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Feb. factory output down for third straight month

The country’s industrial production posted its third consecutive month of decline in February, the Philippine Statistics Authority (PSA) reported this morning.

Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries (MISSI) showed that February factory output – as measured by the Volume of Production index – contracted by 8.5% in February.

The February result marked a third straight month of year on year decline after the contractions seen in January at 2.9% and December 2018 at 9.3%. It was also a reversal from the 15.2% growth posted on February 2018.

Year to date, the factory output decline averaged 5.7% versus the 13% growth in 2018’s comparable two months.

“The decrement in February 2019 of VoPI was mainly influenced by the decreases in eight major sectors led by food manufacturing (-19.5%) and non-metallic mineral products (-12.0%),” the PSA said.

In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) was 51.9 in February, lower than January’s 52.3, but higher than February 2018’s 50.8.

A PMI 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 being used in the production of goods- was estimated at 84.3%. Eleven of the 20 sectors registered capacity utilization rates of 80% and above.  — Christine Joyce S. Castañeda

Manila International Auto Show 2019: Driving fun and function in the Philippines’ car and motor industry

By Bjorn Biel M. Beltran, Special Features Writer

Car lovers and motor enthusiasts rejoice because the country’s most anticipated car and motor show is back in town. Now on its 15th edition, with a theme of giving Filipinos the “Experience the Fun and Function” of seeing the best that the car and motor industry has to offer, the Manila International Auto Show (MIAS) launched at the World Trade Center Manila and North Wing, and will be a four-day event from April 4 to 7 from 10 a.m. to 10 p.m.

Aiming to “elevate the way Filipinos travel”, fun and function, the two primary qualities car and motor enthusiasts are looking for are highlighted at this year’s event with banner presentations of the latest and most impressive auto and motor innovations. Last year, the MIAS managed to house 150 companies, an impressive number of 305 car displays, 34 truck displays, and 12 motorcycle displays.

For MIAS 2019, the trade show experience promises to go bigger, vowing to give visitors with an insightful and productive look into the latest trends from the industry, as well as an entertaining time to boot.

For instance, among the manufacturers at the event, Suzuki Philippines dives deep into how it combines fun, functionality and comfort in designing the optimal driving experience of its most-valued vehicles. Among its latest range of vehicles available for trade show visitors to preview are the multifunction 7-seater Ertiga, highly-regarded subcompact sedan Ciaz, the 4×4 all-new Jimny, the popular hatchback Swift, the sedan Dzire, and SUV Vitara.

Volkswagen displays the best of German engineering and craftsmanship with a show of the various models of their Santana line: which include Pepper Grey Santana MPI MT accessorized with the Blaupunkt Infotainment System; a Reflex Silver Santana 180 MPI AT S with Blaupunkt; a Deep Black Santana 180 MPI AT SE with Blaupunkt; and a Red Rock Santana GTS 180 MPI AT SE with Blaupunkt. Other displays preview the Hunting Brown Volkswagen Tiguan 280 TSI DSG SE with Blaupunkt; a Misano Red Lamando 280 TSI DSG SEL, and; a Sunset Red Lavida 230 TSI DSG SE fitted with Blaupunkt.

Ford, meanwhile, display its lineup of vehicles that includes a first look at the first-ever Ranger Raptor, new Ranger Wildtrak, new EcoSport 1.0L EcoBoost, new EcoSport 1.5L Titanium, Everest, new Explorer, and new Mustang.

Hyundai unveils the latest models of its three-row SUV Palisade, while touting the latest in electric car technology with the Kona Electric, the manufacturer’s first-ever all-electric compact crossover.

On the first day of the trade show, Subaru debuts its XV GT Edition, a special edition of the highly popular crossover vehicle that was made in collaboration with renowned engineering company Giken Co. Ltd and Masahiko “Jack” Kobayashi, Subaru’s former Chief Designer (Head of Global Advanced Design Studio).

Auto Nation Group (ANG) marks its 15th year as the official importer and distributor of Chrysler, Dodge, Jeep and RAM vehicles, parts and accessories in the Philippines with the launch and preview of the all-new Jeep Compass at the 2019 MIAS.

Names such as Kia Philippines and The Covenant Car Company, Inc., the importer and distributor the Chevrolet and MG Philippines brands, as well as oil industry leaders like Petron Corporation are also making their presence known with their own striking displays. The launch and preview of the Compass dovetails the recent launch of the all-new generation Jeep Wrangler and heralds the company’s aggressive plans to gain a foothold in the growing premium SUV segment in the market.

Seeking to put itself above the typical car show, MIAS does not only hold car launches and product displays but also hosts an array of pocket events throughout its four-day run. Among these include the various car club displays that will be launched to the public at the World Trade Center Driveway.

Meanwhile, addressing the growing demand for commercial vehicles and large trucks, MIAS 2019 brings back its Monster Truck Display which is located at the North Wing side of the venue. On the opposite side of the spectrum, collectors are invited not to miss this year’s Miniature Die-Cast Car Collection Display.

Those looking to reserve, purchase, or simply try out the latest car models on display will have access to test drives outside the venue’s main hall. A signature component of all MIAS shows, back to carry out a series of awe-inspiring stunt performances is Guinness World Record Holder Russ Swift with his trusty Subaru cars.

This year’s MIAS also teamed up with Petron for another round of the Classic Car Competition which is expected to feature over a hundred of entries of the most creatively executed car setups.

With exclusive looks at the latest and greatest that the Philippine car and motor industry has to offer, as well as a fanfare of promotions, competitions, and presentations designed to drive the passion of the country’s most avid motoring enthusiasts, there is an abundance of “Fun and Function” to be experienced at the biggest car show in the country this year.

Tighter credit, trade row to cap growth

By Melissa Luz T. Lopez
Senior Reporter

THE UNITED NATIONS Economic and Social Commission for Asia and the Pacific (UN/ESCAP) on Thursday joined other multilateral groups in scaling down growth forecasts for the Philippines, even as it assured that expansion will be faster than last year as more infrastructure projects go live.

The UN/ESCAP slashed its Philippine growth projection for this year to 6.5% from 6.9% previously, saying that “monetary tightening” last year plus global trade tensions will dampen local prospects.

However, this means that growth will pick up from 2018’s 6.2% pace and will fall within the government’s 6-7% downward-adjusted goal.

Last year, the Bangko Sentral ng Pilipinas (BSP) raised benchmark interest rates by a total of 175 basis points (bp) to rein in inflation expectations, following price spikes led by rice and other crops.

This, in turn, pushed market borrowing costs higher, with the 4.75% key rate used as reference for market rates still at a decade high.

The BSP has yet to undo last year’s series of rate hikes, having decided last month that it needs to confirm that inflation’s slowdown since November last year will be sustained.

Meanwhile, global uncertainty given current trade tensions between the United States and China is expected to affect the Philippines by way of higher financial costs. Still, the impact is seen “moderate” for the Philippines, Singapore and Thailand given their more diverse export markets.

Moreover, increasing state spending will help boost prospects. “… [A] pickup in government investment compensated for the decline in private investment in a few countries, driven by spending on infrastructure (Brunei Darussalam, India and the Philippines) and mining (Mongolia),” according to UN/ESCAP’s Economic and Social Survey of Asia and the Pacific report.

The administration of President Rodrigo R. Duterte has earmarked over P1 trillion for new and ongoing infrastructure projects this year, but cannot roll them out yet given delayed enactment of the P3.757-trillion national budget.

Based on UN/ESCAP’s estimates, the Philippines will be the fourth fastest-growing economy in Southeast Asia next to Myanmar (7.2%), Cambodia (7%) and Vietnam (6.7%). The region is projected to clock a slower 4.9% expansion this year and in 2020 from 2018’s five percent climb.

In 2020, Philippine GDP growth is seen clocking in at 6.6%, also well within the state’s downward-revised 6.5-7.5% target.

The UN/ESCAP estimates compare with 6.5% this year and 6.4% next year given last January by the UN Department of Economic and Social Affairs, the UN Conference on Trade and Development and the five UN regional commissions (including ESCAP) in their joint World Economic Prospects 2019 report; the Asian Development Bank’s 6.4% for this year and next and World Bank’s 6.4% this year and 6.5% for next year.

Q1 GROWTH SURGE EXPECTED
Also on Thursday, analysts from the First Metro Investment Corp. and the University of Asia and the Pacific said they expect growth to have surged last quarter even if the 2019 budget has been delayed.

“The relentless fall of the headline inflation to below four percent (year-on-year), i.e., within BSP target, has provided much-needed good news,” they said in their joint The Market Call report.

“The continuing delay in the enactment of the 2019 national government budget, after all, has placed a downside risk to GDP growth in Q1,” they added.

“Consumer spending should begin to recover in Q1, aided by more money in consumers’ hands due to election spending and to weakness in the US dollar.”

The analysts said they see inflation on track to even drop below three percent by the third quarter.

Inflation averaged 4.1% as of February, slightly above the central bank’s 2-4% target band and three-percent forecast average for 2019.

Q4 2018 GDP expansion scaled up

By Lourdes O. Pilar
Researcher

THE ECONOMY grew faster than previously estimated in the fourth quarter of 2018, the Philippine Statistics Authority (PSA) reported on Thursday.

The PSA said its latest estimate shows the country’s gross domestic product (GDP) — which indicates the value of final goods and services produced within a country — expanded by 6.3% in 2018’s last three months, faster than the initial 6.1% estimate given in January.

According to the PSA, major upward revisions were made in trade and repair of motor vehicles, motorcycles, personal and household goods at 6.7% from the initial 5.9%, as well as public administration and defense, compulsory social security at 14.7% from 12.6%.

The fourth-quarter 2018 revision comes ahead of the release of preliminary estimates for this year’s first quarter GDP on May 9.

Even with the fourth quarter revision, the annual GDP growth for 2018 was kept at 6.2%.

“The elevated borrowing costs stemming from BSP’s (Bangko Sentral ng Pilipinas) aggressive rate hike cycle continued to stymie both consumption and capital formation, with the government needing to support growth through accelerated spending,” ING Bank NV-Manila senior economist Nicholas Antonio T. Mapa said in a statement.

Household spending growth in the fourth quarter was revised downwards to 5.3% from the 5.4% initially reported.

Likewise, capital formation growth in the fourth quarter of 2018 was updated to 4.9% from 5.5%.

For this year, Mr. Mapa said he expected a “strong rebound” in consumption given the slowdown in inflation to 3.8% in February from a nine-year-high 6.7% in September and October last year.

“However, government spending will be challenged given the ongoing budget delay, while capital investment may also struggle given the tightening liquidity conditions and as the effects of the BSP’s 175-bps (basis point) rate hike continue to sap momentum,” he added.

Corporate regulator wants listed firms to disclose related party transactions

By Arra B. Francia
Reporter

THE SECURITIES and Exchange Commission (SEC) wants publicly listed companies (PLC) to disclose material related party transactions (RPT) as part of efforts to better protect minority investors and improve corporate governance.

The corporate regulator is accepting comments for its draft Rules on Material Related Party Transactions for Publicly Listed Comments, which defines RPTs as a “transfer of resources, services or obligations between a reporting PLC and a related party, regardless of whether a price is charged.”

Such transactions will be considered material RPTs when the transaction amounts to at least 10% of a company’s total assets.

Related parties include “the company’s subsidiaries, affiliates and any party — including their subsidiaries, affiliates and special purpose entities — where the company exerts direct or indirect control or which exerts direct or indirect control over the company.”

Related parties may also pertain to a “company’s directors, officers, shareholders and related interests and their spouses and relatives within the fourth civil degree of consanguinity or affinity, legitimate or common-law, as well as corresponding persons in affiliated companies.”

Under the draft rules, the SEC will require a public company to adopt a groupwide material RPT policy. Guidelines should include the identification of related parties, coverage of material RPT policy, materiality thresholds, identification and prevention or management of potential or actual conflicts of interest, among others.

Listed firms must also file reports on any material RPT within three calendar days after conduct of the transaction. Such disclosures should include the complete name of the related party, the company’s relationship with the party, the financial or non-financial interest of the related party, and the transaction date.

In addition, the disclosure must state the type and nature of transaction as well as the description of assets involved, the contract price, and the rational for the transaction.

Companies must further disclose their material RPT policies on their company Web sites.

The draft rules seek to protect the corporate sector, the securities and investment instruments market, capital market participants and the investing public from abusive transactions and practices that may hamper business development in the country.

“We recognize how related-party transactions may create financial, commercial and economic benefits to the individual institutions and the entire group,” SEC Chairman Emilio B. Aquino said in a statement.

“However, we are equally aware of how such dealings could be abused to transfer assets and profits to controlling shareholders’ vested interests or seize bigger control in companies, among others, to the detriment of minority investors.”

The corporate regulator has proposed to impose fines of up to P40,000, in addition to a daily penalty of up to P400, for companies that fail to comply with the rules. A fourth offense will constitute the grounds for suspension or revocation of the company’s registration or secondary license.

The SEC said the new rules should help improve the Philippines’ performance in the World Bank Group’s Ease of Doing Business survey, especially on the indicator for Protecting Minority Investors. The Philippines improved to 132nd out of 190 economies in terms of protecting minority investors in the Doing Business 2019 report from 146th in the preceding report, even as its overall rank dropped 11 spots to 124th from 113th in the same reports.

Energy department maintains power outlook but Meralco flags ‘upward’ rate pressure

By Victor V. Saulon
Sub-Editor

THE DEPARTMENT of Energy (DoE) has kept its power demand forecast for the dry season despite four straight days of “yellow” alert notices this week, saying the thinning power reserves did not change its expectations in the coming months.

However, distribution utility Manila Electric Co. (Meralco) expects an “upward pressure” in the price of electricity per kilowatt-hour in the monthly bill of consumers for March and April.

“Sapat ang supply ng kuryente for our summer outlook (Electricity supply is sufficient for our summer outlook),” said Energy Undersecretary William Felix B. Fuentebella in a press conference at the department’s head office in Taguig City on Thursday.

“I don’t think it will change a lot [from our] present outlook. What we are proposing is a weekly update on how we can adjust our actions to address the situation,” he added, describing the yellow alert notices as “isolated” cases.

A month ago, the DoE said it expected Luzon to reach a peak demand of 11,403 megawatts (MW) in May. The March-June period, when the country will experience a “weak” El Niño, is expected to see a 30% reduction in hydropower capacity to 983-1,776 MW.

In the Visayas, power demand is expected to peak towards the end of the year at 2,299 MW, hence, the weather aberration should have minimal impact. Hydropower’s share in the area’s capacity mix is minimal at about 0.6%.

In Mindanao, peak demand is also towards yearend at 2,130 MW. Despite the possible significant effect of El Niño due to the 27.5% share of hydro in its capacity mix, the grid will remain stable due to the operation of large coal-fired power plants.

Lawrence S. Fernandez, Meralco vice-president and head of utility economics, said he expects the power generation charge for March to increase because of the three days of yellow alert notices during the month. Yellow alert notices are issued by system operator National Grid Corporation of the Philippines when reserve power thins as a result of the unscheduled outages of power plants.

This prompts Meralco to turn to the wholesale electricity spot market, where electricity prices are higher, to cover the deficiency.

Every time there is a reduction in reserves there is also pressure on the electricity prices at the spot market, said Andrea May T. Caguete, assistant manager for market information modelling at the Independent Electricity Market Operator of the Philippines.

NGCP is required to maintain a regulating reserve, which is ideally equivalent to four percent of the demand for the hour. The buffer covers small variations during normal operations.

A second layer or contingency reserve requirement is also allocated to immediately answer any reduction in supply when the largest power generating unit online — the 647 MW coal-fired power plant in Sual, Pangasinan — fails to deliver.

A dispatchable reserve — equivalent to the capacity of the second biggest operating plant, the second 647-MW unit of the Sual plant — is also readily available to replenish lost contingency reserve.

NGCP issues a “yellow alert” notice when the total of all reserves is less than the capacity of the largest plant online, which for the Luzon grid, is 647 MW. It issues a “red alert” notice when the contingency reserve is zero or a generation deficiency exists.

Meralco said its invokes its interruptible load program (ILP) when a red alert notice is issued. The scheme requires those in the program to voluntarily stop sourcing power temporarily from the utility and activate their own power generation sets.

The company said a total of 156 companies with a de-loading capacity of 546 MW have enlisted in ILP as of April 1.

A red alert notice has not yet been issued so far this year.

Netflix’s pursuit of Oscars may be antitrust issue

NETFLIX, Inc.’s pursuit of Academy Awards could become an antitrust issue.

The US Justice department warned the Academy of Motion Picture Arts and Sciences that potential rule changes, which could hurt Netflix and other streaming platforms, may violate laws meant to protect competition, according to a person familiar with the matter.

Makan Delrahim, head of the agency’s antitrust division, sent the letter to Academy Chief Executive Officer Dawn Hudson on March 21, expressing concern about the way new award rules might be written, the person said.

Mr. Delrahim is wading into a contentious debate in the entertainment industry. After Netflix’s Roma nearly won a best-picture Oscar this year, Hollywood traditionalists like Steven Spielberg have said that streaming movies shouldn’t be considered for awards. Roma did play in theaters, but in a limited run.

Mr. Spielberg has pushed for the Academy to adopt rules requiring movies to screen in theaters for a few weeks before they appear anywhere else. Mr. Spielberg “feels strongly about the difference between the streaming and theatrical situation,” a spokesperson for the filmmaker told Indiewire.

Such a rule would invalidate most of the movies released by Netflix, as well as some of those released by Amazon. Netflix has softened its stance on the matter over the past year, releasing Roma in theaters exclusively for a couple weeks, but the company doesn’t plan to give movies much more time than that, Chief Content Officer Ted Sarandos told Bloomberg.

“We’ve received a letter from the Dept. of Justice and have responded accordingly,” an Academy spokesperson said in an e-mail. “The Academy’s Board of Governors will meet on April 23 for its annual awards rules meeting, where all branches submit possible updates for consideration.”

Mr. Spielberg, who won a best-picture award for Schindler’s List, is one of the three Academy governors of the directors branch. The board of governors is tasked with setting the Academy’s strategic vision.

In the letter, Mr. Delrahim said that if films that are distributed through online streaming services are excluded from Oscar eligibility and those films lose revenue as a result of being shut out of the awards, the rule could violate antitrust laws, according to the person.

The Justice department declined to comment. Variety reported earlier on the Justice department’s letter. — Bloomberg

Global recorded music biz grew nearly 10% in 2018

LONDON — The global recorded music market grew 9.7% last year, with streaming now accounting for almost half of total revenue, according to industry trade body the International Federation of the Phonographic Industry (IFPI) on Tuesday.

It was the fourth consecutive year of growth, IFPI added in its annual Global Music Report 2019.

Streaming revenue grew 34% and accounted for 47% of global revenue, driven by a 32.9% increase in paid subscription streaming.

There were 255 million users of paid streaming services at the end of 2018, with paid streaming accounting for 37% of total recorded music revenue, the report said.

Growth in streaming more than offset a 10.1% decline in physical revenue and a 21.2% fall in download revenue.

Artists such as Drake, BTS, and Ed Sheeran were among those who have conquered the global market, contributing to the $19.1 billion of total revenues for 2018.

“Music has truly become global — in ways never before imagined,” said IFPI Chief Executive Frances Moore in a statement.

For the fourth consecutive year, Latin America was the fastest-growing region with Brazil and Mexico showing strongly.

The Asia and Australasia region was the second-largest region for combined physical and digital revenue said the IFPI report, with especially strong growth in South Korea. — Reuters

Villar’s VLL plans to launch P60B worth of projects

By Arra B. Francia, Reporter

VISTA LAND & Lifescapes, Inc. (VLL) will be launching at least P60 billion worth of projects this year, as it continues to see strong demand from both its residential and commercial projects.

“We’ll definitely be increasing our project launches this year…we’ll probably launch at least P60 billion worth of projects,” VLL President and Chief Executive Officer Manuel Paolo A. Villar told reporters in a press briefing in Makati on Thursday.

This is 16% higher than the P51.7 billion worth of projects the company unveiled in 2018, composed of 45 residential developments, 11 condominiums, and one residential project for the upper middle class segment.

In a regulatory filing, the Villar-led property developer said it will be spending P40 billion in capital expenditures (capex) to support its expansion plan. Of this, about P25.73 billion will be spent for construction; P7.39 billion will go to land acquisitions or advances to joint venture partners, and P6.88 billion will go to land development.

Mr. Villar noted that this year’s capex is less than the P45.05 billion spent in 2018, as the company has already exceeded its target to have 1.3 million square meters (sq.m.) in gross floor area (GFA) for its commercial space business.

VLL ended 2018 with 1.40 million sq.m. in GFA under its portfolio, after malls and retail stores spanning 344,267 sq.m. The company now has 31 malls, 52 commercial centers, and seven office buildings. The company continues to pursue expansion plans after net income attributable to the parent rose by 16% to P10.24 billion in 2018. Consolidated revenues also went up by 15% to P41.5 billion.

Real estate revenues grew by 15% to P31.9 billion, while leasing income climbed 15% to P6.9 billion.

“We had quite a good year last year, we’re hoping to continue the trend this year. We’re looking at double-digit growth this year,” Mr. Villar said.

VLL also said reservation sales surged 16% to P75 billion, showing the strong demand for residential projects. Its affordable housing segment under the Camella brand accounted for 79% of real estate sales for the period.

“We remain optimistic for the industry given the robust demand in our residential business as well as the continued growth of our leasing propelled by the steady growth in Filipinos’ disposable income, overseas Filipino remittances, and the infrastructure development around the country,” VLL Chairman Manuel B. Villar, Jr said in a statement.

By end-2018, the company had a land bank of 2,801 hectares, 59% of which are in Metro Manila and the neighboring provinces of Cavite, Laguna, Rizal, Batangas, and Bulacan. VLL is currently present in 146 cities and municipalities nationwide.

Shares in VLL slipped 0.69% or five centavos to close at P7.18 each at the stock exchange on Thursday.

True Faith co-founder Ferdie Marquez dies

FERDIE MARQUEZ, one of the founding members of Original Pilipino Music (OPM) band True Faith, passed away on Sunday due to a heart attack.

His passing was confirmed by the band’s lead vocalist, Medwin Marfil, in a post on True Faith’s Facebook page the same day.

“It is with a heavy heart that we share the sad news of (True Faith original member) Ferdie Marquez’s passing,” Mr. Marfil wrote in the post.

He described Mr. Marquez as a “talented, gifted musician and a caring friend,” and extended his condolences to his family.

“Thank you for sharing your great talent and music with everyone,” he said.

Mr. Marquez, alongside Mr. Marfil and Kiko Guevarra worked for Fullerton Studios in 1991 and jammed in their spare time which led to the creation of their demo song, “Perfect,” a ballad with “jangling guitars and longing vocals a la the Railway Children and the Lotus Eaters.”

Mr. Marquez played the drums for the band.

The song became a hit on radio and the band released their debut album, Perfect, a year later after having signed with record label Octo Arts.

The band, initially known for its New Wave leanings (the band name was taken from New Order’s 1987 hit, “True Faith”) got its biggest break in 1995 with the release of Build under EMI Records. The album featured songs such as “Kun’di Rin Lang Ikaw” and “Alaala.”

The 1994 hit, “Huwag na Lang Kaya,” from the album Beyond Doubt, won the Awit Award for Best Pop Recording and for Best Engineered Recording.

In 2006 the group sang the theme song for ABS-CBN’s drama series Sa Piling Mo, which starred Judy Ann Santos and Piolo Pascual. The song, “Dahil Ikaw,” won the Favorite Media Soundtrack in the 2007 MYX Music Awards. The song was also part of their 11th album, Stray to be Found, released in 2006.

The band has released 14 albums to date, with the latest, Sentimental, released in 2018.

After the announcement, singer/songwriter Moy Ortiz of The CompanY commented on the post with “My deepest condolences to you, to the band and the families.”

Singer/songwriter Ogie Alcasid also extended his condolences in a comment.

“Ferdie Marquez, one of True Faith’s founders, passed away today. My heart is heavy. Salamat Ferdie for always being a good friend to me,” Ebe Dancel wrote on Twitter. — ZBC

Nestlé opens new P2.8-B factory in Batangas

By Denise A. Valdez, Reporter

NESTLÉ Philippines, Inc. inaugurated on Thursday a P2.8-billion “ready-to-drink” factory in Tanauan, Batangas — its fifth facility in the Philippines.

The factory — which currently produces chocolate drink brand Chuckie — is part of Nestlé’s P13.7-billion investment in the Philippines from 2014-2018. By midyear, the factory will also produce all-purpose cream.

“Our investments demonstrate our faith in the Philippines over the long term and express our commitment to participate in economic growth and nation-building as we have done for more than a hundred years,” Nestlé Philippines Chairman and Chief Executive Officer Kais Marzouki said.

The Nestlé Philippines chief noted the 14,688-square meter plant is the “single biggest investment that Nestlé has done in 2018” across Asia and Africa. Some 2,000 people were hired during construction, and 80 are currently employed at the factory. The company said its average P2.7-billion capital expenditure annually over the past five years was spent on the upgrade of its existing factories in Cabuyao, Cagayan de Oro, Lipa and Tanauan, and the improvement of its distribution capabilities.

Mr. Marzouki noted they are looking to invest at a similar rate in the coming years to sustain their double-digit growth in the RTD business every year.

“RTD is something very important for us and a big growth driver for the future. We expect to continue to grow double digits in RTD, even in 2019,” he said.

Trade Secretary Ramon M. Lopez, who was present during the plant’s inauguration, welcomed expanded presence of Nestlé in the Philippines.

“I’m pleased to know and I’m happy to hear that (Nestlé is) producing 94% of what you sell in the country…. The DTI is really focusing… on local production and manufacturing. It is really that kind of activity that creates jobs,” he said.

Nestle Philippines Technical Director Adnan Pawanteh also said: “We are very bullish (on the Philippines). The fact that we doubled the capacity, and we got double-digit growth, we’re very bullish on the market.”

Mick Jagger to undergo heart surgery

LONDON — Rolling Stones frontman Mick Jagger will undergo heart surgery this week following the postponement of the band’s North American tour for medical reasons, according to a published report.

The US website Drudge Report, citing unidentified sources, said Mr. Jagger, 75, would undergo surgery this week in New York to replace a heart valve. New York Post’s Page Six website, citing unidentified sources, said the surgery would involve placing a stent in the singer’s heart.

Representatives for Mr. Jagger in the US did not return requests for comment. A spokesman for the British band in London declined to comment on the Drudge Report article.

The band on Saturday announced it was postponing all dates on its tour of the US and Canada to give Mr. Jagger time to receive medical treatment. It did not specify what treatment Jagger needed but said he is expected to make a full recovery.

The North American tour had been scheduled to run from April 20 until June 29.

Mr. Jagger was photographed on Sunday in Miami Beach, Florida on the beach with his current girlfriend, ballet dancer Melanie Hamrick, their young son, and daughter Georgia May, one of his seven adult children.

The British singer has not explained his medical issue but told fans in a tweet on Saturday that he would be “working very hard to be back on stage as soon as I can.”

After a storied sex, drugs and rock ‘n’ roll lifestyle in his earlier days, Mr. Jagger now follows a healthy diet, runs, and works out frequently.

Stents are typically used to prop open arteries that have been cleared of a blockage. — Reuters

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