State spending short despite Sept. boost

October 23, 2019 | 12:32 am

By Beatrice M. Laforga

STATE SPENDING rose by its fastest pace in almost a year and a half in September as the government rushed to make up for muted expenditures last semester, but even this boost was not able to ensure that the nine-month program was met, according to data the Bureau of the Treasury (BTr) released on Tuesday.

And with revenue collections growing by double-digit pace and a smaller year-to-date fiscal gap, the government also fell short of its programmed deficit.

SPENDING
National government expenditures jumped by 39.01% to P415.1 billion last month from the P298.6 billion a year earlier, its best performance since the 42.7% increase recorded in April last year.

Primary spending — which excludes interest payments and includes infrastructure expenditures — for the month climbed 39.89% year-on-year to P372 billion, while interest payments totaled P43.1 billion, up 31.88% from a year earlier, primarily due to coupon payments for reissued bonds and the five-year retail treasury bonds issued in March.

“The national government continued to catch up with its spending plan for the year where 71.2% of the P3.77 trillion full-year program is to be disbursed as of end-September despite the delay in the passage of the 2019 budget and the election ban in the earlier part of the year,” BTr said.

The nine months to September saw total state expenditures growing 5.51% year-on-year to P2.627 trillion, with primary spending picking up by 5.15% to P2.333 trillion and interest payments increasing by 8.26% to P293.7 billion.

Still, the government missed its P2.685-trillion spending program for those nine months by 2.14%, with primary spending missing a P2.367-trillion target by 1.42% and interest payments falling short of a P317.8-billion program by 7.56%.

REVENUES
The government raked in 16.89% more revenues at P236.5 billion in September from P202.4 billion a year ago.

Tax collections, which made up 89% of the total, increased by 15.15% to P211 billion in September from P183.2 billion.

The Bureau of Internal Revenue (BIR), which contributed 71.3% of tax collections and 63.6% of gross revenues, grew its take by 15.24% to P150.5 billion from P130.6 billion, while the Bureau of Customs, which contributed 27.9% to tax collections and a fourth to total revenues, raked in 15.13% more at P58.8 billion from P51.1 billion.

Non-tax revenues — including subsidies to cover taxes on government transactions — increased by 33.53% year-on-year to P25.5 billion, with collections of the Treasury climbing 48.83% to P10.7 billion and those of other offices rising 24.3% to P14.8 billion.

The nine months to September saw revenues climb 10.25% to P2.328 trillion from P2.112 trillion, with tax collections growing 10.3% to P2.091 trillion from P1.895 trillion and non-tax revenues increasing by 9.78% to P237.4 billion from P216.2 billion.

The same comparative nine-month periods saw collections of the BIR increase 10.98% to P1.603 trillion from P1.444 trillion, while those of Customs grew 8.15% to P470 billion from P434.6 billion.

Non-tax revenues increased by 9.78% to P237.4 billion from P216.2 billion, with Treasury collections climbing 31.05% to P118.6 billion from P90.5 billion, while other offices reported 5.54% less collections at P118.7 billion from P125.7 billion.

While the nine-months to September saw gross revenues exceed the P2.32-trillion target by 0.35%, tax revenues still fell 3.81% short of a P2.173-trillion goal, with the BIR missing its P1.674-trillion target by 4.25% and Customs missing its P481.1-billion goal by 2.29%.

On the other hand, non-tax revenues exceeded a P146.3-billion program by 62.19%, with the Treasury beating its P60.4-billion goal by 96.46%.

DEFICIT
Revenue collections and expenditures resulted in a P178.6-billion fiscal deficit in September that was 85.52% more than the year-ago P96.2 billion.

That resulted in a year-to-date fiscal gap of P299 billion that was 20.95% smaller than the P378.2 billion recorded in 2018’s first nine months.

Still, the year-to-date deficit was 18.03% off a P364.7-billion program for those nine months.

INFRASTRUCTURE AND GROWTH
Latest data which the Department of Budget and Management (DBM) released on Monday showed that infrastructure and other capital outlays were still down 13.2% year-on-year to P59.3 billion in August from P68.4 billion a year ago, with the eight months to August seeing such expenditures drop 11.8% to P446 billion — less then half the P1-trillion infrastructure spending program for 2019.

DBM attributed such smaller spending to late enactment of the 2019 budget that left new projects unfunded and the 45-day public works ban ahead of the May 13 midterm elections.

Sought for comment, DBM Undersecretary Laura B. Pascua said that she remains “hopeful” that infrastructure spending will meet the full-year program, explaining that “spending is traditionally up” this quarter.

Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch, said the performance of revenue-generation and state spending were both “impressive,” giving “hope” for a six percent full-year gross domestic product growth — after last semester’s muted 5.5% — “as expenditures roll out while the government continues to streamline and improve its collection efforts.”

“A resurgence in government spending coupled with still-robust and potent household spending will look to carry the load for 3Q GDP growth as capital formation remains handicapped and recovers from its meltdown in 2Q,” Mr. Mapa said in an e-mail.

“As capital formation regains form hopefully by 4Q, we can expect growth to return to form and close out the year on a strong note with the economy firing on all cylinders once more.”

National government fiscal performance (September 2019)

October 23, 2019 | 12:32 am

Farm dep’t maintains 2% growth goal despite ASF impact as RCEF kicks in

October 23, 2019 | 12:31 am

THE DEPARTMENT of Agriculture (DA) has maintained its 2019 growth target for the agriculture sector at two percent, as it launches operations using the Rice Competitiveness Enhancement Fund (RCEF) seven months after Republic Act No. 11203, which liberalized rice importation, took effect.

“We will maintain that target. Itong pagkaumpisa nag-implementasyon ng (The start of the implementation of) RCEF will be a big factor, reckoning from August 2019 to end of July 2020,” Agriculture Secretary William D. Dar said in a briefing in Quezon City on Tuesday.

“Ako positive pa din ang aking pananaw (I remain optimistic that) rice will still be the driving factor kasi crops sector naman ang pinakamalaki (because the crops sector is the biggest driver of agriculture sector growth),” he said after the briefing, adding that his projection accounts for other factors like impact of African Swine Fever (ASF).

The crop sector contributes half the value of total agriculture production, with rice alone contibuting nearly a fifth.

Value of agriculture production slipped by 0.24% year-on-year last semester after a 1.27% contraction in the second quarter and a 0.64% increment in January-March.

The 2017-2022 Philippine Development Plan has a 2.5-3.5% target range for output growth of the sector, which accounts for about a fourth of the country’s jobs but just a tenth of national output due to low productivity.

The Philippine Statistics Authority is scheduled to report third-quarter farm data on Nov. 6, and it remains to be seen how the sector fared in July-September, compared to the 0.87% year-ago contraction.

In August, Mr. Dar first announced his two percent goal for this year while expecting upside to as much as four percent within three years, with a focus on achieving food security through higher output relative to population growth, while also increasing the income of farmers and fisherfolk.

Farm output grew 0.56% in 2018, slower than 2017’s 3.96% expansion, the department’s goal of 2.5% and a two percent target set by economic managers.

Mr. Dar said that RCEF interventions are in time for the next planting season.

RA 11203, which replaced quantitative restrictions for rice with regular tariffs, provided for the establishment of the RCEF with the goal of improving yields and farmers’ incomes, as well as reducing the cost of production through mechanization, high-yeld seed, training and increased availability of credit.

“It’s never late because ngayon lang yung main production time for this season. Talagang ito yung panahon (This is the right time to address production issues). The implementation of the RCEF is being accelerated because this is the right time. This is the time of the year that such interventions must start,” Mr. Dar said.

“For the next six years, proper implementation of the Rice Competitiveness Enhancement Fund will make the rice farmers more productive, more competitive, and more prosperous.”

RCEF, which will be funded by collections of rice import tariffs estimated at P10 billion a year for six years, has for its first year of implementation set aside P5 billion for mechanization, P3 billion for distribution of inbred seed and P1 billion each for credit and extension services.

Target areas are 947 municipalities.

The Agriculture chief noted that of the total amount, 32% has been obligated.

“We hope to elevate the yield average to five to six metric tons over the years… Properly done, all these four components (mechanization, seed, training and credit) will reduce the cost of production from P12 to P6, so that pwede kang makipag-compete sa… Vietnam and Thailand (to the point where the industry becomes competitive with Vietnam and Thailand),” Mr. Dar said. — Vincent Mariel P. Galang

UN report says non-tariff measures ‘burdensome’

October 23, 2019 | 12:30 am

By Jenina P. Ibañez

PHILIPPINE companies reporting burdensome non-tariff measures (NTM) outnumber many of their Asia-Pacific peers who have similar experiences, according to a joint report of the United Nations Economic and Social Commission for Asia and the Pacific and the United Nations Conference on Trade and Development.

The 2019 Asia-Pacific Trade and Investment Report showed that the trade costs of non-tariff restrictions in the region now exceed double those of tariff measures.

As defined by the report, NTMs are policy measures other than ordinary customs tariffs that potentially have an effect on international trade in goods. Among others, NTMs include product requirements, sanitary and price-control measures, as well as border payment procedures.

“While at the outset Filipino exporters generally feel that all barriers are de facto non-negotiable, when prompted on costs, paperwork requirements and time frames, the exporters concede that some regulations are, in fact, burdensome,” the report said.

These “burdensome” NTMs are applied by either export partners or domestically.

Of the Philippine companies surveyed, 74% reported encountering “burdensome” NTMs, above the regional average of 56% of respondents.

The report noted that the level of trade facilitation, which involves simplification and streamlining of trade processes, may have also had an impact on survey results.

Department of Trade and Industry Export Marketing Bureau (DTI-EMB) Director Senen M. Perlada said that Philippine exporters face a burdensome regulatory environment even before the products leave the country.

Mr. Perlada said that application and documentation fees will be addressed by the newly formed Anti-Red Tape Authority.

He said that logistics costs also place a burden on Philippine exporters, including costs of importing raw materials and intermediate goods.

“We are squeezed in by international shipping lines. Dito tsina-charge ‘yung ibang costs (this is where other costs are charged),” Mr. Perlada said, while also citing port congestion and documentation charges in addition to ocean freight costs.

“The problem here is non-tariff [measures] because these are just practically hidden costs. Even if there are no tariff measures, the cost of doing business is what’s going to spell the difference.”

The lack of Filipino trade attachès posted in other countries also affects the Philippines’ negotiation capabilities in promoting its export interests abroad, said Philippine Confederation of Exporters, Inc. (Philexport) president Sergio R. Ortiz-Luis Jr.

“We don’t have presence [in other countries], and where we have presence there’s not enough of a budget. We have such a small budget in comparison to other countries,” he said in Filipino.

University of Asia and the Pacific economist George N. Manzano, who was a former tariff commissioner, explained that trade attachés in other countries also learn and communicate non-tariff standards.

He said that Philippine companies, especially small businesses, may not be familiar with technical standards and certifications of other countries.

“If you don’t have the information, you have difficulty complying with it because you don’t know the standards,” Mr. Manzano explained, adding that unlike tariff measures, NTMs are varied and not always transparent.

He said that the high standards of importing countries might also be costly to comply with, and that Filipino companies often don’t have the technical capability — or access to such — to check products for compliance before shipping.

The report also showed that the Philippines lower harmonization with other countries in the region when it comes to non-tariff measures.

Mr. Manzano explains that this may be a result of the Philippines not having adjusted to other countries’ import standards, or its weak bargaining power to ask others to harmonize.

He said that to help address the burden of NTMs on Philippine exporters, the government should provide compliance information to businesses, provide compliance testing facilities for products, and negotiate with other countries for a common standard.

Kepwealth to acquire new spaces

October 23, 2019 | 12:08 am

Makati offices skyline

By Denise A. Valdez, Reporter

KEPWEALTH PROPERTY Phils., Inc. (KPPI) is planning to acquire new spaces in Metro Manila and Davao City which it will use for commercial or office leasing.

In a progress report to the stock exchange yesterday, the newly listed firm said it will be using the P384.77 million it raised in its initial public offering (IPO) in August to buy 3,500 square meters of space.

“Upon completion of the acquisitions using the proceeds from the IPO, the company expects to have an estimated 18,121 square meters of leasable space,” it said.

KPPI said it has not made the acquisitions yet, but it is looking at high-traffic urban areas such as Quezon City, Pasig City, Makati City and Davao City. Investing in these areas will spread the operations of the company outside its current focus in Cebu City, thereby reducing concentration risks. It will also open new recurring revenue streams for the company from the would-be tenants of the spaces.

Closing of several of the planned acquisitions can be expected within the first half of next year. “These acquisitions will undergo extensive business development studies and due diligence to assess the worth and value of properties based on location, use and yield,” KPPI said.

The company also said it wants to focus on its current business-property leasing and management-and has “no plans to engage in the business of a real estate developer.”

Instead, what the company wants to do is increase its asset management portfolio to complement its leasing business. Among the properties and developments it is looking at are an unnamed “prime property” in Quezon City and the Apo View Hotel in Davao City.

Specifically, the property in Quezon City is being eyed for its growing commercial and residential real estate market and the plan of the property owner to build a five-tower complex within the 10,540 square meter lot. For the Davao City hotel, KPPI said it is interested because the owner is planning to build two 40-story towers with commercial and retail spaces.

“Currently, the company continuously discusses potential business with the property owners,” it said.

Minus offer expenses from last August’s IPO, KPPI was able to record net proceeds of P372.12 million. It was able to sell 67,032,607 common shares to the public during its offer period.

KPPI was the first company to hold an IPO this year, followed by coconut product manufacturer Axelum Resources Corp. and Villar-led AllHome Corp. earlier this month. Also in the pipeline are Cal-Comp Technology (Philippines), Inc. and Fruitas Holdings, Inc.

KPPI currently owns 77 units with 98 leasable spaces of Kepwealth Center in the Cebu Business Park. Part of its portfolio is managing 459 units in different buildings in Metro Manila, including Oxford Suites, Medical Plaza Ortigas, Burgundy Corporate Tower, Burgundy West Bay Tower, Atrium Mall, Icon Macapagal and Vivaldi Residences-Cubao Commercial Space.

In the first quarter, KPPI saw its net income grow 12% to P8.69 million due to a 13% rise in revenues to P22.65 million.

Its net income last year ended flat at P34.3 million, while revenues jumped 8% to P81.85 million.

Shares in KPPI went down 40 centavos or 3.4% to P11.38 apiece on Tuesday.

Altech agrees to pay tax liabilities

October 23, 2019 | 12:07 am

PHILIPPINE OFFSHORE Gaming Operator (POGO) service provider Altech Innovations Business Outsourcing can now resume its operations after it settled an initial payment with the Bureau of the Internal Revenue (BIR) for its tax liabilities, the Department of Finance’s (DoF) top official said.

DoF Secretary Carlos G. Dominguez III, in a phone message to reporters, said Altech, which was padlocked by BIR last Oct. 17, paid on Monday P8.2 million out of the P45 million worth of tax liabilities it promised to settle within the year, which includes withholding taxes from its foreign workers that it failed to remit.

Mr. Dominguez added that the service provider promised to update its tax payments for the year.

BIR Deputy Commissioner for Operations Arnel SD. Guballa said the remaining P37 million will be settled in “two equal monthly installments” this year.

In a report to Mr. Dominguez, Mr. Guballa said the total collections were from 300–390 workers employed by Altech.

He said the data were from the Philippine Amusement and Gaming Corporation, the Bureau of Immigration and the Department of Labor and Employment.

Meanwhile, Mr. Guballa said Altech operated its principal office in Aseana City, Parañaque City and branch office in the Double Dragon Building in Pasay City from January to September 2018. However, Altech said it only operated its branch office for three to four months last year.

“They allegedly started in branch office only 3–4 months of 2018. Reconciliation and substantiation of records are ongoing,” he said.

Altech was the second service provider padlocked by the BIR due to non-compliance with value-added tax purposes and failing to settle tax obligations.

Great Empire Gaming and Amusement Corp. was the first POGO closed by BIR. It has since continued its operations after it agreed to a P1.3-billion settlement, paying an initial amount of P250 million.

So far, the BIR collected P1.63 billion in withholding taxes from POGO firms and service providers in eight months to August, up from the P579 million collected in 2018 and P175 million in 2017.

Mr. Guballa earlier said the tax bureau’s collections are improving based on initial data amid their heightened crackdown on the industry.

Meanwhile, Mr. Dominguez said he will support the measure that will impose a five percent tax on revenues from POGO and service providers, saying it is a “good idea.”

However, he said that he has yet to get a copy of the bill since Albay 2^nd District Rep. José María Clemente “Joey” S. Salceda, the author of the bill, is still drafting it.

Mr. Salceda earlier said the bill proposes a presumptive corporate income tax of $1,000 per seat on the POGO firms and service providers in addition to the 5% franchise tax, a gaming tax of $10,000 a month per table for a live set-up casino and a $5,000 a month gaming tax for random number generator-based games.

According to BIR’s Revenue Memorandum Circular No. 102-2017, “the entire gross gaming receipts/earnings or the agreed or pre-determined minimum monthly revenues/income from Gaming Operations under existing rules, whichever is higher, shall be subject to a Franchise Tax of five percent, in lieu of all kind of taxes, levies, fees or assessments of any kind, nature or description.” — BML

FLI starts construction of Cavite residential project

October 23, 2019 | 12:06 am

FILINVEST LAND, Inc. (FLI) has started construction for a new residential property in Trece Martires, Cavite.

The Gotianun-led property developer said in a statement yesterday it recently broke ground for its latest project New Leaf, a modern-minimalist development located within mixed-use district development The Wood Estates.

It will fall under FLI’s Futura brand and will have two housing units, Bernice and Diana, which will come in one-story single attached and two-story single attached. Lot areas will be around 70-73 square meters while floor areas will be between 27 and 37 square meters and will be sold around P1.2 to 1.7 million.

FLI said it wants to tap the market of families moving out of Metro Manila and into the “rural-urban fringe cities.” It said New Leaf will be ideal for those looking to escape the congestion in the central city.

“New Leaf is envisioned to be the ideal home for families looking for a fresh start. It offers a safe neighborhood, gated community, quality residential units, recreational amenities, and facilities to help families live in comfort every day,” FLI Senior Vice-President and Southwest Central Luzon Cluster Head Tristan L. Las Marias said in the statement.

The residential development will have a swimming pool, basketball court, parks and playgrounds, which Mr. Las Marias said he hopes will appeal to families. Its location is an hour away from Alabang and about 1.5 hours from Makati and Bonifacio Global City.

FLI is investing P30 billion for new projects this year, up from the P16 billion worth of projects it opened last year. The company is aiming to have about 1.6 million square meters in gross leasable area by 2023.

FLI is the real estate arm of Filinvest Development Corp., which does business in the banking, power, sugar and hospitality sectors.

In the first semester, FLI posted an attributable net income of P3.1 billion, growing 15% from in the same period last year, due to the 26% increase in gross revenues to P11.81 billion. — Denise A. Valdez

Celebrating contemporary dance

October 23, 2019 | 12:06 am

“CONTEMPORARY DANCE is not ballet,” said Chris Millado, the Vice-President and Artistic Director of the Cultural Center of the Philippines (CCP), during the launch of NeoFilipino 2019: Ar[res]t on Oct. 2 at Hotel Jen in Pasay City.

“Ballet has a fixed vocabulary. Contemporary dance is dance that breaks out of it’s vocabulary and looks for new ways of expression,” he explained.

NeoFilipino 2019: Ar[res]t is the third part of the annual CCP Choreographers Series which will run from Oct. 25 to 27 at the CCP’s Little Theater.

Envisioned and directed by choreographer Denisa Reyes, along with dancer and performance curator Myra Beltran, and dance artist and educator Nes Jardin, with the aim of elevating contemporary dance in the Philippines, the CCP Choreographers Series begins with WifiBody.ph, a solo-duet form competition for emerging choreographers; it is followed by Koryolab, a showcase of experimental dance by mid-career choreographers; and ends with NeoFilipino as a venue for established choreographers to stage original works.

This year’s NeoFilipino show, themed “Ar[res]t,” highlights “the power of dance to seize focus, to arrest a crowd in a frenzy, and to piece through the noise to arrive at the truth that lies inside the body,” a press release said.

Ms. Beltran, NeoFilipino’s artistic consultant, differentiates contemporary dance from modern dance as having “no category, no standard, and based on intention.”

She noted that in modern dance, “There is a standard vocabulary,” while contemporary dance “is measured by the authenticity of the artist.”

The show this year will feature Ava Villanueva Ong’s Order and Disorder, described as a piece about hope, danced to music by Krina Cayabyab.

“[Hope] is present in the most mundane and the most fundamental of all places. We can find it within ourselves and we can be inspired by factors outside ourselves as well,” Ms. Villanueva-Ong said in a statement.

Biag Gaongen’s Tatak: Ta-Tu, which is accompanied by a film by Manny Montelibano and music by Jose Centenera Buencamino, centers on the ritual of getting a tattoo. In the piece, Mr. Gaongen pays homage to his Igorot roots.

“Practices from Cordillera which include tattoo art and folk dances have been explored and exploited by many to assert the Filipino identity. In effect, has it empowered the contemporary Cordillerans?… In my dance piece, images and symbolisms associated with Cordillera’s tattoo culture will be explored on film and live performance,” Mr. Gaongen said in a statement.

Georgette Sanchez-Vargas’ Arrhythmia is a moving picture of a human heart, while JM Cabling collaborates with production designer Tuxqs Rutaquio in a dance adaptation of the Filipino children’s story “Ang Lihim Ni Lea,” based on the book about child abuse by Augie Rivera.

“…I want to express my stand on the issue of abuse of power. In times when power lies in the hands of abusive people, every opportunity to be defiant is important,” Mr. Cabling said. — Michelle Anne P. Soliman

Tickets to NeoFilipino are available at https://tinyurl.com/y3xcw5hx, the CCP box office (832-3704), and Ticket World (891-9999, www.ticketworld.com.ph). Discounts apply for students, senior citizens, PWD, government, and military personnel.

GrabFood expands service to Bacolod

October 23, 2019 | 12:05 am

GRAB PHILIPPINES on Tuesday announced the expansion of its online food delivery service to Bacolod City.

“To celebrate MassKara Festival this year, Grab is introducing GrabFood in Bacolod in a bid to banner the excellent culinary scene, promote local entrepreneurs, and enable Negrenses to do more and get their favorite food where and when they want it,” Grab said in a statement.

The online food delivery platform of ride-hailing app Grab is currently available in 35 cities in the country.

“As the leading super app in the Philippines, our mission is to elevate the lives of Filipinos by solving daily limitations and addressing their most basic needs. In 2015, we came to Bacolod to help address transportation issues and have since become an indispensable part of Negrenses’ daily commute. We now take on the challenge of improving access to great food and bringing more livelihood opportunities for the people of Bacolod through GrabFood,” Grab Philippines Head EJ Dela Vega was quoted as saying in the statement.

Grab said Bacolod City residents can order food from Aida’s, Bar 21, Inaka, L Kaisei, L Sea, El Ideal, Virgie’s, Rolis, Claras, Merzci Pasalubong, Bong Bongs, Felicia’s, King’s Ice, Apollo, Delicioso, Bascon, Quan, Nena’s Rose, and Cozy Nook.

“Major quick service restaurants such as McDonald’s, Jollibee, Chowking, Greenwich, Burger King, Red Ribbon and Uncle John’s Chicken by Ministop are also available 24/7 on GrabFood in Bacolod,” it added.

Aside from its core ride-hailing and food delivery services, Grab also provides digital wallet services via GrabPay, delivery service via Grab Express, mobile phone loading, and hotel booking services. — ALB

BSP to monitor banks’ response to fresh RRR cuts

October 23, 2019 | 12:05 am

THE BANGKO SENTRAL ng Pilipinas (BSP) will monitor how banks will respond to the pre-announced reserve requirement ratio (RRR) reductions taking effect next month, an official said.

BSP Monetary Board Member Bruce J. Tolentino told reporters on the sidelines of an event on Tuesday organized by the Bankers Institute of the Philippines (BAIPHIL) that the central bank will look into how banks respond immediately after the first week of the implementation of the third round of RRR cuts this year.

“Let’s see what the RRR cuts will actually produce after the first week. Given the advance time that the banks were given, they should be able to act on it as soon as the RRR cut is effective,” he said, noting that the BSP will be checking data right away.

“We already did a major move forward by pre-announcing an RRR cut [for the] first week of November….We did it in advance so that there’s no surprise, all the banks can adjust to it,” Mr. Tolentino said.

“Hopefully, they will find customers for the additional liquidity. So that, we hope, will settle things down as we push forward with additional fiscal expenditures on Build, Build, Build projects,” Mr. Tolentino said.

BSP Governor Benjamin E. Diokno earlier said the central bank may consider another RRR cut after the cumulative 300-bp reduction for the year thus far, depending on relevant data expected to be released next month and in December.

The BSP announced last month that it will reduce lenders’ RRR by another 100 bps effective November to bring the reserve requirement of universal and commercial banks to 15% from 16%. The reserve ratios of thrift banks will also be cut to five percent from the current six percent, and to three percent from four percent for rural and cooperative banks.

The central bank last week said it will likewise cut the RRR for bonds issued by banks and quasi-banks to three percent, down by 300 bps from the current six percent, effective next month.

It said the move is “part of its commitment to contribute to deepening of the local debt market.”

Domestic liquidity or M3, the broadest measure of money supply in an economy, grew 6.2% year on year to P11.9 trillion in August, slowing from the 6.7% growth logged in July. Month on month, money supply inched up by 0.3%.

Net claims on the central government rose 2.1% year on year, a reversal of the 1.8% decline seen in July. Meanwhile, domestic claims, which were mainly supported by the sustained growth in credit to the private sector, climbed 6.2% in August, faster than the upward-revised 5.8% in July.

The central bank said loans for production activities continued to be driven by credit to key sectors such as real estate activities; financial and insurance activities; electricity, gas, steam and air-conditioning supply; construction; and wholesale and retail trade, repair of motor vehicles and motorcycles.

Meanwhile, net foreign assets in peso terms jumped 8.9% year on year in August, quickening from the 5.8% pace seen in July. The BSP said this was driven by foreign exchange inflows coming mainly from overseas Filipinos’ remittances and business process outsourcing receipts.

Bank lending also decelerated in August due to slower growth in loans for production activities.

Outstanding loans of universal and commercial banks grew 10.5% year on year in August, slowing from the 11.1% pace logged in July. Inclusive of reverse repurchase agreements, bank lending grew 10% in August from 10.7% the preceding month.

“Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity remains consistent with the BSP’s price and financial stability objectives,” the central bank said. — LWTN

CCP launches QRated tour and commemorative stamp

October 23, 2019 | 12:05 am

THE Cultural Center of the Philippines’ celebration of its 50^th founding anniversary continues with the launch of the special commemorative stamp and a digitally guided walking tour.

The special stamp was launched in partnership with the Philippine Postal Corp. (PHLPost). It features the facade of the main building of the Cultural Center of the Philippines (CCP) and the 50^th anniversary logo.

The unveiling and signing of the commemorative stamp’s official first day cover was headed by CCP Chairperson Margarita Moran-Floirendo, CCP Vice-President and Artistic Director-Chris Millado, CCP Vice-President for Administration Rodolfo del Rosario, and Philpost OIC APMG for Marketing Maximo Sta. Maria III, on Oct. 15 at the CCP Main Theater lobby.

“Stamps contain a wealth of information. Postage stamps record and emphasize the importance of people, places, and other particulars of the certain part of the year for posterity, which is precisely why the [Philippine Postal] Corporation, with the participation of the Cultural Center of the Philippines, is issuing a stamp commemorating the five fruitful decades of one of the most prolific cultural institutions in our country,” PHLPost’s Mr. Sta. Maria III said, reading the message of PHLPost postmaster general and CEO Joel L. Otarra, during the ceremony.

“The CCP stamps encapsulates what the CCP is, what it has been doing in the past decades, and what the future brings. The stamps are our tangible promise that CCP will continuously be at the forefront in making arts matter to every Filipino,” CCP’s Ms. Moran-Floirendo was quoted as saying in a press release.

This is the CCP’s second commemorative stamp. The first was released in November 1969, two months after the CCP’s inauguration. The 1969 postage stamp, which featured the CCP building and grounds, came in a set of two stamps with 10 centavos and 30 centavos denominations.

PHLPost has printed 10,000 sets of the CCP 50^th Anniversary commemorative stamp sold for Pl2 each. The stamps and official first day covers are now available at the Philatelic Counter of the Central Post Office in Liwasang Bonifacio, Manila and at area post offices nationwide.

QRated: The CCP DIY Tour

Visitors may now explore the CCP with QRated, a digitally guided walking tour prompted by QR code captions.

Noeny Gatarin, Senior Culture and Arts Officer of the CCP Visual Arts and Museum Division said that the tour was to help visitors know about the permanent collections and venues of the building.

“When visitors come mostly what they see are the changing exhibitions in galleries but the permanent collections that they see, they do not know what they are [about]. But because of the QRated tour they will know and be informed [about it],” Ms. Gatarin told BusinessWorld in a mix of English and Filipino, shortly after the tour on Oct. 15.

QRated brochures are available at the box office at the upper ground level. To go on a tour, the visitor has to connect their phone to the “QRated” wifi, then scan the first QR code on the QRated poster beside the box office. They must then select “log in” or “sign up” to begin the tour. They can use the digital or brochure map as a guide while exploring and locating the QR code captions.

Location markers found on the digital map appear in red — “need to scan”; green — “scanned already”; and blue — “you are here.”

QRated allows visitors to learn about 57 spots in the building, include artwork on permanent display, exhibition spaces, performance venues, and architectural details.

In the works are video content and language translations for the digital tour.

QRated: The CCP DIY Tour is available from Tuesday to Sunday, 10 a.m. to 6 p.m., and until 9 p.m. when there are shows in any of the building’s venues. The tour is free. — Michelle Anne P. Soliman

Makati health centers, city hall to get free WiFi

October 23, 2019 | 12:04 am

GLOBE TELECOM, Inc. President Ernest L. Cu on Tuesday said village health centers in Makati City, its city hall and the University of Makati will benefit from free WiFi access following the signing of an agreement between the telco and the Makati city government on free internet access.

“Globe Prepaid & TM customers in Makati can enjoy 1GB of free GoWiFi for every registration of GoSAKTO, GoSURF & EasySURF worth P50 and above that they can use in any GoWiFi hotspot in the city,” Mr. Cu was quoted as saying in a news release on Tuesday.

Globe said it will provide free WiFi access via GoWiFi to 27 barangay health centers, inside the Makati City Hall and University of Makati as part of the memorandum of agreement between Globe and Makati City government.

The agreement was signed at the Makati City Hall on Tuesday afternoon. Globe said it will install antennas on poles owned by the city government “to improve mobile signal in more than 100 strategic sites wherein the processing of permits will be fast tracked based on the Public Private Partnership agreement approved by the city council.”

Globe’s GoWiFi provides customers with WiFi speeds of up to 100Mbps, depending on the location.

As of the first half, GoWiFi has been accessible in 2,500 sites nationwide, up by 500 sites from 2018, Globe said. — A.L. Balinbin

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