Mimaropa’s regional economy rising

November 1, 2019 | 12:01 am

At the turn of the millennium, the Southern Tagalog region was the country’s biggest in terms of land area and population. Designated as Region IV by the national government for administrative purposes, it consisted of six provinces in the southern part of Luzon and five island provinces adjacent to the Visayas.

In 2002, then President Gloria Macapagal Arroyo issued an executive order partitioning Southern Tagalog into Calabarzon or Region IV-A and Mimaropa or Region IV-B. Calabarzon is composed of Cavite, Laguna, Batangas, Rizal, and Quezon, while Mindoro Oriental, Mindoro Occidental, Marinduque, Romblon, and Palawan comprised Mimaropa or Region IV-B. The province of Aurora was transferred to Central Luzon or Region III.

Among the 17 existing regions of the Philippines, Mimaropa was the second fastest-growing in 2018 with a gross regional domestic product (GRDP) growth rate of 8.6%, next only to Bicol’s GRDP which grew by 8.9% last year. Both regions outpaced the National Capital Region’s 2018 growth rate at only 4.8%.

The economic expansion of Mimaropa was largely due to the performance of its industrial and services sectors that registered growth rates of 11.2% and 9.3%, respectively. The agricultural sector, which includes forestry and fishing, also grew but at a slower rate of 2.6%. Construction was the top contributor to industrial growth, followed by mining and quarrying, manufacturing, electricity, gas, and water supply.

According to the Philippine Statistics Authority, Mimaropa’s regional economy accelerated last year at its fastest rate since 2010. National Economic and Development Authority regional director Susan Sumbeling said: “The region will continue to encourage more private sector investments and build the proper infrastructure for the efficient delivery of products and services to its island communities.”

Ms. Sumbeling emphasized that economic growth must be inclusive and poverty eradication should be at the core of development efforts. To achieve greater impact, she believes there is a need to build an enabling environment for shared action among local government employees and stakeholders.

During the recent “Mimaropa Naturally Agri-Trade and Tourism Fair” at SM Megamall in Mandaluyong City, some 280 micro, small, and medium enterprises (MSMEs) exhibited their tourism destinations and local products in partnership with the Department of Trade and Industry (DTI), Department of Agriculture, Department of Tourism, Department of Agrarian Reform, and various local government units.

Highlighting the trade fair was the One Town, One Product (OTOP) NextGen special setting that featured MSME products benefiting from the OTOP program through improvement and innovation in the areas of quality, product development, design, packaging, standards compliance, marketability, production capability, and brand development.

DTI Region IV-B regional director Joel Valera expects the trade fair’s 2019 edition to have generated approximately P80 million in sales compared to P70 million last year and only P4.7 million when “Mimaropa Naturally” was started by DTI in 2015. This would help jumpstart the MSMEs’ vision of penetrating mainstream domestic and export markets that would result in job generation.

Mr. Valera disclosed that the high sales expectation was attributed to the competitive and high-quality products of Mimaropa’s MSMEs, whose enthusiasm became even more pronounced when DTI set the bar higher by providing them business technical assistance.

He observed that buyers are beginning to patronize local goods made by MSMEs because of the intensified efforts for marketing and product development. “By conducting trade fairs, MSMEs would be able to reach clients from Metro Manila. This will really test the potential of the products made by MSMEs,” Mr. Valera noted.

Exhibitors that stood out at the trade fair were Marinduque Land Corp.’s virgin coconut oil and sweet crystal oil products, as well as Dream Favor Travel and Tours which organizes agri-farm tours and culinary adventures in the region.

With such attractions as Palawan’s serene tropical islands, Occidental Mindoro’s marine biodiversity at Apo Reef, Romblon’s unexplored beaches, Marinduque’s historic Moriones Festival, and Oriental Mindoro’s Puerto Galera sunset parties — indeed the future looks bright for Mimaropa.

J. Albert Gamboa is CFO of the Asian Center for Legal Excellence and Chairman of the FINEX Golden Jubilee Book Project.

What to see this week

November 1, 2019 | 12:01 am

6 films to see on the week of November 1 — November 7, 2019

The Addams Family

Charles Addams’ series of cartoons returns to the big screen with its first animated comedy about the kooky family. Directed by Greg Tiernan and Conrad Vernon, the film features the voices of Oscar Isaac, Charlize Theron, and Chloë Grace Moretz. “Everything is locked and loaded for a heartwarming finale in which outsiders and conservative locals realize that actually, they have a lot in common. Without a shred of irony, the film, which is essentially about resisting the pressure to conform or change yourself, has a storyline stitched together from a dozen family films you’ve probably already seen. What’s missing is a heartbeat,” The Guardian’s Cath Clarke wrote.

MTRCB Rating: PG

Terminator: Dark Fate

Sarah Connor and a hybrid cyborg human are tasked to protect a young girl from Rev-9, a deadly new Terminator from the future. Directed by Tim Miller, the film stars Linda Hamilton, Arnold Schwarzenegger, and Mackenzie Davis. “Dark Fate will likely feel like a blessing for Terminator diehards, a reboot that taps into what made the original films special and smooths tout a timeline that’s grown more convoluted with every sequel,” The Atlantic’s David Sims wrote.

MTRCB Rating: R-13

Hello World

Set in Kyoto, Japan — a man time travels from the year 2027 to revisit his years as a student and correct a bad decision. Directed by Tomohiko Ito, the film features the voices of Haruka Fukuhara, Minami Hamabe, and Takumi Kitamura.

MTRCB Rating: G

Hellcome Home

A family moves into their newly purchased house. Not aware that it is haunted, evil spirits begin to haunt them. Directed by Bobby Boni, the film stars Dennis Trillo, Alyssa Muhlach, Beauty Gonzalez, and Raymond Bagatsing.

MTRCB Rating: R-13

Sadako

After a Youtuber captures a sinister ghost on camera, a group of people works together to end the ghost’s deadly curse. Directed by Hideo Nakata, the film stars Himeka Himejima, Elaiza Ikeda, and Ren Kiriyama. “The film’s biggest sin is how little it the lore is kept intact, with the ticking clock of the previous films removed for logic’s sake,” according to Polygon’s Joelle Monique.

MTRCB Rating: R-13

Santigwar

A group of friends go on a vacation and unexpectedly become offerings for a santigwar (Bicolano for witch doctor). become Directed by Joven Tan, the film stars Alexa Ilacad, Marlo Mortel, Marco Gallo, and Paulo Angeles.

MTRCB Rating: R-13

How PSEi member stocks performed — October 31, 2019

November 1, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, October 31, 2019.

How does the Philippines compare in terms of economic freedom?

November 1, 2019 | 12:00 am

UN agency submits evaluation of PHL’s readiness for nuclear

October 31, 2019 | 9:59 pm

By Charmaine A. Tadalan
Reporter

THE International Atomic Energy Agency (IAEA) on Wednesday transmitted to the Department of Energy (DoE) its 19-point Integrated Nuclear Infrastructure Review (INIR) on the Philippines’ preparedness for nuclear energy.

Among the recommendations of the IAEA, an arm of the United Nations, is to involve a broader range of stakeholders in the process of adopting nuclear energy.

The IAEA has also given the DoE 90 days or until Jan. 23 to decide whether to allow the public to access the entire report on its website.

Philippine Nuclear Research Institute (PNRI) Director Carlo A. Arcilla said he recommends the report’s publication to minimize public suspicions about the process of adopting nuclear power.

“My view on that is that it should be publicized. Why? Because there’s nothing to hide. Number two, the most important thing in nuclear is stakeholders,” Mr. Arcilla told BusinessWorld on the sidelines of the hand-over ceremony in Taguig City Wednesday.

“(The nuclear industry) has learned its lesson; In the past, they tried to be secretive. When you are secretive, people will imagine the worst.”

Mr. Arcilla also raised the need to develop an alternative power source, citing Saudi Arabia, which in July 2018 tapped the IAEA to review its preparedness for nuclear power.

“Saudi Arabia is planning to have nuclear power plants, what does that tell us? The world’s most energy-secure country, richest in oil, is trying to build nuclear plants, what’s that telling us?”

The INIR report also flagged the Philippines’ lack of legal and regulatory frameworks for operating nuclear power plants. Among others, a comprehensive law will make the PNRI an independent regulatory body.

A measure establishing a regulatory framework on nuclear development was passed in the House of Representatives in the 17th Congress, but failed to win approval on final reading approval in the Senate before session adjourned in June.

A major concern of stakeholders in developing nuclear energy is the proper disposal of radioactive waste, which Mr. Arcilla said is a “technically solvable issue.”

“If you ask me how we’ll dispose of the waste, very simple. We are number three in the world in geothermal, we drill very deep wells, up to two kilometers. So I would like to get an isolated island, I’ll drill a 2-km well, all of the Philippines’ waste will fit in there,” he said.

“And then I’ll cover that with a material, bentonite, a crystal filter. If the uranium escapes it will be locked up there without chance of parole. Hindi pwedeng i-GCTA (It cannot avail of GCTA),” he said, referring to the Good Conduct Time Allowance policy that recently lead to the early release of a number of notorious convicts.

Mr. Arcilla also sees possible opposition from the rest of the energy industry.

“There will be people who will not be happy with nuclear, including other providers of energy. ‘Yun ‘yung mga nag-o-oppose (Those are the oppositors) but if you want clean consistent and cheap energy nothing matches nuclear.”

Senator Sherwin T. Gatchalian, the chamber’s Energy Committee chairman, said it is important for the DoE to explain the process of adopting nuclear energy, its risks, and the funding needed.

“First things first, I think nuclear power by itself is very controversial as well as a very complicated energy source. Complicated because it has inherent risks, especially when it comes to safety and nuclear waste. Having said that, ang pinakamahalaga ngayon (the most important thing) is to be transparent to the public,” Mr. Gatchalian told BusinessWorld by telephone Wednesday.

Mr. Gatchalian said his Committee will hold an inquiry to further discuss the DoE’s nuclear agenda, particularly the contents of the INIR, on the resumption of session before Congress adjourns for a month-long break on Dec. 20.

“The public should understand clearly what the steps are, the risks and the budget involved. Especially, what the government role is in terms of putting this nuclear agenda together.

“The INIR is the first step to understand the regulatory and legal statutes we need to enact prior to investing more in nuclear energy.”

Price-controlled drug list headed to Palace for approval

October 31, 2019 | 9:59 pm

By Gillian M. Cortez
Reporter

THE Department of Health (DoH) said it will submit its price-controlled list for 122 drugs this week for the approval of President Rodrigo R. Duterte.

Health Undersecretary Rolando Enrique C. Domingo told BusinessWorld that Secretary Francisco T. Duque is set to endorse an executive order (EO) that will set a Maximum Retail Drug Price (MRDP) for 122 medicines to Mr. Duterte before this week ends.

“The plan is to forward it by this week,” he said, adding that it’s up to Mr. Duterte to sign it or not.

The MRDP will cover treatments for the Philippines’ top 40 diseases.

According to the Implementing Rules and Regulations (IRR) of Republic Act No. (RA) 9502 or the Universally Accessible Cheaper and Quality Medicines Act of 2008, a Drug Price Advisory Council (DPAC) is to determine which medicines will fall under the MRDP scheme. This list will be sent to the Health Secretary for approval before being forwarded to the President who will implement the price ceilings through an EO.

The Philippines has some of the most expensive medicines in Asia, with affordability becoming an urgent matter on the eve of Universal Health Care (UHC) next year.

The DoH has said it hopes the MRDP will be approved before 2019 ends.

According to the Philippine Statistics Authority (PSA), out-of-pocket spending on health was P413.0 billion in 2018, with P206.7 billion spent on pharmaceuticals.

Meat industry seeks DA help in lifting LGU bans

October 31, 2019 | 9:58 pm

MEAT processors said the Department of Agriculture (DA) should discuss more comprehensively the causes of African Swine Fever (ASF) to increase the public’s understanding of how the disease spreads, as a counter to local government units seeking to ban the entry of their products.

The Philippine Association of Meat Processors, Inc. (PAMPI) made the request after Laguna, Masbate, and Legazpi City joined the list of Local Government Units (LGUs) who have banned shipments of processed pork from ASF-affected areas in Luzon to prevent the spread of the disease to their farms.

PAMPI said in a statement that 67 of 81 provinces, or 83%, have imposed a ban on the entry of such products, despite an order from the Department of the Interior and Local Government (DILG) encouraging LGUs to lift their bans.

The meat processors have said that a failure to regain freedom of movement for their products could cost them more than P40 billion in lost sales, particularly with the approach of the year-end holidays, the peak period for products like ham.

The industry has seen its interests diverge with those of hog raisers, who want to quarantine processed pork products to preserve their herds.

According to the World Organization for Animal Health, ASF affects domestic and wild pigs, and does not pose any health risk to humans. There is no approved vaccine against the virus.

Since the announcement of the outbreak in September, the DA has blamed as the most probably cause swill feeding and the transportation of ASF-infected hogs from the outbreak’s ground zero in Rizal and Bulacan.

The first cases of ASF were confirmed by the DA on Sept. 9 in Rodriguez and Antipolo, Rizal and in Guiguinto, Bulacan, where backyard hog raisers relied on swill feeding.

The department is encouraging hog raisers to not feed their animals food scraps from hotels, restaurants, and airlines. It has also tightened security at ports of entry to ensure that no hogs, especially from infected areas, are transported to other areas.

PAMPI said that because of the bans, its members have decided to reduce production and stop purchasing domestically-grown pork.

“We do not want to expose ourselves to further risk by using locally-sourced pork that could be laden with ASF. There could be unscrupulous suppliers who could pass off meat from ASF-infected pigs,” PAMPI President Felix O. Tiukinhoy said in the statement.

PAMPI said it typically purchases 5% of its pork in the Philippines while importing the rest from countries unaffected by ASF.

PAMPI is the country’s largest group of meat processors. It has 88 member-companies, generating more about P300 billion in sales and directly employing 150,000 workers.

Cagayan province urges cancellation of sugar import lib

October 31, 2019 | 9:58 pm

THE Cagayan provincial government called on the national government to cancel its plan to liberalize sugar imports, warning that such a measure could destroy the sugar industry.

“As it is hereby resolved, to appeal to President Rodrigo R. Duterte to disallow the planned liberalization of the importation of sugar by the Department of Finance (DoF),” the provincial board said through Resolution No. 2019-10-232.

“Allowing the unregulated entry of the cheaper refined sugar into our shoes by the major sugar exporting countries like Thailand and India would ruin the Philippine sugar industry,” it said.

According to the Philippine Statistics Authority, Cagayan produced an average of 171,231 metric tons of sugarcane a year between 2010 and 2014. The Cagayan Valley region is a leading sugar producer alongside Western Visayas, Northern Mindanao, and Central Visayas.

“The consequence of the implementation of the Rice Tariffication Law… has adversely affected all the (rice) farmers, and again with the proposal of sugar liberalization, the sugar industry dependents are expectant of the same hostile effect,” it added.

The DoF formally proposed to liberalize sugar imports on Sept. 27, modeling the market opening on the rice market. The aim of the sugar measure is to help make the food processing industry more competitive by bringing down sugar prices.

Sugar producers claim the industry employs about five million people directly and indirectly, many of them agrarian reform beneficiaries or farmers owning five hectares or less.

Legislators from these provinces will be holding an inquiry in November after the Congress resumes to discuss the proposed liberalization. They also hope to discuss the under utilization of the P2-billion Sugar Industry Development Act (SIDA) fund, which should have been enough to help the industry be more competitive. — Vincent Mariel P. Galang

No country immune to risk of spreading African swine fever, animal health agency says

October 31, 2019 | 9:57 pm

PARIS — African swine fever will spread further across Asia where it has devastated herds, and no country is immune from being hit by the deadly animal virus, the head of the World Organization for Animal Health (OIE) said on Wednesday.

The disease, which has hit the world’s top pork producer China hard, originated in Africa before spreading to Europe and Asia. It has been found in 50 countries, killing hundreds of millions of pigs, while reshaping global meat and feed markets.

“We are really facing a threat that is global,” OIE Director General Monique Eloit told Reuters in an interview.

“The risk exists for all countries, whether they are geographically close or geographically distant because there is a multitude of potential sources of contamination.”

African swine fever, which is not harmful to humans, can be transmitted by a tourist bringing back a ham or sausage sandwich from a contaminated country, throwing it away and the garbage being reused by farmers to feed their pigs, Eloit said.

There are additional risks from trading live animals and food products across borders and from small breeders using restaurant or train station waste to feed their stock.

The disease has spread rapidly to several countries in Southeast Asia including Vietnam, Cambodia, Laos, South Korea and the Philippines and more countries are likely to be hit in the coming months.

“In the short term we are not going towards an improvement. We will continue to have more outbreaks in the infected countries. Neighboring countries are at high risk and for some the question is when they will be infected,” Eloit said, stressing that controls were difficult to implement.

The spread of African swine fever has not only ravaged the Asian pig population, but also sent international pork prices rocketing and hit animal feed markets such as corn and soybeans.

It has also weighed on results of agricultural commodity groups due to weaker feed demand for hog breeding.

China’s hog herd was more than 40% smaller in September than a year earlier, its farm ministry said earlier this month. But several in the industry believe the losses are much greater.

Beijing issued a series of policies in September aimed at supporting national hog production and securing meat supplies.

Eloit said the measures were adequate but needed to be fully implemented.

“There is a difference between what is decided on paper — I do not think there is any concern here — and how we actually get to apply them on the ground especially in countries that are very large, which have a wide variety of production,” she said.

In Europe, the situation is different because outbreaks mainly concern wild boars, Eloit added.

African swine fever has been found on farms in eastern Europe but its spread had been mostly contained, due mainly to tight security measures implemented in some countries. — Reuters

Trial period for MRT-3’s Chinese trains extended to end-November

October 31, 2019 | 9:57 pm

THE Department of Transportation (DoTr) said Thursday that it will expand the trial period for the Metro Rail Transit Line 3 (MRT-3) trains supplied by CRRC Dalian Ltd., to Nov. 30.

The MRT-3 started deploying on Oct. 15 one of the China-manufactured train sets, which consist of three train coaches with a capacity of 1,050 passengers per trip, on its initial trials. This deployment was initially planned to last until Oct. 31.

In a statement Thursday, the DoTr said: “Tatakbo na hanggang ika-30 ng Nobyembre 2019 ang nasabing train set, mula 8:30 p.m. hanggang 10:30 p.m., araw-araw (The train set will be deployed until Nov. 30, from 8:30 p.m. until 10:30 p.m. daily).”

“Ang dahilan ng pagpapalawig ng initial trial period ay upang maobserbahan pang mabuti ang performance ng Dalian train set sa linya ng MRT-3 (The reason for extending the initial trial period is to further observe the performance of the Dalian train set on the tracks of MRT-3),” the DoTr added.

MRT-3 Director for Operations Michael Capati said no issues were observed during the trial period from Oct. 15 to 31.

“Wala naman pong issues na lumabas. Noong tinanong po namin ang aming mga mananakay at satisfied naman po sila sa pagsakay at pag-launch natin ng Dalian train (There were no issues observed. The passengers we asked said they were satisfied with the launch of the Dalian train),” he said.

The trains were procured in 2014 by the previous government but held back from service because of compatibility issues.

Last year, the government arrived at an agreement with CRRC Dalian to make the necessary adjustments on the train sets free of charge. — Arjay L. Balinbin

BoC revives Balikbayan Box tracking agreement

October 31, 2019 | 9:57 pm

THE Bureau of Customs (BoC) launched Wednesday a tracking system for balikbayan boxes going through stages of clearance at the agency as a measure to streamline operations and reduce “scams” in their processing.

Assistant Commissioner of the Post Clearance Audit Group Vincent Philip C. Maronilla told BusinessWorld that parcels and balikbayan boxes can now be tracked through the Balikbayan Box Tracking System (PBTS), which can be accessed through the BoC website.

PBTS was launched on Wednesday.

“The system can provide updates about the parcel or balikbayan box as it goes through the different stages of customs clearance which also enables the Bureau to monitor the efficiency of BoC officials and personnel,” BoC said in a statement yesterday.

Mr. Maronilla said that the users can check on the status of parcels and balikbayan boxes through their respective tracking numbers.

The shipments have time stamps to allow quick identification of delays.

“The parcels have timestamps so we can also monitor ‘yung mga tao namin kung pinapatagal nila yung processing, bakit nagtatagal, may reason din dun (we can monitor our personnel who may be delaying processing and determine the reason behind the delay),” he said.

A link directed to the Department of Trade and Industry (DTI) is included in the website to provide users a way to check if the forwarding companies or consolidators are legitimate.

“It’s a very helpful tool and it’s very timely,” he added.

Mr. Maronilla said the balikbayan box tracker was first launched in 2015 but the BoC had to shut it down to fix some issues and expand the system to allow it to also track parcels.

“Around 2014-2015, we had a balikbayan box tracker that we launched linked up with the DTI bat nagkaroon ng problema dun sa search engine nya (but we encountered a problem with the search engine) when the forwarders stopped sending the data that we required,” he said.

Separately, Finance Secretary Carlos G. Dominguez III said he will order the BoC to “alert their counterparts in China and all the ASEAN countries to the practice of exporting untaxed cigarettes” to the country.

“We are increasing vigilance against non tax-paid cigarettes from all sources,” Mr. Dominguez told reporters in a mobile phone message on Wednesday.

Recently the BoC and Bureau of Internal Revenue (BIR) seized millions of pesos worth of tobacco products.

On Wednesday, BoC seized P95-million worth of 2,727 master cases of smuggled cigarettes in Sulu while the BIR confiscated around 145 master cases containing around 1.45 million sticks of Chinese cigarette at a warehouse in Binondo, Manila on Oct. 25.

Republic Act No. 11346 was signed in July, increasing the excise tax on tobacco products to P60 per by 2023 from the current P35. — Beatrice M. Laforga

NCR retail price rise muted in Aug. — PSA

October 31, 2019 | 9:57 pm

THE retail goods prices in the National Capital Region (NCR) rose 0.8% year-on-year in August, following a 3.1% increase a year earlier, the Philippine Statistics Authority (PSA) reported Thursday.

Year-to-date, the general retail price index (GRPI) rose 1.2%.

On a month-on-month basis, August GRPI rose 0.1%, the same increase recorded in July.

Food registered a 1.2% increase, much less than the 3.7% increase in the same month last year.

Chemicals, including vegetable oils and fats, rose 0.9%, while machinery and transport equipment rose 0.4%. In the same month last year, these commodities rose 0.9% and 1%, respectively.

The highest increase was in crude materials, inedible except fuels, which rose 4.1%. This is the only commodity that grew faster than its year-earlier rate. In August 2018 prices here grew 1.8%.

Meanwhile, mineral fuels, lubricants and related materials fell 4%, declining for a third month. The commodity rose 19.1% in the same month last year.

Beverages and tobacco rose 2.2% after rising 11.5% a year earlier.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort said that the easing of retail prices in the region reflects the easing of overall inflation.

“The latest easing in Metro Manila retail prices largely correlates with the easing of the overall headline inflation, especially the lower prices of food especially rice, oil petroleum products, and the stronger peso exchange rate,” he said in a e-mail.

He also noted the higher year-earlier base slowed price growth.

Headline inflation was 1.7% year-on-year in August.

The more muted increase in retail prices compared to headline inflation, Mr. Ricafort said, may be due to increased competition among retailers.

This competition, he said, “would have reduced the pass-on costs/inflation to consumers, as producers may have to absorb higher costs when inflation was higher… with less pass-on to consumers on the retail level, thereby leading to much slower prices increases/inflation at the retail level,” he said.

Mr. Ricafort said improved supply may have also caused the “relatively benign” retail inflation.

Security Bank Corp. chief economist Robert Dan J. Roces said that the year-to-date GRPI increase for NCR in August reflects solid consumer demand.

“Year-to-date GRPI growth of 1.2% shows that the retail trade sector is alive and well (due) to positive sentiment of household consumers owing to slower inflation. Retailing accounts for almost a fourth of the services sector making it a major growth driver,” he said.

“With improved macroeconomic fundamentals and favorable consumption base, we expect this to remain positive alongside the expected expansion of the economy in the fourth quarter of this year and well into 2020.”

Mr. Ricafort said that easing inflation in retail products benefits consumers, whose spending accounts for about 70% of the economy.

“This would help sustain consumer spending’s resilient growth as seen in recent quarters and, in turn, would put consumer spending a better position to further add to its huge contribution to the overall economy, thereby leading to faster GDP growth (from a 4-year low of 5.5% in 2Q 2019), going forward.” — Jenina P. Ibañez