Manulife wields Amazon Prime, chatbot to battle large lenders

June 13, 2019 | 12:01 am

MANULIFE FINANCIAL Corp., Canada’s largest life insurer, is taking on the country’s large lenders with a new package of banking products designed to win over digitally savvy millennials.

The insurer’s Manulife Bank has unveiled a banking package with perks aimed at appealing to a younger set: a one-year subscription to Amazon.com Inc.’s Amazon Prime service, a mobile app with artificial-intelligence features such as a chatbot and spending insights, a network of 3,500 bank machines including ones at Circle K stores, and monthly fees waived when savings are increased by C$100 ($75) a month.

“We want to be the best alternative to the big banks and attract millennial customers to help feed Manulife’s growth within Canada,” Manulife Bank Chief Executive Officer Rick Lunny said in an interview at the insurer’s Toronto headquarters. “What this does is attract younger customers to the Manulife brand.”

Manulife Bank’s All-In Banking Package — which includes an everyday banking account, high-interest savings account, travel insurance and a no-fee, cash-back Visa card, for C$10 a month unless the fee is waived — marks what Lunny calls “a natural evolution” for the company. All the products can be initiated online within four minutes, according to Manulife. Its previous banking products such as mortgages have been sold through financial advisers targeting more “financially mature” clientele, Lunny said.

The move targets younger customers banking with dominant lenders such as Royal Bank of Canada as well as internet banks including Tangerine and Simplii Financial, owned by Bank of Nova Scotia and Canadian Imperial Bank of Commerce, respectively. Lunny estimates that 80% of millennials have their accounts with the big domestic banks.

LARGER RIVALS
Manulife, which gets most of its earnings from insurance and wealth-management businesses at home and abroad, has much larger rivals in the banking industry. Manulife Bank had C$25.5 billion of total assets as of March 31, compared with about C$1.4 trillion each at Royal Bank and Toronto-Dominion Bank, the nation’s two largest lenders; C$41.3 billion at Tangerine; and C$26.3 billion at Equitable Bank, an digital lender owned by Equitable Group Inc., according to Canada’s banking regulator.

Manulife Bank started in 1993 as a branchless lender and the first federally regulated bank opened by an insurance company in Canada. Its products include a high-interest savings and checking account, credit cards and an all-in-one mortgage and banking product.

Canadian banks, alternative lenders and financial-technology firms have been seeking novel ways to woo consumers with mobile offerings and other perks in a mature domestic-banking environment, with most growth coming from stealing rivals’ market share.

US banks also are chasing the younger set — with mixed results. JPMorgan Chase & Co. is closing its digital-only bank, Finn, a year after rolling out the brand nationally. It found that millennial customers don’t necessarily want a separate digital experience.

To build its product, Manulife looked overseas for some of the best examples of digital banking, finding inspiration in Monzo Bank Ltd. in the UK, N26 in Europe and DBS in Asia, adding the best ideas it found to its own in-house innovations.

“This is a major step forward in the digital evolution of Manulife,” Lunny said. — Bloomberg

Shares may move sideways on lack of catalysts

June 13, 2019 | 12:01 am

By Arra B. Francia, Senior Reporter

SHARES may move sideways for the rest of the week as investors take profits amid a lack of leads.

The benchmark Philippine Stock Exchange index (PSEi) slumped 0.17% or 14.41 points to close at 8,030.98 on Tuesday, ending a three-day winning streak for the market.

Turnover was valued at P7.78 billion in the previous session, while net foreign inflows stood at P244.02 million.

The market was closed on Wednesday, June 12, as the country celebrated its 121^st Independence Day.

“For the remainder of the week, we may still see some profit taking at around 8,100 level may also continue the sideways movement within the range of 7,900-8,100. No market-moving catalyst as of this moment — thus, investors might be in accumulation mode resulting to sideways movement,” Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said via text.

Unicapital Securities, Inc. Technical Analyst Cristopher Adrian T. San Pedro also noted the PSEi may move sideways in the short term.

“I see the index to remain sideways between 7,800 support and 8,140 resistance in the short term with the possibility of testing 8,214 and 8,300 resistance levels if it stays above 7900,” Mr. San Pedro said in a separate message on Tuesday.

Philstocks’ Mr. Tan added that the market may get a boost from the increase in investment pledges recorded by the Board of Investments (BoI).

The BoI said on Tuesday that the value of projects pledged from January to May totaled P290.6 billion, 40.1% higher than the same period a year ago. Power-related investments accounted for 63.8% of this figure, as pledges for the sector alone grew 74% year on year.

The Philippine Statistics Authority also reported on Tuesday that the country’s trade deficit slimmed by 5.4% to $3.7 billion in April. The decline for the month, however, was not enough to offset the increase in year-to-date trade deficit, which stood at $13.26 billion, 12.4% higher year on year.

Overseas, investors may also see a bright spot as the United States moves to iron out its trade disputes with China and Mexico. US President Donald J. Trump recently said he is preparing to meet Chinese President Xi Jinping during the G20 Summit in Japan later this month, although the latter has yet to confirm his participation.

“The US also is considering trade deals with China and Mexico as investors remain hopeful for this moment,” Mr. Tan said.

Wall Street indices on Tuesday, however, ended with not much changes. The Dow Jones Industrial Average went down 0.05% or 14.17 points to 26,048.51. The S&P 500 index dipped 0.03% or 1.01 points to 2,885.72, while the Nasdaq Composite index decreased 0.01% or 0.6 point to 7,822.57.

Nokia winning 5G contracts despite delivery delays, chief executive says

June 13, 2019 | 12:01 am

NOKIA OYJ is winning contracts “quite handsomely” in new 5G telecom networks as the top three suppliers go head-to-head for the emerging business, Chief Executive Officer Rajeev Suri said.

“We compete quite favorably with Huawei, with or without the current security concerns,” Suri said in an interview with Bloomberg TV’s Caroline Hyde on Monday, referring to issues raised by the US and elsewhere about China’s Huawei Technologies Co., the world’s largest network equipment manufacturer.

Against fellow Nordic competitor Ericsson AB, “we win two-thirds of the time,” Suri said, “compared to one-third of the time that they swap us out.”

The CEO is rebutting concerns from some analysts and executives that Nokia has fallen behind in the early phases of delivering products for the fifth generation of mobile networks. A few weeks of delays “is not really much” in the context of a 15-20 year cycle, Suri said. In the first quarter, the Finnish company struggled to book revenue from the contracts it had signed — 42 globally thus far — but now expects to start recognizing revenue “soon.”

He dismissed the idea that security concerns in Europe — which have prompted some governments to tighten oversight of Huawei — could delay the rollout of 5G in the region. The technology is immune to macroeconomic downturns as “you absolutely have to invest” in 5G, he said.

INDUSTRIAL INTERNET
Customers are choosing Nokia because it can supply a full system of hardware, or what it calls end-to-end networks, complete with software and services, Suri said. About 35% of its pipeline consisted of end-to-end orders a year ago, and that’s now up to about 49%, he said, while about half of Nokia’s 5G contracts announced to date go beyond just 5G radio.

Industrial clients want to “buy the system” and don’t care where various components come from, Suri said. Nokia already has about 1,000 such enterprise customers and adds another 150 to 200 a year, he said.

Business from companies using private networks for the internet-of-things (IoT) “will be fairly significant,” Suri said. “We see the big opportunities in manufacturing, logistics, supply chains, utilities, mining, all kinds of energy companies, water, wind farms, transportation, you name it.”

Suri estimated that there will be 15 million industrial sites that will require wireless connectivity over the next 10-plus years, in a subsequent Bloomberg interview. That compares with about 7 million base stations globally for phone carriers, currently. Countries leading the way include the US, Japan, Germany and China, he said.

Nokia gets about 5% of its revenue from the enterprise unit that includes industrial IoT and expects double-digit sales growth this year, up from a rise of 9% in 2018, the executive added. — Bloomberg

Asia food giant Wilmar plans China soy expansion as deadly virus kills hogs

June 13, 2019 | 12:01 am

WILMAR International Ltd., one of the world’s largest food producers, is planning to boost its soybean crushing capacity in China even as a deadly pig-killing virus cuts demand for animal feed.

Singapore-based Wilmar will build new plants as part of a project to construct integrated manufacturing complexes in the country, the company said in an e-mailed statement, without giving a schedule. The group is bullish on the long-term prospects for China and is confident that animal meal demand will eventually recover, it said.

Wilmar’s planning to expand amid a challenging period for Asia’s animal feed industry. As African swine fever continues to spread, hog production in China will probably drop by 134 million head this year, equivalent to the entire annual output of American pigs, the US Department of Agriculture estimated in April. For hog feed suppliers, it means slumping margins from crushing beans.

The company sees a pickup in poultry feed demand offsetting some of the losses from hogs, according to people familiar with its strategy, who asked not to be identified as the information is private. Crushing volumes and margins improved at the Chinese plants in the second quarter from the first, they said.

Poultry feed consumption in the country is expected to grow 20% this year as people eat more chicken and duck, according to Hou Xueling, an analyst with Everbright Futures Co.

Wilmar is also planning to build an oilseed crusher in northern Vietnam, according to the people. The company didn’t comment on its plans for Vietnam.

The producer had 70 oilseed crushing and rice bran extraction plants in China, including some joint ventures, as of last year, according to its annual report. The company also has one soybean crushing plant in the southern part of Vietnam, a joint venture with Bunge Ltd.

Wilmar’s biggest competitor in China is state-run giant Cofco Corp., which had a crushing capacity of 15.9 million metric tons as of last year. That could grow amid plans to absorb state stockpiler Sinograin’s oilseed processing capacity in a government-based industry reshuffle.

Wilmar’s strategy to invest when conditions are tough may not come as a surprise to those familiar with the business philosophy of Chairman Kuok Khoon Hong, who co-founded the company in 1991. It’s best to expand during the most “difficult” times, he said at a briefing in February when the company reported a plunge in quarterly profits after the pig virus hurt operations. The shares have risen almost 9% this year and reached the highest in about two years in April. — Bloomberg

A shift to cleaner, more sustainable power generation

June 13, 2019 | 12:01 am

Our world relies heavily on coal, the black, carbon-rich combustible fossil fuel, for its electricity. According to the International Energy Agency, 38.4% of the electricity generated worldwide in 2016 came from coal.

In the Philippines, coal is an even more dominant power source. It accounted for 51,932 gigawatt hours (GWh) or roughly 52% of the 99,765 GWh of total power generated in 2018, according to recently released data from the Department of Energy (DoE).

But burning coal to produce electricity emits significant levels of greenhouse gases, chief among which is carbon dioxide. Greenhouse gases, which also include chlorofluorocarbons, trap heat in the atmosphere, causing the planet to heat up. Since the industrial revolution, so much greenhouse gas has been pumped into the atmosphere that the planet has warmed considerably. Through human activity, the situation has aggravated, rising to alarming heights compared to pre-industrial levels.

A relentlessly warming planet means rising sea levels and more destructive and frequent storms, hurricanes, droughts and heat waves — all of which put our lives at risk.

The Philippines is among the most seriously impacted by this phenomenon, despite the fact that it does not emit as much greenhouse gases as, for example, the United States and India. A 2018 report by the multinational banking giant HSBC found that the country is the third most vulnerable to the risks posed by climate change.

Clearly, now is the time to shift to cleaner, more sustainable power generation, to embrace renewable sources of energy.

Needless to say, generating electricity from renewables — water, wind, sun, heat inside the Earth — helps mitigate climate change, as these sources produce practically no greenhouse gas emissions. They will also never be depleted, unlike fossil fuels.

For a long time, however, there’s been a reluctance among electricity producers, distributors and consumers to embrace renewables due to the belief that it’s too costly to generate electricity from them compared with coal and other fossil fuels.

That may have been true in the past. The reality today is that it’s getting cheaper to create electricity from renewables. The International Renewable Energy Agency (IRENA) noted in a 2018 report that the global weighted average levelized cost of electricity of utility-scale solar photovoltaics, which convert sunlight into electricity, had dropped by an astounding 73% since 2010 to $0.10 per kilowatt hour (kWh) for new projects commissioned in 2017.

That same year, the global weighted average cost of electricity from new hydropower projects was $0.05 per kWh. For onshore wind projects, it was $0.06 per kWh, while for bioenergy and geothermal projects the cost per kWh was $0.07.

In comparison, the fossil fuel-fired electricity generation costs for G20 countries ranged from $0.05 to $0.17 per kWh, according to a report published on climatereality.org

In the Philippines, power is increasingly being produced from renewables. Based on the latest DoE data, renewables — geothermal, hydro, biomass, solar and wind — accounted for 23,326 GWh of total power generated. That’s a significant jump from 20,628 GWh 10 years ago.

By increasing the share of renewables in its power generation mix, the country will be better able to wean itself from its dependence on coal. (Around 75% of the country’s coal supply is sourced from other countries, notably Indonesia.)

Renewables, however, are still quite far from becoming many countries’ sole source of electricity. For one, some of them are intermittent, which means that they’re not continuously available, depending on certain environmental conditions. Producing energy from the sun, for instance, is hindered when it’s nighttime or when the sky is cloudy.

One solution has been to store the energy generated from renewables in batteries, but how to do it efficiently and cheaply on a large scale remains elusive.

While the quest to figure that out is ongoing, natural gas — heralded as the “bridge fuel” between our current coal dependence and a totally renewable future — is gaining traction.

Though a fossil fuel, this gas found underground burns much cleaner than coal, emitting as much as 60% less carbon dioxide. What’s more, it is affordable. An examination of publicly available data from Manila Electric Co. or Meralco, the only power distributor in Metro Manila, reveals that since 2016, the costs of generating power from natural gas have consistently been lower than those from coal.

In addition, natural gas plants, compared with coal plants, are more flexible and efficient. They can quickly adjust the electricity they provide, ramping up production when needed. And they can generate a large amount of electricity from a relatively small amount of fuel, helping keep their generation costs affordable and producing less emissions in the process.

Natural gas plants can also start up quickly and reach full load in a short period of time. One of the handful of natural gas plants operating in the Philippines, the Avion Open-Cycle Natural Gas-Fired Power Plant, owned by First Gen Corporation, can reach its full capacity in less than 15 minutes, a far cry from the roughly 11 hours it takes a typical coal plant to do the same.

Last year, 21,334 GWh of power was generated from natural gas in the country, higher than 19,576 GWh from a decade ago, according to DoE data. This is a welcome development.

There’s a compelling complementarity between natural gas and renewables. When there’s not enough power from renewables, natural gas plants can pick up the slack. Together, these sources of energy help ensure uninterrupted power supply, which is crucial to achieving economic prosperity.

Moving toward a renewable future is imperative, especially as the effects of climate change continue to worsen. And with the help of natural gas, it’s only a matter of time until that future becomes the present.

Dining Out (06/13/19)

June 13, 2019 | 12:01 am

Restaurant Verbena unveils new menu

RIB EYE steak at Tegaytay’s Restaurant Verbena

RESTAURANT VERBENA, the flagship restaurant of Discovery Country Suites in Tagaytay, presents its new menu. Executive Chef Gerwin Bailon, having recently revamped Verbena’s Breakfast Menu, married it with the All-Day Dining Menu to create an all new brunch experience. There is a trio of SRF Wagyu Beef Sliders topped with mushrooms, smoked cheddar, and miso-mayo sauce, served with house-made fries; Roasted Chicken Supreme served with a side of truffle pasta and poached egg, and the SRF Wagyu meatballs stuffed with smoked cheddar. Other Verbena Breakfast Favorites making the menu are the Country Benedict, Miso-glazed fish fillet, Congee with pork crackling, and the Classic beef tapa. Restaurant Verbena is open daily from 10 a.m. to 9:30 p.m.

Restaurants at One BHS mall

ONE BONIFACIO High Street mall at BGC is becoming a mecca for food lovers with its wide selection of dining outlets serving an eclectic mix of dishes from around the world. These include Malongo Atelier Barista, which bar serves French premium organic coffee; Wolfgang’s Steakhouse with an entrée list top-billed by USDA Prime Porterhouse steak, dry-aged onsite for an average of 28 days, the ribeye, filet mignon, and grilled salmon; Emack & Bolio, the Boston rock and roll-inspired ice-cream house known for fun flavors such as Serious Chocolate Addiction, Deep Purple Chip, Grasshopper Pie, and Space Cake served in huge cones covered with Oreos, Fruit Loops, Rice Krispies, Dark Chocolate, or Coco Pops. Then there is Botejyu, a traditional Japanese restaurant based in Osaka, which specializes in hearty servings of kosoba, okonomiyaki, takoyakis, ramen, and teppan dishes. Old favorite Chateau 1771 features French, Swiss, and Italian dishes crafted by chef Vicky Pacheco. La Picara offers a selection of modern Spanish tapas while the Nikkei Nama Bar serves Japanese-Peruvian fusion cuisine. For dessert there is M Bakery — which is actually New York City’s renowned Magnolia Bakery — which has cupcakes, its signature banana pudding, and a range of cakes and cheesecakes.

Flavors of Sugbo at Quest Plus Clark

IN CELEBRATION of the country’s 121^st Independence Day, Quest Plus Clark’s Mequeni Live in Pampanga holds the Flavors of Sugbo food fest which features classic Cebuano dishes, until June 16. Savor the dishes of the Queen City of the South as Quest Plus Clark sister property Quest Hotel and Conference Center — Cebu brings its special dishes to Central Luzon. There is Cebu lechon, Sutukil (sugba, tula, kilaw), and other specialties, plus, the grill is on for the sugba which is best paired with pusô. The Flavors of Sugbo festival is available for P1,399 net per person for lunch or dinner. For inquiries and reservations, call (045) 599-8000 or message through the official Facebook page, Quest Plus Conference Center, Clark.

Independence Day promos for RWM members

IN CELEBRATION of the 121^st Philippine Independence Day, Resorts World Manila (RWM) features a selection of Filipino favorites at its signature dining outlets Maxims Hotel and at the ground floor gaming area of the Garden Wing. From June 12 to 15, RWM members may avail of Buy One, Take One offers of large bibingka (glutinous rice cake) at Café Maxims, and halo-halo (a shaved ice treat) served in a buko bowl at The Terrace, using their points, cash, or cards. RWM members may also use their points for more Independence Day offers at the ground floor gaming area of the Garden Wing as Filipino specialty restaurant Silogue features its Tinumok sa gata for 45 points, and fastfood stall Bolahan Food Hub’s pares rice toppings for 12 points. Members may sign-in to mKiosk on their RWM Mobile Apps, and tap on the “eVouchers” tab and select their desired offers. By clicking “redeem,” members must present the corresponding QR code to participating dining outlets. Food offers may be availed either for dine-in or take-away. Coinciding with the Independence Day celebrations are RWM’s Father’s Day offers at selected retail outlets at the Newport Mall and hotels at Newport City this June. For details visit www.rwmanila.com or download the RWM Mobile App, free from Google Play and the AppStore.

Century Park to hold live cooking demo

THE Manila Foods and Beverages Expo (MAFBEX) is ongoing until June 16 at the World Trade Center and aside from having over 500 different booths all about food trade, different cooking and hospitality competitions are also featured in the event. This year, chef Huey Marcial, Sous Chef of Century Park Hotel Manila, is taking part in the live-cooking demonstration at MAFBEX on June 14, 1-2:30 p.m. at the World Trade Center.

Five reasons why natural gas can change the country

June 13, 2019 | 12:00 am

The Philippines’ stellar economic growth has been the talk of the world’s investors and financial leaders for the past several years. As the country powers through insurmountable odds — growing at a solid rate of 6.2% in 2018 despite mounting inflation, interest rates, and a depreciating peso— it remains to be seen whether such growth can be sustainable in the long term.

Many challenges await the country’s economic future, from tensions in global trade, talks of the US Federal Reserve raising interest rates, to a worldwide economic downtrend. One such risk involves the Philippines’ current dependence on coal-fired power plants for energy.

As power consumption continues to rise on pace with economic expansion, relying too much on coal in the long-term puts the Philippines subject to its fluctuating prices and over-dependence on a single fuel source. In addition to its negative effects on the environment and to health, it is clear that a more sustainable source of energy is needed to power the country’s future development.

A cleaner, cheaper, and more reliable alternative that can even help the economy in the long-term is natural gas. Here’s how.

Many developed nations are shifting to natural gas

The demand for natural gas has been steadily growing across the globe. Currently, it supplies 22% of the energy used worldwide, making up nearly a quarter of electricity generation in countries like the United States, China, and the Middle East. In the US, natural gas has taken the place of coal in terms of power production. Energy produced by coal has dropped by 44% (866 terawatt-hours [TWh]) compared to natural gas (up 45%, or 400 TWh).

For many countries, natural gas is simply cheaper. Globally, the price of electricity has been rising over the past few years, in line with coal prices rising to as much as $120 per metric ton in 2018.

In fact, the Institute for Energy Economics and Financial Analysis (IEEFA) said in a report in 2017 that the unpredictability of the coal market will drive higher electricity prices and will threaten the industrial strategy of the Philippines.

“Excessive reliance on imported coal is one of the main reasons the Philippines has the highest electricity prices in the Association of Southeast Asian Nations (ASEAN) region,” Sarah Ahmed, an IEEFA energy finance analyst, said.

In the Philippines, the generation charge of natural gas has been cheaper than oil and coal plants contracted with Meralco over the past few years.

The country has plenty of reasons to reduce its reliance on coal. In a recent report, the IEEFA said that rapidly declining costs and technological advances in renewable energy, liquefied natural gas (LNG), energy efficiency, and storage are creating an “enormous opportunity” for greater use of cheaper electricity-generation domestic alternatives to imported coal and diesel in the Philippines.

Shifting to natural gas allows the Philippines to save money, especially as the government continues to promote infrastructure development in areas outside Metro Manila.

Natural gas is readily available

First Gen Corporation, which owns four of the five commercially active natural gas plants in the country, currently sources its natural gas from the country’s Malampaya Gas Field. With proven reserves of about 2.7 trillion cubic feet of natural gas reserves and 85 million barrels of condensate, located some 3,000 meters below sea level, according to data from the Department of Energy, the Malampaya Gas Field is the biggest commercial gas discovery in the Philippines to date. In fact, the country has been using natural gas for almost 20 years, dating back to 2001.

The Malampaya gas field produces 146 billion cubic feet of gas per year. First Gen’s four natural gas-fired power plants: the 1000-MW Santa Rita, the 500-MW San Lorenzo, as well as the 97-MW Avion peaking and 420-MW San Gabriel power plants have added significantly to First Gen’s portfolio of power assets since their commercial operations.

Globally, gas is also very abundant and is traded around the world in the form of LNG. The Philippines can also gain access to LNG once the infrastructure to receive it and turn it back to gas is developed.

Making the transition to natural gas will not only address the country’s rising energy needs but also reduce its dependence on coal.

Natural gas is reliable

Compared to coal-fired power plants, natural gas plants take no time at all to start up and generate electricity. Avion, one of First Gen’s gas plants, can typically reach full load up to 50 times faster than coal-fired power plants.

This efficiency is crucial in the near future, especially when emerging cities like Cebu or Clark drastically increase the country’s overall power consumption. Moreover, the country aims to increase its dependence on Renewable Energy, which while clean and increasingly competitive, can sometimes be intermittent. Given that battery storage is still ways away, power supply would be impacted by times that RE sources are intermittent—for instance, solar panels wouldn’t generate electricity when there isn’t enough sunlight. The speed and flexibility of natural gas enable it to adjust its output and cater to the needed demand when these occurrences of intermittency happen.

Having a stable power supply that can be relied on at a moment’s notice can contribute significantly to the growth of not only these emerging cities, but the whole country as well.

Burning natural gas emits far less carbon than oil or coal

The Union of Concerned Scientists, which works with more than 20,000 scientists and technical experts across the United States, including: physicists, ecologists, engineers, public health professionals, economists, and energy analysts, had this to say about natural gas on its website: “Natural gas emits 50 to 60% less carbon dioxide when combusted in a new, efficient natural gas power plant compared with emissions from a typical new coal plant.”

Because it is the cleanest among the fossil fuels, natural gas can play a crucial role in lowering the Philippines’ carbon emissions. Carbon dioxide (CO2) is one of the major greenhouse gases that contribute to climate change, which in turn causes more frequent natural disasters like super typhoons and drought, as well as causing sea levels to rise.

The enormous economic impact of climate change has already wreaked havoc in the Philippines in the form of super typhoons like Ondoy and Yolanda. These catastrophic typhoons have caused billions of pesos worth of damages in the country, and they are likely to continue if climate change isn’t mitigated.

In 2018, First Gen’s gas plants helped avoid 8 million tons of CO2 emissions. This is equivalent to removing 1.7 million cars from the road in terms of avoided emissions, making natural gas the more sustainable energy source for the future.

Natural gas is better for your health

Hammering home why natural gas is better than other more conventional sources of energy, it also produces negligible amounts of sulfur, mercury, and particulates when burned. Citing data from the U.S. government, the Union of Concerned Scientists noted that for every 10,000 U.S. homes powered with natural gas instead of coal, an estimated 1,900 tons of NOx, 3,900 tons of SO2, and 5,200 tons of particulates are avoided in emissions each year.

Reductions in these emissions translate into public health benefits, as these pollutants have been linked with problems such as asthma, bronchitis, lung cancer, and heart disease.

In the Philippines, where one of the biggest drivers of economic growth is the abundance of skilled human workers, the importance of a healthy population cannot be overstated. Two of the leading causes of death in the country are heart and lung diseases. Lowering the emissions of harmful pollutants in the atmosphere may translate to a population that lives longer and adds more towards the country’s development.

Contributing to safer air, as well as being a cheaper, cleaner, and a more reliable source of energy, natural gas has the potential to change the Philippines into a more progressive and more developed nation. Clearly, switching to natural gas is the next step in the country’s path towards progress.

Philippines moves up in overall score in global peace ranking, but still second-least peaceful in Asia-Pacific

June 13, 2019 | 12:00 am

DoF eyeing smooth tax reform, import lib for more commodities

June 12, 2019 | 10:19 pm

THE Department of Finance (DoF) has been ordered to step up its legislative liaison activities to ensure the passage of the remaining tax reform packages, ahead of the opening of the 18th Congrss on July 22, among other priorities that include exploring import liberalization for more agricultural products and the sale of the government’s stake in United Coconut Planters Bank (UCPB).

Finance Secretary Carlos G. Dominguez III said in a statement: “We have to improve our engagement with the legislature, and we have to get it more organized. We have to get our tax reform packages passed by the end of this year.”

He made the remarks at recent DoF Executive Committee (Execom) meeting, reflecting the economic team’s stumbles in previous dealings with Congress, including the watering down of a number of tax provisions and the growth-dampening delays in passing the 2019 Budget.

The remaining tax reform packages include Package 2, the Tax Reform for Attracting Better and High-Quality Opportunities, otherwise known as the TRABAHO bill, which aims to reduce the corporate income tax (CIT) rate from 30% to 20%, reduced gradually by 2 percentage every two years beginning 2021 until 2029. Package 3 aims to reform property taxes while Package 4 restructures the tax regime for capital-based income and financial services.

The legislation that increased excise taxes on tobacco and alcohol products was part of Package 2+ which will tax tobacco products at P45 per pack in January 2020 from the current P37.50. Additional P5 increments will take effect for each succeeding year until 2023. It was approved a day before the 17th Congress closed.

Mr. Dominguez also instructed finance officials to convey to legislators the importance of avoiding measures that grant tax exemptions and incentives, to the detriment of the government’s long-term plans of strengthening the revenue base.

Among the other priorities of the department is to ensure proper tax collection from the Philippine Offshore Gaming Operators (POGOs) and their foreign partners. The DoF will also ensure the continued collection of unpaid obligations due the Power Sector Assets and Liabilities Management Corp. (PSALM).

Increasing the dividends raised from government-owned and controlled corporations (GOCCs) was also identified as a priority.

Dividends remitted by GOCCs as of mid-May totaled P38.9 billion, close to overtaking the record P40.7 billion for all of 2018, according to DoF.

Mr. Dominguez also directed officials to determine the feasibility of liberalizing imports of key agricultural products and the national government’s plan to purchase the stake of the Philippine Stock Exchange (PSE) in the Philippine Dealing System Holdings Corp. (PDSHC).

He also ordered a study of the privatization of the United Coconut Planters Bank (UCPB), the future of the country’s only Islamic bank, Al-Amanah within the new Bangsamoro region and the transfer of the Credit Information Corp. (CIC) to the Bangko Sentral ng Pilipinas.

Finance Undersecretary and Chief Economist Gil S. Beltran also noted the importance of the Warehouse Receipts Bill as a priority which could improve farmers’ access to credit and improve business in the sector. The bill hopes to reform the receipts registry to give financial institutions more certainty about a farmer’s potential receivables, thereby improving their chances of being granted loans.

Senate Bill 2171 amends the Warehouse Receipts Law of 1912 and was proposed by Senator Sherwin T. Gatchalian, who claims the 107-year-old law is in need of an upgrade. His bill aims to create a uniform online registry that allows all electronic warehouse receipts to be accessed.

Assistant Secretary Antonio Joselito G. Lambino II cited the importance of the full implementation of the National Single Window (NSW), an internet-based system that allows parties involved in trade to lodge all import, export and transit-related applications on a single platform.

Mr. Dominguez expressed optimism that legislators will recognize the benefits of a credit rating upgrade, after Standard & Poor’s Global raised its rating on Philippine sovereign debt to BBB+ from BBB on April 30, 2019. — Kimani Eros S. Franco

LTFRB won’t ease driver norms for ride-sharing industry

June 12, 2019 | 10:19 pm

THE Land Transportation Franchising and Regulatory Board (LTFRB) said it will not ease its accreditation requirements to deal with a potential shortage of ride-share drivers, despite appeals to temporarily allow transport network vehicle service (TNVS) operators with pending documents to stay on the road.

In a joint statement with the Department of Transportation (DoTr) Wednesday, the LTFRB said its application process for TNVS is “imperative for the safety and security of the riding public.”

“The DoTr-LTFRB does not wish to deprive applicants of opportunities for livelihood. The process, however, must comply with the level of accountability to the riding public especially in moments of conflict and accident,” it said.

On Monday, a group of around 1,000 TNVS drivers, Hatchback Community, called on the LTFRB to relax its requirements for Certificates of Public Convenience (CPC) or Provisional Authority (PA), or the permit to operate as TNVS.

These permits are required by the government regulator for TNVS to drive under transport network companies (TNCs) such as Grab Philippines (MyTaxi.PH, Inc.).

The group said the requirement to obtain a bank certificate of conformity and restrictions on who may represent a driver for a CPC hearing are the main hurdles.

The LTFRB said it is implementing the necessary measures to “ascertain that the applicant is qualified and able to assume the duty of public transport service.”

It said the bank certificate of conformity is only a problem because drivers must disclose to banks that a vehicle purchased with bank financing will be used for public transport service, which the Hatchback Community claims leads banks to shorten the term of auto loans. “New applicants… will have to take the official route of loan application, as should be the proper course,” it said.

Regarding authorized representatives for a CPC hearing, currently limited to spouses, parents or descendants of a driver to, the LTFRB said it needs to communicate with appropriate representatives of applicants. “The issue of representation becomes paramount especially when there are complaints filed by passengers or third parties against the absentee-applicant, in relation to franchise violations,” it said.

The LTFRB said it has so far given CPCs and PAs to 40,522 TNVS units, representing the number of drivers allowed to operate legally for TNCs such as Grab. It opened on Monday 10,000 slots for new TNVS applicants, who are currently being processed.

Grab, on Monday, deactivated around 5,000 drivers from its platform for lacking CPCs or PAs.

It also called on the LTFRB on Wednesday to allow the pilot testing of hatchback cars as TNVS, as it was forced to remove 1,225 drivers from its platform for operating such vehicles.

“Right now, we have thousands of hatchback owners who are willing and able, to be part of the transport solution for the Filipino commuters, and I hope for the DoTr and the LTFRB to openly consider pilot testing for them and observe within a specific time period how this best serves the interest of the commuting public…,” Grab Philippines President Brian P. Cu said in a statement.

The LTFRB issued Memorandum Circular 2018-005 last year which allowed hatchback cars to be accepted as TNVS after a three-year “transition period.” But members of Hatchback Community said Monday their applications for CPCs or PAs were not entertained by the LTFRB over safety concerns.

“If the DoTr and LTFRB through our good Secretary Tugade, allowed a motorcycle taxi pilot, we hope they would also consider a similar pilot for hatchbacks, which have all passed manufacturer’s international safety standards,” Mr. Cu said. — Denise A. Valdez

Japanese businesses cite martial law, lack of direct flights as main Mindanao issues

June 12, 2019 | 10:19 pm

DAVAO CITY — Japanese Chamber of Commerce-Mindanao Vice-President Takeyoshi Sumikawa said many potential Mindanao investors from Japan are concerned about the prevailing martial law over the entire island and the absence of direct flights, particularly to and from Davao.

“Many Japanese companies are interested in Davao but we need more efforts to appeal the good points of Davao to Japanese people,” he said at a forum on Monday.

Martial law in Mindanao was first declared May 23, 2017 as the battle for Marawi City broke out, and remains in effect until the end of the year.

Mr. Sumikawa said it is more the big Japanese companies that are concerned about the security situation, while small and medium enterprises more ready to take on the risk of setting up shop here.

He cited a flower company based in Japan, which will be joining the Davao Investment Conference (Davao ICON) on June 20-21, which is now looking for a site in Mindanao to develop into a farm.

“Some flowers are very expensive so it is feasible to use air cargo to transport the flowers,” Mr. Sumikawa said.

“There are many possibilities. Connectivity is also the concern of Japanese businessmen in setting up a company in Mindanao,” he said.

Mr. Sumikawa, who came to Mindanao for the first time 13 years ago, said he is working closely with Arturo M. Milan, president of the Davao City Chamber of Commerce and Industry Inc., for the establishment of direct flights between Davao and Japan.

He said the large companies that want to venture into Mindanao include construction firms, agriculture, and manufacturers of plastic and electronic parts. — Maya M. Padillo

Visitor arrivals rise in four months to April on more flights, marketing activity

June 12, 2019 | 10:17 pm

THE Department of Tourism (DoT) said international visitor arrivals in the four months to April were over 8% ahead of the year-earlier pace, led by visitors from China.

In a statement Wednesday, the DoT said: “(F)oreign visitor count for January to April 2019 totaled 2,867,551, or an increase of 8.57% over… the same period in 2018.”

The visitor count for April was 662,987, up 12.5% from a year earlier.

The DoT also reported that China, South Korea, the US, Japan, and Australia were the leading sources of visitors.

“The top five markets with their respective volumes and growth rates (in April) are: China with 139,177 (+26.77%), Korea with 130,707 (+13.68%), USA with 87,710 (+2.5%), Japan with 57,724 (+17.75%) and Australia with 28,683 (+13.41%),” the DoT said.

Tourism Secretary Bernadette Romulo-Puyat said the increase was due to additional flights and stronger marketing by the private sector. She also added that more initiatives to promote sustainable tourism and upgrade airport facilities are producing consistent monthly growth in foreign arrivals.

“(W)e anticipate more visitors to sustain this upward trend,” she said in the statement.

“We also attribute increased travel movement and consumption to continued efforts in developing new and existing tourism circuits all over the country in pursuit of sustainable tourism,” she added.

The DoT has said that it is targeting international visitors this year of 8.2 million, against the 2018 target of 7.6 million, which was not met with actual arrivals of only 7.2 million. — Gillian M. Cortez

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