BusinessMirror August 29, 2019

Page 1

SM TOPS SMC, AYALA IN ‘FORBES’ LIST By VG Cabuag @villygc

S

M Investments Corp., the holding firm of the Sy family, bested several other family-owned Philippine conglomerates that made it to Forbes Magazine’s inaugural Best Over A Billion list. The list spotlights 200 top-performing listed companies across the Asia-Pacific region with revenues of $1 billion or more. SM had revenues of $7.99 billion, followed by San Miguel Food and Beverage Inc. with $5.44 billion and JG Summit Holdings Inc. at $5.33 billion. Other local firms that made it to

ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year

the list were Ayala Corp. ($3.79 billion), the Ty-family led GT Capital Holdings Inc. ($3.79 billion), Lucio Co’s Cosco Capital ($3.2 billion), fastfood chain operator Jollibee Foods Corp. ($3.06 billion) and property developer Megaworld Corp. ($1.02 billion). China’s behemoths Alibaba and Tencent Holdings topped the list with sales of $56.16 billion and $47.49 billion, respectively.

Best 400 FORBES Asia said the new list complements the long-established Best Under A Billion list of the 200 bestperforming, small and mid-sized companies in the Asia-Pacific region

See “‘Forbes’ list,” A2

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

n

Thursday, August 29, 2019 Vol. 14 No. 323

DBM to release more money for rice fund ₧4B A By Jasper Emmanuel Y. Arcalas

The DBM said, however, that it will only disburse the amount once the Bureau of the Treasury (BTr) certifies that there is excess

government money which can be allocated for the Rice Competitiveness Enhancement Fund (RCEF).

@alyasjah

HE country’s trade chief has given assurances that the Philippines is shielded from any direct damage from the trade conflict between the United States and China, but admitted its protracted nature will take a toll on all economies. Trade Secretar y R amon M. Lopez said the government is doing everything in its power to bring to the Philippines some of the investments flying out of China due to its trade conflict with the US. As proof, foreign direct investment net inf lows from Beijing increased last year to $198.7 million, from $28.8 million in 2017. Chinese investments approved by the Board of Investments also expanded to P48.7 billion, from P576 billion, Lopez said in a text message to reporters. “Chinese investments are being drawn into certain sectors, like agricultural business, energy, industrial parks, manufacturing, real estate, telecommunications, transport and storage. For instance, some of the largest Chinese steel companies have expressed strong interest to establish the first integrated iron and steel facility in the country, an essential part of industrial development,” Lopez said late Tuesday.

PESO EXCHANGE RATES n

“The US-China trade war has not adversely affected the Philippines, and has...provided more investment opportunities for the country...[But] if the US-China trade tension lingers on, the uncertainties and global slowdown can worsen.”—Lopez

“Most of the Chinese investment projects are to be located outside the National Capital Region, beneficial for developing the countryside and in promoting inclusive growth,” he added. The trade chief said the Philippines is becoming the refuge of some relocating Chinese firms because of its young and dynamic population and skilled work force; robust economic growth; policy reforms, including the aggressive infrastructure development program; and market access. The Philippines is benefitting from the preferential treatment with the US through the Generalized System of Preferences (GSP), which provides zero duty to over 5,000 products, representing nearly half of all American tariff lines. Around 70 percent to 80 percent of Philippine exports to the US are imposed zero duty. Manila is also granted GSP Plus by the European Union, which accords tariff-free shipment to See “Lopez,” A2

BUSINESS NEWS SOURCE OF THE YEAR DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

P25.00 nationwide | 6 sections 48 pages | 7 DAYS A WEEK

The desolation of PHL agriculture: Can Secretary Dar reverse its continuing stagnation?

During a Senate hearing, Budget Assistant Secretary Rolando U. Toledo settled the score over the controversial P5-billion fund

The remainder of a fund to bankroll initiatives to help farmers cope with the surge of cheap rice imports.

that the DBM released to the Department of Agriculture (DA) in December. Toledo said the P5 billion, which was released through special allotment release orders (Saro), was a supplement to the DA’s national rice program.

Rene E. Ofreneo

LABOREM EXERCENS

I

NDICATORS of the collapse of Philippine agriculture are not difficult to find. Official statistics indicate growing agricultural trade deficits, declining GDP share and grinding rural poverty everywhere. Most worrisome, there are reports in various regions that there is an acute shortage of agricultural workers because majority of the millennials and those belonging to the younger generation Z have been avoiding farm work like a plague. The Philippine farming population is aging and fading away. Continued on A7

See “Rice fund,” A8

Inflation for the poorest slowest in 23 mos–PSA

Lopez: No direct damage from US-China trade row, but protraction to hurt all By Elijah Felice E. Rosales

2018 EJAP JOURNALISM AWARDS

@jearcalas

FTER months of uncertainty, the Department of Budget and Management (DBM) said it will release the remaining P4 billion for a fund that will bankroll initiatives to help planters cope with the influx of cheap rice imports.

T

with less than $1 billion in revenue. The two lists now cover all of AsiaPacific’s listed companies, selecting the best 400 from the smallest to the biggest, using $1 billion in sales as a dividing line, it said. From a universe of 3,200 listed companies in the Asia-Pacific region, the candidates for the Best Over A Billion list were evaluated based on more than a dozen metrics including their average five-year sales, operating income growth, return on capital and projected growth over the next one to two years. Those having the highest composite score earned a place in the final list of 200.

By Cai U. Ordinario @caiordinario

T SENATOR Cynthia Villar, who chairs the Committee on Agriculture and Food, engages Leonardo Montemayor, board chairman of the Federation of Free Farmers, during Wednesday’s joint hearing with the Committees on Finance and Trade, Commerce and Entrepreneurship on the impact of the Rice Tariffication Act on farmers and the local rice industry. ROY DOMINGO

UHC may not be ready for PHL-wide rollout in ‘20 By Jovee Marie N. dela Cruz @joveemarie

T

HE Department of Health (DOH) on Wednesday admitted that the new Universal Health Care (UHC) law may not be implemented nationwide next year. During the 2020 national budget briefing of the DOH at the House of Representatives, Health Secretar y Francisco Duque III told lawmakers the schedule of the nationwide rollout of UHC law in 2020 is affected by budgetary constraints and their own readiness. “We cannot do a national rollout [for the UHC law] because of budgetary constraints and because of the [agency’s] readiness,” he said. We need to do capacity building in the different provinces, who, under the law, will be the convergence points of integration,” Duque added. Earlier, the Department of Finance said the government needs P257 billion

for the first year of the implementation of UHC law in 2020. Under the 2020 national budget, the government has allocated P166.5 billion for the implementation of the UHC law. For 2020, the DOH budget, meanwhile, amounts to P160.15 billion. The budget is 5 percent less than the department’s 2019 appropriations. The decrease in the budget is due to a lower allocation for the Health Facilities Enhancement Program (HFEP) at P5.9 billion, which in 2019 has a budget level of P15.9 billion. Another reason for the decrease is the complete transfer of the entire personnel services funds of the Human Resources for Health (HRH) Deployment Program to the Miscellaneous Personnel and Benefits Fund. In 2019, HRH has a PS budget level of P5.14 billion.

Low utilization

MEANWHILE, lawmakers questioned

the consistent low budget utilization of the health agency. According to Duque, the two major cost items behind the low budget utilization are the HFEP and public health program commodities. Duque said the implementation of the HFEP has been affected by issues on implementation readiness, which includes lot ownership issues, lack of DENR requirement, and peace and order situation. He added there are also issues on mode of payment, late submission of billing by the external clients and incomplete document requirement for billing. For public health program commodities, the secretary raised the procurement concerns, such as no local suppliers that can provide the required quantity for TB drugs for children, cancellation of procurement because of overlaps of commodities and global shortage in supply of rabies vaccines.

HE poorest Filipinos saw the slowest inflation they have experienced in nearly two years, according to data released by the Philippine Statistics Authority (PSA). Based on the Consumer Price Index for bottom 30-percent income households, PSA said inflation experienced by the poorest reached 3.1 percent. This is slower than the 4-percent inflation posted in June and 7.6 percent in July 2018. In fact, it is the slowest in 23 months or since August 2017 when inflation was at 3 percent. “Relative to their annual rates in June 2019, inflation was slower in the indices of all the commodity groups during the month, except for the index of housing and repairs [H&R],” PSA said. PSA data showed inflation was slower in all commodities, including the food index which only posted an increase of 2.7 percent in July 2019. The weight of food in the basket of goods used for the computation of the inflation experienced by the poorest 30 percent, as previously explained by National Statistician Claire Dennis Mapa, is 70 percent against 39 percent for all the households. See “Inflation,” A2

US 52.3760 n JAPAN 0.4954 n UK 64.3753 n HK 6.6744 n CHINA 7.3125 n SINGAPORE 37.7050 n AUSTRALIA 35.3590 n EU 58.0902 n SAUDI ARABIA 13.9662

Source: BSP (28 August 2019 )


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.