for the development of the sugar industry are not yet fully realized. Thus any plan of liberalizing the sugar industry becomes irrelevant and very untimely,” it said.

The annual budget that should be allotted for SIDA is P2 billion starting 2016. However, after its 2016 budget was underspent, the Department of Budget and Management (DBM) reduced funding to P1.5 billion in 2017, and to P500 million in 2018 and 2019. For 2020, its proposed budget is P67 million.

Sugar stakeholder group Tatak Kalamay said it welcomes the Senate’s support for the sugar industry.

“The overwhelming support of our senators will hopefully allay fears of our stakeholders that the proposed liberalization of the sugar industry as announced by the economic managers will not only be suspended for six months to a year, but will never happen for as long as we have senators who continue to champion the plight of sugar producers and workers, including the millions of others who are dependent on this industry,” SRA Board Sugar Producers Representative Emilio Bernardino L. Yulo said in a separate statement. — Vincent Mariel P. Galang

Miners seeking to join international industry group

THE Philippine Nickel Industry Association (PNIA) said it is pressing for a bigger role in an international industry group to better anticipate market developments.

“While we remain optimistic as an industry, there are uncertainties and volatilities in the world nickel trade that we must not ignore. We would be in a better position to leverage opportunities and mitigate the effects of headwinds if we engage in these international discussions,” PNIA President Dante R. Bravo said in a statement.

The International Nickel Study Group (INSG) was established in 1990, to improve transparency in the global metals market and to serve as a talking shop for issues related to the production and consumption of nickel.

INSG meets twice a year, in April and October. PNIA attended the October meeting in Lisbon with observer status.

PNIA Chairman Isidro C. Alcantara said INSG membership will help the industry better understand the market for nickel, which is moving beyond steel manufacturing with e-vehicle manufacturers gaining a bigger role.

“We need access to INSG’s wealth of knowledge and experience as input to our own road map to make it more responsive to global opportunities and become more effective in promoting inclusive and sustainable economic growth for our country,” he said.

The Philippines was second in nickel ore production in 2018 with 340,000 tons. Leading producer Indonesia will ban nickel exports next year to develop its own processing industry.

PNIA’s members include Agata Mining Ventures, Inc., Carrascal Nickel Corp., Citinickel Mines and Development Corp., CTP Construction and Mining Corp., DMCI Mining Corp., Marcventures Mining Development Corp., and Platinum Group Metals Corp. — Vincent Mariel P. Galang

More women taking up tough jobs in increasingly ‘meritocratic’ environment

PHILIPPINE workplaces are becoming more meritocratic with gender biases receding, People Management Association of the Philippines (PMAP) Executive Director Rene M. Gener said at the “Women Today” forum in Pasay City Tuesday.

“The workplace of the future will be dominated by the most competent in the office, regardless of gender. I can say that in the Philippines it’s happening,” Mr. Gener said.

Citing the Global Gender Gap Report 2018 issued by the World Economic Forum, Mr. Gener said: “We are already number eight and I see that in 2019, we will be number six, because we just work on competencies.”

Cignal TV and TV5 Network President and Chief Executive Officer Jane J. Basas said: “I believe so much in the principle of meritocracy, so it doesn’t matter whether you are male or female, or if you are a Gen-Xer, a boomer, or a millennial. At the end of the day, whoever can deliver and whoever can get the job done well, can get the job and will actually be rewarded in the process.”

The Philippine STAR, in partnership with Globe Telecom, Inc. and Women Influence Community Forum (WICF), organized the forum, which tackled issues that hinder the empowerment of female employees and leaders and how they could push for equality in their respective workplaces.

917 Ventures Managing Partner Issa G. Cabreira said male executives are “now giving women the tougher jobs.”

Ms. Basas concurred, saying: “Where I am now is actually because of my male mentors… My bosses gave me the job that I have right now because it’s the most difficult job to do. I mean TV5 has not been profitable for the past 10 years. Imagine handing that over to me and expecting me to create a plan that will work. And I tell you, I will do the job.”

Nina D. Aguas, executive chairman of Insular Life, noted that male company leaders have significantly changed their perception of their female counterparts.

“Things have changed. I think men are now more open to our ideas, and they are listening. They are very respectful, and they listen to what we say… It’s a welcome change for me,” she said.

Honorary Consul Armi L. Garcia of the Russian Federation in the Philippines said women bring a “sense of community, passion, love and intuition (to) the workplace.”

Mr. Gener noted that 49.6% of the Philippine workforce consists of women.

“If we do not nurture the talent of women, we are missing a lot. That’s why let’s help women lead the country and our organizations,” he said.

He also challenged the female members of society to “take on those jobs that are perceived to be dominated by men,” especially the manufacturing sector.

“I find that in the Philippines, we are very much privileged… we don’t have to fight the battle of ‘men are better than women’, it’s actually women side by side with men, driving the country towards where they want it to be,” Ms. Cabreira said.

Quezon City Mayor Maria Josefina G. Belmonte cited the need “to help our girls finish their education, have adequate health care, and… start their own enterprises.”

Manila Mayor Francisco Moreno Domagoso also highlighted the importance of “improving education, health care, and housing” as a way to help women.

“Women today have no limits and have more options. They can put up a business especially now with social media and the Internet,” Happy Skin co-founder Rissa Mananquil-Trillo said.

Vice-President Maria Leonor G. Robredo, who recently accepted leadership of the anti-drug war, said: “Perhaps it was my instinct as a mother… that I needed to do this sacrifice for the greater good.”

“Remember you are made for times like these, and you are made to survive even the most difficult times,” she said.

“We all need the kind of strength that draws from a deep well of love, compassion, humility, courage, and integrity.” — Arjay L. Balinbin

Palay farmgate price falls 0.3% to P15.49

THE average farmgate price of palay, or unmilled rice, declined 0.3% week-on-week in the third week of October to P15.49 per kilogram (kg), the Philippine Statistics Authority (PSA) said.

According to the PSA’s Updates on Philippine Palay, Rice, and Corn price report, the average wholesale price of well-milled rice fell 0.2% week-on-week to P37.76 per kg. The average retail prices also fell 0.1% to P41.87.

The average wholesale price of regular-milled rice was stable at P33.70 per kg while the average retail prices fell 0.3% to P37.11.

Rice prices have been pressured since the implementation of the Rice Tariffication Law, which liberalized imports of rice in exchange for the payment of a 35% tariff on Southeast Asian grain.

The farmgate price of yellow corn grain averaged P12.15 per kg, down 0.4% week-on-week. The average wholesale price rose 0.1% to P21.20. The retail price rose 0.3% to P26.04.

The average farmgate price of white corn grain fell 0.6%, week-on-week to P13.39 per kg. The average wholesale price was up 2% at P17.13, while the average retail price rose 0.9% to P26.78. — Vincent Mariel P. Galang

Fresh terrorism-financing risks seen from crypto

NATIONAL Security Adviser Hermogenes C. Esperon, Jr. said cryptocurrencies and new digital channels open up new risks for the government to manage as it monitors the financing of terrorism.

In a keynote address Tuesday at the fifth Counter-Terrorism Financing (CTF) Summit hosted by the Anti-Money Laundering Council (AMLC) in Taguig, Mr. Esperon said: “The emergence or proliferation of virtual and cryptocurrencies adds to our dilemma. This is where we seek the expertise and good practices of our counterparts to improve on our system, as this is a relatively new domain in our jurisdiction.”

He said backers have been using social networking sites to fund terrorist activity.

“Our law enforcement continues its efforts to disrupt these financial networks even before funds are moved or transferred… Cutting off their lifeline is a crucial step to undermine their capabilities and frustrate their ability to carry out terrorist attacks.,” Mr. Esperon said.

In Southern Mindanao, illegal organizations use kidnapping for ransom and extortion to raise funds, according to Mr. Esperon. This supplements funding from family members, friends, and non-profit organizations, he added.

“As you know, in 2017, we experienced the most brutal onslaught of terrorism in our country in the siege of Marawi. Terrorism financing was integral (for) foreign terrorists in staging such acts and sustain it for a long time,” he said.

Mr. Esperon said oil smuggling was the primary source of funding for ISIS, while terrorist and criminal groups in Afghanistan raise money from opium.

“We do not want this to happen here in the Philippines or in the region,” he said.

In his speech, AMLC Executive Director Mel Georgie B. Racela said that regional cooperation and collaboration is expected to improve the effectiveness of enforcement work.

“For instance, the AMLC has referred 620 intelligence briefs and has conducted nine risk assessment and strategic studies, since 2017,” he said, noting that the council has frozen assets of over P1 billion between January 2018 and July 2019, including P52 million pesos in suspected funding for terrorism.

AMLC is hosting the fifth CTF Summit in partnership with the Indonesian financial intelligence unit, known as PPATK and the Australian financial intelligence agency AUSTRAC. — Luz Wendy T. Noble

PHL exhibitors sell $300M at China trade show

PHILIPPINE EXHIBITORS generated sales of about $300 million at the 2019 China International Import Exposition (CIIE), more than double the year-earlier amount, the Department of Trade and Industry (DTI) said.

In a statement Tuesday, the DTI said the expo, with exhibition space of more than 240,000 square meters, attracts an average of 150,000 buyers from more than 100 countries.

“The big jump in sales since the last CIIE proves that China sees the Philippines as a significant source of agricultural and other products. This motivates us to continue our efforts in getting more exhibitors to the CIIE, as well as improving trade relations and market access through the conclusion of the Regional Comprehensive Economic Partnership (RCEP),” Trade Secretary Ramon M. Lopez said.

“Suppliers, for their part, should increase their production to meet Chinese market demand.”

Making up the Philippine delegation were 139 exhibitors, including 32 food vendors. Top selling products at the expo were fresh bananas, pineapples, mangoes and durian along with processed fruits and nuts and coconut products.

Among the exhibitors were tuna canner Century Pacific Food, Inc., which recently launched in Chinese market, along with San Miguel Corp., Monde Nissin Corp., and Fisher Farms, Inc.

Trade Undersecretary Abdulgani M. Macatoman said that the exhibitors reflected the Philippines’ strengths in exporting mango, banana, papaya, pineapple, and young coconut.

“Undersecretary Macatoman observed that with the stronger Philippine-China relations and through China’s liberalization program and the CIIE, there will be more Philippine food products sold in China soon,” the statement said.

DTI and the Department of Agriculture expect “much bigger participation” from the Philippines in the 2020 CIIE. — Jenina P. Ibañez