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Nation at a Glance — (09/03/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (09/03/19)

Meralco shines bright at the 2019 Quill Awards

Meralco, the Philippines’ largest electricity distribution utility and the only four-time Quill Company of the Year recipient, was once again among the most decorated companies in the recent Philippine Quill Awards.

The company won two top awards during the formal ceremony held at Marriott Grand Ballroom, and placed second runner-up in the Company of the Year race, a testament to the company’s continued strength in business communication excellence.

This year, Meralco hauled a total of 22 campaign awards, bagging 9 Excellence and 13 Merit trophies.

Among Meralco’s major highlights of the evening were the Top Award for Communication Skills given to Meralco Typhoon Watch 2018 and the Top Award in the Communication Research category won by the Evaluation of One Meralco Foundation’s Household Electrification Program (HEP).

Meralco Advisory, the company’s monthly information campaign, was also recognized as a Finalist for Top Award in the Communications Management Category.

Organized by the International Association of Business Communicators (IABC) Philippines, the Philippine Quill Awards is considered the country’s most prestigious awards program in the field of business communication – emphasizing the excellent use of communication in achieving goals and in making a difference in society.

Running your business the Alibaba Way (Panel Q&A)

1. Take the essence of 9-9-6. (1:52-2:05, 2:16-2:40,1:05-1:11, 1:34-1:47)
Since 9-9-6 is very much influenced by Chinese culture, it might be difficult to incorporate it here since we’re used to a different system. However, it doesn’t mean that you can’t use it. Take what 9-9-6 is really built on, which is drive for and dedication to the company’s mission.

“Make sure that everyone in your team knows how important the mission of the company is. Because if it’s just, ‘Hey, we’re going to do this thing so that we can make one million, ’they won’t care,” said Bisnar. “You really need to find that deeper purpose… And that will create a better mentality than 9-9-6, I think.”

Reinforcing the company vision therefore allows you to make adjustments to your system. For instance, Bisnar, instead of 996, employs 183: employees are required to show up at the office for 3 days only, holding office hours from 1:00 PM to 8:00 PM.

“Take all the traffic hours, you get happier people, but you also stretch efficiency,” he said. “You can incorporate that same mentality with the 9-9-6, giving them freedom and integrating responsibility. So what we do [is] we don’t count the hours, we look at the output of the people.”

2. A well-oiled team requires knowing your employees. (3:36-3:47, 3:51-4:07)
It’s been established that communication is important to your functions as a team. However, you may be limiting this within the professional space. Make sure that you ask your employees about their personal lives as well.

“It’s not all about work for me. I make sure that I ask about their families, how their day is, or what their challenges are,” said Chua-Magleo. “If one person’s a great employee and suddenly his performance is not leveling up, that means he might be facing some challenges, whether personal or at work.”

3. Utilize the benefits of a developing VC market. (5:33-5:54, 6:25-6:44)
At first glance, an immature VC market may be disadvantageous to startups. On the contrary, it actually allows small companies to grow at a healthy pace.

“I look at it as an opportunity, thinking… ‘I have the opportunity to grow my business to a size that [doesn’t] need to compete. Because… if there’s just one company that has so much money, they’ll just burn cash and you cannot compete,” said Sy.

By building a solid foundation at a steady speed, you gain a bargaining chip against VCs that may want to invest in the future.

“If you build your business right, you will have it in a position of strength so that you won’t be bullied by VCs. It’s like, ‘We’re giving [you] the opportunity that we’re growing so you have to invest in us now, or you’ll be left behind.”

4. Strengthen your revenue sustainability. (9:43-10:25)
Getting funding is arguably one of the biggest challenges for all startup founders. Aside from balancing the books to remain operational, there’s also the added tasks of courting possible investors.

To help ease the pressure of these endeavors, there are a couple of ways to squeeze out some extra revenue.

For example, Bisnar and his co-founders initially didn’t take salary as founders. He also recommends taking on sideline jobs such as business coaching. These steps may not bear profits by the millions, but it could be enough to make your sheets presentable to investors.

“At least when you talk to the VCs, you’re not in a negative position. Because if I were a VC and you’re bleeding one million per month, he’s just going to eat you up. He’s just going to say, ‘You’re going to die in six months, then I’m going to buy 50 percent of your company for just a few millions.’”

5. Explore alternative ways to get funding (12:02-12:19, 11:32-11:58)
If you feel that the traditional ways of getting funding aren’t quite working out, there are other ways that you can try out. The recently-passed Securities Regulation Code offers great opportunities for crowdfunding. You can even try approaching institutions who aren’t investing professionally but have the resources to do so.

“Find high net-worth individuals that can be moved by your cause, and they can have more negotiable terms. Because they care, they’re not doing it professionally,” said Bisnar. “And if he or she likes your mission, then that’s a potential opportunity.”

Those interested in applying for the Alibaba eFounders Program can find more information at this link. The upcoming program class will take place from Dec 2 to 12. The deadline for applications is on Oct 7.

Running your business the Alibaba Way, with Mylene Chua-Magleo

1. “Good is the enemy of great.” (7:30 7:38, 8:50-9:13)
In an industry that can get so demanding, it’s often easier to just stop at what’s expected of you. This is well and good for your convenience, but it will set you up for mediocrity in the long run.

Instead of stopping at your current industry, see where else your company can expand to. “The thing that I admire most with Alibaba is that they keep on innovating. They are not afraid to experiment,” said Chua-Magleo.

“[They didn’t] stop with e-commerce or retail. After that, they started venturing to different aspects of the digital economy, like payments, so they have Alipay. They even have Alibaba Cloud. They have movies. So they’re not really afraid of experimenting.”

2. Embrace change. (9:47-9:53, 10:12 10:29)
When you start exploring unfamiliar industries, the usual mindset would be to make solid plans checked ten times over. Planning will always be standard for any kind of business, it’s just as important to complement it with flexibility.

“Not all as planned will happen. You don’t know the market conditions or the external factors that might happen,” said Chua-Magleo.

“So it’s not like, ‘This is the business model that I want.’ If it’s not progressing… you should look for other ways on how to earn.”

3. Carpe diem — but do so thoughtfully. (6:28-6:45)

Another danger of riding along with change is the desire to be first; after all, your competitors are all probably racing you to release the same product. Feel free to move swiftly to beat your competition, but make sure it’s not at the cost of quality or integrity.

“Timing is really crucial for you to execute everything,” said Chua-Magleo. “You need to execute it fast, but of course, you don’t want a messy start. So you have to execute in a way that it’s well-planned as well.”

4. Hire the right people. (3:03-3:11, 3:37-3:54, 4:11-4:23)
Since you won’t be doing the majority of this work, it’s absolutely important to hire the right people. This doesn’t just mean acquiring employees who are highly skilled. It may actually be more vital to hire employees who actually believe in what your startup is trying to do.

“They hire people who are committed – committed to their jobs, to their responsibilities,” said Chua-Magleo.

“[The] people there, they feel that they are part of the stakeholders [even if] they are not… they feel that they are one with the company in achieving its mission and vision.”

Since these kinds of people are reliable, you’ll also find that you’ll run smoother on the operational side. “Hiring reliable people will help you grow faster because you don’t have to micromanage them, so they can work on their own, with less supervision.”

5. In any relationship, communication is important. (5:23-5:33)
To further strengthen your internal relationships, make it a point to constantly communicate with your employees. Talk about their strong suits but include their points for improvement as well.

“It gives the employee an idea that, ‘Oh, there’s room for improvement for me based on the assessment of my coworkers or managers, that there’s something in me that needs to be improved.’” said Magleo-Chua.

This desire for communication should extend to your customers. She noticed that Alibaba employees loved reaching out to them as much as they did among themselves. Genuinely listening to your customers can help you in different range of ways, including giving you a unique selling point.

Those interested in applying for the Alibaba eFounders Program can find more information at this link. The upcoming program class will take place from Dec 2 to 12. The deadline for applications is on Oct 7.

Designer of Hong Kong International Airport builds landmark project in Makati

Foster + Partners is known as the architectural firm behind many iconic structures around the world. This group led by renowned British architect Norman Foster, well-known for his sustainable, modern, and innovative designs, has engraved its marque in major cities, such as London with the Gherkin, New York with the Hearst Tower, and Hong Kong with the busiest airport in the world, the Hong Kong International Airport.

Wishbone suspension joints hold up the walls of the roof in order to make the building withstand typhoons in Hong Kong.

The Hong Kong International Airport is considered one of the most ambitious construction projects of modern times. Characterized by a lightweight roof canopy, naturally lit spaces, and seamless weather-resilient design, this hectic airport forms a spectacular gateway to Hong Kong, in a location that can be unforgiving at times.

Foster + Partners was tapped by STRC, a joint venture between Federal Land, Inc. and SMDC, to design its first residential development in the Philippines — The Estate Makati. The collaboration with Foster + Partners to create this iconic luxury residential project is quite fitting, given that The Estate Makati will occupy the last parcel of prime real estate in the famed Apartment Ridge of Ayala Avenue.

The Estate Makati Aerial Facade Night Shot

Infusing the same approach with their previous works, and keeping in mind the discerning lifestyle of its future affluent homeowners, Foster + Partners designed The Estate Makati in a cruciform shape, thus allowing utmost privacy and exclusivity. The living spaces are arranged radially, which ensures every apartment is a true corner unit with panoramic 180-degree views of the city.

Windows

Foster + Partners infused a unique combination of function and form. Each unit truly stands the test of time with its double-slab technology, which provides a seamless space without columns, and offers possibilities to completely reconfigure the flat without having to disrupt the neighbors above or below.

Master Bedroom Suite — Legacy Layout

Furthermore, common areas of The Estate Makati are meticulously designed using only the finest materials. Residents will be transported to their home in the sky from the lush driveway and exquisitely-designed lounges, where guests can be entertained in pocketed areas surrounded by beautiful landscaping, to expansive private lifts. Thoughtfully designed amenities, such as the sky garden, pool, and fitness center, are made available for residents to enjoy. A parking facility is ready equipped with electric vehicle charging needs.

With Foster + Partners’ fusion of technological firsts and cutting-edge concepts in its overall architecture and features, it is without a doubt The Estate Makati will become an icon in fine condo living.

For more information on The Estate Makati, visit www.theestatemakati.com, or email contact@theestatemakati.com.

Poll bares view of even slower inflation

By Mark T. Amoguis
Senior Researcher

THE GENERAL INCREASE in prices of goods and services used by average Filipinos is expected to have cooled further last month amid slowing food prices as well as base effects.

Analysts’ August Inflation Rate Estimates

A poll of 12 economists yielded a median inflation estimate of 1.8% for August, settling above the midpoint of the 1.3-2.1% range given last Friday by the Bangko Sentral ng Pilipinas’ Department of Economic Research for that month.

If realized, this would mark the third straight month of slower inflation from June’s 2.7%.

It also compares to July’s 2.4% and 6.4% in August last year.

The estimate matches October 2016’s 1.8% and would be the lowest reading in 35 months or since the 1.7% recorded in September that year.

The Philippine Statistics Authority (PSA) is scheduled to report August inflation data on Sept. 5.

“We should expect the base-year effect to have a large role to play in the year-on-year change for CPI (consumer price index),” Sun Life Financial economist Patrick M. Ella said.

“Weekly data suggest a sharp decline in fuel price inflation on the back of lower global oil prices. Meanwhile, rice price inflation is likely to have turned more deeply negative as last year’s big price spikes entered the annual comparison,” Capital Economics Asia economist Alex Holmes said.

Moody’s Analytics expects inflation to have posted 2.11% in the July-September period and to clock in at 2.2% in the fourth quarter. “The reason for this figure is the large deceleration in rice prices following the rice tarrification law. Electricity prices continue to fall as well. A stronger peso is slowing inflation [by] helping to lower cost of imports. Base effects will also play a role in slowing inflation,” said Brady J. Seitz, associate economist at Moody’s Analytics.

Latest data from the PSA show average retail price of well-milled rice dropped 7.3% year-on-year in the first and second weeks of August, reaching P42.71 per kilogram (/kg) at the end of that period.

Average retail price of regular milled rice fell 9.2% and 9.8% in August’s first and second weeks, respectively, settling at P42.57/kg at the end of that period.

Manila Electric Co.’s (Meralco) power rates for households in the National Capital Region and surrounding areas dropped for the fourth straight month in August by P0.4176 per kilowatt-hour (/kWh) to P9.5674/kWh.

This represented a decrease of almost P1/kWh since May this year, according to Meralco.

The Department of Energy said on Aug. 27 that most oil companies slashed pump prices by P0.10 per liter for both gasoline and diesel, although kerosene prices went up by P0.10 per liter.

These brought year-to-date net increases per liter of gasoline, diesel and kerosene to P4.75, P3.35 and P1.40, respectively.

In its Aug. 8 policy review, the BSP revised forecast inflation this year to 2.6% from an already downward-adjusted 2.7% that was adopted in its June 20 meeting, while it slashed next year’s forecast to 2.9% from three percent previously.

The central bank targets inflation to range 2-4% this year and next.

In its July meeting, the Development Budget Coordination Committee also adjusted its inflation projection this year to 2.7-3.5% from 3-4% previously, but maintained the 2-4% projection for next year until 2022.

Analysts interviewed for this poll said that inflation rate could even go lower in the coming months as base effects persist.

Inflation hit successive multi-year highs to a nine-year peak of 6.7% in September and October 2018, forcing the central bank to hike benchmark rates by a cumulative 175 basis points (bps).

The BSP has started to wind down these aggressive policy moves by cutting policy rates by a total of 50 bps so far, and has signaled a 25-bps cut towards yearend.

“I do see headline inflation going below 1.5% by September due especially to the high base a year ago,” University of Asia and the Pacific professor Victor A. Abola said.

“[B]ecause of base effects and anticipated consumption factors in the coming months, we might see inflation levels at sub-2% until November 2019,” Security Bank Corp. chief economist Robert Dan J. Roces said.

“The rapid deceleration in prices shows how quickly inflation fades if price pressures emanate from the supply side, further evidence that the heavy-handed 2018 rate hike cycle can and should be dialed back sooner rather than later to limit its adverse impact on growth now that the inflation specter has been tamed for the time being,” ING Bank NV Manila Branch senior economist Nicholas Antonio T. Mapa said.

“Inflation will continue to experience a downward trend in the third quarter but may pick up again due to seasonal demand for certain products, weather and oil shocks,” said Mitzie Irene P. Conchada, associate dean of De La Salle University School of Economics.

European businessmen found less keen on PHL FTA

ENTHUSIASM from businesses on a free trade agreement (FTA) between the European Union (EU) and the Philippines has waned since talks have stalled, a new survey said, although many still see the deal as important.

“While a majority look forward to the EU-Indonesia CEPA (Comprehensive Economic Partnership Agreement), responses with the EU-Philippines FTA suggest that following the pause in discussions since 2017, business enthusiasm has decreased,” according to the EU-ASEAN Business Sentiment Survey.

The annual survey, now on its fifth edition, is designed as a barometer for European business outlook in Southeast Asia on issues such as macroeconomic conditions, the policy and regulatory environment, as well as the development of bilateral and multilateral free trade agreements in the region.

“However, a majority of respondents with operations in the Philippines still see a bilateral agreement as important,” the survey report added.

This survey, released by the EU-ASEAN Business Council last weekend, was produced with the support of the European Chambers of Commerce throughout member states of the Association of Southeast Asian Nations (ASEAN).

The Philippines currently enjoys EU Generalized Scheme of Preferences Plus or GSP+ that grants zero tariffs to 6,274 product lines. There are now concerns, however, that the privilege is now at risk due to human rights concerns under the administration of President Rodrigo R. Duterte.

Under the previous administration, government officials had been hopeful of graduating from GSP+ to a free trade agreement. The Department of Trade and Industry had said that, based on EU trade data, Philippine GSP+ utilization had increased to 73% in 2018 from 68% in 2015. The increased utilization rate resulted in the increase of export sales to the EU to €7.49 billion in 2018 from €6.68 billion in 2015. Top products exported under GSP+ were crude coconut oil and canned tuna.

In the latest business sentiment survey, 59% of respondents who shared their perception of current trade agreement talks in the region said they find FTA talks important. Some 27% had a neutral stance on the matter, five percent said such talks as unimportant (five percent), while nine percent were unsure.

“Malaysia and Thailand continue to be the next best alternatives, albeit now Malaysia taking second spot with Thailand moving down to third place. As Indonesia and the Philippines already have ongoing negotiations, we did not ask our respondents to rank their preference for these two countries,” the survey said.

The survey showed nearly unanimous support from European businesses to speed up trade deals. “Almost all of our respondents feel the EU should accelerate trade deals with ASEAN, whether bilateral or a region-to-region deal,” it said.

It also said majority of respondents continue to want to see a region-to-region FTA between the EU and ASEAN, and wish to see one pursued immediately.

They also value a regional agreement over further bilateral deals between the EU and individual ASEAN member countries.

“However, the percent of respondents who believe a regional FTA would deliver more advantages than a series of bilateral FTAs has fallen from 87% to 72%. This may reflect acknowledgement by the business community of the lack of tangible progress on region-to-region discussions, while FTAs with Singapore and Vietnam have been signed.”

More than half of respondents believe that the absence of a region-to-region FTA is placing their businesses at a competitive disadvantage compared to their competitors from countries that have trade agreements with ASEAN as a whole. These competitors include China, Japan, South Korea, India, Australia and New Zealand.

“However, fewer indicate the disadvantage relative to last year. As before, manufacturers feel the competitive advantage more acutely, perhaps reflecting their intrinsic requirement to move goods over borders,” it said.

“There is also as significant decrease in the number of manufacturers who feel that they are at a competitive disadvantage without a region-to-region deal.”

On the whole, European businesses expressed optimism about ASEAN. The sentiment remains high, with 74% of respondents seeing the region’s markets as becoming even more important in terms of worldwide revenues in the next two years.

Of the respondents, 73% also expect their profits from operations in the region to rise this year. European businesses in ASEAN also continue to regard the region as the one with the best economic opportunity in the next five years. — Victor V. Saulon

PSEi may rise to 8,450 by yearend on earnings

THE BENCHMARK Philippine Stock Exchange index (PSEi) may rise to 8,450 by the end of 2019 with corporate earnings expected to grow faster this year and as government ramps up spending in the second half, according to Philequity Management, Inc.

The stock gauge will further climb to 9,125 in 2020 when earnings are estimated to increase 11%, according to Miguel A. Agarao, vice-president at the Manila-based mutual fund company. He forecasts earnings growth to accelerate to 10.6% this year from six percent in 2018, when margins and consumer spending were squeezed by accelerating inflation.

The PSEi closed at 7,979.66 on Friday. Stocks in the index are valued at 16 times 12-month forward earnings compared with 16.92 times when the gauge closed at a 16-month high in July.

“Macroeconomic and corporate fundamentals ultimately drive the stock market’s direction,” Mr. Agarao said in a briefing to stock holders of the company. “However, an escalation of the trade war or prolonged conflict will lead to a deterioration in these fundamentals especially for companies exposed to tariffs.”

The PSEi climbed for a second week on Friday as China took a softer tone on possible trade talks with the United States.

A run to the 16-month high in July that sent the gauge into bull market territory fizzled as the trade war escalated, Philippine economic growth came in weaker than expected, and international investors adjusted their portfolios to reflect the higher weighting of China shares in the MSCI Index.

The US-China trade war is a major headwind and President Donald Trump could “murder” the 10-year Philippine bull market should he ratchet up tensions between the world’s two biggest economies, Mr. Agarao said.

The peso has weakened after appreciating in the first half, and its direction will depend on the movements of the US dollar and the yuan, which will be dependent on the trade outcome, he said.

“We are no longer expensive,” Mr. Agarao said, adding that at current levels, the Philippine stock market is trading at 10-year average valuations.

“If the trade war ends, there is upside to these targets. If Trump gets jilted some more, there is downside to these targets.” — Bloomberg

Bill easing requirements for foreign retail investors filed anew in the Senate

THE MEASURE proposing to reduce the required minimum paid-up capital for foreign companies that seek to enter the Philippine retail sector has been filed anew in the Senate.

Senator Sherwin T. Gatchalian, under Senate Bill No. 921, proposed to amend Republic Act No. 8762, or the “Retail Trade Liberalization Act of 2000,” in hopes of increased foreign direct investments in the country.

Mr. Gatchalian noted that since the passage of the law, only 22 foreign retail firms have invested in the country, based on a 2016 list of firms pre-qualified by the Department of Trade and Industry’s Board of Investment.

“There is a need to revisit the requirements of the retail trade liberalization law to truly liberalize and incentivize investments in the retail sector,” Mr. Gatchalian said in the explanatory note.

The bill proposed to set the minimum paid-up capital for the entry of foreign-owned enterprises at $200,000 and remove the $830,000 minimum investment per store requirement.

The law currently allows foreign entrants to set up wholly owned enterprises with minimum paid-up capital of $7.5 million; while enterprises with $2.5 million to $7.5 million may be wholly owned by foreigners except for the first two years.

The bill will also do away with the $250,000 capital per store for those specializing in high-end or luxury products.

Moreover, the measure removes other requirements such as the $200-million minimum net worth of enterprises with paid-up capital of $2.5 million to $7.5 million and $50 million for those selling high-end or luxury products; as well as the five-year track record in retailing, among others.

The same was filed by Senate Minority Leader Franklin M. Drilon, under SB 14; while six counterpart bills are pending in the House committee on trade and industry.

In the 17th Congress, the measure bagged the House of Representatives’ final approval in May but failed to hurdle the Senate committee.

The bill is one of the Cabinet economic cluster’s priority bills for the first regular session of the 18th Congress, which closes on June 5 next year; along with the proposed amendment of RA 7042, or the Foreign Investments Act of 1991, to remove restrictions on foreigners from practicing their profession in the Philippines; and to the 82-year-old Commonwealth Act No. 146, or the Public Service Act, which will lift foreign ownership limits in transport and telecoms.

The said measures were also among those cited by 14 local and foreign business groups on a list sent to Malacañang and Congress. — Charmaine A. Tadalan

Industry 4.0 summit slated for Sept. 9

BUSINESSWORLD, in partnership with the Department of Information and Communications Technology (DICT) and the Philippine Chamber of Telecommunications Operators (PCTO), will hold the BusinessWorld Industry 4.0 Summit on Sept. 9 at Shangri-La at the Fort Manila in Taguig City.

This summit, with the theme “Winning Together in the Fourth Industrial Revolution,” will bring together high-ranking public officials, business executives from a variety of industries, and leading experts, who will dissect aspects and effects of the Fourth Industrial Revolution (IR 4.0), a technological phenomenon that is transforming how people work and live.

Gregorio B. Honasan II, secretary of DICT, will deliver the opening address about aligning the country’s national ICT agenda with IR 4.0. His talk will be followed by three keynote speakers.

The first keynote speech will be given by Anthony Oundjian, managing director and senior partner of the Boston Consulting Group in Southeast Asia. He will discuss the nature of IR 4.0; the technologies driving it; and its effects on the economy, business and government.

The keynote talk of Jose Ramon G. Albert, senior research fellow at the Philippine Institute for Development Studies, will revolve around how the Philippines can prepare for IR 4.0.

The importance of strong leadership and right legislations amid IR 4.0 will be the primary focus of the keynote speech of Senator Grace Poe.

Individual speeches will be followed by panel discussions.

The role of the telecommunications sector in IR 4.0 will be the theme of the first panel discussion. The panelists are Joseph Ian G. Gendrano, head of enterprise core business solutions at PLDT, Inc.; Joel R. Agustin, senior vice-president of program governance & delivery at Globe Telecom, Inc.; Edgardo V. Cabarios, deputy commissioner of the National Telecommunications Commission; and Emmanuel Rey R. Caintic, assistant secretary of DICT. It will be moderated by BusinessWorld reporter Denise A. Valdez.

The second panel discussion will explore how the government and the private sector can maximize benefits of technologies brought by IR 4.0. The panel will consist of Eliseo M. Rio, Jr., undersecretary for operations at DICT; Thomas E. Abell, advisor and chief of digital technology for development at Asian Development Bank; Jeremiah B. Belgica, director general of Anti-Red Tape Authority (ARTA); Victor Ma. Regis N. Sotto, mayor of Pasig City; Victor A. Yap, congressman of the second district of Tarlac; and Renato B. Garcia, president of Kerberus Corp. It will be moderated by BusinessWorld editor-in-chief Roby Alampay.

Opportunities for growth amid IR 4.0 will be the third panel discussion’s subject. The panelists are Mary Jean T. Pacheco, assistant secretary of the Department of Trade and Industry; Ernesto V. Perez, deputy director general of ARTA; Rosemarie B. Ong, president of Philippine Retailers Association; Constantin Robertz, president and chief executive officer (CEO) of Entrego; and Roy Cecil D. Ibay, vice-president of Philippine Chamber of Telecommunications Operators (PCTO). Santiago Arnaiz, BusinessWorld SparkUp editor, will be the moderator.

The fourth panel discussion will tackle how IR 4.0 is reshaping the banking and finance sector. The panelists are Chuchi G. Fonacier, deputy governor of the Bangko Sentral ng Pilipinas; Chris Manguera, chief marketing officer and head of marketing and app product at Mynt; Paolo Azzola, chief operating officer and managing director of PayMaya; Hamilton Angluben, general manager of Cashalo; and Yu Ming Chin, founder and executive director of Viventis Search Asia. Moderator is Timothy Roy C. Medina, BusinessWorld multimedia editor.

How the real estate, transportation and manufacturing industries can prepare for IR 4.0 and how they can improve with the help of the technologies driving this revolution are the topics to be discussed in the fifth panel discussion. The panelists are Sheilah G. Napalang, assistant secretary of the Department of Transportation; Danilo D. Lim, chairman of Metropolitan Manila Development Authority; Melzar P. Galicia, acting commissioner of Housing & Land Use Regulator Board; Noel Toti M. Cariño, national president of the Chamber of Real Estate and Builders’ Associations, Inc; Brian Cu, country head of Grab Philippines; Ibarra G. Paulino, executive director of the Philippine Constructors Association, Inc.; and Lester Michael Hernandez, head of Solutions Consulting AGS, an ePLDT company. It will be moderated by BusinessWorld senior reporter Arra B. Francia.

“Beyond Connectivity and Access” will be the sixth and final panel discussion with two separate discussions on Cybersecurity as well as on Piracy & Creative Industry. For cybersecurity, the panelists are Genalyn B. Macalinao, policy lead for Critical Infostructure Evaluation and Cybersecurity Standard Monitoring at DICT; and Angel T. Redoble, chief information security officer of ePLDT. For Piracy & Creative Industry, panelists are Neil Gane, general manager of Coalition Against Piracy; Teodoro C. Pascua, deputy director general of the Intellectual Property Office of the Philippines; Yolanda C. Crisanto, senior vice-president and chief sustainability officer of Globle Telecom, Inc.; Louis Boswell, CEO of Asia Video Industry Association; Quark Henares, film director; as well as representatives of Netflix and Disney. These will be moderated by Santiago Arnaiz, BusinessWorld’s SparkUp editor.

PCTO Chairman Enrico L. Delos Reyes will deliver the closing remarks.

The BusinessWorld Industry 4.0 Summit is made possible by major sponsors Suntrust Properties, Inc.; Globe Telecom, PLDT and Smart; minor sponsors Metrobank, HP, Intel, Integrated Computer Systems, Inc.; Entrego, Wilcon Depot, AGS and SAP; media partners Synergy, The Philippine Star and One News; and event partner Fiera de Manila.

For more information, visit www.bworldonline.com/bwir, e-mail to: marcom@bworldonline.com or call 896-0639 or 896-0637.

Analysts’ August Inflation Rate Estimates

THE GENERAL INCREASE in prices of goods and services used by average Filipinos is expected to have cooled further last month amid slowing food prices as well as base effects. Read the full story.

Analysts’ August Inflation Rate Estimates

Treasury bill rates may decline slightly

TREASURY BILLS (T-bill) on offer today are expected to fetch slightly lower rates following dovish remarks by the central bank.

The Bureau of the Treasury is offering P15 billion worth of Treasury bills today, broken down into P4 billion, P5 billion, P6 billion for the three- and six-month and one-year debt papers, respectively.

A bond trader said the short-term securities may fetch “slightly lower” yields today.

“91[-day] T-bill kasi, it’s already below the policy rate ng BSP (Bangko Sentral ng Pilipinas). It’s basically nagpa-park na ng funds ‘yung investors. We’re concerned na because the BSP already hinted on a cut by the end of this year (The 91-day T-bill’s rate is already below the BSP’s policy rate. Basically, investors are parking their funds while rates are still relatively high since we’re already concerned because the BSP already hinted on a cut by the end of this year,” a bond trader said over the phone on Friday.

Meanwhile, another bond trader said in a phone interview that T-bill rates will likely move sideways as the market still look for “new catalyst both locally and offshore.”

The government fully awarded the T-bills it offered last Aug. 19 as rates declined across all tenors on the back of dovish remarks from central bank officials here and abroad and strong liquidity.

The Treasury made a full award of T-bills worth P15 billion at that auction as its offer was more than thrice oversubscribed, with tenders totalling P45.8 billion.

Broken down, the government raised P4 billion as planned via the 92-day T-bill, with tenders reaching P10.76 billion. The tenor’s average rate dropped to 3.254% yesterday, 14.4 basis points (bp) lower than the 3.398% fetched during the Aug. 6 offering.

For the 183-day debt papers, the Treasury fully awarded P5 billion as programmed out of bids worth P14.11 billion. The average yield declined 20.6 bps to 3.471% from the previous offer’s 3.677%.

The government also raised P6 billion as planned via the 365-day T-bills, with tenders amounting to P20.885 billion. The one-year tenor’s average rate declined 26.2 bps to 3.636% from the 3.898% logged during the previous T-bill offering.

The T-bill tenors were adjusted due to the advance settlement date of Aug. 20, with Aug. 21 being a non-working holiday.

At the secondary market last Friday, the three-month, six-month and one-year T-bills were quoted at 3.319%, 3.518% and 3.687%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, Bangko Sentral ng Pilipinas (BSP) chief Benjamin E. Diokno last week said the central bank is looking at cutting benchmark interest rates by another 25 bps before the end of the year.

The central bank has cut benchmark interest rates by a total of 50 bps so far this year — by 25 bp each on May 9 and Aug. 8 — to 4.25% for the overnight reverse repurchase rate, 4.75% for overnight lending and 3.75% for overnight deposit, partially dialing back the 175-bp cumulative hikes triggered last year by successive multi-year high inflation that peaked at a nine-year high.

Meanwhile, Mr. Diokno earlier said another cut in big banks’ reserve requirement ratio (RRR) could happen anytime towards the next policy review on Sept. 26 — the sixth for the year. He had said that the Monetary Board’s consensus is to “pre-announce” plans for the RRR on a quarterly basis.

The RRR now stands at 16% for big banks and six percent for thrift banks after the phased 200-bp cut implemented after an off-cycle meeting last May. The reserve ratios of rural and cooperative lenders was also cut to four percent from five percent effective May 31.

The central bank chief is committed to bring down the reserve requirement down to single digit when he ends his term in 2023.

The Philippine Statistics Authority will also report August inflation data on Thursday, Sept. 5.

In an e-mail to reporters last Friday, the BSP’s Department of Economic Research said it expects inflation in August to settle within the 1.3-2.1% range due to lower fuel, rice, and power prices. This compares to the 2.4% inflation rate logged in July and 6.4% in August last year.

The lower end of the BSP’s estimate matches the 1.3% print logged in June, July, and August 2016 and will the slowest reading since the 0.9% clip posted in May 2016. Meanwhile, the upper end of the forecast range is equal to November 2016’s 2.1% pace and would be the slowest since October 2016’s 1.8%.

A BusinessWorld poll of 12 economists late last week yielded a median inflation estimate of 1.8% for August, settling above the midpoint of the 1.3-2.1% forecast range provided by the BSP’s Department of Economic Research.

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