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Corona Beer brewer disputes claims of virus impact on sales

CONSTELLATION BRANDS Inc. said on Friday that concerns that the novel coronavirus outbreak is having a negative impact on consumer sentiment towards its Corona beer brand are “unfounded,” with sales of the beverage continuing to rise.

Citing recent IRI retail trends, the company said dollar sales of its Corona Extra beer were up 5% in the US for the latest four-week period ended Feb. 16, nearly double the 52-week trend for the brand.

“Furthermore, all business units supporting our beer business are seeing positive sales trends for the brand thus far this calendar year,” the company said in a statement.

The company said it was responding to “recent misinformation” about the impact of the virus on its business that has been circulating in traditional and social media. — Bloomberg

DNA Holdings says it can detect COVID-19 in 3 hours

Healthcare company DNA Holdings Corp. (DNA) said it has developed a system that allows the detection of the novel coronavirus disease 2019 (COVID-19) “within three hours.”

In a statement e-mailed to reporters on Wednesday, the listed healthcare company said that it now has a faster way to detect if a person is infected with the deadly virus that is believed to have originated in Hubei Province in China.

“This early detection [system] outpaces the current… system utilized in the Philippines which requires 14 days of quarantine and observation and 2 days for confirmation of results,” the company said.

DNA said its detection system uses a swab of DNA from a suspected coronavirus disease patient. The sample will be examined to find out if there are genetic features that match with the sample DNA of a confirmed COVID-19 patient.

The company said the procedure can be carried out in the Philippines.

DNA Chief Information Officer and Medical Director Krischelle D.G. Halili said: “Using DNA gives us a more accurate way to detect if someone is infected with the virus. We would see results more immediately, which lessens the possibility of that person getting hospital-acquired infections from a long quarantine.”

The listed company also noted that there are currently about 80,000 confirmed COVID-19 cases worldwide. It said the number is “nearly ten times more than the total cases of the severe acute respiratory syndrome or SARS in its eight-month period.”

DNA said further that its system requires the confinement of patients in a complete isolation room system.

It said the isolation room is capable of disinfecting the air of airborne pathogens and it also has an ante-room that can prevent contamination from doctors, nurses and med-techs.

DNA President and CEO Robert van Zwieten said: “This kind of system helps keep the virus from spreading when people move from room to room.”

“It becomes a matter of national security so containing the virus and keeping it from spreading is of utmost importance,” she added.

The company said the system will be delivered to hospitals. It is also hoping that the Health department will adopt the system for wider use.

“DNA is hoping for quick adoption in order to debilitate the rate at which the COVID-19 is infecting people. Should the process of proper containment develop too slowly, the COVID-19 may continue to spread even during the summer,” it said.

Moreover, the company is currently developing a “faster one-step kit that will provide results within 15 minutes.”

DNA said it is targeting to complete and produce the kit as soon as possible.

It is also looking to produce an improved version of N95 grade masks “to answer the low supply of masks due to lack of exports from other countries.” — Arjay L. Balinbin

British banks likely to have new CEOs

AN UNPRECEDENTED WAVE of boardroom change is stirring up British banking. At least three of the biggest UK lenders may replace their leaders by the end of the year — if not sooner. London-based bank chiefs are struggling against the same headwinds as their European counterparts: subpar growth, low interest rates and increasingly impatient chairmen and activist investors.

BARCLAYS
CEO: Jes Staley

Start Date: December 2015

Former Jobs: Best known for many years at JPMorgan, where he once ran the asset-management business and its investment bank.

At Barclays Plc, home to Britain’s flagship investment bank, activist investor Edward Bramson has long bedeviled Chief Executive Officer Jes Staley with strategy critiques. But this week, Mr. Bramson explicitly called for Mr. Staley’s removal from the board in the wake of a regulatory investigation into the American-born CEO’s ties “dating to his days as a JPMorgan Chase executive” in the 2000s to the deceased sex offender and financier Jeffrey Epstein.

“The public interest not only requires the likes of Barclays to set the highest standards, but it also dictates that there should be unvarnished transparency on major ethical questions and on the suitability of individuals that lead them,” Mr. Bramson’s Sherborne Investors wrote.

The board has said it fully supports Mr. Staley. People with knowledge of the bank’s deliberations have said the bank’s succession plan could see him leave Barclays next year; however, that might depend on how the UK Financial Conduct Authority’s probe evolves.

“If Staley knowingly continued providing financial services to Epstein, which could have helped to facilitate the latter’s child prostitution activities, in order to reap personal career benefits, it raises the question as to whether he is suitable to be an executive of a financial institution,” according to Sherborne.

STANDARD CHARTERED
CEO: Bill Winters

Start Date: June 2015

Former Jobs: Also a former JPMorgan investment-banking boss, and like Mr. Staley, was once seen as a potential successor to Jamie Dimon.

Though the stock has lost almost half its value since he took over almost five years ago, Bill Winters is widely viewed as having stabilized Standard Chartered Plc. He’s attacked the Asia-focused bank’s bloated cost base after grappling with historic conduct issues and bad loans.

However, Chairman Jose Vinals has informally approached banking executives this year to gauge their interest in replacing Mr. Winters, according to people familiar with the matter, who say his search is not currently part of any formal selection process. Mr. Winters himself previously said that his own “specific objective is to tee up the succession candidates.”

Mr. Winters had a public spat last year with investors who opposed his pension entitlements, saying their criticism was “immature.” While Standard Chartered eventually cut his retirement allowance, the chairman was not happy with the American-born CEO’s public handling of the situation, some of the people said. StanChart said the chairman and the board would like to keep Mr. Winters in the role for “as long as possible,” and that he has no plans to leave.

HSBC
CEO: Noel Quinn (interim)

Start Date: August 2019

Former Jobs: A lifer at HSBC and predecessor firms, he was previously the firm’s head of global commercial banking.

HSBC Holdings Plc Chairman Mark Tucker still hasn’t found a permanent replacement for John Flint, who lasted just 18 months in the CEO job until his ouster in August.

Last week, Jean Pierre Mustier turned him down, opting to stay at UniCredit SpA, the Italian bank the Frenchman is credited with turning around. HSBC, a much larger institution, would likely have offered him a greater pay package.

Interim CEO Noel Quinn, an HSBC lifer, was once believed to be a shoo-in for the role, but the process dragged on and by this year he was no longer believed to be the favorite. The stock has slumped since Mr. Quinn unveiled a strategy overhaul last month that promised 35,000 job cuts but fell flat with investors.

WHO’S NOT IN TROUBLE?
Lloyds CEO: Antonio Horta-Osorio

Start Date: March 2011

Former Jobs: He spent almost 20 years at Spain’s Banco Santander SA, and ran its British business. He previously had stints at Citibank and Goldman Sachs.

Lloyds Banking Group Plc has been a relative island of stability, but there are questions of generational change since Antonio Horta-Osorio has been the CEO for nine years. Britain’s biggest mortgage lender is due to present its next three-year strategic plan in 2021, and it’s unclear whether the Portuguese-born banker aims to stay long enough to deliver it. There’s at least one change at the top coming soon: Chairman Norman Blackwell plans to step down in 2021.

RBS CEO: Alison Rose

Start Date: November 2019

Former Jobs: a lifer at RBS. Ms. Rose has worked at RBS and one of its predecessor firms, National Westminster Bank, since joining from university in 1992.

Royal Bank of Scotland Group Plc is likely to be spared any executive turmoil. Alison Rose took over the reins as CEO in November in a well-flagged transition from her longtime predecessor. The first woman to lead one of the big British banks, she will be busy executing a plan to cut back the securities business, renaming the company NatWest after its English branch network, and aiming to take the bank out of state ownership. — Bloomberg

Dining Out (03/05/20)

Graduates at Marco Polo Ortigas Manila

BEGINNING March 1, graduates and their loved ones can go to Marco Polo Ortigas Manila’s all-day restaurant, Cucina, which treats the Class of 2020 with a complimentary meal when accompanied by four full-paying adults on their visit. To avail this promotion, the graduate must present proof of school identification or participation in their commencement ceremony. This offer is valid during lunch or dinner buffet service until end of July. Among Cucina’s specialities are paella mixta, freshly-made pasta and pizza, and fresh roast selection featuring the day’s best catch. The restaurant’s signature dishes include Pan-seared local sea bass with shrimp and dill sauce, Slow-braised beef with radish and red wine sauce, and Marinated roast chicken with white herb sauce. For more information and reservations, call 7720-7720 or e-mail restaurant.mnl@marcopolohotels.com.

Century Park says Happy Birthday

THE Century Park Hotel Manila helps people celebrate their birthday with its 2+1 Birthday Promo which is ongoing until Dec. 30. With two full paying adult guests, birthday celebrants can enjoy a free Seafood and Prime Rib lunch or a dinner buffet. The birthday promo can be availed on the day itself, seven days prior or seven days after the birthday. A complimentary birthday cake also awaits the celebrant. The promo is not offered in conjunction with other discount cards, promotional cards and discounts. Café in the Park offers prime ribs and a variety of fresh seafood for lunch and dinner for P1,695 net for adults and P847.50 net for children from six to 10 years old. Kids ages 5 years and below can dine free-of-charge. For table reservations, call Café in the Park at 8528-5827 or e-mail foodbev@centurypark.com.ph

Japanese dining at Astoria

CRAVING authentic Japanese food? Astoria Plaza’s Minami Saki offers an inventive dining experience that is different from the usual Japanese fare. Minami Saki is helmed by Executive Chef Kimito Katagiri, who has created dishes that remain true to their Japanese roots. These include the Aburi Sushi — a lightly torched sushi draped with a secret sauce. One may choose to order three or five kinds of Aburi Sushi (salmon, tuna, lapu-lapu, hamachi, and unagi or freshwater eel). As yakimono, or grilled dish, the Kaki Papaya Yaki was a unique choice: roasted Japanese oysters set in a half ripe papaya and covered in aburi sauce. Complementing the yakimono is the teppan yaki dish: Usuyaki Steak with Mushroom, with a medley of shiitake, shimeji and enoki mushrooms rolled in a striploin steak and grilled, served with an onion dipping sauce. Minami Saki by Astoria is at the ground floor of Astoria Plaza in Ortigas Center, Pasig City. For inquiries and reservations, call 8687-1111 ext. 8164 and 8165.

M Bakery goes local

When M Bakery was first launched in Manila, it highlighted the flavor of local favorite ube or purple yam in a featured cake and cupcake. Its Banana Pudding also got some local lovin’ when its Choc Nut version came out last year. Now, M Bakery releases more treats with locally distinct flavors: the Manila-exclusive Mango Jamboree made with pecan shortbread crust, layers of cream cheese and whipped cream filling, and topped with fresh mango chunks (P325 per slice); Calamansi Cupcake and Muffin, with calamansi filling and meringue icing for the cupcake (P165), while the muffin is made with utter-based batter with fresh calamansi juice and a pinch of calamansi zest (P185); Choc Nut Cupcake which is filled with Choc Nut spread, topped with Choc Nut buttercream and chunks of Choc Nut bars (P165). M Bakery is at One Bonifacio High Street Mall, 5th Avenue corner 28th Street, Bonifacio Global City. Call 847-9829 or 917-633-1718 for advance orders.

Andrew Café’s Pinoy cookies

ANDREW CAFÉ now has a line of cookies featuring locally produced ingredients: the Innovative Pinoy Cookie Selection. There is the Chocnut at Gatas, a blend of Chocnut and Mik-Mik sweetened milk powder; Tsokolate at Kape, a salted espresso and dark chocolate mix, using chocolate and coffee from Batangas; and Pasas at Kasoy, featuring raising and the cashew nuts from Antipolo. These snacks come in two varieties: a large cookies for P50 each and a box of eight bite-size cookies for P100. The Innovative Pinoy Cookie Selections is available until April 4 at Andrew Café. For bulk orders, contact Andrew Café two days before the pick-up through 8230-5100 local 1888.

Popeyes’ Heart Biscuits

POPEYES now has heart-shaped, honey-glazed biscuits, available for a limited time only. The Heart Biscuits are available for P45 each, or P125 for a box of three. Pair it with Popeyes signature spaghetti, an exclusive offering in all Popeyes’ branches in the Philippines. Popeyes also created a “For Us” bundle, which includes two plates of spaghetti, two Heart Biscuits, and two drinks, for P188, and its “For Me” variation. For details, visit www.popeyes.ph or follow them on Facebook and Instagram @popeyesph.

Spamming Pizza Hut

PIZZA HUT has a new flavor: the SPAM Cheesy Bites Pizza, topped with SPAM cubes with poppable bites filled with SPAM and mozzarella that you can dip in marinara sauce. This new pizza is priced at P419 for regular size and P639 for large. There is also a SPAM Triple Pizza Treat promo, that includes three regular-sized pizzas: Hawaiian Supreme, Cheese Lovers, and SPAM Cheesy Bites for P699. For details visit www.pizzahut.com.ph or call 8911-1111.

Board games from the 1980s are being rebooted for Generation X

IN 1981, Milton Bradley Co. released what may be the most Generation X board game ever. The Dark Tower — a fantasy adventure with flashing lights and sound effects emanating from a titular plastic tower — was a huge hit with kids. It even had its own, slightly weird television commercial featuring Orson Welles.

Four decades later, those kids are entering middle age, some with children of their own whose hands seem welded to smartphones. Perhaps out of nostalgia or a last-ditch effort to engage their offspring, those Gen Xers are now looking back to a time when fun didn’t require a glowing screen.

But what was cool during the Reagan administration may fall flat in the 21st century, and childhood copies of favorite games have probably disintegrated in your mom’s attic.

Enter Restoration Games, one of several board game makers trying to capitalize on the tabletop gaming renaissance. Restoration is remaking and reissuing some of the treasured games of old — both for wistful Gen Xers and their more discerning children.

Restoration’s planned Dark Tower reboot, Return to Dark Tower, incorporates an app into gameplay, and its tower — with glowing symbols that reveal enemy locations and assign quests — is more complex than that of the old version. The tower can also send little plastic skulls tumbling onto the game board — always a bad sign for someone.

“We had to figure out how to make it impressive in 2020,” said Rob Daviau, Restoration’s co-founder. Daviau spent three years perfecting the new version, working with a team of co-designers that included Isaac Childres, who created Gloomhaven, the top-rated title on Board Game Geek, the internet’s largest community of hobby gamers.

“You want to relive your childhood, or share your childhood with your own children,” Daviau said. “You see this in movies, Broadway, television: the constant rebooting of things from the past. Board games are really no different.”

If Sharad Puri’s reaction is any measure, Daviau’s efforts may have succeeded.

As an 11-year-old, Puri said he was obsessed with Dark Tower. “I would set it up and just play with it for hours,” he said. Fearful his little brother would take some of the pieces, Puri said he once locked him in his room during a game.

Now 48 and working as an IT manager in Bloomfield Hills, Michigan, Puri said he pledged $225 on Kickstarter for the top-level version of the new Dark Tower, which includes additional miniatures, upgraded tokens, and other content that won’t be part of the retail release.

“The instant it went up, I backed it,” Puri said of the fundraising campaign. “I was like, ‘Oh, I am all over this!’”

Board game publishers have increasingly turned to Kickstarter for help. Games are the largest funded category on the crowdfunding site, with tabletop games holding the biggest share of that, bringing in $176 million last year.

Singapore-based CMON, a major player in hobby board gaming with almost $12 million in annual revenue, has run several multimillion-dollar Kickstarter campaigns for its games. Restoration Games launched a three-week campaign for Return to Dark Tower on Jan. 14, accumulating $4 million.

For Restoration, the appeal lies in the ability to translate excitement among enthusiasts into needed capital.

After the first copies are delivered to backers, the game will eventually appear in stores, where it will cost a whopping $150. That could end up being a critical revenue stream: The company’s other big Kickstarter reboot, Fireball Island: The Curse of Vul-Kar, has sold 50,000 copies in stores, the company said, twice the number that were delivered to crowdfunders.

Restoration was founded in 2016 to secure the rights to classic game titles and reintroduce them with updated rules. Part of that process is determining if a game is in the public domain, or if there’s someone who needs to be paid for permission.

“Some have [intellectual-property] holders, and others don’t,” Daviau said of old games. “Part of what we do is figure out the status of each game and find all the people who might, in some way, be a stakeholder.” He declined to say which games required payouts.

During his 14 years working at game giant Hasbro, where he labored on such mainstream titles as Axis & Allies and Heroscape, Daviau developed the “legacy” concept, first implemented in Risk Legacy, a 2011 update to the classic of the same name.

Now, with four years under his belt at Restoration, Daviau said the company is releasing a handful of games each year and has annual revenue of about $2 million. Some of the other titles he’s reintroduced may ring some bells, such as Stop Thief, a game of deduction in which players are detectives trying to catch criminals; others, such as the racing game Downforce, may not be as familiar.

Industry site ICv2.com reported in April that North American sales of tabletop games scored $1.5 billion in 2018, while Research & Markets has forecast that the segment could reach $12 billion globally by 2023.

“I’d never have predicted the growth we’ve had over the past 10 years,” said Milton Griepp, chief executive officer of ICv2. John Coveyou, the founder and CEO of Genius Games and the owner of Artana Games, said the ubiquity of technology is a major driver of board gaming’s resurgence.

“We spend a lot of time in front of a screen at work; we get home and we spend a lot of time with movies on Netflix,” he said. “One major factor we’ve seen in the hobby game industry is: It’s a way for people to interact, to have something social.”

That’s the reason he publishes games such as Cytosis, whose compete to try and detoxify a human cell by building enzymes and hormones. Then there’s Tesla vs. Edison: War of Currents, in which players vie to start the first successful electrical company.

Daviau believes there’s still room for growth in the board game industry, even for such smaller publishers as Restoration Games and others serving the hobby game niche. But $150 per game?

“There’s a big gap between being in the hobby markets and being on the shelf in Target,” Daviau said. — Bloomberg

How PSEi member stocks performed — March 4, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, March 4, 2020.

How Philippines’ ‘vulnerable employment’ sector compares with its Southeast Asian neighbors

How Philippines’ ‘vulnerable employment’ sector compares with its Southeast Asian neighbors

BSP expected to reduce rates by 50 bps more on Covid-19

J.P. MORGAN expects the Monetary Board (MB) to cut rates by a further 50 basis points (bps) this year as part of a broader easing trend across Emerging Asia to shield their economies against the negative impact of the coronavirus (Covid-19) outbreak.

“(For the Philippines), we add a 25-bps cut in the benchmark RRP (reverse repurchase) rate at the March 19 Monetary Board meeting, in addition to our forecast for a 25-bps reduction in 2Q20, bringing the policy rate to 3.25% by end-2020,” the investment bank said in a note issued Wednesday.

The bank said other central banks in the region might also follow the 50-bps reduction effected by the Federal Reserve between regular meetings on Tuesday, in a move to shield the US economy from the impact of Covid-19.

Specifically, it said it expects another 10-bps cut from China this month, on top of the 10-bps reduction expected in April as well as 25-bps cut in the third quarter for South Korea and Indonesia, on top of the anticipated 25-bps reduction this month for the former and next month for the latter.

J.P. Morgan added that it expects the central banks of India and Thailand to deliver the projected policy cuts sooner.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno has said that he is “not totally ruling out” an overall reduction of 50-75 bps this year as monetary authorities continue to assess the impact of the outbreak.

The MB trimmed its key policy rates on Feb. 6 by 25 bps, bringing the rate on the central bank’s reverse repurchase, overnight deposit and lending facilities to 3.75%, 3.25% and 4.25%, respectively.

J.P. Morgan said central banks in the region will likely still have room for further easing “even with the revisions in the policy rate path… (as) regional central banks (are) yet to catch up to the level of Fed funds cuts since end-2018.”

“The monetary easing complements the fiscal accommodation that we anticipate will amount to 0.4% pts of GDP (gross domestic product) in EM Asia that comes on the heels of downward growth revisions in China and EM Asia due to Covid-19,” it said.

However, it maintained its 6.2% GDP growth projection for the Philippines while its neighbors received downward revisions, including South Korea and Taiwan, among others, as they are more affected by supply chain delays in China and Hong Kong.

Socioeconomic Planning Secretary Ernesto M. Pernia has quantified the impact of Covid-19 on the economy, especially on travel, tourism and trade sectors, as a one-percentage point reduction in full-year GDP growth, if the virus persists until the end of the year.

The government targets 2020 GDP growth of 6.5-7.5%. — Beatrice M. Laforga

Palace to oversee red tape reduction efforts

THE Anti-Red Tape Authority (ARTA) said the Office of the Executive Secretary (OES) will lead a program to reduce process times for government approvals by more than half.

ARTA’s streamlining program, known as the National Effort for the Harmonization of Efficient Measures of Inter-related Agencies (NEHEMIA), hopes to streamline application waiting times, documentary submissions, and fees for approvals sought by “sectors of economic and social significance” by 52% over 52 weeks.

The announcement of the OES as lead coordinating agency for NEHEMIA during its launch Wednesday indicates the availability of a direct line to the President to resolve any snags.

ARTA and the Office of the Cabinet Secretariat will serve as the program’s co-chairs.

Meanwhile, the Department of Information and Communications Technology (DICT) will lead the development of digital infrastructure to automate government services.

Priority sectors in the first phase of the program have been identified as common towers and interconnectivity, housing, food and pharmaceuticals, logistics, and energy.

“Through the reforms that will be created by Program NEHEMIA, we will be aligned with the President’s directive to eliminate ‘overregulation’ in the government,” ARTA Director-General Jeremiah B. Belgica said.

NEHEMIA is authorized by the Implementing Rules and Regulations of Republic Act 11032, or the Ease of Doing Business and Efficient Delivery of Government Services. RA 11032 itself amends RA 9485, the Anti-Red Tape Act of 2007.

ARTA said additional authorization for the program was provided by Administrative Order 23, which seeks to eliminate overregulation and promote efficiency of government processes.

ARTA monitors and ensures the compliance of government agencies in eliminating overregulation. ARTA reviews compliance reports by agencies, and submits recommendations to the Office of the President.

ARTA said that it will also review proposals to integrate agencies, as government offices currently function independently. The current set-up, the authority said, creates redundant processes.

“The Program NEHEMIA shall break down the silo system and the lack of interconnection among government agencies,” Mr. Belgica said.

“Our government must be a singular unit serving the country, with the citizens being our primary client.” — Jenina P. Ibañez

DoF scrambles to save CITIRA with Senate determined to pass Covid-19 measures

THE Department of Finance (DoF) has once more asked the Senate to prioritize the Corporate Income Tax and Incentives Reform Act (CITIRA) bill just before Congress goes on a seven-week break, to attract more companies seeking a landing spot after exiting China.

The Senate leadership last week signalled that the tax measures will likely take a back seat as the chamber is expecting to prioritize measures that will help contain the spread of coronavirus disease 2019 (Covid-19).

“We are requesting the Senate leadership to consider prioritizing CITIRA,” Finance Secretary Carlos G. Dominguez III told reporters in a Viber messsage Wednesday.

Mr. Dominguez said CITIRA, which will gradually lower corporate income tax to 20% from 30% by 2029 and streamline tax incentives could bring in “higher investments.”

Separately, Finance Undersecretary Karl Kendrick T. Chua said the bill may help attract investors that are exiting China over concerns on its ongoing trade dispute with the US.

“Aside from the Philippines’ talented English-speaking workforce and young robust market, which are the main attractions to investors, a competitive tax incentive system under CITIRA will help draw in investments that are coming out of China as a result of the US-China trade war,” Mr. Chua said in a statement Wednesday.

He said the proposed tax scheme under CITIRA will put the country at par with its neighbors in the Association of Southeast Asian Nations (ASEAN).

“The sooner CITIRA is passed, the sooner these investments will materialize,” he added.

The Senate ways and means committee endorsed its version, Senate Bill No. 1357, to the plenary last month, with its chairman, Senator Pilar Juliana S. Cayetano, expressing the hope that it will be approved on final reading before the March 14-May 3 break.

Earlier, Philippine Economic Zone Authority (PEZA) Director General Charito B. Plaza also asked legislators to halt their discussions on the bill to consider the damage that Covid-19 has done to exporters.

Mr. Dominguez had expressed the hope that the Senate pass its version before the Easter break.

Asked comment, the Senate leadership had not replied at deadline time.

Also before the Senate is the Passive Income and Financial Intermediary Taxation Act bill which aims to simplify the tax structure for financial instruments. — Beatrice M. Laforga

Palay farmgate price edges up in late February

THE farmgate price of palay, or unmilled rice, rose 0.4% week-on-week to P16.06 per kilogram (kg) in the third week of February, according to the Philippine Statistics Authority (PSA).

In its weekly update on palay, rice, and corn prices issued Wednesday, the PSA said the average wholesale and retail prices of well-milled rice fell 0.1% week-on-week to P37.04 and P41.18 respectively.

The average wholesale price of regular milled rice fell 0.6% week-on-week to P32.83, while the retail price declined 0.1% to P36.30.

The yellow corn grain farmgate price retreated 0.2% week-on-week to P12.42. The wholesale price was flat at P21.54 while the retail price fell 0.2% week-on-week to P24.81.

The average farmgate price of white corn grain remained at P13.36 per kg. The average wholesale price of white corn grain fell 0.3% week-on-week to P15.43. The retail price was unchanged at P26.72.

Farmgate prices of palay, the form in which farmers sell their harvest, have been edging up slightly after significant declines in the wake of the signing of the Rice Tariffication Law in 2019.

The law was implemented in response to the inflation crisis of 2018, when stocks of subsidized rice held by the National Food Authority dwindled, leaving poor farmers who depend on cheap rice vulnerable. The law permitted unrestricted imports of Southeast Asian grain, which had to pay a 35% entry tariff, expanding supply and boosting government revenue.

Domestic farmers have since had to compete with cheaper foreign grain as traders gained alternative source of supply, depressing the prices they offered to buy up the domestic harvest and causing farmer incomes to plunge. — Revin Mikhael D. Ochave

House committee to investigate forex imports by travelers

A HOUSE committee has scheduled a inquiry for next week on the influx of foreign currency to determine whether these cash imports by travelers constitute money laundering.

“I think this is so serious a topic, that we must not let it just go. So I feel the obligation to motu proprio conduct an investigation and I think this will give us a great opportunity to look into the loopholes of our existing policy on this movement of funds,” Quirino Representative Junie E. Cua, who chairs the committee on banks and financial intermediaries, said at a hearing Wednesday.

Official actions taken on a motu proprio basis refer to moves undertaken on an agency’s own initiative, without being requested to do so.

Mr. Cua said that as long as the money is declared, anyone can bring money into the country, even if it exceeds the $10,000 declaration threshold for travelers.

“Under our rules, when you carry more than $10,000 for as long as you declare it, then you are allowed to bring that in. So doesn’t that trigger suspicion… (and set off) some kind of an alarm?” he said.

“I think there should be a process of validation before we really allow them to come in. We need to validate first the origin, where it’s from, (and what it will be used for),” Mr. Cua added.

According to Anti-Money Laundering Council (AMLC) Executive Director Mel Georgie B. Racela, bringing in foreign currency is not deemed suspicious.

“The bringing in of foreign currencies is not a suspicious activity per se. So it’s merely false declaration or misdeclaration that they are looking into. If you fully and accurately disclosed the currency you are bringing in, all jurisdictions will leave you free,” he said.

Mr. Racela said that if funds do not pass through the banking system, they can pass through to other entities such as casinos and online gaming operators, which are subject to money-laundering rules.

He noted, however, that funds can still enter through the real estate industry, a sector not covered by the AMLC, offering a channel for the entry of dirty money.

“If their reason is to purchase real properties, condominiums, that is where the loophole will come in because we have not covered the real estate brokers and developers. But if we cover them, if we include them, then the reporting system… will be implemented by that sector and we will be able to gather information on that,” Mr. Racela said.

The AMLC has signed a Memorandum of Understanding (MoU) with the Bureau of Customs (BoC), Bangko Sentral ng Pilipinas (BSP), and Bureau of Investigation (BI) in relation to the “implementation of foreign currency declarations,” Mr. Racela said.

“So the primary mover and the one that is actually regulating foreign currency movements is the BSP and we are merely implementing BSP Circular Number 308. And the primary implementer in the airport is the Bureau of Customs. Pursuant to our MoU, the Bureau of Customs should forward these declarations, as well as the summary of these declarations… to the AMLC,” he said.

BSP Circular No. 308 provides that “any person who brings into or out of the Philippines foreign currency in excess of $10,000 or its equivalent is required to declare the same in writing and to furnish information on the source and purpose of the transport of such currency.”

As per current rules, Mr. Racela said the AMLC can only verify from their “financial intelligence unit counterparts” the legitimacy of funds entering the country. — Genshen L. Espedido