BPI books higher Q1 net income

April 26, 2019 | 12:02 am

By Karl Angelo N. Vidal, Reporter

BANK OF THE Philippine Islands recorded higher net earnings in the first quarter of the year, propelled by robust net interest income growth.

In a regulatory filing Thursday, the Ayala-led lender said it posted a P6.72-billion net income in the first three months of the year, up 7.6% from the P6.25 billion logged in the same quarter in 2018.

BPI Chief Financial Officer Maria Theresa Marcial Javier said “very strong” net interest income drove the bank’s first-quarter earnings growth.

Net interest income grew 28.8% year-on-year to P16.05 billion, driven by an 8.8% increase in average asset base and a 50-basis point expansion in its net interest margin to 3.39%.

“Our net interest margin expansion is actually the highest in probably a decade,” Ms. Javier said on the sidelines of the bank’s annual stockholders’ meeting (ASM). “That’s really driven by higher loan repricing across credit products, including corporates as well as some parts of our SME (small and medium enterprises), plus the continued growth in our credit card and mortgage businesses.”

Total loans as of end-March were at P1.35 trillion, an 11.5% growth from the comparable year-ago period, on the back of robust expansion in corporate, credit card and housing loans at 11.8%, 20.3% and 9.9%, respectively.

The bank’s nonperforming loan ratio stood at 1.85%, while the bank’s total loss coverage, including allowances for contingent exposures, stood at 95.7%.

Total deposits meanwhile climbed 1.3% to P1.61 trillion, with its current and savings account ratio at 70.3%, while loan-to-deposit ratio stood at 83.9%.

The bank’s non-interest income, on the other hand, grew 12.4% to P6.73 billion in the first quarter, driven by an increase in transaction-based service charges, credit card and rental business, as well as income from sold assets.

Revenues for the first quarter increased by 23.5% to P22.78 billion.

Operating expenses also increased 23.8% year-on-year to P12.07 billion in the January-March period, reflecting BPI’s continued investments in technology, digitalization, as well as the branch network of its microfinance arm BPI Direct BanKo.

BPI set aside P1.8 billion in provision for losses in the quarter, down 13.2% from the last quarter of 2018.

At end-March, the bank’s total assets were at P2.08 trillion, up 8.9% from a year ago. Total capital grew 35.6% to P257.11 billion, driven by the stock rights offering conducted by the lender last May 2018.

Return on assets and return on equity stood at 1.34% and 10.7%, respectively.

The bank’s capital adequacy ratio stood at 16.57%, while common equity Tier 1 ratio was at 15.68%.

For this year, BPI’s budget for capital expenditures is at P6 billion, which will be used for the branch expansion and digitalization push.

The bank is eyeing to put up 14 BPI branches this year, half of which will be placed in Visayas and Mindanao. On top of these will be the 100 additional branches and branch-lite units of BPI Direct BanKo for 2019 to end the year with a network of 300 offices.

DIGITAL TRANSFORMATION
Earlier this month, the bank underwent a three-day deposits system upgrade, making changes to more than 41,000 programs, lines of codes, and copy books, prompting the bank to suspend the operations of some of its banking services.

However, the unavailability of BPI’s mobile and online channels extended days beyond the stipulated time for some of its customers.

“We think we got the hard parts behind us. We’ve made these 41,000 changes…” BPI President and Chief Executive Officer Cezar P. Consing said.

“We’ve got the connections up so that changes we make later on will be much seamless. It’s like changing the house you live in, but at the same time staying in that house. But you have to make changes.”

He added that the bank is set to embark on the second phase of its digital transformation journey, focusing on payments, SMEs and financial inclusion, among others.

“As the world becomes increasingly digitalized, embarking on this journey is a critical step to maintaining the competitive advantage of our franchise and growing our business,” Mr. Consing said during the ASM.

“A successful execution of phase two of our digitalization journey could contribute an additional 20% revenue uplift over and above out base case projections by 2023.”

Shares in BPI stood at P81.50 apiece on Thursday, down 50 centavos or 0.61%.

Cebu Pacific says GetGo app server compromised

April 26, 2019 | 12:02 am

CEBU PACIFIC reported Thursday its GetGo application server was compromised Wednesday night, prompting the company to temporarily shut it down pending an investigation.

In a statement, the budget carrier said it discovered “unauthorized access” in the affected server, but noted credit card information was not stored in it.

“Cebu Pacific confirms that there was an unauthorized access to a GetGo application server last night. This server has been secured… As a precaution, we have temporarily disabled log-in using GetGo credentials to the cebupacificair.com website and mobile app, both of which remain secure,” it said.

The Gokongwei-led company noted it has alerted the National Privacy Commission (NPC) of the matter and is working with the government on the investigation.

GetGo is the lifestyle rewards platform of Cebu Pacific that allows users to earn points when using debit or credit cards.

Privacy Commissioner Raymund E. Liboro said in a statement the NPC is already working with the data protection officer (DPO) of Cebu Pacific.

“[W]e have instructed (the DPO) to…ascertain if there is a need to inform affected data subjects of the breach, along with specific precautions and other measures they may take to protect themselves,” it said.

The NPC said it was informed of the breach Thursday morning, where Cebu Pacific said the “extent and nature” of the breach was still being determined.

“We have instructed (the DPO) to personally report tomorrow to the NPC complaints and investigation team. The NPC shall issue public updates on the incident as they become available,” it added. — Denise A. Valdez

Petron’s Bataan refinery temporarily shut after quake

April 26, 2019 | 12:02 am

PETRON CORP. said on Thursday that its refinery in Limay, Bataan was forced to go into an emergency shutdown after the strong earthquake that jolted Central Luzon and Metro Manila on April 22.

“As previously reported, the earthquake triggered the protective tripping of certain refinery units resulting in the emergency shutdown. This was followed by flaring of gases, which is an important safety measure in refinery facilities, due to the absence of an alternative power supply,” the company said in a statement.

“At the time of the emergency shutdown, the refinery was preparing for a regular total plant turnaround beginning May 1 for scheduled maintenance activities. The turnaround will allow us to perform regular maintenance and repair for all process units, as well as assess any possible damage caused by the earthquake,” the company added.

Petron is the country’s largest refiner and provides close to 40% of local fuel requirements through its Bataan refinery, 30 terminals, and at least 2,400 service stations nationwide.

For 2018, the company said its oil refinery, which is a 180,000-barrel-per-day facility, achieved a record 95% annual utilization rate as it further raised its production of high-value fuels and petrochemicals.

“We assure our customers that we have ample inventory to supply our domestic market requirements,” Petron said.

On April 22, Petron said earthquake triggered the protective tripping of some units at the refinery and the eventual plant shutdown, followed by the usual flaring of gases as required. Contrary to false information being spread, the company said there was no fire at the refinery.

On Thursday, shares in Petron slipped by 0.94% to close at P6.32 each. — Victor V. Saulon

Questions to ask when meeting a new boss

April 26, 2019 | 12:01 am

I will be laterally transferred as a manager to a new department reporting to a vice president in compliance with the company’s rightsizing plan. I’m excited about this new assignment and at the same time a bit edgy as I would like to start the work relationship right. My new boss is rumored in the organization as a no-nonsense guy who at times can be difficult to deal with. Could you please give me some ideas on how to handle my new boss? — Feeling Nervous.

A young American at a banquet found himself seated next to another guest, a Chinese diplomat. Not knowing what to say to a Chinese person, the young man nervously pointed to the first course and asked: “Likee soupee?” The diplomat nodded and smiled.

Later, the Chinese diplomat was called on to speak and delivered an eloquent address in flawless English. The young man was surprised. As the diplomat went back to his seat to the sound of applause, he turned to the young man and said: “Likee speechee?”

Sometimes, we are bothered by our careless conclusions about things. This makes us nervous and fidgety without basis except for our own fears, if not prejudices, as a result of what we have been hearing about a certain person. It doesn’t happen every day, but periodically you will be meeting new bosses as a result of your promotion, transfer, or even accepting a new job with another organization.

Whatever the reason, you have to do something to remove your anxiety by meeting the issue head-on by finding out the answers straight from the horse’s mouth. Now that you’ve been assigned to work for a new boss, it makes sense to invest a little time and energy to talk to your boss and ensure that things will run smoothly from your first day in office.

First and foremost, you should be the first to greet your boss on the morning of your first day. After the niceties, explore the chance to have a lengthy talk with him at a time and place of his convenience and discover the answers to the following questions:

One, how would you like me to adjust to your management style? That question is a paraphrase of a tactless, if not a blunt question like: “What’s your management style?” Be careful, though because this question raises further questions than answers which include the following: Would you rather be briefed on everything I do or would you be happy with my Management by Exception Reporting? How much detail would you prefer in my reports? Would you like them via email, text, or face-to-face? And so on.

Two, what are your thoughts on defining my level of authority? Or would you like that all transactions be passed on to you, regardless of the amount and nature of things? What are the things that I can approve without your signature? The idea behind this is to discover your level of empowerment. This also allows your boss to be freed from day-to-day routine so he can focus on more important things. If your boss knows about the advantages of decentralization, then he will be happy to agree to your proposal.

Three, would you like me to prepare a draft department plan? How about our targets for the year? Or would you like us to organize a strategic planning session with other managers? Surely, your boss will appreciate your self-confidence and initiative. This also helps you set the tone of your future work relationship with your new boss. The trouble is that your confidence may lead your boss to suspect that you may be eyeing his job. But don’t worry. This is more of an exception than the general rule as most bosses would welcome any help from anyone.

Last, would you like to tell me about your standards for evaluating my performance? Or in general, what are your expectations about me? What is our usual timeline and what resources do you need? Is it OK if I give you some contrary views regarding our current policies and procedures? Would you have an open mind to my ideas even if they run counter to your original plan? If you agree, I will always point out the pros and cons of every situation, as well as hidden issues that could cause us trouble in the future.

Sometimes, you could encounter some bosses who may misinterpret these questions, because they are anxious to hide their incompetence. Many of them were promoted into management positions due to office politics or they have become good followers rather than good leaders in the past. Hence, the reward. If this is true in your boss’s case, then be aware of things. Your boss may be holding a vice president position, but it doesn’t mean he is a good leader.

In fact, some bosses who are in that category may belittle your confidence, initiative and effort as a defense mechanism to cover up for their own inadequacies. Incompetent bosses like that use their employees as scapegoats almost on a regular basis. Watch out for the red flags. If you are proactive and observant, the odds are that you will not be the target of an insecure boss’s tirades.

Whatever happens, never criticize your incompetent boss even to your best friends and colleagues in the office, much more to his superiors. Very few people can win the battle against a boss, unless you have a clear and factual basis that he has committed something illegal, immoral, and unethical.

Sooner or later, incompetent bosses are often discovered and eased out of their jobs. If that happens, prepare for any eventuality, either to take his job or work for another new boss within the same organization or elsewhere.

ELBONOMICS: Opportunity doesn’t knock. It’s always there when you open the door.

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

The need to own cars

April 26, 2019 | 12:01 am

WHENEVER I do my spiel about the product offerings of the Development Bank of the Philippines (DBP), I highlight our aversion to providing car loans. In jest, I say we do not want to add to the traffic problem, especially in urban cities. Clearly, car financing is a staple of the private banking sector and it does not make development and economic sense for DBP to put its hat in the circle, even if the numbers will indicate it is probably one of the more lucrative banking/finance segments.

On a more basic note, though, one might want to ask: do we really want to encourage more vehicles to ply our roads given the limitations of our infrastructure network? The carrying capacity of our highways is limited and this is obviously seen in the unavoidable traffic jams. There were years in the past when we only see monstrous jams during holiday seasons. Today, it is an everyday occurrence.

In advanced nations today, there is a trend that may look odd to us Filipinos. Annual global vehicle sales is falling. The prediction was vehicles sales worldwide will hit 100 million by now. According to some research, it actually is only around 94.2 million in 2018, an actual 1 million decline from 2017. It still continues to grow in emerging markets like China, India and Russia. In the Philippines, car sales declined for the first time in 2018 after eight consecutive years of growth but further growth is projected. Especially in the developed countries, the decline is palpable.

This doesn’t mean less people ride cars; only that less people are buying cars. The trend is fueled by the proliferation of ride-hailing options like Uber, Lyft and Grab. Especially in the megacities, there is concern over traffic, pollution and other negative externalities of private vehicle ownership. Singapore is tightening rules on car ownership to reduce congestion and pollution. The impact of infrastructure, i.e. subways, MRTs and the like, also add to the “competition”. Other mobility servers are appearing like electric scooters, motorcycles, and in many urban centers, there are restrictions to car access similar to our MMDA number coding.

Self-driving cars and robo-taxis are at their infancy but with improved technology, it should gain traction. Cost of car ownership will get prohibitive. In the Philippines, the requirement for vehicle owners to have dedicated garages is not yet a law but it is a painful reality that deserves to be given serious consideration sooner than later. Otherwise, our streets will be virtual parking space. Some people even say that in today’s traffic gridlock, EDSA sure looks like one big parking space.

The Philippines will be at the tail end of this revolution simply because our public transportation system still lags behind. At some point in the future, while Filipinos boast owning cars, our counterparts in the developed states are simply renting. Is this good news or bad news? At the end of the day it will be about convenience and economics.

Personally, I think this trend toward a carless society is still far out in the future but the young people of today view cars with a different mindset than my generation. I used to believe having my own car is part of the aspiration, next to owning a house. But the youth of today have a different perspective. Some young staffers save not for the new house or car, but for travel. They are content with ride sharing apps. And if only MRTs and LRTs are working well enough, they would not even consider buying a car.

In the National Economic and Development Authority’s Ambisyon Natin 2040, Filipinos dream of a gross monthly income of Php120,000 and owing at least one car. If all technological advances in the vehicle industry happen, and the infrastructure program of government gets implemented the right way, maybe the need for at least one car will be less felt. This is important as it will free disposable income for other critical needs of the Filipino family.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.)

Benel D. Lagua is Executive Vice President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.

Smart upgrades LTE network in Boracay

April 26, 2019 | 12:01 am

SMART Communications, Inc. said it has upgraded its long term evolution (LTE) network in Boracay in anticipation of tourists flocking to the island this summer.

In a statement Thursday, the PLDT wireless subsidiary said it has now installed its LTE technology to 83% of its sites in Boracay. It added, 80% of these sites have been upgraded to render LTE-advanced (LTE-A) network, which delivers mobile data at greater speeds.

“With our expanded networks, tourists can share the beauty of Boracay to the world, enjoy a better video streaming and mobile gaming experience, as well as access key online services like banking and e-commerce while on the island,” PLDT-Smart Senior Vice President for Network Planning and Engineering Mario G. Tamayo said in the statement.

The company noted it had previously picked Boracay to be a pioneer in many technological developments offered by the company, such as when it started offering LTE in the island in 2012 and LTE-A in 2016.

Mr. Tamayo said the ongoing initiative of Smart to upgrade its network all over the Philippines is expected to help spur business growth in remote locations.

“Through our continuing network upgrade efforts across the country, we are empowering tourists, residents and local businesses alike by providing them with quality connectivity wherever they may be,” he was quoted as saying.

Smart ended 2018 with about 16,200 LTE base stations installed all over the country, increasing 86% from in 2017. The number of third generation (3G) base stations also grew 17% to about 11,500.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Your Weekend Guide (April 26, 2019)

April 26, 2019 | 12:01 am

Día del Libro

INSTITUTO CERVANTES celebrates the Día del Libro (International Book Day) at Makati’s Ayala Triangle on April 27. Top bookstores and publishing houses will be selling a wide array of books at a 20% discount. Following the tradition in Spain, everyone who buys a book will also be given a rose. Spanish cuisine from different Spanish restaurants will be available, while children can enjoy a number of activities including storytelling, games and coloring. The festivities will be capped in the evening with Posporos, a concert which brings together Vulk, a Basque punk band from Bilbao, and The Late Isabel, an art rock band from the Philippines. Other activities include a number of book signing sessions including one with writer Jessica Zafra and the launching of the new volume of the famous Filipino comic saga Trese. Admission is free. Activities are on first-come, first-serve basis. For more information, visit http://manila.cervantes.es or www.facebook.com/InstitutoCervantesManila.

Baka Naman Hindi

THE Embassy of France and the Cultural Center of the Philippines (CCP) present Baka Naman Hindi, a Filipino theater adaptation of French playwright Georges Feydeau’s La Puce à l’oreille (A Flea in Her Ear) from April 25 to 29, at the CCP’s Little Theater. Adapted to Filipino by Virgilio “Beer” Flores and starring Ricky Davao, Randy Villarama, and Lou Veloso, the play is a classic farce filled with innuendo, physical comedy, and snappy dialogue. Dealing with jealousy, love, and lust between long time couples and new friends, it is a humorous tale set amidst the French belle époque of the early 1900s. Tickets are priced at P1,000 and P1,200 (with a 50% student discount and a 20% senior citizen, PWD, and government employee discount). Tickets are available at the CCP Box Office or through TicketWorld (www.ticketworld.com.ph, 891-9999).

Wim Wenders retrospective

THE Goethe-Institut presents the works of acclaimed German filmmaker Wim Wenders who among Herzog and Fassbinder was a principal member of the New German Cinema of the 1970s. Nine award-winning Wim Wenders feature films and a documentary will be screened for free every weekend at 4 p.m. starting April 27 to May 26 at the Cinematheque Centre Manila. Admission to the screenings are free on a first come, first served basis. There will also be subsequent screenings in the Cinematheque Centre in Davao from June 3 to June 30. For more information about the Wim Wenders Retrospective, visit www.goethe.de/manila.

MNL Beer Fest

GREENFIELD District is hosting the MNL Beer Fest, the Philippines’ largest gathering of breweries and microbreweries, on April 26 to 28 at Greenfield District’s Central Park located at Mayflower St. in Mandaluyong City. The three-day festival will feature over 250 local and imported beers, both artisanal craft and commercial beers from different parts of the country and abroad. Forty local beer brands will be showcased including 63 North Brewing Company, Amigos de la Playa Brewery, Boracay, Bulul Brewery, Cerveza Sagada, Desert Fathers Brewing Co., Engkanto, Flat Foot Brewing Co., Ibalon Craft Brew, Joe’s Brew, and Juan Brew, to name just a few. International beer brands include Lindemans Brewery, Lefebvre Brewery, C Brewery, Dubuisson, Holgate Brewhouse, Moosehead, Lion, Estrella Galicia, Velkopopovický Kozel, Pilsner Urquell, and Corona Extra.

Clara Benin live

SHANGRI-LA Plaza presents indie singer Clara Benin in a concert on April 27, 7 p.m., at the mall’s Grand Atrium. She will be performing her hits including “Parallel Universe” and “Tila.” For inquiries, call 370-2597 or 98 or visit www.facebook.com/shangrilaplazaofficial.

Summer at BGC

BONIFACIO Global City has packed all weekends of summer with activities. On April 27 to 28, Bite Me Manila is back with more food and surprise performances. It will be held at the C1 Park. Jim Beam will also be introducing its new drinks at the Amphitheater.

Aliwan Fiesta

THE ANNUAL celebration of the best fiestas from around the country will be held from April 25 to 27 at the Cultural Center of the Philippines (CCP) Complex in Pasay City. There is a shoppers bazaar running throughout the event, while the Reyna ng Aliwan Pageant will be on April 26, 6 p.m. The much awaited Float Parade and Streedance Competition will start at the Quirino Grandstand in Manila and make its way down Roxas Blvd. to the CCP Complex on April 27 from 4-9 p.m., and capped by awarding ceremonies at 9 p.m. Now on its 17^th year, the Aliwan Fiesta is mounted each summer by the Manila Broadcasting Co., Star City, and the CCP, in cooperation with the cities of Manila and Pasay.

Park Bo Gum fan meet rescheduled

BLOSSOM Entertainment, ABS-CBN, and Ovation Productions have announced that the Park Bo Gum “May your everyday be a good day” Fan Meeting which was scheduled for April 27 has been postponed because of the earthquake that struck Zambales on April 22. The fan meeting has been rescheduled to June 22 at the Mall of Asia Arena upon the request of Blossom Entertainment which offered its “deepest condolences to those who suffered damage and to the families involved in this earthquake.” ABS-CBN and Ovation Productions “apologize for the inconvenience cause by this decision,” and said in a statement that “the safety of the fans, the staff, and the artist is our top priority.” Tickets to the original date will be honored at the rescheduled fan meet. For details, call SM Tickets at 470-2222 or e-mail customercare@smtickets.com.

How PSEi member stocks performed — April 25, 2019

April 26, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, April 25, 2019.

PHL, China sign investment, drug rehab deals in Beijing

April 25, 2019 | 10:07 pm

THE Philippines and China signed agreements Thursday on identifying priority investments and the rehabilitation of drug abusers, the President’s spokesperson said.

“The Palace wishes to announce that President Rodrigo Roa Duterte and Chinese President Xi Jinping witnessed the signing of agreements this morning, April 25, at the Great Hall of the People in Beijing,” spokesperson Salvador S. Panelo said in a statement.

Mr. Duterte was in Beijing to attend the Second Belt and Road Forum for International Cooperation from April 25 to 27 upon the invitation of Mr. Xi.

On the agreements signed, Mr. Panelo said: “First is the Exchange of Letters on Production Capacity and Investment Cooperation between the Philippines and China. This document proposes a project list which will serve as the focus of cooperation between the National Economic and Development Authority (NEDA) and (China’s) National Development and Reform Commission (NDRC). Secretary Ernesto M. Pernia of NEDA and Chairman He Lifeng of NDRC signed the document on behalf of their respective countries.”

“Second is the Handover Certificate Grant-Aid for the Dangerous Drugs Abuse Treatment and Rehabilitation Centers Project between the Government of the Republic of the Philippines and the Government of the People’s Republic of China. This is a ceremonial handover of the drug treatment facilities in Sarangani and Agusan del Norte provided by China through grant. Ambassador Jose Santiago L. Sta. Romana signed the document on our country’s behalf while Minister of Commerce Zhong Shan signed for China,” he added.

In his opening statement during his bilateral meeting with Mr. Xi, Mr. Duterte noted that the Belt and Road Forum “provides another opportunity to renew and reaffirm our valued relations based on mutual trust, respect, and friendship and must continue to grow strength and meaning in the coming years.”

He also said that the Philippines and China “must continue to work together to explore new areas of cooperation and partnership.”

“We look forward to a productive discussion on matters of mutual interest and concern,” he added.

The Philippine government, Mr. Duterte also said, would like to hear Mr. Xi’s thoughts on “progress achieved in further strengthening bilateral relations and recent developments in our region.”

He also noted that Mr. Xi’s visit to Manila in November last year “was a watershed moment in the Philippine-China ties.”’

“The decision to elevate bilateral ties to a comprehensive, strategic cooperation affirms the Philippines and China’s strong desire to further deepen and broaden this engagement,” he said.

“We envision… high-quality and good impact projects. The sooner they are completed, the sooner people on the ground will feel the benefits of Philippine-China relations,” the President added. — Arjay L. Balinbin

New PHL-China deal on oil and gas seen unlikely — DFA

April 25, 2019 | 10:07 pm

THE Philippines and China are unlikely to modify current agreements on oil and gas exploration in Beijing and will work to prevent joint projects from being affected by corruption, Foreign Affairs Secretary Teodoro L. Locsin, Jr. said Thursday.

The meeting of both countries’ leaders in Beijing will probably “firmly exclud(e) anything on oil and gas which is the subject of a perfect MOU (Memorandum of Understanding) impossible to improve and will never be amended in the slightest aspect or respect,” Mr. Locsin said in a social media post.

The Department of Foreign Affairs (DFA) on Monday said President Rodrigo R. Duterte is likely to secure bilateral deals in education, anti-corruption efforts, official development assistance (ODA) and drug rehabilitation during his four-day visit.

Mr. Duterte, on the invitation of Chinese President Xi Jinping, arrived in Beijing late Wednesday and will stay until April 27 for the second session of the Belt and Road Forum for International Cooperation.

Mr. Locsin also said the two countries agreed to ensure that the implementation of projects under the Belt and Road Initiative (BRI) are free from corruption.

“Another agreement is A CLEAN BELT & ROAD INITIATIVE between CHN and PH anti-corruption bodies to prevent and punish corruption in BRI projects,” Mr. Locsin said in a separate post.

“I brought it up in my official visit that the only thing that can go wrong with BRI is local officials looking to make money.”

China’s BRI, which intends to link China to its ancient trade routes in Asia and Europe, among others, is expected to complement the Philippine administration’s P8-trillion “Build, Build, Build,” program.

Philippine Ambassador to China Jose Santiago L. Sta. Romana has said that the forum is expected to bring forward the Philippines’ economic development.

“There’s also a convergence between BRI, Build, Build, Build, and the ASEAN vision of Connectivity. So it is in this convergence that we try to seek synergy and to provide an impetus that will promote our economic interests, that will boost our economic development, and ultimately that will bring benefits to the Filipino people,” Mr. Sta. Romana told reporters in a briefing, Wednesday. — Charmaine A. Tadalan

Hunger rate declines in three months to March — SWS

April 25, 2019 | 10:06 pm

THE NUMBER of Filipino families experiencing “involuntary hunger” declined in March 2019 from late last year as measured by the Social Weather Survey, according to a report issued by the Social Weather Stations (SWS) polling organization Wednesday.

In its First Quarter Social Weather Survey, SWS reported a hunger incidence of 9.5%, which extrapolates to an estimated 2.3 million families. Survey participants were asked if they had experienced involuntary hunger in the past three months.

At the end of 2018, the equivalent rate of hunger incidence was 10.5%.

SWS added that the 9.5% finding for March 2019 “also marks the second consecutive quarter where there has been a decrease in hunger from the one prior.”

The non-commissioned survey involved 1,440 participants nationwide and was conducted between March 28 and 31.

The 9.5% Hunger reported during the first quarter of 2019 combines the total of 8.1% (estimated 2 million families) who experienced “moderate hunger” and the 1.3% (estimated 327,000 families) who experienced “severe hunger.”

The “moderate hunger” category takes in those who experienced hunger once or a few times within the past three months while the criteria for “severe hunger” includes those who experienced hunger often or always.

Hunger incidence fell in Metro Manila and Mindanao while it rose slightly in Balance Luzon (Luzon excluding Metro Manila) and the Visayas. Metro Manila accounted for 11.7% of hunger incidence nationwide while the equivalent numbers for Balance Luzon was 10.3%; the Visayas 10%; and Mindanao 6.1%.

For Metro Manila, “(Q)uarterly Hunger dropped by 6.6 points, from 18.3% in December (equivalent to 581,000 families) to 11.7% in March. This is the first time (after) four consecutive quarters where there has been a decrease in hunger incidence in Metro Manila, having risen by a total of 12.3 points through the four quarters of 2018.”

Hunger incidence in Mindanao fell by 2.2 points from 8.3% in December.

On the other hand, quarterly hunger increased in March 2019 for Balance Luzon by 0.6 points from 9.7% in December. Hunger incidence in the Visayas rose 0.8 points quarter-on-quarter from 9.2% in December.

Commenting on the findings, the President’s spokesperson Salvador S. Panelo said Malacañang “is pleased to note that Filipino families who said they had experienced hunger dropped to a single-digit 9.5% in the first quarter of 2019.”

“These figures indicate that the President’s sincere efforts in addressing soaring prices and running a bureaucracy that efficiently delivers basic services to the poor and marginalized are beginning to bear fruit and are now being felt by our countrymen,” he told reporters Thursday. — Gillian M. Cortez

USDA sees flat PHL sugar output amid threat of import liberalization

April 25, 2019 | 10:05 pm

RAW sugar production in the Philippines during market year (MY) 2019-2020 is expected to be little changed with the current dry spell expected to affect the next crop year and planting intentions expected to be dampened by the possibility of liberalized sugar imports, the United States Department of Agriculture (USDA) said.

According to the USDA’s Global Agricultural Information Network (GAIN) report for the Philippines, raw sugar output during MY 2018-2019 was 2.1 million metric tons (MMT), less than the official projection of 2.225 MMT, due to unfavorable weather in sugarcane-producing provinces, as well as the decrease in the land planted to sugarcane.

“Although the milling season for crop year (CY) 2018-2019 may end somewhat earlier than expected due to a lack of cane, industry contacts believe that the Philippines will still hit its lower production estimate of 2.08 MMT. Weather conditions, in particular the amount and timing of rainfall, strongly affect sugarcane output since about 80% of all sugarcane fields are rain-fed and have no irrigation,” GAIN said in the report.

Land area planted to sugarcane in MY 2018-2019 fell to 415,000 hectares from 418,000 hectares a year earlier.

The Visayas account for 73% of domestic sugar production at 73%, with Negros Island producing 64%, GAIN said. Mindanao accounts for 17% and Luzon 10%.

“Roughly 90% of total Philippine production comes from four sugar planter federations and three miller associations. There are 27 sugar mills and 8 sugar refiners in the country. There are 7 mills in Luzon, 12 in Negros Island, 3 in Panay, 2 in Eastern Visayas, and 4 in Mindanao,” it noted.

According to the Sugar Regulatory Administration (SRA), there are about 65,000 sugarcane farmers in the Philippines.

Demand for sugar is also expected to remain little changed in the current MY 2018-2019 at 2.25 MMT due to a slowdown in the soft drink market due to higher taxes on sugar-sweetened beverages and the growing health consciousness.

The inventory of raw and refined sugar in MY 2018/19 “increased due to growing refined sugar imports and a slowdown in withdrawals of domestic sugar from the mills. Increased inventories are also attributed to greater yields due to improved cane purity, GAIN said.

According to the SRA, mills are reporting that their warehouses are full and that most are looking for additional storage space and re-purposing other buildings to hold the unsold sugar. — Vincent Mariel P. Galang

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