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Overall price increase in August slowest in 3 years

By Mark T. Amoguis
Senior Researcher

INFLATION clocked in at its slowest pace in three years in August amid a softer increase in food prices, particularly rice, the Philippine Statistics Authority (PSA) reported on Thursday.

The headline inflation rate — the general increase in prices of widely used goods and services — logged 1.7% in August, slower than 2.4% in July and 6.4% in August 2018. August’s reading matched the 1.7% logged in September 2016 and was the slowest in three years or since the 1.3% inflation rate posted in August 2016.

Last month’s inflation fell at the midpoint of the Bangko Sentral ng Pilipinas’ (BSP) 1.3-2.1% estimate. It was, however, lower than the 1.8% estimate median in BusinessWorld’s poll of 12 economists late last week.

Core inflation, which strips out commodities prone to volatile price swings, eased to 2.9% in August from 3.2% in July and 4.8% in August 2018.

Year to date, headline inflation clocked in at three percent, at the midpoint of the BSP’s 2-4% target range for 2019, albeit still above the central bank’s 2.6% forecast for the entire year.

In a mobile phone message to reporters, BSP Governor Benjamin E. Diokno described the latest headline inflation rate as “excellent news.”

“This gives us more confidence that average inflation would be in the neighborhood of 2% in Q3 before it would increase slightly in Q4,” Mr. Diokno explained.

“The Monetary Board will definitely take note of this positive development in its next policy meeting on Sept. 26.”

In a separate statement, the BSP cited “ample domestic food supply conditions along with lower global oil prices” as having contributed to the inflation downtrend.

It warned, however, that the “deepening trade tensions between China and the US along with ongoing geopolitical risks have raised global economic uncertainty which poses a downside risk to the inflation outlook.”

The PSA attributed the August slowdown primarily to the slower increase in prices of heavily weighted food and non-alcoholic beverages component at 0.6% from 1.9% in July and 8.5% in August 2018. Food and non-alcoholic beverages account for 38.3% of the theoretical basket of goods that an average Filipino consumes.

The PSA also noted slower annual rates in housing, water, electricity, gas and other fuels (1.8% from 2.2% in July); health (3.1% from 3.2%); recreation and culture (1.8% from 3.2%); and restaurant and miscellaneous goods and services (3.2% from 3.3%). Meanwhile, the transport commodity registered a decline at 0.2% from 0.7% the previous month.

The food-alone index likewise slowed to 0.3% versus the previous month’s 1.7% and 8.2% a year ago as slowdowns were noted in most food groups. In particular, rice — which accounts for 10% of the average household’s consumer basket — saw its annual rate decline further to 5.2% in August from a 2.9% contraction in July.

“Last year, we had a relatively high retail price for rice. If you’ll notice, the negative inflation [for rice] started four months back. There’s really a continuing drop in the actual price month on month because of the negative inflation in rice,” National Statistician and Civil Registrar General Claire Dennis S. Mapa said during the press briefing.

In a statement, National Economic and Development Authority (NEDA) Undersecretary for Policy and Planning and currently Officer-in-Charge (OIC) Rosemarie G. Edillon said that the law liberalizing rice imports that was signed into law six months ago “continues to help increase [the] rice supply in the country.”

The same statement from NEDA noted that the domestic retail and wholesale price of the staple is down by 10-13% or by P4.2-5.2 per kilogram compared to price levels last year.

For HSBC Global Research economist Noelan C. Arbis, the decline in food and oil prices “led to the moderation in prices.”

“Meanwhile, core inflation remains on a stable trend, with most components rising only moderately and within their historical trend. If this trend persists, headline inflation is likely fall even lower in months ahead (i.e., low 1%) due favorable base effects,” Mr. Arbis said in a separate research note.

For his part, Security Bank Corp. chief economist Robert Dan J. Roces said that the below-target inflation rate gives the BSP more room to continue its easing cycle.

“The Monetary Board will definitely take note of the latest CPI (consumer price index) data in its September 26 policy meeting with a high chance of a 25 bps (basis point) cut and continuing its easing cycle to reverse the heavy 175 bps hike in 2018,” Mr. Roces said in an e-mail.

JPMorgan Chase Bank NA Singapore Branch economist Nur Raisah Rasid noted the August print marks the first time since October 2016 that inflation has fallen below the lower bound of the BSP’s 2-4% target range.

“The slower overall CPI growth in the coming months amid a softer than expected pickup in domestic growth, in our view, likely opens the room for another cut in [fourth quarter of 2019],” Ms. Rasid said in a research note.

With inflation moving below the central bank’s target, ING NV Manila Branch senior economist Nicholas Antonio T. Mapa expects BSP’s Mr. Diokno “to deliver on his pledge and cut policy rates by an additional 25 bps” in their next policy meeting.

Mr. Mapa also expects the central bank to slash banks’ reserve requirement ratio (RRR) by 100 bps in the fourth quarter this year, saying that Mr. Diokno “has telegraphed his moves effectively” by indicating that decisions on the RRR will be announced on a quarterly basis.

“[W]e expect him to reduce [the] RRR in two tranches of 50 bps, possibly at the end of October and end of November,” Mr. Mapa said in a separate research note.

BSP’s Mr. Diokno signaled last month that the central bank will cut policy rates by 25 bps before the year ends.

The central bank has so far cut benchmark rates by a total of 50 bps this year, partially dialing back the 175 bps cumulative hikes triggered last year by successive multi-year-high inflation that peaked at a nine-year-high 6.7% in September and October. This brought the overnight deposit rate to 3.75%, overnight reverse repurchase rate to 4.25% and the overnight lending rate to 4.75%.

On the other hand, the RRR currently stands at 16% for big banks and six percent for thrift, savings and cooperative lenders following the phased 200-bp cut implemented after an off-cycle meeting last May. Mr. Diokno had said that the Monetary Board’s consensus is to “pre-announce” plans for the RRR on a quarterly basis.

More economic reforms bag 2nd reading House OK

MORE ECONOMIC REFORMS have gained ground in the House of Representatives, with the measure removing restrictions on foreigners from practicing their professions in the Philippines and another simplifying taxes on financial instruments both bagging second-reading approval last Wednesday evening.

PROFESSIONALS AND SMES
House Bill No. 300, which amends Republic Act No. 7042, or the Foreign Investments Act (FIA) of 1991, “[a]ims to exclude the ‘practice of professions’ from the coverage of the Foreign Investments Act so as to attract foreign professionals to practice in the Philippines wherein they would be able to bring in technology and know-how from abroad and attract foreign direct investments, and help generate more employment opportunities in the country.”

The same measure — authored by Tarlac 2nd District Rep. Victor A. Yap — also reduces to 15 from 50 currently the minimum number of direct local hires required of foreign investors looking to establish small- and medium-sized enterprises (SMEs) with minimum paid-in capital of $100,000.

“… [O]perationally speaking, a small- and medium-sized enterprise cannot immediately sustain a labor force of 50 employees. Thus, there is a need to lower the threshold of employment requirement to 15 direct local hires,” the bill’s explanatory note read.

Counterpart bills — Senate Bill No. 418 and 419 — have been filed anew in the Senate by Senators Francis N. Pangilinan and Sherwin T. Gatchalian, respectively.

The measure nearly made it out of the 17th Congress after it bagged final approval in the House in January, but failed to secure third-reading passage in the Senate ahead of the June 3 adjournment.

The proposed FIA amendment is among priority measures which the Cabinet economic development cluster wants approved in the first regular session of the 18th Congress, which closes on June 5 next year.

It was also on the wish list of measures which 14 local and foreign business groups submitted to the Office of the President and both chambers of Congress last month.

ANOTHER TAX REFORM
Also approved on second reading last Wednesday was House Bill No. 304, or the proposed Passive Income and Financial Intermediary Tax Act, which makes up the fourth package of the government’s comprehensive tax reform program.

The bill — authored by Albay 2nd District Rep. Jose Ma. Sarte Salceda — proposes a unified 15% income tax rate on interest, dividend and capital gains from the current range of zero to 30%.

It also proposes the reduction of the stock transaction tax rate to 0.1% from 0.6% currently, and imposition of a 0.1% transaction tax on debt instruments listed and traded at the Philippine Dealing System.

The bill also removes the tax on initial public offering; imposes a five percent uniform gross receipt tax on banks and other financial intermediaries; and reduces the levy on health insurance, pension and pre-need insurance to a two percent premium tax from the current 12% value added tax (VAT).

Non-life insurance, however, will remain subject to VAT, while crop insurance will be VAT-exempt.

Amendments to the original version of the bill so far include:

• dividends received by a domestic corporation from another domestic firm will not be subject to tax;

• exemption from document stamp tax (DST) of non-monetary documents like diplomas, transcripts of records and other school certifications; oath of office for barangays, good standing certification from the Professional Regulation Commission, affidavits, certificates of no marriage record, baptismal certificates and marriage license certificates.

The government has so far enacted Republic Act No. 10963, which slashed personal income tax and increased or added levies on several goods and services; RA 11213, which offers estate tax amnesty and amnesty for accounts that remained unpaid even after being given final assessment and RA 11346 which gradually increases the excise tax on tobacco products and slaps a levy on vapor products.

Proposed tax reforms awaiting legislative approval include one that will cut the corporate income tax rate to 20% by 2029 from 30% currently and remove redundant fiscal incentives, as well as another that sets a uniform framework for real property valuation and assessment. — V. A. C. Ferreras

PSA: Manufacturing declines for eighth straight month in July

By Mark T. Amoguis
Senior Researcher

FACTORY OUTPUT once again declined in July, extending its contracting streak to eight straight months, the government reported on Thursday.

Preliminary results of the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries, showed factory output — as measured by the volume of production index — declining by 8.1% year on year in July versus the June’s revised 11.6% contraction and the 10.1% growth in July 2018.

Manufacturing production has been registering a decline since December 2018.

Factory output decline averaged 9.9% as of July compared to the 13% growth average in 2018’s comparable seven months.

Six out of 20 subsectors registered declines in July, led by double-digit contractions in petroleum products (-75.8%) and furniture and fixtures (-24.8%).

Notably, food manufacturing, which is the largest subsector in terms of contribution to factory output, has snapped its eleven-month losing streak, growing by 8.4% in July.

In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI), which used a different set of parameters, improved that month to 52.1 compared to June’s 51.3 and July 2018’s 50.9, marking the strongest improvement in six months or the 52.3 logged in January. A reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.

Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3%. Twelve of the 20 sectors registered capacity utilization rates of at least 80%.

In a statement, National Economic and Development Authority Undersecretary for Policy and Planning and current Officer-in-Charge Rosemarie G. Edillon said that the decline in construction-related manufactures reflected the deceleration in public infrastructure spending on infrastructure since the first half of this year.

“The slowdown on the implementation of infrastructure projects in the first semester of 2019 contributed to the weak performance of the manufacturing sector…” she said.

Rizal Commercial Banking Corp. (RCBC) economist Michael L. Ricafort blamed the July factory output drop on base effects as “there was some frontloading of purchases, loans and investments by some manufacturers when inflation and interest rates were on a rising trend” last year.

He also cited the escalating US-China trade war that weighs on the global economic outlook, including trade.

POLICY UNCERTAINTY
Mr. Ricafort also attributed the decline to the “wait-and-see” stance adopted by some investors as they await enactment of proposed changes to current tax incentives. The Tax Reform for Attracting Better and High-Quality Opportunities bill, which did not pass the previous Congress, was refiled this year under a new name — the proposed Comprehensive Income Tax and Incentive Rationalization bill. It seeks to gradually trim the corporate tax rate to 20% by 2029 from 30% currently — the highest in Southeast Asia — and remove incentives deemed redundant.

Socioeconomic Planning Secretary Ernesto M. Pernia said last month that the economy needs to be opened up further, noting: “We have too many restrictions.”

For RCBC’s Mr. Ricafort, some manufacturers are waiting for both the domestic inflation and interest rates to bottom out “before they become aggressive in borrowing… for new manufacturing investments and expansion projects.”

Nevertheless, Mr. Ricafort is optimistic that manufacturing can recover in the remaining months of the year.

“Local manufacturing activities and growth could pick up in the coming months of 2019 due to the easing base/denominator in the latter part of 2019,” he said, adding that “any prompt approval into law the rationalization of fiscal incentives that would provide greater certainty especially for some manufacturers… could help attract more investments (both local and foreign) into the country including in the manufacturing sector.”

Hello, Love, Goodbye is now highest grossing PHL film ever

HELLO, LOVE, GOODBYE is now the highest-grossing Filipino film of all time after breaching the P880 million box office mark after more than a month in local and international cinemas.

The romantic-drama about Overseas Filipino Workers in Hong Kong has grossed P880,603,490, according to Star Cinema — the film’s producers — on Sept. 3.

The announcement was made during the film’s Thanksgiving party at the ABS-CBN offices in Quezon City. A livestream of the party was uploaded on the Star Cinema Facebook page.

The film is still running in cinemas nationwide and select international screens.

It stars Kathryn Bernardo and Alden Richards (real name: Richard Faulkerson, Jr.) and is directed by Cathy Garcia-Molina.

Counting its worldwide gross, Hello, Love, Goodbye replaced another Cathy Garcia-Molina film — and also a Kathryn Bernardo-starred — The Hows Of Us, as the country’s highest-grossing film. The Hows of Us grossed P810 milllion after 50 days in 2018.

During the Thanksgiving party, Ms. Bernardo thanked the cast and crew and Ms. Garcia-Molina.

“I always say that [Ms. Garcia-Molina] is a huge part of my life, especially with Hello, Love [Goodbye] because this is the film which challenged our relationship and I couldn’t have done this without Direk Cathy,” Ms. Bernardo said in vernacular during her speech at the party which was uploaded on the Star Cinema YouTube page on Sept. 4. — ZBC

Horror film replaces dropped (K)Ampon in MMFF lineup

THE Metro Manila Film Festival Executive Committee (MMFF Execom) has announced that Carlo Ledesma’s film Sunod will replace Kris Aquino’s comeback film (K)Ampon which was disqualified for making a casting change beyond the prescribed deadline.

The announcement was made on Sept. 3 via the film festival’s Facebook page.

Sunod, a horror film, stars Carmina Villaroel, Mylene Dizon, Susan Africa, and Kate Alejandrino and is produced by Ten17P production. Mr. Ledesma was one of the writers of a previous MMFF entry, Saving Sally (2016) while Ten17P has produced several MMFF entries including Siargao (2017) and Mary, Marry Me (2018).

“[MMFF] rules provide that in the case of disqualification, the vacant slot shall be automatically filled by the next-in-rank of the same film genre. Per the ranking of the Selection Committee, Sunod is the horror film next-in-rank to the film (K)Ampon,” the Execom said in the statement.

(K)Ampon, which was supposed to be Kristina Bernadette “Kris” Aquino’s comeback horror film, was disqualified in August after Derek Ramsay backed out after prioritizing his contract with GMA Network. Mr. Ramsay currently stars in the network’s primetime show, The Better Woman.

The film’s producers tried to replace Mr. Ramsay with Gabby Concepcion but the MMFF noted that the deadline to request a change of lead actor was on July 30 — the film’s producers submitted their request on Aug. 5.

Sunod now joins the other three entries chosen from script submissions: The Miracle in Cell No. 7, Mission Unstapabol: The Don Identity, and Momalland.

The four finished films chosen as entries will be announced at a later date, completing the eight MMFF official entries. The MMFF’s deadline for submitting finished films for consideration is on Sept. 20, 5 p.m.

The MMFF runs from Dec. 25 to Jan. 7, 2020 in cinemas nationwide. — ZB Chua

PHL hospitals remain vulnerable to cyber attacks

By Denise A. Valdez, Reporter

YANGON, Myanmar — Medical facilities in the Philippines will continue experiencing high rates of cyber attacks, with seven out of 10 medical machines compromised this year, according to data from cybersecurity firm Kaspersky.

The Russia-based company said it found 76% of medical machines in the country were attacked in the past eight months, making it the most vulnerable in Southeast Asia and second in the Top 15 nations it reviewed.

“In case of Southeast Asia, medical organizations are not in a vacuum. There are computers around them. If you look at the statistics in the Philippines, in general, the number of infections is quite high,” Yury Namestnikov, head of Kasperky’s Global Research and Analysis Team (GReAT) in Russia, said at a forum here on Thursday.

“These devices that are in medical organizations, they got infected (because) people who are responsible for architecture of IT systems in medical organizations, they do not separate the networks,” he added.

Mr. Namestnikov explained that having medical machines connected to a singular internet network could mean a compromise in one system would impact the rest of a facility’s machinery. In the Philippines, he said most of the infections could be traced to universal serial bus (USB) sticks or web threats.

“The right way to solve this problem is to review the architecture for how you design your medical network, and separate computers that should not be visible from the internet. It will help a lot,” he said.

Topping the list of countries with the most cyber attacks on medical machines is Venezuela, which had a 77% rate in 2019. Other countries from Asia Pacific included in the Top 15 are Bangladesh, which ranked 8th with a 58% rate, and Thailand, which ranked 12th with a 44% rate.

“One factor we observe is that the chances of being attacked really depend on how much money the government spends on cybersecurity in the public health sector. Another key reason is the low level of cybersecurity awareness the people inside medical facilities have,” Mr. Namestnikov was quoted as saying in a statement.

The company is pushing for bigger investments from countries in Asia Pacific towards ensuring cyber protection in medical facilities, noting losses could amount to $23.3 million if a hospital is faced with a cyber attack.

“We see more and more threats against the health care sector… Hospitals usually store a lot of data, and because of that, they’re becoming quite often the victim,” Stephan Neumeier, Kaspersky managing director for Asia Pacific, said at the forum.

“If you look at the banks who are dealing with probably more or less the same amount of data as a large hospital, that bank is super secure today… I think hospitals have to do the same, because we can see based on recent events this will otherwise not change,” he added.

The rate of cyber attacks in medical machines in the Philippines grew this year to 76% from 64% two years ago. Data from 2018 was not available as of press time.

Mr. Namestnikov said while many of the medical facilities in developing countries such as the Philippines are still heavily reliant on traditional methods of keeping records, the industry’s shift to digitalization is in the near future, hence the need to keep in mind the issues that would eventually come with it.

“These handwritten records will be digitalized in two to three years and everything will be online, because it’s cheaper for hospitals to have an online catalogue of all their patients than having all these handwritten things archived,” he said.

“So from a business perspective, hospitals will move to digital, and it’s just a matter of years when this trend (of medical cyber attacks) will be relevant to these hospitals. They should be prepared for it,” he added.

RLC to develop 2 condominiums in Bridgetowne

By Arra B. Francia, Senior Reporter

ROBINSONS Land Corp. (RLC) is developing two residential condominiums that will add about 2,000 residential units to its first township project called Bridgetowne in the cities of Quezon and Pasig.

RLC President and Chief Executive Officer Frederick D. Go said the company started construction for Cirrus, a 40-storey condominium under the Robinsons Communities brand. The project offers mostly studio units sized 25 square meters (sq.m.), priced at more than P3 million each.

“Cirrus has been over 80% sold, we did that within a month,” Mr. Go said in a press briefing inside the township yesterday.

The project looks to target employees of business process outsourcing (BPO) companies that will operate within the township, since Mr. Go said they want to give residents the live-work-play-dream dynamics in the estate.

“Cirrus is being built with them in mind…We want to be able to house everybody who works and lives here in Bridgetowne, even regular employees can afford to stay,” Mr. Go said.

RLC is also constructing a 40-storey high-end luxury project called Velaris in partnership with Hong Kong Land Group (HKLG), which acquired a 1.7-hectare piece of land in Bridgetowne last year.

Velaris will offer 500 units targeting more senior professionals working in the township or nearby areas.

Mr. Go said HKLG could build more projects in the area since the land they acquired is good for three buildings.

The company also unveiled on Thursday a 200-meter bridge across Marikina River that will connect Pasig and Quezon cities. It will have four lanes for vehicles, a one-meter lane for bikers, and a 1.5-meter lane for pedestrians.

“This will help alleviate traffic especially those coming from the east, I’m sure this bridge will be a very welcome infrastructure for everyone to use,” Mr. Go said.

The bridge will be opened to the public by the end of next year, since land development is still ongoing in parts of the township.

Next to the bridge, the company will also install a 60-meter statue called The Victor by Filipino-American artist Jeffrey Manuel. It is expected to be finished by 2020.

Mr. Go hopes the statue will draw more visitors to the estate.

Bridgetowne is the RLC’s first township project. Covering a total of 30.61 hectares, the project is located along E. Rodriguez Jr. Avenue and Ortigas Avenue in Barangay Ugong Norte. The company will develop the property within the next 10 to 15 years.

Aside from residential condominiums and office buildings, Bridgetowne will also house a shopping center, a five-star hotel, a one-hectare Main Central Park, school, hospital, and transport terminal.

RLC’s net income attributable to the parent jumped 20% to P4.01 billion in the first half of 2019, following a 13% increase in revenues to P14.786 billion.

Shares in RLC dropped 3.95% or P1 to close at P24.30 each at the stock exchange on Thursday.

Hidden figures no more: women shining in Hollywood

LOS ANGELES — Women enjoyed a banner year in Hollywood movies and on television over the past year, notching up record highs in lead roles and gaining ground in influential jobs behind the scenes such as directors and writers, according to two studies published on Wednesday.

Box office hits like Black Panther and Crazy Rich Asians also shattered barriers for black and Asian characters, reflecting the drive for wider changes in the entertainment industry that were fueled by the 2017 sexual misconduct scandal in Hollywood and the #OscarsSoWhite backlash four years ago.

Thirty-nine of the top 100 films of 2018 featured a woman in a leading or co-leading role, up from 33 in 2017 and just 20 in 2007, according to a study by the Annenberg School for Communications and Journalism at the University of Southern California.

There was also a 12-year high in the percentage of black and Asian speaking male and female characters, while women featured more frequently in action and adventure movies.

“In 2018 we saw companies taking steps to ensure that certain groups were included in some of their most notable movies,” Stacy L. Smith, one of the authors of the Annenberg study.

On television, female characters made up a record 45% of speaking roles across comedies, dramas, and reality shows on broadcast, cable and streaming services, compared to 40% in the 2017-2018 TV season, the Center for the Study of Women in Television and Film at San Diego University found.

Behind the scenes on television, women accounted for a record 31% of all creators, directors, writers, executive producers, producers, editors, and directors of photography.

Both studies said that despite progress, there was still much to be done.

While women comprised a historic high of 26% of directors in the 2018-19 television season just ended, men still outnumber women 3 to 1 in this role, the San Diego study found.

Hollywood remains far below the 50/50 male-female parity that advocates are pushing for among on-screen talent, behind-the-scenes workers and studio executives. — Reuters

Tighter disclosure rules for state-owned enterprises pushed

STATE-OWNED enterprises (SOEs) in Asia were found to comply with looser disclosure rules when compared to listed companies, prompting the need for the issuance of tighter regulations and stricter implementation of existing guidelines in each country.

This was one of the key points during the 12th Meeting of the Asia Network on Corporate Governance of State-owned Enterprises sponsored by the Organization for Economic Co-operation and Development (OECD) and the Governance Commission for Government-Owned and Controlled Corporations (GOCCs).

“We found that SOEs in Asia are often subject to weaker disclosure rules compared to listed companies, and it often reflects SOEs’ limited degree of corporatization,” OECD Corporate Finance and Corporate Governance Division Policy Analyst Chung-a Park said in a panel discussion during the forum in Makati yesterday.

Ms. Park mentioned that South Korea, the Philippines, and Vietnam are some of the countries in Asia that have specific reporting and disclosure requirements, while Cambodia and Malaysia have none.

At the same time, the OECD also found that SOEs are not always subjected to the same accounting and auditing requirements as private incorporated companies.

“(This) makes it difficult to identify irregular financial transactions. So these are often due to weak internal audit and control functions and guidance on corporate disclosure due to weaker degree of corporatization,” Ms. Park explained.

Weaker disclosure rules and auditing requirements could make SOEs vulnerable to money laundering and corruption.

In the Philippines, Securities and Exchange Commission (SEC) Chairperson Emilio B. Aquino said that the Revised Corporation Code passed into law earlier this year has given them the power to promote corporate governance. This allows the commission to issue guidelines that would protect GOCCs.

For instance, Mr. Aquino noted in a panel that they have issued Memorandum Circular No. 15 Series of 2019, which requires companies to disclose their beneficial owners.

“Any company must disclose the ultimate natural person that owns them…so that potential launderer will not utilize the layer of companies, launderers will not be behind state-owned enterprises or GOCCs,” Mr. Aquino said.

“It’s still a work in progress, we’re trying to plug some loopholes. There is some resistance, we put the responsibility on the corporate secretary to disclose this,” he added.

Aside from establishing guidelines that would strengthen disclosures, Institute for Democracy and Economic Affairs Chief Executive Officer Ali Salman said that regulators must focus on preventing corruption.

“They should promote awareness and competencies in preventing corrupt practices, including strengthening internal control,” Mr. Salman said in a panel.

For India’s Institute of Public Enterprise Director Ram Kumar Mishra, stopping corruption in SOEs starts at the top of management.

“If the president is corrupt, then all will be because of the culture…you have to look into yourself, practice not preach. We need such people like that,” Mr. Mishra said in a panel. — Arra B. Francia

Ariana Grande sues Forever 21 for $10-Million look-alike ad campaign

POPULAR SINGER Ariana Grande has sued Forever 21 for $10 million, accusing the fashion retailer and a beauty company started by its billionaire founders’ daughters of piggybacking off her fame and influence to sell their wares.

In a complaint filed on Monday, Grande said Forever 21 and Riley Rose misappropriated her name, image, likeness, and music, including by employing a “strikingly similar” looking model, in a website and social media campaign early this year.

She said this followed the breakdown of talks for a joint marketing campaign because Forever 21 would not pay enough for “a celebrity of Ms. Grande’s stature,” whose longer-term endorsements generate millions of dollars in fees.

Grande has more than 65 million Twitter followers and 163 million Instagram followers. A core part of the 26-year-old’s fan base overlaps Forever 21’s and Riley Rose’s target markets.

“Forever 21 does not comment on pending litigation as per company policy,” the company said in a statement. “That said, while we dispute the allegations, we are huge supporters of Ariana Grande and have worked with her licensing company over the past two years. We are hopeful that we will find a mutually agreeable resolution and can continue to work together in the future.”

Riley Rose did not immediately respond on Tuesday to e-mailed requests for comment. The daughters of Forever 21’s founders Do Won and Jin Sook Chang, Linda and Esther Chang, opened the first Riley Rose boutique in 2017.

According to Grande’s complaint, Forever 21 and Riley Rose misappropriated at least 30 images and videos, including by using audio and lyrics from her recent No. 1 single “7 Rings,” and by using the look-alike model.

“The resemblance is uncanny,” the complaint said. — Reuters

Labor deal readied with Canada’s Yukon territory

THE Department of Labor and Employment (DoLE) has signed an initial agreement with Canada’s Yukon government for skilled workers to be deployed to the western Canadian territory.

Labor Secretary Silvestre H. Bello III said at a briefing that the agreement was signed last week. Yukon has a population of 3,000 Filipinos out of 20,000 overall.

“Meron kaming (We have a) joint communique that will pave the way for the deployment of skilled workers to Canada… In Yukon, we are planning to deploy on a government to government basis,” he said.

Mr. Bello added that a contract will be ready by the end of this year. He said more discussions are needed between DoLE and the Yukon government.

“They will designate their technical working group and we will have our technical working group and they will have discussions on the preparation of a bilateral agreement which will also provide a template employment contract,” he said.

DoLE is also in talks for a similar agreements with the province of British Columbia, with Mr. Bello adding that he expects to sign a bilateral agreement soon pending further discussions. — Gillian M. Cortez

Megaworld keeps top credit rating for fixed-rate bonds

PHILIPPINE Rating Services Corp. (PhilRatings) retained the highest rating for Megaworld Corp.’s P12-billion fixed-rate bonds issued in 2017.

In a statement Thursday, the local debt watcher assigned anew a PRS Aaa rating for the listed property developer, indicating that the company has an “extremely strong” capacity to meet its obligations.

The rating carries a stable outlook, which means that it is unlikely to change in the next 12 months.

The Series B fixed rate bonds will mature in 2024, with an annual coupon rate of 5.3535%. The offering’s base size was at P8 billion, plus P4 billion for the oversubscription option, taken up by a wide range of investors such as banks, investments funds, insurance companies, and the retail market.

“The assigned issue credit rating takes into account Megaworld’s robust liquidity, sound capitalization, well-experienced management and favorable industry outlook,” PhilRatings said in a statement.

Megaworld currently has 24 estates under its portfolio, including Eastwood City in Quezon City, Newport City in Pasay City, Boracay Newcoast, Iloilo Business Park, and Uptown Bonifacio in Taguig.

It looks to launch two to three estates every year, as it targets to end 2020 with 30 townships.

As part of its expansion program, Megaworld has committed to spend P300 billion over the next five years for its residential, office, retail, and hotel projects. It will spend P65 billion for this year alone.

The company is part of tycoon Andrew L. Tan’s holding firm, Alliance Global Group, Inc., which also has interests in liquor through Emperador, Inc., gaming through Travellers International Hotel Group, Inc., quick-service restaurant through Golden Arches Development, Inc., and infrastructure through Infracorp, Inc.

Megaworld’s net income attributable to the parent rose 16% to P8.307 billion in the first half of 2019, after gross revenues also went up 16% to P29.586 billion.

Shares in Megaworld jumped 3.19% or 16 centavos to close at P5.18 apiece at the stock exchange on Thursday. — Arra B. Francia

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