Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 9824

PSEi ends flat amid lack of leads

By Victor V. Saulon, Sub-Editor

STOCKS barely moved on Friday amid a dearth of news from listed companies that left the benchmark Philippine Stock Exchange index (PSEi) ending the week closing higher by only 0.07% or 5.7 points to 7,824.59 from Thursday.

“Shares traded flat as investors weighed potentially positive news about the US-China trade talks against concerns over possible repercussions should President Donald Trump sign legislation expressing support for protestors in Hong Kong,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.

The broader all-shares index also closed slightly higher at 4,679.04, inching up by 0.18% or 8.28 points from the previous day.

“Vice-Premier Liu He cited in early Asian hours the day before that he was cautiously optimistic about the prospect of a deal,” Mr. Limlingan said.

“China’s commerce ministry also said that China will strive to reach an initial trade agreement with the US,” he said, adding that late in the day “news surfaced that China had invited American negotiators to Beijing for a face-to-face talks.”

Four of the six sector indices managed to close higher. Only the mining and oil index came out strong with a 2.39% or 190.82-point improvement to close at 8,175.43. Services followed by advancing 0.46% or 7.17 points to 1,549.70, trailed by industrial stocks’ 0.31% or 30.95-point rise to 9,911.62. Holding firms were flat at 7,756.93, higher by 0.02% or 1.78 points from the day earlier.

Two sub-indices slipped: financials by 6.16 points or 0.32% to 1,874.13 and property by 2.04 points or 0.05% to 4,033.22.

In value, total trading was down four percent to P5.49 billion from P5.72 billion previously. About 384.17 million shares changed hands, or nearly half the previous day’s volume turnover of 781.11 million.

Foreigners were net sellers for the fourth day in a row with P642.36 million worth of shares as their selling of P3.73 billion outpaced their buying at P3.09 billion.

DFNN, Inc. was Friday’s top gainer as it closed higher b 12.35% or P0.63 to P5.73 per share. Jolliville Holdings Corp. and Benguet Corp. “A” were the other biggest upward movers during the session.

Manila Broadcasting Corp. was the biggest loser as it gave up 17.72% of its share price to close lower by P2.52 to P11.70 apiece. A Brown Co., Inc. and SOCResources, Inc. round out Friday’s top three losers.

Still, the trading day closed with more advances at 90 as against declines of 88. A total of 58 stocks finished unchanged.

Among the few companies that disclosed updates of their projects were Ayala-led AC Energy Philippines, Inc., which said the estimated 60-megawatt capacity of its solar power plant project in Palauig, Zambales would cost around $37 million and funded by equity. “Project completion is expected in 2020. The plant will likely be operated as a merchant plant, delivering power to the grid at spot market rates,” AC Energy Philippines said.

The project will be led by AC Energy Development, Inc. through a wholly owned project company, Gigasol 3, Inc.

Meanwhile, Phoenix Petroleum Philippines, Inc. said its board in a meeting on Friday had approved the creation of a new wholly owned subsidiary to handle its road transport business. The independent oil company said it would investing corporate funds in the unit amounting to P57 million “in whole or in part as initial capitalization.”

He had a light-giving life

Remembering George S.K. Ty: the Legacy of a Titan

The legendary icon of Civil Rights, Martin Luther King, once said, “Darkness cannot drive out darkness: only light can do that. Hate cannot drive out hate: only love can do that.”

As one of the Philippines’ most influential luminaries, Dr. George S.K. Ty, on Nov. 23, 2018, has left the world brighter than when he had entered it.

When he passed away, he was the chair of GT Capital Holdings, Inc., a holding company with interests in many of the country’s most important sectors, and was known as the founder of Metrobank, the second-largest bank in the Philippines.

As its chair, Dr. Ty had an outsized contribution in GT Capital’s interests, which include Toyota Motor Philippines Corporation, Federal Land, Inc., Property Company of Friends, Inc., Philippine AXA Life Insurance Corporation, Metro Pacific Investments Corporation, Toyota Financial Services Philippines Corporation, and Toyota Manila Bay Corporation.

However, most of Dr. Ty’s renown comes from his accomplishments in the banking sector. As Metrobank is one of the country’s foremost largest banks, it has garnered a diversified business portfolio in investment banking, thrift banking, leasing and financing, bancassurance, and credit cards.

Dr. Ty started the company at the age of 29 with his colleagues in 1962 to provide financial services to the Filipino-Chinese community, and in no time at all, the bank has expanded beyond Philippine shores. It established its first international branch in Taipei in 1970, and a representative office in Hong Kong in 1973. From there, Metrobank began sprouting branches in locations as far as London, New York, Taichung, Tokyo, Seoul, and Shanghai.

Nowadays, Metrobank has almost a thousand branches with more than two thousand automated teller machines nationwide.

As one of the country’s wealthiest people, Dr. Ty never lost sight of his responsibilities to his countrymen. He also founded the Metrobank Foundation, Inc. (MBFI), which acted as the corporate social responsibility (CSR)  of the Metrobank Group.

Since the foundation of the organization, MBFI has emerged as one of the country’s most active corporate philanthropic organizations, undertaking a wide range of CSR programs in such key sectors as education, visual arts, and health care, as well as handing grants to charitable institutions in the Philippines and in other parts of Asia. The Foundation also partners with like-minded organizations that contribute towards the common goal of nation-building.

Among MBFI’s flagship programs are the Search for Outstanding Filipinos, Metrobank Art and Design Excellence (MADE), Search for Outstanding Teachers (SOT), College Scholarship Program (CSP), Metrobank-MTAP-DepEd Math Challenge (MMC), The Outstanding Philippine Soldiers (TOPS), and Country’s Outstanding Policemen in Service (COPS). These programs seek to recognize and honor the best of the country’s public servants, unnamed heroes who play the most important roles in building a just and enlightened society.

In addition, MBFI pledges its support for programs aimed at educating Filipinos on issues through research and lectures given by the distinguished holders of the Metrobank Foundation Professorial Lecture established by the Foundation in partnership with reputable educational institutions.

“Dr. George S.K. Ty, Metrobank Group Founder and Chairman, has always been driven by a purpose higher than profit — he envisions his business to be a force for the benefit of the Filipino people,” the Metrobank Foundation wrote on the GT Capital web site.

Remembering a titan

Such is the legacy of Dr. Ty that after his passing, many Filipinos inspired by him honored his memory by raising a total of P7 million to donate to chosen charities in his memory. The amount was donated to CBCP Caritas Filipinas Foundation, Philippine Red Cross, and the Philippine Disaster Resilience Foundation (PDRF).

MBFI President Aniceto Sobrepeña and MBFI Executive Director Nicanor Torres, Jr. led the turnover of the first tranche of donations to the PDRF represented by its president Butch Meily and executive director Veronica Gabaldon.

GT Foundation, Inc. (GTFI), the Ty family foundation, contributed P3 million to the total and designated two more organizations to be the recipients: the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) for its school building program and the Tzu Chi Foundation.

Manny V. Pangilinan, a Philippine business icon in his own right, the managing director and CEO of First Pacific Company Limited and CEO of many prominent Philippine businesses such as PLDT and Metro Pacific Investments Corporation, wrote a eulogy that celebrated Dr. Ty’s astuteness and wisdom both as a businessman and a mentor.

“In business, strong passions are the norm. Mr. Ty was a strong man. He was shrewd. He was decisive. I have seen him make decisions that could determine the fortunes of a business — as in our case 18 years ago. Those were his finest hours,” Mr. Pangilinan wrote.

“Where did that confidence come from? Where was that strength acquired? It is the courage of a boy who left China when he was young. It is the courage of a young man who dared to dream big things and act on them — Metrobank being the outstanding example. It is the courage of a man who waited on the Lord to finally call him home,” he added.

Dr. Ty’s life had cast a brilliant light that lives on in everyone he has affected, both through his own personal deeds or through those of his companies. Through his dedication and commitment to serving the country, he has driven away much of the darkness in his fellow Filipino’s lives and has inspired countless others to do the same.

“I heard it said that people die twice — once, with their last breath, and once more, later on, when people say their name for the last time. I’d like to think that Mr. Ty made sure that his second death does not happen — that indeed, we will remember him for a long time,” Mr. Pangilinan wrote. — Bjorn Biel M. Beltran

A hero of philanthropy

Remembering George S.K. Ty: the legacy of a titan

Most people might remember Dr. George S.K. Ty as a successful business tycoon who founded the Metropolitan Bank & Trust Co. (Metrobank). But for those who witnessed his generosity and passion in helping others, he is more likely remembered as a philanthropist who was always driven by a purpose higher than profit.

In 1979, 16 years after the founding of Metrobank, Dr. Ty established the Metrobank Foundation, Inc. (MBFI) to serve as the bank’s venue to contribute to the advancement of the society. The Foundation is guided by Dr. Ty’s principle that “Leadership in business implied leadership in community service.”

Over the years, MBFI has implemented various programs on education, visual arts and design, and health; and has maintained a dynamic partnership with other organizations that provide assistance to the underprivileged and marginalized sectors of the society. The Foundation has also remained responsive to aid survivors of natural calamities in the country and the region through relief and rehabilitation efforts.

One of the advocacies closest to Dr. Ty’s heart was education, which he believed is a significant key to unlock a future of possibilities. This pushed MBFI to develop a multi-pronged approach to education development by introducing some student- and teacher-centered initiatives such as Metrobank-MTAP-DepEd Math Challenge (MMC), MetroGold Scholarship Program, and National Teachers’ Month celebration.

The MMC is an annual mathematics competition, in partnership with the Mathematics Teachers Association of the Philippines (MTAP) and the Department of Education (DepEd), aimed at raising the competitiveness of elementary and high school students. It is the longest running math competition in the country with more than half a million students participating in the nationwide elimination rounds yearly, attracting students from both private and public schools.

The MetroGold Scholarship Program, on the other hand, provides financial assistance to underprivileged but academically-deserving students, giving them the chance to build a better life for themselves and their families. Meanwhile, the National Teachers’ Month celebration encourages the different sectors of the society to pay tribute to the teaching profession.

In the field of arts and design, MBFI pioneered the Metrobank Art & Design Excellence (MADE) that has been recognizing the talent and hard work of young Filipino artists, and has been continuously promoting the Philippine art culture.

Since 1984, the program has given recognitions to hundreds of young artists, and has supported various art activities including exhibits of competition winners, art workshops, facilities improvement of museums and schools, among others.

Recognizing the importance of proper health care in securing an overall well-being, MBFI acquired a controlling interest in the Manila Doctors Hospital, which is one of the most esteemed centers of wellness in the country. As the health care arm of the Foundation, Manila Doctors has been offering a wide array of social services such as subsidies for in-house patients, outreach programs, medical missions, and other health-related interventions in adopted communities.

The MBFI has also been contributing to the rebuilding of lives and communities affected by disasters through its Grants and Calamity Assistance Programs that provide financial support for worthwhile projects that are aligned with the thrusts of the Foundation on education, health care, and visual arts, as well as the attainment of the Sustainable Development Goals (SDGs).

Moreover, with Dr. Ty’s desire to honor and nurture outstanding public servants from among the ranks of academe, military, police and media, MBFI initiated various recognition programs. The Search for Outstanding Teachers (SOT), for instance, recognizes the country’s top educators aimed at fostering a culture of excellence and community service for the teaching profession.

The Outstanding Philippine Soldiers (TOPS), on the other hand, honors the valor, gallantry, and self-sacrifice demonstrated by the men and women of the Armed Forces of the Philippines (AFP); while the Country’s Outstanding Police Officers in Service (COPS) affirms the shared responsibility between gallant police officers and the community on crime prevention and solution.

The MBFI also established the Search for Journalists of the Year (JOY), which honors distinguished Filipino journalists for their body of work that has contributed to the development of the nation and inspired other media practitioners.

With all its benevolent initiatives, the MBFI has emerged as one of the country’s most active corporate philanthropic organizations, and has garnered various awards across and outside the country.

“From the very beginning, the Foundation was given the wherewithal to carry out Metrobank’s commitment to nation building, intervening in different sectors to address the underserved, as well as cultivating a culture of excellence among our countrymen,” MBFI President Aniceto M. Sobrepeña said in a eulogy he delivered at the funeral services for Dr. Ty last year.

The eulogy, which spoke about Dr. Ty’s generosity and passion to help others through the MBFI, bagged the Quill Professional Excellence Award in the 17th Philippine Quill Awards.

From the words of Mr. Sobrepeña, Dr. Ty’s leadership was born of a generous heart. “He was not indulgent but focused and definitive about how he wanted to help others. He liked to help others but he did it responsibly, so that the assistance was enabling and empowering,” he said.

Mr. Sobrepeña added that, “While Dr. Ty appreciated the many accolades and recognition of his successful enterprises, it was the distinction of being named one of Fortune magazine’s Heroes of Philanthropy that meant more to him. When he was named one of the wealthiest men in the Philippines, he said: ‘We can spend more money now and do more for the community’.” — Mark Louis F. Ferrolino

A man of high honors

Remembering George S.K. Ty: the legacy of a titan

Dr. George S.K. Ty is very much known to many for fearlessly reaching for his aspirations and for selflessly serving communities and the nation in general. While he successfully set out visions and realized them throughout his lifelong career in business, he consistently gave back and paid it forward through the foundations he established. No wonder the late taipan was recognized and honored by many institutions and award-giving bodies throughout his lifetime and even after his passing.

Dr. Ty was awarded the Lifetime Achievement Award by the Asian Banking Awards in 2000. A year later, he was given the Outstanding Manilan Award by the City of Manila, a recognition given to “those who have excelled in their fields of endeavor” on every anniversary of the nation’s capital.

In 2002, Dr. Ty was one of the awardees of Dr. Jose Rizal Awards for Excellence, an award handed out in observance of the birth anniversary of the national hero. The founder of Metropolitan Bank & Trust Company received the “Tsinoy Lifetime Achievement” award, along with other Filipino-Chinese taipans such as the late John Gokongwei and Lucio Tan.

Dr. Ty also began receiving international accolades in 2003 when he was conferred the Magnolia Gold Award by the Shanghai City government in China. The said award “recognizes foreigners who have made outstanding contributions to the city”. This was followed up by a recognition from the Nanjing Municipal Government to Dr. Ty in 2010 as Honorary Citizen of Nanjing.

One of his highly-esteemed accolades, the former Metrobank Group chairman was recognized as the Management Man of the Year by the Management Association of the Philippines in 2006. This annual award by MAP is considered as the most prestigious award for excellence in the practice of management.

In 2010, Dr. Ty, who also chaired the Metrobank Foundation, was conferred by then-President Gloria Macapagal Arroyo with the Order of Lakandula with the rank of Bayani. According to the Official Gazette, this particular presidential honor is conferred “upon an individual whose life is worthy of emulation by the Filipino people”.

The renowned business leader was accorded another recognition for serving as a steward “of business and economic development in the country” in 2011. The Employers Confederation of the Philippines granted the Gawad Lakan ng Kalakalan to Dr. Ty, and it was presented by former President Benigno Simeon C. Aquino III.

That same year, Dr. Ty also received the Medal of Merit “for Outstanding Achievement in the Promotion of Philippines-Japan Relations” by the Philippines-Japan Society, being its 33rd awardee. In the award’s citation, Dr. Ty was recognized for “his immeasurable contributions to Philippine society, and his significant accomplishments in forging meaningful and dynamic relations between Filipinos and Japanese”.

In 2012, he was conferred the CEO (Communication Excellence in Organizations) Excel Lifetime Award by the International Association of Business Communicators. This particular award has been given to leaders who “epitomize management competence and excellence in communication at a strategic level.”

Not only has Dr. Ty received accolades from institutions and the government; he was also acknowledged right in the Metrobank Group, as shown in 2014 when he was conferred the Grand Exemplar Medallion by the Board of Advisers of the Metrobank Foundation for “his distinguished leadership, generous spirit, compassion, and outstanding achievements that [have] contributed to the growth of the nation.”

In 2017 Dr. Ty received two prestigious awards. First, he received the Ramon V. Del Rosario Award for Nation Building from the Junior Chamber International Manila and the Asian Institute of Management’s Center for Corporate Responsibility in July of that year. The late banker and philanthropist was chosen “for exhibiting entrepreneurial spirit, good corporate citizenship, social responsibility, and for his underlying passion for nation-building”.

The other award he received that year was the Order of the Rising Sun, Gold and Silver Star, conferred by Japanese Prime Minister Shinzo Abe at the Matsukaze-no-Ma, Imperial Palace in Tokyo, Japan. This distinct honor was given to Dr. Ty “in recognition of his contribution to strengthening the economic relations between Japan and the Philippines.”

The following year, weeks before his passing, Dr. Ty was the first MVP Bossing Lifetime Achievement awardee in PLDT Enterprise’s MVP Bossing Awards. This award recognized the visionary as “an individual who had built his career with an unwavering honesty and commitment to his entrepreneurial vision.”

Nonetheless, even after his death at the age of 86, Dr. Ty is still recognized as an entrepreneur, philanthropist, and Filipino to emulate.

Last Sept. 9, both chambers of the 18th Congress gave their respective honors to Dr. Ty. The Senate of the Philippines unanimously adopted Senate Resolution No. 10, titled “Resolution Posthumously Honoring Dr. George S.K. Ty for his Philanthropic Contributions”; while the House of Representatives adopted House Resolution No. 10, titled “Resolution Honoring the Achievements and Contributions of Dr. George Siao Kian Ty, an Outstanding Filipino, Philanthropist, and Business Leader.” — Adrian Paul B. Conoza

The legacy continues

Remembering George S.K. Ty: the legacy of a titan

Aside from the establishment of the Metrobank Foundation, Inc. (MBFI), the late Dr. George S.K. Ty also demonstrated his philanthropic contributions to the country through the GT Foundation, Inc. (GTFI). Since its inception in 2009, the foundation has invested in strategic development programs that empower communities and respond to the basic needs of the Filipino people.

One of GTFI’s remarkable initiatives is the annual Bags of Blessing (BOB) project, which was the brainchild of Dr. Ty himself. BOB is a series of nationwide gift-giving activities held to welcome the Lunar New Year where P10 million worth of food packages are distributed to 10,000 families in different cities and provinces.

The foundation was able to further its cause in the field of education through the GTFI Scholarships for Technical Vocational Education Program (STEP). It equips young people with vocational skills and a broad range of knowledge and attitudes that are indispensable for meaningful participation in work and life. GTFI continued to strengthen the program in the past years with the addition of new scholarship slots.

In partnership with different health institutions and organizations, GTFI has also conducted surgical missions and programs across the country. Meanwhile, in response to the Marawi crisis in Lanao del Sur, the foundation provided assistance to families of soldiers killed, and provided groceries in support of soldiers and police officers who fought during the conflict.

Although Dr. Ty has already passed away on Nov. 23, 2018, his legacy continues and remains evident. Early this year, GTFI, together with De La Salle University (DLSU), inaugurated the George S.K. Ty Advanced Instrumentation Building at the university’s Laguna campus in Biñan City.

The four-storey facility, which was named after Dr. Ty, houses the university’s research laboratories in different areas of science, engineering, and technology. It also houses a Nuclear Magnetic Resonance (NMR) Spectrometer — which is the most sophisticated of its kind in the country — that thoroughly analyzes and interprets molecular and compound structures.

The inauguration of the building was led by GTFI President Alfred Ty and DLSU President Br. Raymundo B. Suplido FSC. They were joined by other officers of GTFI, Metrobank Group subsidiaries and affiliates, as well as DLSU administrators.

“The Lasallian identity of a spirit of faith, zeal for service and communion in mission, and its motto Religio, Mores, Cultura, resonates the vision and mission of GTFI of addressing the needs of the less privileged to improve the quality of their lives,” Mr. Ty said in a message.

“It is for these reasons that GTFI partnered with DLSU in the construction of the Dr. George S.K. Ty Advanced Instrumentation Building — an affirmation of Dr. Ty’s commitment to support and sustain the advancement of science, technology and engineering education in the Philippines,” he added.

For Br. Suplido’s part, he expressed his appreciation for the late philanthropist and the GTFI for choosing DLSU as its beneficiary.

“On behalf of the De La Salle University community, I would like to extend our humble and sincere gratitude for being chosen as a partner and beneficiary of Dr. Ty and his Foundations’ trust and generosity. Rest assured, his faith in our brand of education will bear much fruit, not only with the achievements of current and future Lasallians, but with the values and virtues that Lasallians will carry with them into the workplace and for the benefit of our country,” Br. Suplido said. — Mark Louis F. Ferrolino

Partners in giving help and hope

Remembering George S.K. Ty: the legacy of a titan

The Metrobank Group, founded and formerly chaired by the late Dr. George  S.K. Ty, and the Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) have been strong partners in uplifting the lives of Filipinos. Since 2001, the two organizations have been giving help within the Filipino-Chinese community through the Share a Gift of Education project. They have also extended their helping hands throughout the country as Metrobank funds the various civic projects of FFCCCII.

The Metrobank Foundation, Metrobank’s corporate social responsibility arm, in partnership with the FFCCCII established Share A Gift of Education (SAGE) in 2001. A brainchild of Dr. Ty, this program’s objective is to provide educational assistance to qualified members of the Filipino-Chinese families.

Currently, SAGE is at its third iteration, aptly named SAGE III. In a statement, the Metrobank Foundation shared that through a P15 million fund, the SAGE III will support 100 students from 33 Filipino-Chinese schools across the country. Among these schools, 15 are in the National Capital Region, 5 are in Region 6, 3 in Region 5, 2 each for Regions 8 and 11, and 1 each for Regions 1, 3, 4A, 7, 12, and the CARAGA region.

Aside from this assistance program, the Metrobank Group continues its strong ties with FFCCCIII by funding the organization’s civic projects. Last January, Arthur Ty, current chairman of Metrobank Group, turned over P4 million to Domingo Yap, president of FFCCCII, to support two major projects.

First of the projects that Metrobank will support is the Filipino-Chinese Friendship Dome in Marawi City. Some P2 million from Metrobank’s donation will go to this 4,000-seat civic, cultural, and sports facility, which is expected to be completed in 16 to 18 months from groundbreaking.

FFCCCII sees the dome as an area that will showcase culture, promote athletics, as well as facilitate commerce in war-torn Marawi. “It is the Filipino-Chinese community’s fervent wish that this donation will help in the healing of the people of Marawi from the scars of war and destruction,” Mr. Yap was quoted as saying in a BusinessWorld report.

Designed by Mindanao-born Arch. Jose Siao Ling, who also designed the 20,000-seat Mall of Asia Arena in Pasay City, the Friendship Dome is said to be the largest single donation given by the Filipino-Chinese community in the country.

The other Metrobank-supported project by the FFCCCII is the Operation Barrio Schools, where the other half of the group’s donations will proceed. Through this program, FFCCCII constructs and donates classrooms in rural areas and so provides the youth in such areas access to basic education.

The organization has been doing this program since the 1960’s, and — according to a report by the Philippine News Agency — the project has built 5,602 classrooms nationwide to date.

It was under this program that Dr. Ty donated public school buildings throughout the country, beginning with a barrio school in Jolo, Sulu over five decades ago. At present, as Metrobank Foundation President Ancieto Sobrepeña was quoted as saying, such “long-standing partnership of helping uplift the educational system of the country” continues. — Adrian Paul B. Conoza

Gov’t backs down from rice import halt

THE GOVERNMENT has backed down from suspending rice importation amid the ongoing harvest, saying on Thursday that it will be stricter on issuance of sanitary and phytosanitary import clearances (SPSIC) instead.

“Hindi namin pinapa-stop (We did not stop importation). We are implementing the law properly,” Agriculture Secretary William D. Dar said in a news conference on Thursday in Quezon City.

He said that was the decision after his meeting on Wednesday evening with President Rodrigo R. Duterte — who had said last Tuesday night that he had ordered the suspension of rice importation during the late September-to-mid-December harvest in order to arrest the steep 17% fall in farmgate prices in the nine months to September — Executive Secretary Salvador C. Medialdea and Finance Secretary Carlos G. Dominguez III.

A farmers group had questioned the legality of the order since there is no provision authorizing the president to suspend rice importation under Republic Act No. 11203, which liberalized importation of the staple after it was enacted on Feb. 19.

The same law authorizes the president to adjust tariffs to address market contingencies when Congress is not in session.

Both government and private sector economists have credited this law — and the resulting eight percent drop in rice retail prices — with inflation’s slowdown to within the central bank’s 2-4% target range at 2.6% in the 10 months to October, compared to a near-decade-high 5.2% in full-year 2018.

“What I think the President meant is, number one, you have to look at the interest of the rice farmers, you have to look at the interest of the consumers. Among the interest of the consumers, you want to make sure that the rice is safe and that the prices are reasonable, so they will focus on that,” Mr. Dominguez told reporters on the sidelines of an event on Thursday at the New Clark City Sports Complex in Tarlac.

Mr. Dar said strict food safety requirements had helped reduce the volume of imported rice to 85,000 metric tons (MT) in October from a monthly average of 254,000 MT in the nine months to September.

Mr. Dar noted that, in Wednesday’s meeting, Mr. Duterte issued directives to address the issue of fast-falling farmgate prices.

First is being stricter when issuing SPSIC, as provided under Memorandum Order No. 28 that was issued on Nov. 12. This order strengthens the registration procedure for importers of plants, planting materials and plant products and compliance with food safety requirements. It also requires imported rice to arrive before SPSIC expiration. Shipping and arrival dates prescribed in the SPSIC must also be strictly observed.

Mr. Dar added that the department’s Bureau of Plant Industry “will conduct pre-inspection at the point of origin of imported rice…”

Mr. Duterte also ordered the National Food Authority to increase the country’s buffer stock to 30 days from 15 days through more local procurement, while turnover of inventory must also be accelerated by selling an average of 200,000 50-kilogram bags a day.

For 2019 and 2020, P3 billion will also be allotted yearly for cash assistance to the “most affected” farmers, to be sourced from increased duty collections on imported rice.

“Let’s give the law a chance to work. Wala pang isang taon (It hasn’t been even a year). Initially, there will be winners and losers,” Mr. Dar said.

He also assured that there is enough supply of rice by the end of the year. He said palay production is expected to reach 18.49 million MT, about 15% short of the country’s annual requirement. A total of 3.72 million MT of imported rice is expected to arrive by year end. — Vincent M. P. Galang with inputs from Reuters

House now eyes even higher tax for vapers

By Charmaine A. Tadalan
Reporter

THE HOUSE of Representatives Ways and Means committee is looking at imposing even higher excise tax rates on vapor and heated tobacco products in response to President Rodrigo R. Duterte’s order last Tuesday to ban their importation and use in public.

“… [G]iven the logic of the initial reported ban — precautionary principle — we might as well go for a higher rate than P25-45/ml,” Committee Chairman and Albay-2nd District Rep. Jose Ma. Clemente S. Salceda told reporters in a mobile phone message.

Mr. Salceda on Wednesday said the committee was to propose exclusion of vapor and heated tobacco products from higher taxes as they are already taxed under Republic Act No. 11346, which translates to about P1.4 billion in foregone revenues.

“The 1 (million) vape users are almost totally upper-middle to high-income class versus the 23 (million) smokers, with 7 (million) in the lowest 50%. The entry cost to vaping is relatively high at P1,600,” Mr. Salceda said.

The law, enacted on July 25, will gradually raise excise tax rates on tobacco products to P60 per pack by 2023 from P35 currently and introduced a P10 per pack rate on heated tobacco products (HTPs) in 2020. It also introduced the following rates on vapor products: P10 for 10 milliliter vapor products, P20 for 20 ml, P30 for 30 ml, P40 for 40 ml, P50 for 50 ml and so on.

House Bill No. 1026, approved on Aug. 20, seeks to impose rates on HTPs similar to those of regular tobacco products. It also proposed to increase excise tax rates on vapor products with nicotine salt to P30 per milliliter beginning 2020 and by P5 annually until it reaches P45/ml in 2023.

It provided a much lower rate on vape products with conventional nicotine at P4.50/ml in 2020; P5/ml in 2021; P5.50/ml in 2022; and P6/ml in 2023.

His counterpart, Senator Pia S. Cayetano on Thursday discussed her committee’s proposal to tax said products, even as she agrees with their total ban.

“I just have to push through with my part of the job. My job is to pass the taxation measure, whether or not there’s an EO (executive order) that comes out. If something comes out, whether it’s a total ban, I have to be ready,” Ms. Cayetano told reporters.

“This taxation has to be more or less of permanent nature. Pa’no kung temporary lang ‘yung ban tapos walang tax measure in place? (What if the ban were temporary and there is no tax measure in place when it ends?)”

Senate Bill No. 1074, meanwhile, proposed to increase rates on HTPs to P45 per pack in 2020 and by P5 every year until it reaches P60 in 2023. The same rates will be imposed on vapor products, whether they use nicotine salt or conventional nicotine. The bill now awaits approval of the proposed P4.1-trillion national budget for 2020 before it progresses in plenary.

Ms. Cayetano said she is in constant communication with other Senators and has relayed the request of the Department of Finance for them to approve the said measure, which Malacañang has certified as urgent, before the year ends.

The measure will partially fund implementation of Republic Act No. 11223, or the Universal Health Care Act (UHC), starting next year.

Health Secretary Francisco H. Duque III told reporters that the ban on these products will not have an impact on universal health care funding.

“There’s a very insignificant relationship between banning vapes and the funding for UHC. Why? Because the market of e-cigarettes and vapes is very small. It’s miniscule. That’s why it’s good that if it’s going to be banned now, habang kokonti pa, hindi pa maramdaman yung kanyang tax impact(while the market is still small, the tax impact will be negligible),” Mr. Duque said.

“At this point, I support the move to ban it while it hasn’t really had a much bigger share of the market.”

Ms. Cayetano said she will push for another measure to regulate use of e-cigarettes and vapor products.

“Taxation is just a means, a tool to help make these products that are harmful less accessible to the vulnerable, especially the youth,” she said.

“Pero meron din akong draft bill to regulate vaping and e-cigarettes, etc., na ready akong isalang at i-defend as soon as mapasa ko na ‘tong taxation portion (But I also have a draft bill to regulate vaping and e-cigarettes… I am ready to file the bill and defend it as soon as this taxation portion is approved).”

Among others, Ms. Cayetano is considering prohibition of the sale of e-cigarettes, heated tobacco and vapor products to people under the age of 25 years as well as a ban on or limits to advertisement space for said products and designation of select points-of-sale. — with Gillian M. Cortez

Foreign chambers push requirements for power, tourism, farm dev’t

FOREIGN business chambers in their eighth annual forum on Thursday outlined their recommendations for improvements in the country’s tourism, agribusiness and power sectors.

For the power sector, recommendations include resolving issues such as the high cost of power in the country, slow rollout of retail electricity competition and the government’s plan to adopt nuclear power.

“I think the most important is to ensure that we have power for everybody because the most expensive one is the one you don’t have. We need to have a proper plan,” Nabil Francis, president of the European Chamber of Commerce of the Philippines, said in an interview at the sidelines of the Joint Foreign Chambers of Commerce of the Philippines’ (JFC) The Arangkada Philippines Forum 2019 at the Manila Marriott Hotel.

Noting that “[t]his country is a fantastic engine for growth,” Mr. Francis, who is president and chief executive officer of Republic Cement Services, Inc., said: “Just the demography shows that there’s gonna be a huge increase in terms of power consumption — almost two percent growth per year of the population.”

For American Chamber of Commerce of the Philippines, Inc. Senior Adviser John D. Forbes, “[t]he process, the gestation period” for approving new baseload plants “is very long.”

“There should be new ones under construction now,” Mr. Forbes said in a separate interview, noting that a number of such projects in the pipeline “are too-long delayed,” while “…the number of yellow and red alerts is quite high so we’re watching out for power shortages in the future.”

Keiichi Matsunaga, president of the Japanese Chamber of Commerce and Industry of the Philippines, said the high cost of power is a concern even if this is offset by low labor cost. “We need government’s strong initiative to reduce the cost because the price of power per kilowatt-hour is very similar to Japanese price,” said Mr. Matsunaga, who is also general manager of the Manila branch of Mitsubishi Corp., even as he said that Japanese investors in the Philippines are more concerned with the tax regime and labor cost.

Among others, while the chambers said in their recommendations that “[a] regulatory framework for nuclear power generation is needed to consider its use” and “[a] solid framework serves as a decision point on whether or not to utilize nuclear technology,” Mr. Francis said the country’s nuclear aspirations should be “carefully studied.”

The JFC also proposed a well-studied capacity and reserve planning program and effective outage management. It called on government to eliminate regulatory risk for exploration and production of indigenous sources of energy, stimulate the adoption of e-vehicles, among others.

JFC’s recommendations for tourism focus on sustainable tourism and seamless travel through better infrastructure. Mr. Forbes said the government should make sure that “we don’t have such a large number of tourists in certain attractive destinations that are more than the destinations can handle… [while] at the same time increasing the volume of tourists.”

Agribusiness recommendations focused on financing, infrastructure and raising productivity, including inclusive financing for small farmers and fisherfolk as well as expanded private sector investments in post-harvest facilities, cold storage, and food terminals. The JFC also pushed for more public investment in farm-to-market roads, bridges and irrigation systems. — Jenina P. Ibañez and Victor V. Saulon

Inflation’s impact on low-income households eases further in October, slowest in 4 years

INFLATION, as experienced by low-income families, eased to its slowest pace in four years in October, the Philippine Statistics Authority reported on Thursday.

The inflation rate for the country’s bottom 30% income households clocked in at 0.8% in October, slower than the year-on-year overall increases of 0.9% in September and 9.5% in October 2018.

The latest reading for the bottom 30% inflation marked the slowest clip in four years or since October 2015’s 0.4%.

Year to date, the inflation for this income segment averaged 3.6%, slower than the seven-percent average in 2018’s comparable months last year.

This compares with the 0.8% headline inflation experienced by the average Filipino household in October that was slower than September’s 0.9% and 6.7% in October 2018.

The PSA uses the 2012 base year in computing the headline consumer price index (CPI), while the bottom 30% income households’ CPI uses 2000 prices.

Moreover, the CPI for the bottom 30% income segment of the population reconfigures the model basket of goods in order to make it more representative of the consumption patterns of the poor. For instance, food accounts for 75% of the theoretical basket of goods used by a poor household compared to an average household’s 35.5%.

Inflation in the food, beverages and tobacco index was 0.6% in October, lower than the 0.7% in September. Inflation likewise cooled in services at 2.8% from three percent the previous month.

Meanwhile, inflation steadied in clothing (2.8%), housing and repairs (3.5%), and miscellaneous items (2.2%).

On the other hand, the fuel, light and water index declined 0.7%, compared to September’s year-on-year 0.4% contraction. The food-alone index also declined 0.6% from 0.3% contraction previously.

“It looks like this particular CPI data has been tracking the headline number. The big mover in this economic segment is basically the food and non-alcoholic beverages index, parallel to the national CPI,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail. “Rice prices and other food items are critical to the movement of this specific population segment and has basically caused the continuing decline.”

For University of Asia and the Pacific Associate Professor Peter Lee U, easing food prices would explain the inflation downtrend for the bottom 30% income segment. “Partly, it may be that the decline is because we are coming from a high base. TRAIN may have pushed prices higher last year, so that this year’s prices look low by comparison,” Mr. U said, referring to Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which slashed personal income tax rates but also introduced additional levies on consumer goods such as fuel, cars and sugar-sweetened drinks.

To recall, inflation for the bottom 30% averaged 7.2% in 2018, reaching as high as 9.5% in September and October last year.

For UnionBank’s Mr. Asuncion, inflation for that income segment can be “expected to have slightly higher annual percentage increases” in the coming months due to “seasonal factors” as well as the impact of the African Swine Fever on pork and alternative meat. — Genshen L. Espedido

Inflation for low-income households eases further in October (2019)

Inflation for low-income households eases further in October (2019)

INFLATION, as experienced by low-income families, eased to its slowest pace in four years in October, the Philippine Statistics Authority reported on Thursday. Read the full story.

Inflation for low-income households eases further in October (2019)

Frozen II is set to heat up a box office in need of hits

WALT DISNEY CO. looks to have another hit on its hands with Frozen II, the sequel to the 2013 film that became the top-grossing animated picture of all time.

Disney expects the movie, which hits theaters in North America on Friday, to generate opening-weekend sales of about $100 million in the US and Canada. Outside forecasters see more, with Exhibitor Relations projecting $113 million and Box Office Pro at $130 million.

Those numbers would put the film squarely in hit territory, though Frozen II isn’t likely to break all-time records for an animated film. Incredibles 2, released last year by Disney, generated $182.7 million in its opening weekend, for example.

Topping the original 2013 film’s worldwide gross of $1.29 billion may also be a stretch. That picture became a cultural phenomenon — with frantic parents searching to find replicas of Elsa’s signature blue dress for their daughters and kids belting out the hit song “Let It Go” in endless YouTube videos.

David Miller, an analyst with Imperial Capital, predicts the movie will gross $970 million worldwide, less than the original. Many of the kids who saw the first film have reached an age at which they’ll be less likely to see an animated princess picture, he said.

In the new film, original stars Idina Menzel and Kristen Bell reprise their roles as the snow-crossed Nordic sisters. Chris Buck and Jennifer Lee also returned to direct the screenplay, which was written by Lee. And the husband and wife composing duo of Kristen Anderson-Lopez and Robert Lopez are back with seven new songs.

AWARD WINNER
The first film captured two Academy Awards — for best animated picture and best original song. It also cemented a renaissance for Disney animation after a long run of disappointments in the 2000s.

Disney is delivering a big marketing push for the sequel, peddling white chocolate cupcakes at the Norway pavilion at the company’s Epcot theme park, along with backpacks, dolls, and “Raised by Trolls” T-shirts.

Both Box Office Pro and Exhibitor Relations predict the film will be among the biggest hits this year. Their forecasts for total domestic sales range from $415 million to as much as $520 million. Budgets for Disney animated films typically approach $200 million.

Theater owners could use the help. Domestic ticket sales for the year to date are down 6.2%.

ALL FILMS YEAR TO DATE
Menzel and Bell received stars on Hollywood’s Walk of Fame on Tuesday. In the film, the pair once again must face their demons as Elsa copes with her magical power and Anna her habit of wandering into trouble.

“If Frozen was happily ever after,” Lee, the screenwriter, said in press notes for the film, “then Frozen II is the day after happily ever after.” — Bloomberg

1...9,8239,8249,825...13,864Page 9,824 of 13,864
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube