BusinessMirror October 17, 2019

MALNUTRITION’S IMPACT: $4.5B/YR

By Cai U. Ordinario @caiordinario

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HE Philippine government must spend $1 billion in 10 years to eliminate malnutrition and sustain the momentum of its economic growth, according to the United Nations Children’s Fund (Unicef ).

The economic impact of malnutrition is equivalent to $4.5 billion a year, or 3 percent of GDP annually, according to Unicef Philippines Nutrition Specialist Rene Gerard C. Galera Jr. The amount represents health costs, as well as lost productivity and lost opportunities of the

country’s future work force. “[This is equivalent to] a third of the damages lost to [Supertyphoon] Yolanda. We have to consider that as much as an economic cost, we have to invest in it too,” Galera told reporters in a news briefing at the launch of the State of the World’s Children report in Makati City on Wednesday.

“That’s why it’s actually cheaper to invest in nutrition and you can do so much with [this amount],” he told the BusinessMirror on the sidelines of the event.

The economic losses are only one part of the problem since the quality of the Filipino work force is also at

stake. Around 30.3 percent of children are stunted in the Philippines.

Unicef said Filipino kids suffer the “triple burden of malnutrition” that leads to stunting and wasting, a hidden hunger or deficiencies in micronutrients and obesity.

It said stunting could compromise children for life. Once they reach two years old and they have not received ample nutrition, the impact will be irreversible. This means their brain development has not been maximized and this will prevent them from succeeding in school and becoming truly productive workers in the future.

See “Malnutrition,” A2

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Thursday, October 17, 2019 Vol. 15 No. 07

ERC: Probe sudden power plant outages 84.5 T

By Lenie Lectura

@llectura

HE Energy Regulatory Commission (ERC) wants a study conducted on power plant outages in the country, which continues to suffer from thin power reserves, particularly in Luzon.

“[In the] speech [of] Mitsubishi, they supply 50 plants. We are interested to get hold of that list because that could be part of the data we are trying to combine. I

don’t know yet who will conduct the study but somebody should come up with study on the outages,” said ERC Chairman Agnes VST Devanadera on Wednesday.

The ERC has done an initial review of power plants in the country. Based on this, Devanadera said even some new power plants, aged zero to five years, have conked

Number of outage days of oilfired thermal power plants from 2015 to June 2019, of which 50.4 were unplanned out. “[There are already plants that suffered] outage, and it’s not planned outage. We want to know why. It’s really ironic. But then, [Energy] Secretary [Alfonso] Cusi said [the] yellow alert [is not alarming],” she said, in a mix of English and Filipino.

See “ERC,” A2

By Bernadette D. Nicolas @BNicolasBM

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PESO exchange rates n

Threats to Asia’s century Rene E. Ofreneo

laborem exercens

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he 21st century has been proclaimed by the international financial institutions as Asia’s century. Asia now accounts for 40 percent of the global GDP.

But is Asia’s growth surge, a source of envy for the other regions of the world, sustainable?

This is not necessarily so. In fact, there are disconcerting developments in the region that can upend Asia’s high-growth trajectory.

Continued on A7

Congress to amend LGC to hike IRA in rural areas

By Jovee Marie N. dela Cruz

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Duterte to meet Kovind NDIAN President Ram Nath Kovind is set to arrive in the Philippines for a state visit on Thursday upon the invitation of President Duterte, who is keen on boosting ties between the Philippines and India.

Kovind is set to meet with Duterte on Friday to discuss “issues of mutual concern.” The two leaders are also set to witness the signing of bilateral agreements.

Prior to going to Malacañang, Kovind will pay his respects to the country’s national hero and attend a wreath-laying ceremony at Rizal Park.

On Saturday, Kovind will have meetings with liver transplant patients, as well as with the beneficiaries of the Mahaveer Philippines Foundation.

After this, the Indian leader will proceed to the Philippines-India Business Conclave and Fourth Asean-India Business Summit.

On Sunday, he will attend the installation of the Mahatma Gandhi Bust in Quezon City before meeting with the Indian community.

Kovind will depart for Tokyo, Japan, on Monday, according to Malacañang.

Data available on the web site of India’s embassy in Manila showed that bilateral trade between the Philippines and India as of fiscal year 2018 to 2019 stood at $2.32 billion. India enjoys a surplus with the Philippines as its exports reached $1.74 billion.

India’s top exports to the Philippines include vehicles, and parts and accessories, pharmaceutical products, frozen buffalo meat and edible meat offal, nuclear reactors, boilers and appliances.

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MEAT-HANDLING GUIDE Meat and meat products confiscated by authorities at the Naia Terminal 1 are turned over to employees of the Department of Agriculture-Bureau of Animal Industry for proper disposal in this September 9, 2019, file photo. The Department of the Interior and Local Government (DILG) circular providing local government units with guidelines in restricting the movement of processed meat products in the country went into effect on Wednesday. Story on page A8. NONIE REYES

Gain report: ASF to cut PHL’s feed wheat imports

By Jasper Emmanuel Y. Arcalas @jearcalas

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HE Philippines may import less wheat as the outbreak of African swine fever (ASF) could cut demand for feed wheat used for manufacturing animal feeds, according to a Global Agricultural Information Network (Gain) report.

The Gain report, which was prepared by the United States Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) in Manila, said the Philippines’s wheat imports could decline by 6.56 percent to 7.05 million metric tons (MMT) in market year (MY) 2019-2020.

The report attributed this to the projected 10-percent drop in local hog

feed demand following the outbreak of ASF in local hog farms.

“The arrival of African swine fever in the Philippines will lead to a 10-percent reduction in hog feed demand, resulting in feed wheat imports falling 500,000 tons in MY 2018/19 to 7.1 million metric tons,” the report read.

See “Wheat imports,” A2

@joveemarie

ONGRESS will review and amend the Local Government Code of 1991 to increase the internal revenue allotment (IRA) of local government units in rural areas, Speaker Alan Peter Cayetano said on Wednesday.

In a news conference following the ocular inspection at the New Clark City sports facilities for the 30th Southeast Asian Games (SEA Games) in November, Cayetano said this review on the LGU Code seeks to address rapid urbanization, as well as traffic in Metro Manila. “[We are now facing] rapid urbanization; we really have to have a balance plan. Congress has a plan [we will tackle it after] we finish [the 2020 national] budget. One of the solutions of Congress is that we really need to look at the Local Government Code and the distribution of IRA among LGUs,” Cayetano said.

According to the Speaker, the amendments to the LGU Code will focus on rural areas. “[We should] give rural areas an incentive and provide them with good schools and hospitals so that not everyone will settle in urban areas [to seek good facilities and incentives],” he added.

Under the 2020 national budget, Metro Manila will be allocated P40.4 billion out of the nationwide total of P648.9 billion in IRA next year.

Earlier, Deputy Speaker Rep. Luis Raymund Villafuerte of Camarines also urged the Department of Budget and Management (DBM) to work out a plan

₧40.4B

Metro Manila’s share in the 2020 nationwide total of P648.9 billion in internal revenue allotment (IRA) on how to give out the full IR A due to LGUs since 1992 based on the Supreme Court decision that the IR A for LGUs should include all taxes collected from other government agencies apart from the Bureau of Internal Revenue (BIR), especially the value-added tax (VAT).

Villafuerte, citing estimates by Batangas Gov. Hermilando Mandanas and former Senate President Aquilino Pimentel Jr., said the IRA based on all national taxes that were withheld from LGUs amounts to about P800 billion from 2010 to 2016 alone.

Villafuerte said this landmark ruling would help the national government in boosting the economy of LGUs once the country commences the shift to a federal system of government.

Section 6, Article X of the 1987 Constitution states that local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.

Program for the poor

Moreover, Cayetano said the government will also launch a program that will focus on the 20 poorest prov i nces i n t he countr y.

See “LGC,” A2

US 51.5880 n japan 0.4740 n UK 65.9811 n HK 6.5758 n CHINA 7.2845 n singapore 37.6418 n australia 34.8322 n EU 56.9274 n SAUDI arabia 13.7542 Source: BSP (16 October 2019 )

News

BusinessMirror

A2 Thursday, October 17, 2019

Cut out 9-dash-line scene: DFA option to movie ban

F

By Recto Mercene

@rectomercene

OREIGN Affairs Secretary Teodoro L. Locsin Jr. said “crudely” cutting out a controversial scene in the animated movie Abominable showing a Chinese map with Beijing’s outlawed “nine-dash-line” features is a better response than simply banning the movie, an unconstitutional move that some quarters are suggesting.

Vietnam, which like the Philippines has maritime disputes with China, had earlier banned the movie. Manila, which, in July 2016, won a complaint it filed against China in an international tribunal, has been prodded to follow suit.

“Of course, they should cut out the offending scene which will show our displeasure better [than] if we unconstitutionally ban it as some suggest,” Locsin said in a tweet in

bold letters Wednesday.

He suggested that the film should be “cut out crudely,” adding it may be a good idea as well to “interject MTRCB head with a hectoring lecture. Then cartoon goes on.”

Earlier, Vietnam, one of the claimants in the tension-filled South China Sea (SCS), had yanked out DreamWorks A nimation’s Abominable from their cinemas.

Wheat imports. . .

The report noted that the Philippines’s wheat purchases in MY 2019/2020 are nearly 495,000 metric tons (MT) lower than the 7.545 MMT imported volume in MY 2018/2019. The wheat market year in the US begins in July and ends in June of the following year.

FAS lowered its wheat import forecast for the Philippines in the current market year by 350,000 MT from its previous estimate of 7.4 MMT. “The reduced volume represents the estimated amount of feed energy needed, assuming a 10-percent reduction in hog feed demand during the July-June crop year,” it explained.

“Imported feed wheat is expected to be affected the most compared to corn and cassava (i.e., tapioca), which are both grown locally,” it added.

In a separate report released last week, the USDA projected that the Philippines’s pork production would decline by 16.42 percent to 1.4 MMT next year, from the estimated output of

LGC. . .

Continued from A1

“We will launch the ‘2020-20 program’ for the 20 poorest provinces in 2020. In this program, the Department of Trade and Industry, Tesda and the Department of Agriculture will collaborate to help the 20 poorest provinces. [It’s not right that the nation engages in a scramble for resources ad leaves out the poor],” Cayetano said.

According to data on poverty incidence released by the Philippine Statistics Authority (PSA), poverty worsened in 17 provinces and cities, including districts in Metro Manila, in the first half of 2018.

Using PSA data, the BusinessMirror had earlier computed that the highest increases in poverty incidence were recorded in Basilan and Isabela City, where it worsened to 65.3 percent and 52.6 percent, respectively. The rate rose by 36.5 percentage points from 28.8 percent in Basilan, and by 31.97

ERC. . .

Continued from A1

This week, the Luzon grid was twice placed on yellow alert because of thin power reserves as a number of power plants suddenly went offline. On top of this, several power plants did not deliver their expected power generating capacity.

Earlier, the ERC said that from 2015 to June this year, oilfired thermal power plants had the

Continued from A1

1.675 MMT this year due to ASF. The Department of Agriculture (DA) Crisis Management Task Force on Swine said ASF has spread to over 20 barangays in Rizal, Bulacan, Pampanga and Quezon City.

Last week, the DA disclosed that the number of pigs infected with ASF in the Philippines has reached 12,000 heads.

The task force said the number of ASF-positive hogs is only one-third of the total depopulated pigs, or about 36,000 heads, in all ground zeroes, or those within the 1-kilometer quarantine zones.

To date, the DA said 17 barangays were struck

by ASF: Rodriguez, Rizal (Barangays San Isidro, San Jose, Macabud, Geronimo, San Rafael, Mascap, San Mateo Slaughterhouse), Quezon City (Barangays Bagong Silangan, Payatas, Tatalon, Pasong Tamo, Commonwealth and Tandang Sora), Antipolo (Barangays Cupang and another unidentified area), Barangay Mapandan, Pangasinan, and Barangay Pritil, Guiguinto, Bulacan.

percentage points in Isabela City compared to the first half of 2015.

Other provinces and cities that recorded increases in poverty incidence were Tawi-Tawi which recorded an increase of 6.34 percentage points; Bataan, 5.79 percentage points; Davao Oriental, 4.68 percentage points; Batanes, 3.26 percentage points; Zamboanga del Sur, 2.02 percentage points; Biliran, 1.96 percentage points; and Zambales, 1.91 percentage points.

The list also included the Third District of Metro Manila (Caloocan, Malabon, Navotas and Valenzuela), which recorded a poverty rate of 8.1 percent, or 1.57 percentage points higher than the figure recorded in 2015; and the First District of Metro Manila (Manila, the capital city) which saw poverty incidence go up by 0.91 percentage points to 5.7 percent.

However, the National Economic and Development Authority (Neda) remains confident that the Philippines is on track to meeting its poverty target of 14 percent by 2022.

most number of outage days per year at 84.5, of which 50.4 were unplanned.

Diesel-fired plants had the least number of outage days at 15.8, followed by combined cycle plants at 19.1 days.

The ERC also said that average outage days of pulverized coal power plants reached 50.1, of which more than half or 28 were unplanned. Circulating fluidized bed coal power plants recorded 40.8, of which 24.3 were unplanned.

Abominable features a Chinese teenager helping a Yeti they named Everest to return to his home. This is a joint production from DreamWorks and the Shanghai-based Pearl Studio.

Tensions have risen between China and Vietnam since July, when Beijing sent a ship to conduct an energy resource survey within waters controlled by Vietnam.

The DreamWorks movie features a map that displays China’s unilaterally imposed nine-dash line claiming some 90 percent of the South China Sea. China’s historic claim to the resource-rich waters has been a point of contention among five Asian nations, which had encroached on the exclusive economic zones of the claimant countries.

While the Permanent Court of Arbitration (PCA) in The Hague had made it clear in its July 2016 ruling that it does not decide on ownership disputes, there is no legal basis for Beijing’s nine-dashline claim.

The South China Sea has been described by some military expert as a powder keg that might explode in a full-blown war due to misunderstanding or miscommunication.

The United States and its allies

Palay. . .

Continued from A8

Among Central Luzon provinces, traders in Pampanga offered to buy unhusked rice at P12 per kg, which is now below the average production cost of palay. Planters spend an average of P12.42 to produce a kilo of palay, according to PSA data.

Retail prices

Preliminary PSA data also showed that the retail prices of both well-milled rice and regular-milled rice (RMR) fell to their lowest levels in more than two years. The average retail price of WMR dropped 14.9 percent to P42.03 per kg, from P49.41 per kg in the last week of September last year, PSA data showed.

Historical PSA data showed that the latest figures are the lowest since the fifth week of July 2017, when retail price reached P41.95 per kg.

“The average wholesale price of well-milled

have been conducting freedom of navigation operations in the SCS, claiming it is international waters.

President Duterte, in one of his speeches, had asked whether a country could claim ownership of a vast sea where trillions of dollars in commerce pass through every year.

Presidential Spokesman Salvador Panelo earlier said it is up to government censors if they will also pull the movie from Philippine cinemas.

Meanwhile, earlier reports quoted Locsin saying that short of an outright ban of the movie, Filipinos could instead mount a serious boycott of DreamWorks if it refuses to excise the controversial scene depicting the nine-dash line.

T he upcom i ng f i l ms f rom Dreamworks A nimation w ith their corresponding release dates follow: ■ Trolls World Tour, April 17, 2020; ■ The Croods 2, December 23, 2020; ■ The Boss Baby 2, March 26, 2021; ■ Spooky Jack, September 17, 2021; ■ Untitled Spirit Riding Free Film, May 14, 2021.

rice dropped further to P38.15 per kg or by 0.2 percent this week from its previous week’s level of P38.21 per kg,” the PSA report read.

“Similarly, it continued to decline at an annual rate of 17.2 percent from its level of P46.07 per kg in the same week of the previous year,” it added.

The same trend was observed in the wholesale and retail prices of RMR. The average retail price of RMR sank to P37.63 per kg, the lowest since the third week of May 2017, when it was pegged at P37.57 per kg.

“At the retail trade, the average price of regular-milled rice dipped to P37.63 per kg, or by 0.1 percent this week, from its week-ago level of P37.66 per kg,” the report read.

“Annually, it fell further at a rate of 18.4 percent from its level of P46.14 per kg in the same week of the previous year,” it added.

PSA data also showed that the average wholesale price of RMR went down by 21.2 percent to P34.04 per kg, from last year’s P43.22 per kg.

Processed meat. . .

It added,“The experts from the Department of Agriculture have already advised us that if the conditions are met, processed meat is safe.”

Conditions outlined

The DILG said the MC stipulated that processed meat products that do not contain pork as raw materials should be “allowed unrestricted movement and distribution in all provinces.”

These products include corned beef, beef hot dogs, chicken nuggets, chicken hot dogs, and similar items, the DILG added.

“Upon demand by LGU quarantine officials, the Certificate of Product Registration of processed meat products issued by the Food and Drug Administration to the manufacturers may be shown to LGUs. This should suffice to allow movement and distribution to all provinces,” Año said.

The DILG said pork-based processed meat products, either partially or fully, should be allowed to be distributed and sold in all provinces subject to conditions imposed by the DA. Under the guidelines, the DILG said these pork-based products should be “heat-treated or fully cooked according to internationally accepted standards adopted by the Philippine Association of Meat Processors.”

“Canned meat products should be cooked at 116 degrees Celsius for at least 60 minutes, while hot dogs, hams, and bacon should be processed/smoked/cooked to a core temperature of at least 72 degrees centigrade for over one hour,” DILG said, quoting experts.

“Smoked/cooked pork sausages, on the other hand, should be cooked to a core temperature of at least 72 degrees centigrade for at least 40 minutes,” it added.

Meat processors should also present a certification from the country of origin that their imported raw materials are from nonASF infected country, DILG said. This should be supported by any acceptable document,

Continued from A8

such as Veterinary Health Certificate of the exporting country, and the Sanitary and Phyto Sanitary (SPS) Import Permit issued by the Department of Agriculture (DA), it added.

If the pork material is locally sourced, then a National Meat Inspection Service (NMIS) document authorizing the movement or use for production of processed meats should be presented by meat processors to LGU authorities.

“For processed meat products such as tocino, fresh longganisa, and tapa that use pork as material but do not undergo heat treatment or full cooking, an NMIS certification is necessary for locally sourced pork,” DILG said.

“For imported meat materials, permits and certifications to ensure that the source countries are free from ASF and are from DA-approved sources are essential,” it added.

Reduced business losses

In a letter submitted to Año, the Philippine Association of Meat Processors Inc. (Pampi) thanked the DILG chief for ordering the lifting of the ban imposed by over 56 provinces on processed meat products.

The exclusion of processed meat products from the ASF-related provincial bans on pork and pork products would cut the meat processors’estimated losses due to the restriction, Pampi said.

“We note, Sir, that while the lifting of the restriction will help reduce our business losses, the much greater benefit will be for our people who are assured of continued supply of affordable and protein-filled nutritious products,” Pampi’s October 16 letter said.

The group earlier said it may incur P50 billion to P60 billion in losses due to import bans imposed by provincial and local governments. The ASF is a fatal disease to hogs with a mortality of up to 100 percent, with no known vaccine yet, and no cure. However, the ASF poses no threat to human health. Jasper Emmanuel Y. Arcalas

www.businessmirror.com.ph

Cash finds its way back to BSP vaults ahead of RRR cut

By Bianca Cuaresma

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@BcuaresmaBM

HE Bangko Sentral ng Pilipinas’s (BSP) term deposit auction remained oversubscribed across all tenors on Wednesday, as banks look for avenues to park excess liquidity.

Data from the Central Bank showed that bids for the seven-day term deposits were oversubscribed by about 9 billion as the total tenders hit P39.185 billion during the week. The volume offered was P30 billion. Tenders for seven-day term deposits increased from the P38.63 billion in the previous week.

While overall bids were lower for 14-day term deposits, the medium term offering remained oversubscribed during the week with total tenders hitting P35.52 billion. The volume offered was P30 billion for the week. This was, however, a decline from the P43.38 billion bids in the previous week.

For 28-day term deposits, the total tenders hit P39.805 on Wednesday, rising from the P32.767 billion seen in the previous week. The total volume offered was P30 billion— up by P10 billion from last week’s offer.

BSP Sector-In-Charge Iluminada Sicat said the results of Wednes-

Malnutrition. . .

Continued from A1

Demographic time bomb

Earlier, economists like former Socioeconomic Planning Secretary Cielito Habito warned that instead of reaping the demographic dividend, the country may have to deal with a “demographic time bomb.”

This, Habito said, will be due to the disadvantaged youth of today who may become incapable of becoming productive workers in the future.

The OIC division chief of the Department of Health (DOH) Disease Prevention and Control Bureau, Anthony P. Calibo, said the government is closely monitoring the nutrition status of Filipino children.

Calibo said the government monitors this through the Department of Education, particularly completion rates and achievement tests. The Department of Labor and Employment can also help through its annual data on human productivity.

“It’s difficult to generalize that the human productivity of the Philippines is actually compromised. [But] if this trend will not be

MBC. . .

Continued from A8

The SC, sitting as PET, on Tuesday voted to release the report on the recount of ballots in three pilot provinces—Camarines Sur, Iloilo and Negros Oriental—as raised by Marcos in his protest. The Robredo and Marcos camps were asked to comment on the report.

The report includes at least 5,417 precincts in Camarines Sur, Iloilo and Negros Oriental, which were selected by the Marcos camp as the pilot provinces where an initial determination of the merits for an election protest will be made.

The PET also instructed the vice president’s camp to submit within 20 days its memoranda on Marcos’s motion to nullify the poll results in three Mindanao provinces: Basilan, Lanao del Sur

PHL. . .

Continued from A8

The 2019 cycle of International Property Rights Index was released by Property Rights Alliance in partnership with the Foundation for Economic Freedom and Minimal Government Thinkers. The Philippines was selected for the first global launch due to the country’s rising importance, thanks to its expanding population and economy.

Manila’s property rights issues also reflect the situation in many emerging economies, such as proposals to weaken IP protections in the pharmaceutical sector, according to Property Rights Alliance. The group said improving property rights protection regime “can increase availability of new medicines, fight endemic

day’s auction reflected in part the banks’ preference to place their funds in the BSP’s deposit facilities ahead of the implementation of the reduction in reserve requirements on November 1, 2019 (as announced on September 27, 2019).

Sicat said the increase in available liquidity in the financial system owing to higher disbursements by the national government also influenced the oversubscription for the week.

The TDF is one of the BSP’s liquidity absorption facilities to manage circulation in the economy.

As banks bid to park funds in the BSP’s facility, the TDF effectively siphons off a part of this structural liquidity from the financial system to bring market rates closer to the BSP’s main policy rate.

The movement of the rate, meanwhile, showed an across-theboard decline during the week. For seven-day term deposits, rates decreased from 4.2348 percent last week to 4.2264 percent this week.

For 14-day term deposits, meanwhile, the rate went down from 4.2485 percent last week to 4.2348 percent this week.

For 28-day term deposits, meanwhile, the rate declined to 4.2227 percent on Wednesday, from the 4.2754 percent last week. reversed, maybe the next 20 years of adult workers would be the not-so-productive adult workers in the future,” he said.

Earlier, World Bank Program Leader for Human Development Gabriel Demombynes said the Philippines’s investment in human capital has been “historically low” and this has prevented the country from addressing problems, such as stunting.

Demombynes said 1 in 3 Filipino children below five years old are stunted, a ratio that has been unchanged in 10 years. He said the ratio remained at 1 in 3 children in 2015.

Due to this, the Philippines only ranked 84 out of 157 countries in the World Bank’s Human Capital Index (HCI) released last year. The country’s index score was only 0.55, below the average score of 0.61 in the East Asia and the Pacific, and significantly lower than the 0.74 score of highincome countries.

However, Demombynes said if the country meets its human capital targets, as stated in the Philippine Development Plan (PDP), the country’s HCI score could increase to 0.75 by 2022. This translates to a 36-percent growth in future income and the country’s future GDP. and Maguindanao. The defeated vice presidential bet is seeking the annulment of the results in these provinces on allegations of terrorism, intimidation, harassment and pre-shading of ballots.

The MBC is one of the few business groups in the Philippines actively releasing statements in support of democracy issues, such as rule of law and freedom of the press, at a time the government is accused of going hard on its critics.

In February the MBC demanded the government to uphold the freedom of the press following the arrest of Rappler CEO Maria Ressa over a retroactive cyber-libel case. In a statement, the MBC said: “A brave and free press is an ally in the fight against corruption that we and the government espouse in order to encourage investments badly needed to generate employment and wealth creation that is truly inclusive.” Elijah Felice E. Rosales

corruption and transform the Philippines into a modern and dynamic availability.”

Finland topped the index to stay above Switzerland, New Zealand, Singapore, Australia, Japan, Sweden, Norway, Luxembourg and the Netherlands.

In a statement on Wednesday, Property Rights Alliance Executive Director Lorenzo Montanari stressed property rights are human rights, too. Without property rights, people are restrained in how they act, speak and participate in the economy, he said.

He said when people are confident their property is safe—that they can buy, sell and value their assets in a free marketplace— then this optimism invites entrepreneurship, reduces corruption, raises civic participation, and improves investment in research and development. Elijah Felice E. Rosales

The Nation BusinessMirror

www.businessmirror.com.ph

Palay harvest declines as corn yield rises in Q3

By Jasper Emmanuel Y. Arcalas @jearcalas

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HE countr y’s palay (unmilled rice) output in the third quarter may settle at 3.05 million metric tons, nearly 5 percent lower than last year’s output of 3.2 MMT due to smaller harvest area, the Philippine Statistics Authority (PSA) said.

In its report, titled Updates on July-September 2019 Palay and Corn Estimates, the PSA cut its palay output forecast for third quarter from 3.06 MMT it estimated in its previous forecast.

The PSA, as of September 1, estimated that total palay harvest area in the July-to-September period could decline by 11.1 percent to 733,300 hectares, from 824,860 hectares last year.

The July-to-September period is considered as the country’s palay lean season as production is minimal compared to the summer and last quarter harvest.

“About 262,090 hectares, or 35.7 percent, of the updated standing crop have been harvested,” the PSA said in the report published on Wednesday.

“Of the updated 803,380 hect-

ares of standing crop, 48.1 percent were at maturing stage, 32.1 percent at vegetative stage and 19.8 percent at reproductive stage,” the PSA added.

The PSA said over 67 percent, or about404,370hectaresofthe598,200 hectares perceived area of the farmers’ planting intentions this fourth quarter have been materialized.

Higher corn output

THE PSA forecast that corn output in the third quarter would rise by 25 percent to 2.76 MMT, from the 2.2 MMT recorded volume in the same period of last year.

The PSA attributed this to higher harvest area which it estimated to expand by 11.21 percent to 872,990 hectares, from 784,930 hectares.

“Likewise, yield per hectare may increase to 3.16 metric tons, from 2.81 million metric tons in 2018,” it said.

The PSA said about 473,980 hectares, or about 54.3 percent, of the updated standing crops have been harvested.

The PSA said around 404,370 hectares, of the 598,200 hectares corn farmers’ planting intentions for fourth quarter have been realized.

Reject bribes or face jail, PNP officer in charge reminds cops

By Rene Acosta @reneacostaBM

P

HILIPPINE National Police (PNP) officer in charge Lt. Gen. Archie Gamboa warned policemen against accepting bribes from illegal activities as he vowed to implement reforms ordered by President Duterte.

Gamboa, who replaced resigned PNP chief General Oscar Albayalde, reminded policemen, and even the public, about the PNP’s strict regulations, during the assumption of Maj. Gen. Debold Sinas as the new commander of the National Capital Region Police Office.

Sinas succeeded Maj. Gen. Guillermo Eleazar, who has been promoted as the new chief of the PNP’s Directorial Staff, the fourth-highest position in the PNP. “There will be no take on anything illegal, be it illegal drugs, illegal gambling or any kind of bribery.

Sorry, but we will refuse it. If you insist, then we will put you to jail,” Gamboa said.

“I survived as chairman of the bids and awards committee [of the PNP] wherein we disbursed P26 billion coming from the GAA [General Appropriations Act], and coming from the President’s fund and not a single smoke came out. I think this is the template,” he added.

The PNP officer in charge gave hints of reform in the PNP following the Armed Forces of the Philippines’s joint conference with Duterte.

Gamboa did not say exactly the marching orders of the President, but said the public should see changes in the coming days.

“You will see in the next few days why the actions of the PNP would be so because of what the President has said in last night’s joint command conference. You will see that yourselves in the next few days,” he said.

Editor: Vittorio V. Vitug • Thursday, October 17, 2019 A3

briefs DOLE EYES TO REBID OF ONLINE PROCESSING SYSTEM DEAL IN H.K.

THE Department of Labor and Employment (DOLE) said it may conduct a new round of bidding to select the new service provider for the online processing system of the Philippine Overseas Labor Office in Hong Kong.

Labor Secretary Silvestre H. Bello III said the possibility came about because the current service provider, Employeasy Ltd., and the one which replaced it, Polaris Tools, did not secure the necessary authorization.

“Our initial observation there is that the labor attaché, who awarded the current contract [for the online processing] did not get authorization from the previous labor secretary...this [was] the report of the team which investigated [the issue],” Bello said in an interview. Samuel P. Medenilla

ARMY FOILS A.S.G. BOMBING PLOT IN BASILAN SECURITY forces foiled a reported plot to bomb Basilan on Wednesday following a firefight with members of the Abu Sayyaf Group (ASG) in the province.

Elements of the Army’s 68th Infantry Battalion clashed with at least 15 ASG members at Barangay Calang Canas in the town of Maluso, preempting a plan by the terrorists to set up roadside bombs.

“The troops were acting on a report received from a reliable source regarding the plan of Furuji Indama’s group to create havoc in our area of operation,” said Brig. Gen. Fernando Reyeg, commander of the Joint Task Force Basilan. Rene Acosta

P2.5M WORTH OF AGARWOOD SEIZED IN Q.C.

A TASK force under the Department of Environment and Natural Resources (DENR) arrested a Chinese national for illegal possession of some 14 kilos of agarwood valued at P2.5 million in Quezon City.

Agarwood is a resin that is valued for its distinctive fragrance that is formed when the host tree becomes infected with a mold called Phialophora parasitica.

Qing Nan Lin was collared on October 11, by operatives of the Philippine Operations Group on Ivory and Illegal Wildlife Trade, or Task Force Pogi, under the DENR outside a Chinese temple at 81 P. Tuazon Street, in Quezon City.

Also arrested in the sting operation are Jonathan Guzman and a certain Roberto Intes, both Filipinos. Jonathan L. Mayuga

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TheBroa

Business

Thursday, October 17, 2019

Rural banks still banking on govt support to

B

By Bianca S. Cuaresma | Reporter and Alladin S. Diega | Correspondent

ANKS rely on trust and risks.

But because there are risks in trust, some banks are averse to, if not totally avoid, small-holding farmers and small retailers as their main clients.

Some bankers would invariably use keywords or phrases such as “not profitable enough,” “higher cost” in terms of providing service or outright “risky.”

Oddly enough, these traits exactly describe the main clientele of the New Rural Bank of San Leonardo (NRBSL). According to Abundio D. Quililan Jr., president and CEO of NRBSL, his bank’s main advocacy is to help alleviate poverty in areas where it is most severe, by opting to establish their financial services where it most desperately needed.

“NRBSL deliberately but systematically provides financial services to these groups even at higher cost and greater risk,” Quililan told the BusinessMirror. “Other financial institutions might do otherwise due to difficulties in managing small borrowers whose projects are prone to failures and various limiting circumstances.”

He added that the bank uses every opportunity to partner with government agencies and other like-minded organizations, such as local government units, government agencies, or civil society organisations (CSOs) in pursuit of ways to help alleviate poverty and promote financial inclusion.

Partnership, recognition

THE 25-year-old NRBSL has been a long-time partner of the Agricultural Guarantee Fund Pool (AGFP) and the Small Business Corp. under its Portfolio Guarantee Facility.

In 2018, the bank became among the first rural banks in the country to be a partner-conduit of the Department of Agriculture’s Agricultural Credit and Policy Council (DA-ACPC) in the implementation of the agency’s production loan program for small farmers that entails no cost and no risk arrangement on the part of the lender.

Farmers can access this credit fund for production without being required to provide collateral.

However, they need to undergo the usual process required to secure a loan from any rural bank. Farmers could also secure from this fund any technical assistance and additional assistance in reviewing project plans to increase viability and, hence, the capacity of the farmers to pay it back.

These government guarantee schemes are the crucial factors that allowed NRBSL to fulfil its mission among farmers and micro-entrepreneurs while at the same time achieving sound financial condition, Quililan said. He added that without the aegis provided by the government guarantee schemes, NRBSL’S portfolio mix would have been different and would favor more secured transactions in keeping with the banks’ usual practices.

Quililan explained these government arrangements were given to the NRBSL in recognition of its many years of proven advocacy with farmers.

Loan portfolio

THE bank, which began in the municipality of San Leonardo, Nueva Ecija, also favors agricultural production and agriculture-based industries with potential for business growth. The people behind these agri-based industries have growing financial requirements because of their high-value crop and hybrid livestock production projects.

The intent behind this is yet another advocacy of the NRBSL, which

is to encourage agri-based business initiatives for food security purposes while allowing higher income generation capabilities among farmers and livestock raisers.

The bank has also ventured into other development loan projects with social impact such as water utilities, property distribution, health-related projects, education and similar services. These accounts are also enrolled for guarantee coverage if found eligible under the rules, Quililan said.

Almost 80 percent of NRBSL’s borrowers are from the agriculture and microenterprise sector and its exposure to these industries account for nearly 40 percent of its overall loan portfolio.

He added that out of its 8,408 active loan accounts, about 6,702 come from small farming communities and micro-enterprises, which are often excluded in the delivery of financial services.

This represents a total loan portfolio of P969.54 million in 2018, where P385.33 million, or 39.7 percent, were loaned to small farmers and microfinance clients.

Grant of renewal

ACCORDING to Quililan, the Bangko Sentral ng Pilipinas (BSP) recently approved the renewal of the Certificate of Accreditation of NRBSL as a Rural Financial Institution (RFI) under Republic Act (RA) 10000, otherwise known as the Agri-Agra Law.

The grant of renewal indicates NRBSL’s long promotion of developing the local economy through agricultural financing, specifically for the small and often asset-less farmers who do not have access to affordable credit, large-scale agricultural producers.

The renewal comes with other benefits for the NRBSL—it is now authorized to retain and accept more deposits from other banks as alternative compliance to the AgriAgra Law that requires all banks to set aside certain portion of their portfolio for the agricultural sector. As deposits placed with NRBSL are considered alternative compliance with the said law, Special Deposit Account placements by other banks contributed significantly in fund mobilization for its agriculture financing program.

NEW Rural Bank of San Leonardo, Aglipay Street, Rizal, Nueva Ecija

GOOGLE.COM/STREETVIEW

Special recognition

QUILILAN said that his team considers the RFI certification as hard-earned. It is also a special recognition, as there are only eight remaining financial institutions the BSP has granted accreditation in its recent announcement.

Under the category of loans granted to Agrarian Reform Beneficiaries (ARBs) where the required minimum exposure is 10 percent, the NRBSL posted a high 47-percent compliance rate while majority of commercial banks including some rural banks were found deficient, Quililan said. He noted that the marginalized farmers are usually ARBs in communities with no banking services.

NRBSL’s records show the bank surpassed the mandatory allocation of 15 percent on other agricultural credit at a 30-percent compliance rate. The excess compliance of NRBSL reached P194 million by end of December 2018.

“This amount is the limit of additional Special Deposit Account placements that NRBSL can accept from other banks for their alterna-

NEW Rural Bank of San Leonardo, Poblacion, General Tinio, Nueva Ecija

tive compliance with RA 10000,” Quililan explained.

NRBSL’s roots

AS the NRBSL is about to celebrate its 25th anniversary, it is reminded of its roots in 1992, the year nongovernment organization Management and Organizational Development for Empowerment (MODE) was organized. Recognizing the lack of available finance in rural communities, it immediately commissioned a feasibility study on a small rural bank that will cater mainly to farmers, particularly ARBs. With the implementation of the Comprehensive Agrarian Reform Program, the ARBs were sud-

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denly faced with opportunities and challenges. The ARBs did not have the capacity to finance their cost of production, from seeds to simple farm implements or tools.

The MODE NGO itself at first engaged exclusively in research and studies to help farmers navigate within the CARP ecosystem.

The organization also sought to enable the ARBs through skills training and capacity-building activities. Later, the organization would directly engage in local economy development, providing funding for the farmers that are being organized and provided training to further enhance their skills. Most of MODE’s activities were in the

Visayas, particularly in Northern Samar.

In 1994, the NRBSL was organized with MODE as owner, intending to democratize the shares later through individual stocks or nominees. As a separate financial entity, the NRBSL would later adopt MODE’s advocacy on local economy development, with particular focus on the farmers.

While majority of rural banks are owned by families and their individual members, majority of NRBSL’s shares are owned not by an individual but by an organization with an advocacy focused on local economy development. This partly explains the bank’s consistent program with

farmers and micro-entrepreneurs as main clientele.

Expansion aims

ACCORDING to Quililan, despite the risk in having the farmers and other small-time clients, the bank was able to maintain its profitability. He credits this to “systematic and devoted management.”

From a total resource of P729 million in 2014, the NRBSL was able to double that to P1.5 billion by the end of 2018. Quililan noted that the current size of its total assets was achieved by the NRBSL in just a span of two years after it crossed the P1-billion level.

As a long-term part of its

aderLook

sMirror

Editor: Dennis D. Estopace | Thursday, October 17, 2019

A5

o help farmers, SMEs, amid shrinking ratios the housing sector.

But unlike traditional home loans offered by commercial banks to professionals, Quililan said the NRBSL’s approach is to make available financing programs that are secured by the Home Guaranty Corp. or other arrangements with local government units that are accessible, affordable and under flexible repayment schemes and in sync with the income cycle of crop and livestock producers.

According to Quililan, the NRBSL’s approach to direct poverty reduction, particularly in transforming the poor from subsistence living to sustainable income generation, is to work with LGUs, CSOs or NGOs with advocacy on local economy development.

For instance, the municipality of Dingalan, Aurora, was a longtime recipient of NRBSL’s corporate social responsibility projects, the coastal community inhabited by the Dumagat indigenous people. The NRBSL regularly allocates resources on high-impact initiatives in the fields of health and concerns of the Dumagats.

Last year, the bank opened a branch in Dingalan to offer financing services to its residents. Earlier in 2017, the NRBSL was joined by NGOs and LGUs to work on a plan to comprehensively help develop the full potential of the poor municipality.

Core base

AS part of its liquidity management strategy, Quililan said the NRBSL is maintaining its stable core deposit base, by keeping the pool of depositors broad and encouraging small savers to place their money with NRBSL.

The special license granted by the BSP to undertake solicitation of deposits outside bank premises enabled it to reach out to depositors in their residences and business sites, Quililan explained. Targeting these small savers using the basic deposit account product also is a way for bank to promote financial inclusion, he added.

With this profile of its depositors, the bank is able to maintain a safe, simple and low-risk fund management practices. The practice enables also the NRBSL to determine an appropriate liquidity level which eases the pressure in maintaining unnecessarily high cash position.

At P1.525 billion in total resources, the NRBSL is currently ranked 27th in industry, making it the fourth biggest rural bank in Central Luzon.

The NRBSL used to be at the 26th spot. However, two new banks created from the consolidation of several institutions entered the list of the country’s top 25 rural banks.

Overall, NRBSL’s industry positioning is stable and is still among the fast-growing rural banks nationwide.

Declining trend

NEW Rural Bank of San Leonardo San Miguel (Bulacan) branch

target for expansion, the NRBSL opened new branches last year, one each in Dingalan, Aurora; Cabiao, Zaragoza; and Pantabangan.

For this year, another batch of branches in Cubao, Quezon City; San Simon, Pampanga; Nampicuan, Nueva Ecija, and San Jose del Monte, Bulacan, will start operations. These would bring to 24 the bank’s total of branches across five provinces in Central Luzon and the National Capital Region.

The bank considers the recent establishment of a branch office in Cubao’s Araneta Center as another achievement. Quililan said no ordinary rural bank is granted a license to operate in the Metropolis,

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a highly concentrated area for millions of residents and commercial establishments.

Exposure, awards

LAST year, the NRBSL received from the DA-ACPC a total funding of P80 million. Quillilan said this amount is, by far, the biggest exposure to a partner rural bank by the agency.

He added this will allow them to secure additional beneficiaries of the bank, which currently number almost a thousand individual marginalized farmers, under the DA-ACPC. In 2017 and 2018, the NRBSL placed first in the coveted Gawad

Countryside Financial Institution Award given by the Land Bank of the Philippines for its partners nationwide.

Aside from the Production Loan Easy Access (PLEA) of the DA’s ACPC, the bank was chosen as conduit for the distribution of funds under its program for disaster victims and acquisition of machineries.

The NRBSL also helped several small-scale enterprises and medium-scale enterprises acquire permanent business sites near market areas in Nueva Ecija and Tarlac through a memorandum of agreement (MOA) with the Local Government Unit (LGU) of La

Paz, Tarlac, and property owners in Zaragoza, Nueva Ecija. The MOA is a tripartite framework involving property owners, business operators and the bank in the award of commercial stall rights or acquisition of prime properties inside market facilities.

The NRBSL provides socialized financing schemes affordable to ordinary entrepreneurs for activities that are appropriate and consistent with their income stream to ensure permanent place of business and working capital for trading their merchandises.

Poverty reduction

THE NRBSL has also ventured into

OVERALL data from the BSP shows that even rural and cooperative banks—whose major market are the countryside farmers and fishermen—are finding it increasingly hard to comply to the mandatory lending to the agrarian reform and agricultural sector.

Five-year data trend from the central bank showed that while rural and cooperative banks are still the only banking group able to comply with the agri-agra lending quotas, their share in this sector has been shrinking over the years.

The mandated lending to agriculture and agrarian reform— known as the Agri-Agra Reform Credit Act of 2009, requires banks to allocate 25 percent of their total loan portfolio to the two sectors—10 percent for the agrarian reform credit and 15 percent to other agricultural credit.

Only rural and cooperative banks are known to be able to comply with this loan quota, with universal, commercial and thrift banks choosing to pay penalties in-

stead of allocating credit for these “risky” sectors.

In end-2013, rural and cooperative banks were able to allocate 24.53 percent of their total loan portfolio to agrarian reform credit, way above the 10-percent mandate. For the agriculture sector, rural and cooperative banks set 44.59 percent of their loan portfolio to this sector, also exceeding the 15 percent quota.

This, however, went significantly down in the last five years.

Shrank further

IN end-2014, rural and cooperative banks’ allocation to the agrarian reform sector went down to 18.47 percent while their lending to the agricultural sector hit 34.21 percent. This went further down the next year, with lending to agrarian reform sector reaching only 17.99 percent of their portfolio and lending to agriculture sector, to 34.03 percent.

In end-2016, the share of agriagra lending to the rural and cooperative banks’ total loan portfolio further shrank to 16.44 percent for the agrarian reform and 28.79 percent for the agricultural sector.

Last year, this went further down to 13.53 percent for the agrarian reform and 24.97 percent for agricultural credit.

For the first half of 2018, the trend continued to go down, with agrarian reform credit only making up 11.18 percent of the rural and cooperative banks’ total loan portfolio, and 24.46 percent for the agriculture-related credit.

While these numbers still exceed the mandate, they have gone significantly down in five years’ time.

BSP officials, including its deputy governor Chuchi Fonacier, have long acknowledged the gap, saying the lack of financial access of the agricultural sector is one of the leading causes behind its underperformance.

“We recognize that one of the major hindrances to the flourishing of the agricultural sector is limited—severely limited—access to finance,” Fonacier earlier said.

‘Branch-lite’

TO increase their presence in the countryside, more rural banks are opting to open up “branch-lite” units in an effort to expand their reach without adhering to the stricter central bank requirements needed to open a regular branch.

Data from the BSP as published in circular letter CL2018.085 showed thrift and rural banks opened a total of 54 branchlite units in July to September 2018 alone.

This is about a year after the BSP allowed the establishment of these so-called “branch-lite” units as annexes of banks to “promote access to efficient and competitive banking services.”

Thrift and rural banks took particular advantage of this regulation, with 27 new branch-lite units stemming from thrift banks and 27 new branch-lite units branching from rural and cooperative banks in the third quarter of the year.

The BSP defines branch-lite units as an office or place of business of a bank that performs limited banking activities and records its transactions in the books of the head office or the branch to which it is annexed.

Since these units are limited in the services they offer, they are also subject to proportionate regulatory framework, which means less strict rules and more flexibility to execute financial strategies and innovations.

Bulacan, Batangas, Pangasinan and Puerto Princesa were among the top areas where thrift banks established their branch-lite units, while Quirino, North Cotabato and Isabela were the top picks for rural and cooperative banks.

Rural and cooperative banks have 3,106 branches nationwide in end-April 2019, BSP data showed.

A6 Thursday, October 17, 2019 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Will China’s deflation spill over to PHL?

T

he International Monetary Fund made a fifthstraight cut to its 2019 global growth forecast early this week following a broad deceleration across the world’s largest economies. The IMF said the world economy will grow 3 percent this year, down from 3.2 percent predicted in July. Its 2019 forecast would be the weakest since 2009. “With a synchronized slowdown and uncertain recovery, the global outlook remains precarious,” said IMF Chief Economist Gita Gopinath. “There is no room for policy mistakes and an urgent need for policy-makers to cooperatively de-escalate trade and geopolitical tensions.”

The World Bank, on the other hand, expects global economic growth to ease to a weaker-than-expected 2.6 percent in 2019. World Bank President David Malpass said: “There’s been a tumble in business confidence, a deepening slowdown in global trade, and sluggish investment in emerging and developing economies.”

A South China Morning Post article by Anthony Rowley said that global economic recession is no longer a threat, but an inevitability. He said: “The question economists should be asking is not whether or when a recession will strike, but rather what can be done once it does. Normal policy tools, such as monetary easing and/or fiscal stimulus, may be no more effective than pushing on the proverbial piece of string.”

Bloomberg on Tuesday (October 15) reported that China’s factory deflation deepened in September due to slowing output growth and falling raw material prices, adding to signs that China’s domestic slowdown is an increasing drag on the struggling world economy. The producer price index fell 1.2 percent from a year earlier, as forecast by economists in a Bloomberg survey. Surging pork prices drove consumer inflation higher, cutting into household spending power.

Bloomberg said: “China’s producer price deflation is acting as a brake on the global price outlook just as central banks step up, easing in an attempt to put a floor under slowing world expansion. Weak import data reported on Monday had already added to the gloom over the global outlook, which is worsening amid the uncertainty caused by the US-China dispute.”

Fitch Ratings’s Credit Policy Group said that historically, lower producer prices in China put pressure on the global inflation outlook as export prices usually follow those at factory gate. If that also holds true this time, it would add to global concerns on growth and raise questions about what other central banks will do.

The problem is that China, which is at the heart of the region’s deflation challenge, has seen 41 consecutive months of falling producer or wholesale prices. Economists said the weakness in aggregate demand will result in a feedback loop where deflationary pressures could intensify.

An Asian Development Bank study, Dangers of Deflation, said deflation may arise if consumers reduce their spending because they expect prices to continue to fall or as they become more concerned about their future economic security, particularly if unemployment is rising. “The prolonged economic slowdown in Japan has raised concerns about future income prospects among its aging labor force, which may well be one reason for its deflation of the last few years. When broad and deep episodes of price decline follow severe contractions in aggregate demand, or come from competition in industries with excess capacity resulting from overinvestment, deflation can reinforce the fall in output and demand.”

Fortunately, the Philippines is “not particularly vulnerable” to the fallout from a slowing Chinese economy, unlike its neighbors, a Fitch Ratings credit officer said. However, Indonesia, Singapore, Hong Kong, Taiwan and South Korea might see “ripple effects” due to their debt exposure to China. In the long term, however, if China’s factory deflation worsens, it may spill over to the Philippines because of our growing importance as a trading partner.

Since 2005

BusinessMirror A broader look at today’s business

The markets are crazy John Mangun

OUTSIDE THE BOX

T

here is only one way to describe the trading on the global financial and asset markets. The patients are running the mental hospital. Yes, it is all a part of the coming economic storm but that is another issue.

The point is that there is a complete disconnect with reality in the way the markets are moving and that is all the markets from equity through commodities to cryptos.

Of course I am biased, but even so, the Philippine stock, debt, and currency markets are a fortress of common sense.

The mental patients that have taken over price movement are the speculators who are only interested in the shortest possible holding time for positions. I do not have a problem with trading daily, hourly, or even in five-minute periods. It’s all good for me.

However, asset and financial market price movement is supposed to and have historically worked this way. “Investors” are looking at fundamental trends and buying or selling into those trends.

By fundamental I am not speaking about what stock market players talk about in terms of earnings, ratios and the like.

It is simply looking at—for want of a better term—the big picture.

What do I think the price is going to be weeks from now? Speculators come in quickly as they see what the investors are doing and then push the buying or selling further.

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ANAGERIAL economics, also called business economics, an important postgraduate subject I taught is a branch of economics that applies microeconomic analysis to specific business decisions. As such, it bridges economic theory and economics in practice.

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quickly vanishing smoke. Events like the Saudi oil field attack are one thing. But a 10 percent high to low daily movement in a week is speculators playing—if not with—at least against themselves.

Even physical buyers are not taking longer-term positions anymore.

Trump moves stock markets with his tweets. UK leader Boris Johnson moves currencies when he utters the word “Brexit.” No one even listens to what is said because “words” are subject to interpretation.

The Philippine peso is rock solid not only because of a balance in national cash flows but also because no one wants to take a longer-term position on either side. The same is true of the stock market. We have been trading volumes for the past three months as if the market was only open in the morning and the Internet had not been invented.

However, the best is yet to come.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

Managerial economics with global perspective

✝ Ambassador Antonio L. Cabangon Chua Publisher

Investors want to see that as they are hoping to be in first and ride the speculative wave. Again, no problem with this.

What we have been witnessing in 2019 is that investors have become less and less involved in the markets. That is because the speculators have taken control.

Let me use the price of Bitcoin as an example. The price hits a high of $20,000 in December 2017. Then it is basically a one-way move down to $3,500 in December 2018. For 2019, the move is from $3,900 up to $12,000 and now back to $8,300.

We have been told for years that Bitcoin is the future. If so, the future is a roller-coaster ride.

Maybe crude oil is a better example. At least there is real physical trading based on needs today and not some mythical future like Elon Musk driving Tesla cars on Mars.

From $75 per barrel in September 2018, the price fell to $45 in December 2018. This year we have gone from $50 to $65, and back to the current $52 area. Again there is nothing wrong with that. Except prices are moving 5 to 10 percent a week and even per day based on

For instance, economic forces in the marketplace determine the demand for products, the prices of resources, costs of production, the number of rival firms, the nature of pricing strategies and ultimately the profitability of business investments.

Managerial economics addresses the larger economic forces that shape day-to-day operations, longrun planning decisions and focus on the application of microeconomics theory business problems.

It applies microeconomics theory, the study of behavior of individual economic agents, to business problems in order to teach business decision-makers how to use economic analysis to make decisions that will achieve the firm’s goal: the maximization of profit.

Scope and relationship in economic theory

Microeconomics is the study and analysis of the behavior of individual segments of the economy: individual consumers, workers and owners of resources, individual firms, industries, and markets for goods and services. It is concerned with topics such as how consumers choose the goods and services they purchase and how firms make hiring, pricing, production, advertising, research and development, and investment decisions.

Theory allows people to gain insights into complicated problems by using simplifying assumptions to make sense out of confusion, to turn complexity into relative simplicity. Like a road map, economic theory ignores everything irrelevant

to the problem and reduces business problems to their most essential components.

Economic approach to understanding business decision-making reduces business problems to their most essential components. Understanding the fundamentals of business decision-making provides a way of thinking and analyzing problems that can be applied in a wide range of situations.

Functional areas

Functional areas of business administration include Finance and Accounting, Operations and Production, Research and Development, Marketing and Human Resource Management. They provide the background for managerial decision-making.

Given the economic goals of a firm to maximize profit, market share, revenue growth, return on investment, technology, customer satisfaction and shareholder value, managerial economics integrates the economic theory, decision sciences and the functional areas of business on how these functional areas should interact to one another as the firm attempts to achieve its goal most efficiently.

Management revolution

Today’s revolution has four components: the globalization of markets, the spread of information technology and computer networks, the

dismantling of traditional managerial hierarchies, and the creation of a new information economy. These four components are all occurring quickly and simultaneously, and they affect one another. With globalization, more managerial decisions must consider the world as a whole.

Because of tremendous improvement in communications and transportation, many more products are now imported.

WTO

World Trade Organization is an international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows smoothly, predictably and freely as possible. The WTO administers the agreements, handles trade disputes, monitors national trade policies, provides technical assistance and training for developing countries, and cooperates with other international organizations.

The purpose of the WTO is to ensure that global trade commences smoothly, freely and predictably.

The WTO creates and embodies the legal ground rules for global trade among member-nations and thus offers a system for international commerce. The WTO aims to create economic peace and stability in the world through a multilateral system based on consenting member-states See “Arillo,” A7

Opinion BusinessMirror

www.businessmirror.com.ph

Thursday, October 17, 2019 A7

Threats to Asia’s century Like the indomitable widow

Faith in salvation

Dr. Rene E. Ofreneo

Msgr. Sabino A. Vengco Jr.

LABOREM EXERCENS

Alálaong Bagá

Continued from A1

F

irst, there are unresolved geopolitical conflicts (e.g., Kashmir crisis in the Indian subcontinent) and economic rivalries among the big powers that can subvert established trade and investment arrangements, as amply illustrated by the Unted States-China trade war. The flames of regional conflicts and economic rivalries are further fanned by the rise of populist strong men and women who use jingoistic language to win the support of the downtrodden masses. Most of these strong men and women have been elected because of the failure of neoliberalism to deliver jobs and welfare to the majority of the working population. And yet, the solutions they offer do not alter the basic structure of a corporate-led economy that past neoliberal programs of privatization and deregulation have built.

In the meantime, a new round of global recession, bred by unresolved trade wars and trade tensions among countries, is now on the horizon. The question is not how it can be avoided.

The question is how deep it will be and how it can be cured. Undoubtedly, Asia is on the crosshairs of the next global economic crisis.

Disruptions of ‘Factory Asia’

Another major threat to economic growth is the technology revolution rolling around the globe. Robotization and automation of various industrial and business processes are disrupting industries, and work processes virtually everywhere.

The disruptions that affect the Asian workers the most are those related to the global value chains that have made Asia the world’s factory and the world’s contact center and back office. The Fourth Industrial Revolution has been ushering in job-displacing and job-disrupting technologies that are altering the traditional structures of the GVCs promoted by the multinationals in the 1980s2000s. The most vulnerable are workers occupying the low rungs of the GVC ladder, those doing the labor-intensive but low-technology assembly work. These are easy target for automation and robotization. In some cases, the whole GVC system can be uprooted and re-shored.

For example, Adidas, which used to have its own factories in the Philippines and China, is now manufacturing shoes in its plants in Germany and the US with the aid of new technology.

There are signs that Factory Asia has been waning. There are studies too that the “fragmentation” (originally dubbed as “atomization”) of work in big industries, which allow the big corporations to outsource labor-intensive production, such as assembly work, has been declining since 2010. Obviously, industry 4.0 is enabling corporations to do more integrated production at home. Also, the GVC-linked “export-oriented” economic model that the neoliberals have been preaching to developing countries as the way forward has some physical and market limits even if big China is not substantially involved. Can so many countries producing or assembling the same products succeed in exporting the same products? This, according to Dani Rodrik, a leading scholar on trade and development, is the dilemma facing developing countries. Clearly, one development option is to go domestic, an option that has been ignored by the outward-looking neoliberal economists for so long. The gradual erosion of jobs in Factory Asia is also beginning to happen in the offshored call centers located in India and the Philippines. Chatbots and other interactive digital communication systems are making the services of call centers redundant.

Third threat is climate change

Asia is highly vulnerable to climatechange risks. South Asia, Southeast Asia and East Asia are all at risk to rising sea levels, destructive typhoons and unbearable heat. In 2017 alone, around 3,000 in India died from extreme heat.

In 2013, around 10,000 died from Supertyphoon Haiyan that hit southern Philippines. And there are many other stories of massive tragedies that visited different Asian countries in the last 30 years due to climate change.

The prognosis is bad. More devastating typhoons, heat waves, plant destruction and so on are likely. Glaciers are also melting in the Himalayas and in the northern areas of China, Mongolia and the Central Asian countries. All these shall affect jobs, businesses and whole communities. A World Bank study

estimates that around 400 million in South Asia shall be affected by the desolation of agriculture and the devastation of communities. Communities in the Bay of Bengal, Mekong delta and in the coastal areas of China, Japan, South Korea and Southeast Asia are all vulnerable to a sea rise of 1 meter. The irony is that Asia has become a major contributor to the pollution of the Earth and the subversion of the ozone layer. China, India and Japan are listed in the five leading polluters.

What can be done? Each country naturally has to come up with its own resiliency program for its citizenry. There are differing programs of readiness. Asian countries also need to get their act together in support of climate-change mitigation.

In this area, Asia has weaknesses. The commitments of Asian countries to the Paris Accord on mitigation are low, and implementation is even weaker. Thus, while China and India have registered high growth in renewable-energy development, their fossil-fuel GHG emission remains high, as reflected in the smogs that do not disappear in their major cities.

Finally, most of Asia is unable to address soaring inequality amid increasing wealth concentration in the hands of a few. How can growth be assured when so many are excluded, when societies are divided between the haves and the have-nots, and when governments have to spend so much of its resources on security and police matters to keep the peace?

The ADB, World Bank, ESCAP and other UN agencies have been regularly reporting on the rise of Asia. At the same time, they have been consistently raising alarms on the deepening economic and social inequality in each of the Asian countries. China, India and the Southeast Asian countries are among those with high Gini coefficients, or high levels of inequality in terms of income distribution.

The reasons for growing inequality have been a source of deep anger for the trade unions. These are: n The Race to the Bottom culture among employers. Casual or short-term hiring practices are common. Footloose capital in the garments and other lowtechnology labor-intensive industries fly in and out of production sites, usually EPZ zones, to avoid unionism and exploit cheap and malleable labor. n Jobless growth due to limited job creation in GVC industries. n Low quality jobs in the large informal sector. South Asian countries have large pools of labor in the informal sector, as high as 80 percent to 90 percent of the total labor force; in nonindustrialized Southeast Asia (minus Singapore and Brunei Darussalam), informal sector employment is around two-thirds of the total employed. n Economic restructuring with limited job creation for the displaced. This is happening in the southern provinces of China, where the government’s push for technological and industrial upgrading is happening without any clear program of job placement for those employed in the garments and other low-technology industries that are being relegated to the policy background by high-tech conscious Chinese government. n Impact of the technology revolution on industry and employment. Wages are highest in the ICT sector but low and declining in others.

Overall, Asia is still in a precarious and unstable situation. Prospects for sustained growth, and yes, better welfare and good life for Asia’s working people are shrouded in a fog of unresolved regional conflicts, intensifying trade wars, vulnerability to climatechange risks, job-displacing technology revolution, jobless growth, Race to the Bottom culture and soaring inequality.

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alvation comes with the faith of those who rely not on their own merits but on the loving compassion of God, revealed in Jesus Christ who is the friend of the least and the humble, the sinners and the lost. The parable of the unjust judge and the persistent widow (Luke 18:1-8) illustrates Jesus’ teaching to His followers that it is necessary to pray always and without losing heart, for prayer is never in vain.

Pray always The judge in the story is the unsympathetic potentate of a place, who respects neither God nor man. Set against this powerful if unappealing figure is a widow, the picture of powerlessness, who is pleading for justice against some opponent in a lawsuit.

The judge who enjoys making other people feel the weight of his authority completely disregards the widow.

Because of her lowly status, is the poor widow being denied justice though she is right, or is the corrupt judge hoping through the delay to get some bribe from whomever? Yet, the point of the story is reached when the judge gives in and renders justice to the widow, if only to escape her pestering and

importuning. He cares little for God or man, but there is a limit to the risk to himself, he is willing to take against a determined, unyielding widow.

If an unjust judge can be made to listen to the pleas of a widow, how much more God the most just judge? How much more will God listen to anyone who calls to Him with persistence? But the parable is understood by Luke to mean something much deeper than simply the need to pray without losing heart.

This is indicated when he referred to Jesus solemnly as the Lord, the Risen One who brings salvation to the world and who asks, “When the Son of Man comes, will he find faith on Earth?”

“Will not God secure the rights of His chosen ones who call out to Him day and night?...I tell you, He will see to it that justice is done for them speedily.” The rights of the chosen ones and the justice God does for them are all about the salvation and justification God gives to His people. Hence, the ultimate object of praying without losing heart is the promised salvation.

It is the goal of the faith that animates persistent praying. We must pray day and night without losing heart, so that we can be justified and saved. In our faith we are assured that God will speedily fulfill His commitment to our deliverance, a share in His kingdom. Weakness of faith may lead us to doubt about God’s final reign.

The stark question of Jesus addressed to us now is: “When the Son of Man comes, will He find any faith on Earth?” It gives focus to the issue of our persevering prayer.

The point is faith: faith in God who saves; faith in the Son of Man who will come again in glory to bring to fulfillment the recreation of humanity; our faith which must hold fast to the end, for without it there is no salvation for us. Praying without losing heart is an act of faith in God, and in Jesus Christ. Like the indomitable widow who did not

Mining turns to bamboo for help Val A. Villanueva

Businesswise

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ining, the most hated, despised (name all the words in the dictionary that means despicable) industry in the country has waved the SOS flag to bamboo to help it show to the public that it wasn’t as bad as its detractors paint it to be.

With its public perception at its lowest, the industry for years has struggled to win the people’s heart by immersing itself into the communities where it operates—providing them with livelihood, medical care, education, sanitation services and more important, creating economic activities.

Yet, the stigma of catastrophic accidents of yesteryears would seem hard to erase. The image of swath of destruction caused by excavated mountains, which was once a picture of verdant greens, and the displacement of indigenous townsfolk from their ancestral lands have all given the mining industry a terrible image that anti-mining activists are just too happy to take advantage of.

While the industry has undoubtedly contributed to the country’s economic development, mining, particularly the open pit method, is deemed by some experts as a destructive activity. Its disposal of toxic wastes in reservoirs, irrigation

Arillo . . .

continued from A6

(currently there are more than 140 members) that have ratified the rules of the WTO in their individual countries, as well.

This means that WTO rules become a part of a country’s domestic legal system. The rules, therefore, apply to local companies and nationals in the conduct of business in the international arena. If a company decides to invest in a foreign country, by, for example, setting up an office in that country, the rules of the WTO (and hence, a country’s local laws) will govern how that can be done. Theoretically, if a country is a member to the WTO, its local laws cannot contradict WTO rules and regulations, which currently govern approximately 97 percent of all world trade.

Decisions are made by consensus;

systems and agricultural lands has been damaging to the environment.

Thus, efforts have been done to rehabilitate, regenerate, revegetate, and reforest mined-out and mine tailings-covered areas to bring back their productivity.

Today, (October 17), at the Manila FAME, industry stakeholders— Chamber of Mines of the Philippines, the Philippine Nickel Industry Association, Department of Environment and Natural Resources (DENR), and Department of Trade and Industry (DTI) unwrap what they call the “Bamboo Initiative”—a nationwide campaign targeted to revegetate mined-out areas with fast-growing bamboo trees. The project aims to increase bamboo production and create money-spinning endeavors for mining communities.

Environment Secretary Roy Cimatu said in a press statement the group chose bamboo in rehabilitating degraded lands because it “grows fast, releases 35 percent more oxygen though a majority vote may also rule (this is very rare). Based in Geneva, Switzerland, the Ministerial Committee, which holds meetings at least every two years, makes the top decisions. There is also a General Council, a Goods Council, Services Council, and an Intellectual Property Rights Council, which all report to the General Council.

Finally, there are a number of working groups and committees.

If a trade dispute occurs, the WTO works to resolve it. If, for example, a country erects a trade barrier in the form of a customs duty against a particular country or a particular good, the WTO may issue trade sanctions against the violating country.

The WTO will also work to resolve the conflict through negotiations.

Value of the country and its policy-makers

Policy reforms pursued by the Philippines over an extended

than trees, and can absorb heavy metals from contaminated soil or water.”

Trade Secretary and Philippine Bamboo Industry Development Council Chairman Ramon Lopez added that “the potential for bamboo is limitless, given the variety of its use.” Lopez also lauded Cimatu and the mining companies who have started to plant bamboo in their mined-out areas, which will help increase the supply of raw materials for use in creating high-value bamboo products in the future. According to the Mines and Geosciences Bureau, 12 mining companies have already started planting bamboo in 12 provinces across nine regions all over the country.

Marcventures Mining and Development Corp., a wholly owned subsidiary of listed Marcventures Holdings Inc., has in fact made bamboo farming the heart of its mining rehabilitation program. MHI President Isidro Alcantara in previous press interviews said the industry has long been looking for ways to clean up the destructive effects of mining.

He was quoted as saying: “When you undergo rehab, you normally plant trees. They do not really provide any means of livelihood for people living there especially the indigenous people. Once the mine leaves after 10 or 20 years, there will be nothing left and it is only good while it is there.... Rehabilitation should have two purposes, one is to restore and enhance the environment, and second is to leave long-term sustainable livelihood.”

Bamboo, known as the “green gold period have resulted in a more open, competitive economy, able to withstand relatively unscathed the Asian financial crisis.

The Philippines is not a party to the WTO Agreement on Government Procurement. In its procurement, the Philippine government generally favors the purchase of domestically produced goods and services, and applies certain foreign ownership limitations to suppliers.

References include: Cambridge University Press by Dominick Salvatore, Managerial Economics in a Global Perspective, fifth edition.

Almost any business decision can be analyzed with managerial economics techniques, but it is most commonly applied to: n Risk analysis—various uncertainty models, decision rules, and risk quantification techniques are used to assess the riskiness of a decision. n Production analysis—micro-

surrender her case even in the face of great odds, the followers of Jesus in this world must remain faithful in prayer. The widow and the other poor in society (the anawim) are considered to have God’s special protection. Their dependency on God and their hunger and thirst for justice is an example for all disciples of Jesus.

The necessity of persevering prayer is in conjunction with the confident faith that God will truly give us His justice.

Alálaong bagá, the oppressed and the poor today may have reasons to doubt and to lose heart. The followers of Jesus today may be hard put to it to maintain a vital faith as they are surrounded by so much secularism and weakened by widespread indifference within. The early Christians were plagued too with doubts during the persecutions when their situation appeared futile and no better future was in the offing.

The answer: pray, pray persistently with an indomitable confidence in God, who will surely vindicate His people; do not lose heart, nor give up hope. God’s final action in glory (the Parousia), His divine justice, will come.

Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

of life” and “grass of hope,” is effective in arresting soil erosion, landslides, and flooding—the usual calamities in any mine site. Aside from releasing up to 35 percent more oxygen than any other trees, and segregating up to 12 metric tons of carbon dioxide per hectare, it is the fastestgrowing shelter for the rehabbing despoiled lands.

It can be made into furniture, used in fiber, clothing, pulp and paper production, food ingredients, beauty products, architecture, and construction. Harvest time only takes three years, and the whole process costs much less.

In fact, the country’s bamboobased furniture industry multiplies at an annual rate of 15 percent with export revenues amounting to $3.2 million per year. Worldwide, bamboo-based handicraft industry swells by an average of 7 percent with export revenues of $8 billion yearly.

According to the Philippine Bamboo Foundation Inc., some bamboo species can withstand 52,000 pounds per square inch before reaching breaking point, almost close to that of steel with 60,000 pounds psi. Currently, only 52,000 hectares in the Philippines have been planted with bamboo, and with mining industry using the grass for rehab, the figures could go much higher.

Can bamboo be an effective PR for the much maligned mining industry?

As they say, the proof of the pudding is in the eating.

For comments and suggestions, e-mail me at mvala.v@gmail.com

economic techniques are used to analyze production efficiency, optimum factor allocation, costs, economies of scale and to estimate the firm’s cost function. n Pricing analysis—microeconomic techniques are used to analyse various pricing decisions, including transfer pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the optimum pricing method. n Capital budgeting—Investment theory is used to examine a firm’s capital purchasing decisions.

Other text references: n Keith Weigelt (2006). Managerial Economics; n Elmer G. Wiens The Public Firm with Managerial Incentives; and n NA, (2007). Managerial economics, Encyclopedia Britannica online Concise Encyclopedia entry.

To reach the writer, e-mail cecilio.arillo@ gmail.com.

A8 Thursday, October 17, 2019

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Villar, Pacquiao billionaires in Senate millionaires club

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By Butch Fernandez

@butchfBM

ENATORS Cynthia Villar and Emmanuel Pacquiao emerged as the only billionaires, on top of 22 other senators belonging to the socalled Senate millionaires club, based on the mandatory filing of their 2018 Statements of Assets, Liabilities and Net worth (SALN).

Listed as the “poorest” but still members of the millionaires club were detained Senator Leila de Lima and neophyte Sen. Christopher Bong Go, whom President Duterte was earlier reported to have de-

scribed as a “billionaire.”

Based on the summary of 2018 SALN filings provided by the Senate Secretariat, Villar declared her net worth at P3.53 billion, with no liabilities, while Pacquiao

₧3.53B Sen. Villar’s declared net worth, with no liabilities, followed by Pacquiao, P3 billion

declared over P3 billion in total assets after deducting a P146million liability.

Senate President Pro Tempore Ralph Recto emerged as thirdrichest member with an over P555million net worth, followed by Senate Majority Leader Miguel Zubiri with P182.8 million; and Sen. Bong Revilla, who declared a P164-million total net worth after deducting a P37-million liability.

On the other hand, the “poorest”

of the Senate millionaires club, de Lima declared her net worth at P7.7 million and Go as “second-poorest senator” declared his net worth as P15.5 million.

Much richer than Go are his fellow neophyte senators: Francis Tolentino who declared his net worth as P62.48 million, followed by Imee Marcos with P29.97 million, and Ronald dela Rosa declaring his net worth at P28.26 million.

The annual filing of SALNs is mandated by the Constitution and the Code of Conduct and Ethical Standards for Public Officials and Employees. It requires public officials to declare their assets including house and lots, vehicles, bank deposits and investments, as well as liabilities, including loans and other debts.

Farm-gate price of palay down 29.3%–PSA

By Jasper Emmanuel Y. Arcalas

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@jearcalas

HE avera ge fa r m- gate pr ice of dr y unhusked rice sank to a new eightyear low of P15.83 per kilogram in end-September, data from the

Philippine Statistics Authority (PSA) showed.

Preliminary data from the PSA indicated that the current average farm-gate price of dry palay is 29.3 percent lower than the P22.36 per kg recorded a year ago.

“The average farm-gate price of

TROPICAL DEPRESSION "PERLA” 990 KM EAST NORTHEAST OF CASIGURAN, AURORA NORTHEASTERLY SURFACE WINDFLOW PREVAILING OVER LUZON as of 4:00 pm - October 16, 2019

palay dropped further to P15.82 per kg or by 0.9 percent during the week relative to its previous week’s level of P15.96 per kg,” the PSA said in its price monitoring report published on Wednesday.

The latest figure is the lowest since the second week of December

2011, when prices reached P15.83 per kg.

From September 25 to October 1, PSA data showed that the lowest national average dry palay price was at P10 per kg, while the highest average was at P20.40 per kg.

PSA data also showed that traders in the Autonomous Region in Muslim Mindanao (ARMM) offered the lowest quotation, which averaged P12.50 per kg., while those in Central Visayas offered to buy rice at an average of P19.10 per kg.

In Central Luzon, the country’s rice granary, the prevailing farmgate price of dry palay declined to P15.08 per kg, the third-lowest average price recorded among all regions.

See “Palay,” A2

Avisado, Dar reappointed pending CA confirmation

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RESIDENT Duterte has reappointed Budget Secretary Wendel E. Avisado and Agriculture Secretary William D. Dar pending the Commission on Appointments’(CA) deliberations on their selection for the posts.

The President issued the ad interim appointments on October 11, while Congress is on recess from October 5 to November 3.

The new appointments were issued since they have yet to be confirmed by the Commission on Appointments.

Meanwhile, the President also named former House Speaker Feliciano R. Belmonte Jr. as Special Envoy of the President to Japan for Trade and Market Access, according to the list of presidential appointees distributed to reporters on Wednesday.

Doctor-businessman Jaime T. Cruz, who was earlier eyed by the President to head the Philippine Health Insurance Corp., was appointed as Special Envoy of the President to the People’s Republic of China for Trade and Investments.

Belmonte’s and Cruz’s appointment papers were dated October 15.

Other appointees include Joel Y. Abutal as Commodore for the Philippine Merchant Marine Academy, while Pedro Miguel L. Santos was named Director III of the Presidential Communications Operations Office.

Bernadette D. Nicolas

PHL RISES 3 NOTCHES IN 2019 INTELLECTUAL PROPERTY RIGHTS LIST

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HE Philippines improved its ranking by three notches in the 2019 edition of an index that evaluates the initiatives undertaken by countries in protecting intellectual-property (IP) rights.

In the International Property Rights Index 2019, the Philippines obtained a score of 5.31, and placed 67th among 129 economies, from last year’s rating of 5.22 and ranking of 70th among 125 countries.

In spite of this, the country failed to come near the global average score of 5.72.

The Philippines also remained at the lower quartile in the group of Southeast Asian economies, as its manufacturing rivals got ahead of the pack.

Leading the seven Southeast Asian countries included in the index is Singapore, placing fourth overall, to lead Malaysia at 32nd, Thailand at 64th and Indonesia at 65th. Vietnam and Brunei Darussalam completed the regional rankings at 83rd and 98th, respectively.

The Philippines made a big leap in both score and ranking in the IP rights component, securing a score of 5.7 to place 58th this year, from 5.4 at 62nd in last year’s cycle.

“The intellectual-property component evaluates the protection of this kind property. In addition to an opinion based measure, it assesses

protection of two major forms of intellectual-property rights—patents and copyrights—from a de jure and a de facto perspective,” the report read.

Further, the Philippines sustained its rating of 6.5—its highest among the index’s three components—in personal property rights, improving its place to 60th, from 63rd, in the process.

Under this component, the confidence of the people in the state’s effectiveness to protect their private property rights is assessed.

The index said a strong property rights regime provides for integrated transactions on the registry of property and permits access to the required credit to convert property into capital.

However, the country’s legal and political environment got a lower score of 3.7 this year, from 3.8 last year. This caused the Philippines to drop to 102nd, from 95th, in this component.

“The legal and political environment component grasps the ability of a nation to enforce a de jure system of property rights. It comprises of four elements: the independence of its judicial system, the strength of the rule of law, the control of corruption and the stability of its political system,” the report read.

See “PHL,” A2

DILG order on processed meat products takes effect

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HE Department of the Interior and Local Government (DILG) on Wednesday directed local government units (LGUs) to “strictly” adhere to its guidelines that would lift the ban on processed meat products as long as international conditions are met.

The DILG said LGUs should not cause the “unwanted disruption of trade and commerce across the country” by allowing the distribution and sale of processed meat products, particularly pork-based items, in all provinces in accordance with pertinent conditions.

The DILG issued the statement after its memorandum circular (MC) covering the sale and distribution of processed meat products took effect on Wednesday.

“Since the government has been acting aggressively and effectively

to address the ASF [African swine fever] outbreak, we are urging all LGUs to lift the ban on processed meat products containing pork for as long as the products meet certain conditions imposed by the Department of Agriculture,” Interior Secretary Eduardo M. Año said.

In the MC signed by Año addressed to governors, city and municipal mayors and punong barangays, all LGUs were told to “strictly adhere” to the guidelines on movement, distribution and sale of processed meat products amid the ongoing ASF outbreaks in Luzon.

The DILG said the MC seeks to “protect the consumers,as well as the stakeholders in the meat industry from any disruption in the flow of trade and commerce across the country.”

See “Processed meat,” A2

MBC asks SC to dismiss Marcos protest vs Robredo

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HE Makati Business Club ( M B C ) on We d nesd ay asked the Supreme Court to dismiss the election protest filed against Vice President Leni Robredo to allow her to focus on her duties as the country’s secondhighest leader.

The MBC welcomed the decision of the SC, sitting as the Presidential Electoral Tribunal (PET), to release to the camps of Robredo and former Sen. Ferdinand R. Marcos Jr. the test recount of the 2016 vice presidential election results. The group said this should be a step nearer the dismissal of the election protest lodged by Marcos.

The MBC, one of the country’s largest business groups, said putting the election protest to rest will reduce the political and judicial jitters brought about by it, as well as

allow Robredo and the SC to busy themselves with issues that directly impact their constituents. “[The] Makati Business Club welcomes the Supreme Court’s decision to release the report on the test recount in the 2016 vice presidential election protest. We hope this is a step toward dismissing the protest, and reducing the political and judicial uncertainty that came with—uncertainty that manifests risk premiums for those who would invest in Philippines jobs and industries,” the MBC said in a statement.

“We further believe that putting the protest to rest would free both the [Supreme] Court and the Office of the Vice President to focus on pressing issues with great impact on the well-being of the Filipino people,” it added.

See “MBC,” A2

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If you have any information / objection to the above mentioned application/s, please communicate with the Regional Director thru Employment Promotion and Workers Welfare (EPWW) Division with Telephone No. 400-6011.

ATTY. SARAH BUENA S. MIRASOL REGIONAL DIRECTOR

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Companies BusinessMirror

Thursday, October 17, 2019

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5 foreign firms join local bidder for North-South rail

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By Lorenz S. Marasigan

@lorenzmarasigan

HE Department of Transportation (DOTr) said on Wednesday that the fourth and fifth packages for the North-South Commuter Railway (NSCR) attracted “a significant number” of bids from five foreign groups and one local company.

of proponents in the NSCR Project, as manifested in the level of participation for Contract Packages 4 and 5.”

“The turnout of bidders for Packages 1 to 5 of PNR [Philippine National Railways] Clark Phase II is proof that competition and value for taxpayers’ money are enhanced with a bidding process that is transparent, fair, and corruption-free,” Transportation Undersecretary for Railways Timothy John R. Batan said.

Collectively called PNR Clark Phase II, the program is part of the loan extended by the Asian Development Bank (ADB) and the Japan International Cooperation Agency (Jica) to the Philippine government for the construction of the NSCR Project.

PNR General Manager Junn Magno noted that the “vibrant turnout” during the auction is reflective of the “solid support and trust” of the international community in the country’s infrastructure thrust.

“With a robust competition, we also raise the standard of quality of our infrastructures that shall, in the end, best serve the Filipino people,” he said.

PNR Clark Phase II will run from Malolos, Bulacan, to Clark, Pampanga, covering a 53-kilometer stretch, including express services to the Clark International Airport.

It will have a design capacity of 340,000 passengers in its opening year in 2022.

Other contracts for NSCR will be auctioned off progressively through November.

Groups that participated in the auction are the following: Acciona (Spain), EEI (Philippines), GS Engineering & Construction (South Korea), Posco Engineering & Construction (South Korea), PT Waskita (Indonesia) and PT Wika (Indonesia).

Package 4 pertains to the 8-kilometer airport line to the Clark Inter nat iona l A ir por t, wh i le Package 5 pertains to the railway depot in Clark.

There is, according to the department, a “sustained interest

8990 Holdings prexy, CEO Willibaldo Uy, longtime property executive, dies at 61

First shared telco tower in PHL breaks ground in Ilocos Sur

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ONGTIME property executive Willibaldo J. Uy, who was the president and chief executive officer of mass housing developer 8990 Holdings Inc., passed away on Tuesday after suffering a heart attack. He was 61.

“It is w it h g reat sadness that the company announces the passing of Mr. Willibaldo J. Uy, our president and CEO. The company deeply mourns the passing of Mr. Willibaldo J. Uy. The company will continue to remember and appreciate his achievements for, and contributions to, the company,” 8990 said in its disclosure.

It said it will appoint a new president soon. The company’s chief operating officer, Alexander Ace Sotto, has been appointed as 8990 president in an acting capacity, it said.

Uy became the chief executive of 8990 in 2018, replacing another longtime executive Januario Jesus Gregorio Atencio III. Uy first became the COO and member of the board of directors of 8990 in 2016. Prior to that, he was an independent director of 8990 from August 2012 through January 2016.

At the same time, Uy also holds several positions at the Phinma Group of companies.

“If you’re talking about experience, relationships in the industry, Willi actually has it, as well. He really makes the perfect decision to become the CEO,” Atencio said in 2017 as he stepped down from the post at 8990. VG Cabuag

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AOAYAN, Ilocos Sur—The common tower initiative of the Department of Information and Communications Technology (DICT) has finally taken shape, after LCS Holdings Inc. of politician Luis Chavit Singson broke ground for the construction of the first shared telco infrastructure in the Philippines late Wednesday.

Set here in the fourth-class municipality of Caoayan, near the historic town of Vigan and Singson’s zoo called Baluarte, the first shared infrastructure in the Philippines will be able to accommodate as many as three of the telcos.

This marks the construction of the first-ever common telco tower in the Philippines, a country that aims to leapfrog into the digital future by building facilities for connectivity that it had lacked for over two decades now.

“It’s been a year since we started the common tower program, and we are now making history because we are going to build the first common tower now,“ ICT Undersecretary Eliseo M. Rio Jr. said.

Singson’s group partnered with Thai tech group Ua Withya Public Co. Ltd. to build its first common tower in Ilocos Sur, but the group remains open to more partners, as it gears to invest billions of pesos to build as many as 70,000 towers in the next decade.

“We have identified 6,000 sites now. We are in talks with small and big companies to build this.

All in all, we are targeting 50,000, 60,000, or even 70,000 towers

Officials of the Department of Information and Communications Technology (DICT), the LCS Holdings Inc. of politician Luis Chavit Singson and Dito Telecommunity Corp., the third major player that is controlled by Davao-based businessman Dennis A. Uy, break ground on the site of the country’s first common tower in Caoayan, Ilocos Sur on Wednesday, October 16. LORENZ S. MARASIGAN

spread over 10 years,” he told the BusinessMirror.

The plan for Singson is currently in-sync with the network development initiative of Dito Telecommunity Corp., the third major player that is controlled by Davao-based businessman Dennis A. Uy. Dito Telecommunity Chief Administrative Officer Adel A. Tamano noted that his group tapped LCS Holdings first because it believes that Singson “can make things happen.”

He added, “For the initial year, we plan to set up at least 3,000 telco towers—both by building them ourselves or by partnering with common tower providers.”

Dito Telecommunit y Chief Technology Officer Rodolfo D. Santiago added that this target is

doable, explaining that this is the number of telco towers needed to meet its coverage commitment to the National Telecommunications Commission (NTC).

“As much as possible, we want to build faster, so whichever track is faster, that’s what we will do. If common tower companies will be able to build faster, then we will give them the bulk of the requirements,” he said.

Rio noted that the exercise on Wednesday afternoon sets the precedent for a common tower policy that will be issued by the end of October. “Soon, a common tower policy that will concretize this initiative will be issued, which will future-proof this concept for the administrations to come,” he said. Lorenz S. Marasigan

Travel group Yanolja expands $15-M investment in Zen Rooms

R

OCKET INTERNET-backed accommodations platform Zen Rooms has struck an agreement with travel group Yanolja for the latter’s “doubling down” of its $15-million investment in the former, which will allow the digital company to further improve its hotel franchises.

The additional investment also comes with a “wide strategic alliance” that will create “the leading economy and midrange hospitality group in Southeast Asia” by combining the franchise business

of Zen and the scale of Yanolja.

Yanolja is the same company that backed Booking Holdings, Agoda, K ayak, and Priceline, among others.

The two groups will also work to deploy automation technology to enhance customer experience, further reduce budget hotels’ operating costs and reinvent budget hospitality across Southeast Asia.

“With this strategic alliance, we are joining forces with one of the most technologically innovative travel groups and its unique

backers, Booking Holdings, to create the first full-service budget and midrange hospitality group in Southeast Asia, able to deploy world-class technolog y infrastructure in Internet of Things (IoT) research and development, automation, hardware and software to all hotels in Southeast Asia. This alliance will greatly benefit our ability to serve our hotel clients and ultimately the travelers of the entire region,” Zen CEO Nathan Boublil said.

Today, Zen is one of the largest

hotel franchises in the Asean region with 13,000 rooms across Southeast Asia. In the Philippines, it has 5,500 rooms under the franchise.

“Since first investing in Zen, we have shared the same vision of operational excellence and customer centricity to radically improve the Southeast Asian hospitality market. In the last 12 months, the Zen team has taken major steps to fulfill this vision and has grown exponentially while displaying top inventory quality,” Yanolja CEO Jongyoon Kim said. Lorenz S. Marasigan

MGen keen on joining floating solar power project in Laguna

By Lenie Lectura @llectura

M

ERALCO PowerGen Corp.

(MGen), the power generation subsidiary of Manila Electric Co. (Meralco), wants to take part in the development of a floating solar power project via a partnership with a solar power developer.

“We have not yet signed but I believe there are four entities that have been granted the right to develop the pilot. We’re talking to one of them,” said MGen President Rogelio Singson.

He said four solar power firms were issued pilot permits by the Laguna Lake Development Authority (LLDA), and MGen is interested to partner with one of the four.

“One operator already made an offer to Meralco. There is already a price offer. There are benchmarks, numbers we’re working on. Only four were issued permits,” he said.

The scale of the solar power project is 110 megawatts (MW) and the cost is not as expensive as landbased solar panels.

Once the LLDA issues the rules on floating solar projects, Singson said construction will commence and will take only 10 months to finish.

“We are waiting for the rules on use and lease for solar projects of lake water,” he said. “The requirement is to do a pilot first while they are developing the policy.”

MGen, he said, can help LLDA craft the policy to fast-track the development of such projects. “The industry is trying to help LLDA. If they want, we can fund the study, prepare the policy that will not impact on the use of Laguna Lake. In fact, it will help [because] evaporation is lessened [since it is covered].

Unlike now, with high sunlight, [algae grows fast. That’s why the fish get swamped].”

Electricity to be produced from the floating solar project will be

thrown into the grid. “It is connected to the Meralco grid because where we’re looking at is within the Meralco grid…We can do more if we have enough transmission lines. We’re pressing the government to push for some additional transmission lines,” commented Singson.

T h is project w i l l be done through MGen Renewable Energy Inc. (MGreen), which is eyeing to invest in 1,000 MW of renewableenergy projects over the next five to seven years.

“MGen, through MGreen, will continue working on the realization of our project opportunities and will work in partnership with established developers to maximize our growth potential,” Singson earlier said.

MGreen is the renewable-energy subsidiary of MGen, which, in turn, is the power generation arm of Meralco. The company was established to serve as the platform for the strategic push to develop renewable-energy projects, primarily solar, wind and run-of-river hydro.

Some RE deals will be signed this year but the commercial operation date of these RE projects, which include solar and microgrid, could happen next year.Also, the RE deals this year are targeted to be completed in time for the release of the Renewable Portfolio Standards (RPS) guidelines.

RPS mandates distribution utilities to source a minimum portion of energy from renewable sources, thus guaranteeing a market for renewable-energy generators. This minimum will be increased on yearly basis.

“We are working on several renewable-energy prospects and we recognize the significant reduction in the development cost, particularly for large-scale solar and wind over the past years. We intend to be a key player in this expanding sector,” Singson said.

Pag-IBIG Fund home loan releases grow 13% to record ₧58.73B in 3Q

H

OME loan releases of Pag-IBIG Fund in the last three quarters posted double-digit growth and reached P58.73 billion—the highest ever amount released by the agency for any January-to-September period.

The amount of home loans released increased 13 percent or P6.97 billion compared to the P51.76 billion in home loans released in the same period last year.

The number of financed homes also grew 4 percent year-on-year to 65,375.

“We have yet to finish the year, but things are already looking good as we have again set a new record-high on our home loan releases for January to September. We will continue to work hard in the remaining months of 2019 to provide decent and affordable home financing to even more Filipino workers. This is our commitment, being one of the key players in President Rodrigo Roa Duterte’s drive to uplift the lives of Filipino families,” said Secretary Eduardo D. del Rosario, chairman of both the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees.

Out of the total amount, Del Rosario said P7.18 billion were released as socialized home loans for the benefit of 18,715 PagIBIG Fund members from the minimum-wage and low-income sectors.

Meanwhile, Pag-IBIG Fund

Chief Executive Officer Acmad Rizaldy P. Moti said the growth of the agency’s housing operations has been remarkable.

“Before, our home loan releases for the whole year usually ranged from P30 billion to P45 billion. It was only in 2016 that we breached P55 billion as we released P57.31 billion. We challenged ourselves to do better, which resulted in us surpassing P65 billion in 2017 and P75 billion in 2018. Now that we’re in the third quarter of 2019, our growth continues,” Moti said.

“With our home loan releases amounting to P58.73 billion in the last nine months, we have already surpassed the amount released for the whole year in the previous years until 2016. And by the end of the year, our home loan releases may reach P83 [billion] to P85 billion,” he added.

Moti said continued demand for the agency’s home loans may be attributed to its lowest-ever interest rates, high loan-to-appraisal ratio, long repayment period and much improved insurance terms.

In total, Pag-IBIG Fund approved P80.87 billion in home loans from January to September to finance the acquisition of 84,904 homes. This includes the amount released and P22.14 billion pending for takeout to 19,529 borrowers. These pending for takeout are approved home loan applications, the proceeds of which are ready for release upon submission by borrowers of postapproval requirements.

B2

Companies BusinessMirror

Thursday, October 17, 2019

Senate energy panel sets probe of delayed IPO for NGCP

T

By Butch Fernandez

@butchfBM

HE Senate Energy committee is poised to mount a followup probe into the delayed initial public offering (IPO) of the National Grid Corp. of the Philippines (NGCP).

Sen. Sherwin Gatchalian, committee chairman, said the mandated IPO is “long overdue,” effectively preventing the NGCP from going public.

Gatchalian griped that the decade-long delay was “depriving Filipinos of their fair share in the public utility.”

In a statement, the senator noted that until now, the Philippine Stock Exchange (PSE) has “yet to comply” with the submissions required during the first Senate inquiry on the issue, even as the Energy Regulatory Commission (ERC) has yet to update the Senate committee on its compliance with its submission.

He recalled that on April 3, 2019, the Senate Committee on Energy asked the ERC to submit a “firm timetable” for the resolution of the NGCP’s case, to determine whether NGCP can extend its IPO. The ERC, in its submission, had promised to submit its decision on the case on October 29.

The Senate Energy committee, likewise, required the PSE to provide a simulation/research as to why an NGCP IPO with unfavorable market conditions mostly related to the company’s relationship with regulators and government agencies is detrimental to consumers.

“We want to tackle the IPO issue of the National Grid because we think this is going to be beneficial to our consumers, directly and indirectly.

We will conduct this hearing to understand from both the ERC and DOE [Department of Energy] as to where we are in this initial public offering of the NGCP,” the senator stressed.

Gatchalian pointed out that members of Congress, being the representative of the people, “were the ones who approved this franchise with condition of the IPO. So we’re answerable to the people why the IPO hasn’t been executed after 10 years. From my standpoint right now, I don’t see that deep rationale why the IPO didn’t happen.”

MyTown poll: Tenants less lonely at coliving spaces

R

APID urbanization, an increase in the number of young professionals who live alone and social-media adoption are often cited as causes adversely affecting mental health in big cities, according to dormitory operator MyTown.

In its survey, it found that 2 out of 3 of its tenants feel less lonely now that they live at My Town and over 80 percent see its place as a “home away from home.”

“Most of us have experienced loneliness or depression, either firsthand or in our immediate surrounding. Our goal is for MyTown to be a way for people to find a community and support network in the big city.

By driving this sense of community and belonging through our building designs and tenant events, we successfully lower the threshold for people to engage with others and have our tenants feel supported and connected,” Jelmer Ikink, group director of the company behind MyTown, the SM-led Philippines Urban Living Solutions.

Shared accommodation, also called coliving, gives tenants their own space within a larger building

with communal areas, amenities, activities and events, providing a range of social benefits that help to reduce loneliness, it said.

The World Health Organization listed social support networks as one of the factors that determine health and happiness. Mental health is especially problematic among millennials and Gen Z, according to the WHO. “Our survey shows that most tenants go to our events alone and that’s big reason for joining these activities is to meet new friends. From movie and trivia nights to parties and community outreach activities, each tenant has the opportunity to connect and engage with others, create a supportive network and maintain a social life,” Drixel Ortega, chief customer officer at MyTown, said.

MyTow n, in obser vance of World Mental Health Month, conducted a lecture series, in partnership with the Philippine Mental Health Association, and held an extensive survey among its thousands of tenants to help raise awareness and foster discussions on the importance of mental health in the Philippines. VG Cabuag

He added that under the NGCP’s charter, it has 10 years from January 15, 2009, to comply with its statutory requirement to offer at least 20 percent of its outstanding capital stock to the public. The 10-year period ended on January 15, 2019. Based on its audited financial statements, the NGCP declared a total cash dividend of P169.893 billion in the past nine years. Had there been an IPO in 2009, the public would have received P33.98 billion in dividends.

However, the NGCP filed a petition before the ERC on November 13, 2018, to extend the IPO by one year, which it said was allowed under the law. During the hearing of the Senate Committee on Energy conducted in April, the NGCP blamed pending disputes with the National Transmission Corp. and the Power Sector Assets and Liabilities Management Corp. for the delay of its IPO. Gatchalian believes the NGCP float will benefit Filipino consumers

mutual funds

since it will promote greater public participation in an important public utility. Such participation includes attending and casting votes during stockholders’ meetings to ensure stronger corporate governance.

He aired expectations of greater transparency in the NGCP since publicly listed companies will require three independent directors, real-time disclosure of material information, public annual report, public declaration of dividends, brand and seal of good housekeeping, according to the senator. “I think the consumers will stand to benefit, either directly or indirectly, in the participation on the governance of the utility. Because even with one share, your voice will be heard,” Gatchalian said. “And with that one share, the alignment that was mentioned before will happen, but without any public participation, there is no way for the public to align their direction with the utility.”

October 16, 2019

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 252.75 6.78% -0.41% -0.26% 0.22% ATRAM Alpha Opportunity Fund, Inc. -a 1.5062 9.77% 3.95% 0.71% 4.54% ATRAM Philippine Equity Opportunity Fund, Inc. -a 3.8979 5.94% -1.64% -1.64% -0.13% Climbs Share Capital Equity Investment Fund Corp. -a 0.9432 11.15% n.a. n.a.

4.68% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.8579 10.17% n.a. n.a.

4.53% First Metro Save and Learn Equity Fund,Inc. -a 5.3685 9.95% 1.22% 0.24% 1.81% First Metro Save and Learn Philippine Index Fund, Inc. -a,6 0.8612 10.23% -3.12% n.a.

2.93% MBG Equity Investment Fund, Inc. -a 115.1 3.63% n.a. n.a.

-0.92% PAMI Equity Index Fund, Inc. -a 51.5613 12.41% 1.82% n.a.

4.75% Philam Strategic Growth Fund, Inc. -a 536.06 11.89% 0.67% 0.19% 4.14% Philequity Dividend Yield Fund, Inc. -a 1.2948 9.22% 1.59% 1.42% 3.25% Philequity Fund, Inc. -a 38.1361 10.55% 2.47% 1.33% 4.11% Philequity MSCI Philippine Index Fund, Inc. -a,3 1.0247 n.a. n.a. n.a. n.a.

Philequity PSE Index Fund Inc. -a 5.2405 13.73% 2.6% 2.3% 5.68% Philippine Stock Index Fund Corp. -a 874.98 13.75% 2.52% 2.26% 5.62% Soldivo Strategic Growth Fund, Inc. -a 0.8974 11.73% 1.03% n.a.

4.35% Sun Life Prosperity Philippine Equity Fund, Inc. -a 4.2475 11.11% 2.17% 1.52% 4.65% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 1.0051 13.28% 2.4% n.a.

5.32% United Fund, Inc. -a 3.6873 11.8% 3.86% 2.8% 5.33% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c,2 117.3272 14.01% 3.28% 3.3% 5.94% ATRAM AsiaPlus Equity Fund, Inc. -b $0.9577 1.03% 2.05% -0.53% 3.08% Sun Life Prosperity World Voyager Fund, Inc. -a $1.2882 5.34% 7.63% n.a.

16.56% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.5999 0.88% -2.89% -3.27% -3.11% ATRAM Philippine Balanced Fund, Inc. -a 2.2629 6.64% -0.49% -0.22% 2.43% First Metro Save and Learn Balanced Fund Inc. -a 2.6362 8.97% 1.37% -1.21% 3.66% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,8 0.2344 n.a. n.a. n.a. n.a.

Grepalife Balanced Fund Corporation -a 1.3408 6.28% n.a. n.a.

2.8% NCM Mutual Fund of the Phils., Inc. -a 1.956 10.32% 1.83% 1.34% 6.13% PAMI Horizon Fund, Inc. -a 3.7756 12.69% 0.71% 0.54% 6.98% Philam Fund, Inc. -a 16.9228 12.31% 0.73% 0.48% 6.38% Solidaritas Fund, Inc. -a 2.14 7.68% 1.28% 1.4% 3.42% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.8678 10.24% 1.64% 1.16% 5.93% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d,4 1.0139 n.a. n.a. n.a. n.a.

Sun Life Prosperity Achiever Fund 2038, Inc. -a,d,4 1.0003 n.a. n.a. n.a. n.a.

Sun Life Prosperity Achiever Fund 2048, Inc. -a,d,4 0.9972 n.a. n.a. n.a. n.a.

Sun Life Prosperity Dynamic Fund, Inc. -a 0.9807 9.58% 1.23% 0.78% 6.4% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.03836 10.74% 2.35% 2.29% 8.67% PAMI Asia Balanced Fund, Inc. -a $0.9895 5.39% 2.18% 0.15% 8.3% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.747 5.97% 5.59% 3.84% 13.25% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a $1.1057 5.41% 3.21% n.a.

9.48% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 355.02 4% 2.42% 2.28% 3.36% ATRAM Corporate Bond Fund, Inc. -a,1 1.9194 3.33% 0.18% -0.08% 3.24% Cocolife Fixed Income Fund, Inc. -a 3.0906 5.05% 5.29% 5.24% 3.85% Ekklesia Mutual Fund Inc. -a 2.2103 4.43% 1.55% 1.97% 3.81% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.3379 5.66% 1.58% 1.51% 6.02% Grepalife Fixed Income Fund Corp. -a P 1.6088 2.22% -0.63% 0.01% 2.84% Philam Bond Fund, Inc. -a 4.3154 14.46% 1.22% 1.65% 10.09% Philequity Peso Bond Fund, Inc. -a 3.7471 8.47% 1.99% 1.57% 6.54% Soldivo Bond Fund, Inc. -a 0.952 9.31% 0.25% n.a.

6.82% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.0323 10.15% 2.83% 2.44% 9.64% Sun Life Prosperity GS Fund, Inc. -a 1.6785 9.64% 2.29% 2.02% 9% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $466.21 4.59% 2.07% 2.87% 3.97% ALFM Euro Bond Fund, Inc. -a Є220.25 3.32% 1.35% 1.49% 3.56% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2034 7.4% 2.28% 2.52% 6.9% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0259 4.44% 1.19% 1.62% 4.44% Grepalife Dollar Bond Fund Corp. -a $1.7144 1.44% -1.45% 0.43% 1.43% PAMI Global Bond Fund, Inc -a $1.0991 7.3% 0.06% -1.18% 6.06% Philam Dollar Bond Fund, Inc. -a $2.4135 12.98% 2.2% 3.43% 11.18% Philequity Dollar Income Fund Inc. -a $0.0602848 6.01% 2.06% 2.1% 5.76% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1745 10.29% 1.58% 2.92% 10.53% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 124.94 4.19% 2.68% 2.1% 3.36% First Metro Save and Learn Money Market Fund, Inc. -a,5 1.0242 n.a. n.a. n.a. n.a.

Philam Managed Income Fund, Inc. -a 1.2421 5.97% 2.37% 1.5% 5.09% Sun Life Prosperity Money Market Fund, Inc. -a 1.2569 3.87% 2.82% 2.22% 3.09% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0338 2.18% n.a. n.a.

1.76% a - NAVPS as of the previous banking day. b - NAVPS as of two banking days ago. c - Listed in the PSE. d - in Net Asset Value per Unit (NAVPU).

1 - Adjusted due to cash dividend issuance last January 29, 2018. 2 - Adjusted due to stock dividend issuance last June 5, 2018. 3 Launch date is January 3, 2019.

4 - Launch date is January 28, 2019. 5 - Launch date is February 1, 2019. 6 - Renaming was approved by the SEC last October 12, 2018 (formerly, One Wealthy Nation Fund, Inc.).

7 - Launch date is August 1, 2019. 8 - Launch date is September 28, 2019.

"While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www. pifa.

com.ph to see the latest NAVPS/NAVPU."

www.businessmirror.com.ph

PSE STOCK QUOTATIONS

October 16, 2019

Net Foreign Stocks Bid Ask Open High Low Close Volume Value Trade (Peso) Buy (Sell) FINANCIALs

ASIA UNITED BDO UNIBANK BANK PH ISLANDS CHINABANK CITYSTATE BANK EAST WEST BANK METROBANK PB BANK PHIL NATL BANK PSBANK PHILTRUST RCBC SECURITY BANK UNION BANK BDO LEASING COL FINANCIAL FERRONOUX HLDG IREMIT MANULIFE NTL REINSURANCE PHIL STOCK EXCH VANTAGE

57.4 147.9 94 25 6.41 12.14 68 12.8 43 57.8 115.2 26.05 196.5 59.3 1.95 18.56 4.72 1.2 735 0.88 178 1.09

57.5 149 94.05 25.05 7.94 12.18 68.15 13 43.3 58 135 26.1 198.4 59.9 2.05 18.62 4.8 1.22 770 0.91 178.8 1.11

57.4 148.4 93.1 25 6.12 12.08 68.6 12.8 43.5 58 112.1 25.9 192.5 59 1.91 18.56 4.9 1.22 770 0.91 178.8 1.09

57.4 149 94 25 7.95 12.18 69.4 12.8 43.5 58 113.2 26.15 198.5 59.95 2.05 18.62 4.9 1.22 770 0.91 179 1.11

57.4 146 92.25 24.95 6.12 12.02 67.9 12.8 42.9 57.75 112.1 25.9 192.5 59 1.91 18.56 4.65 1.2 770 0.91 178.8 1.09

57.4 149 94 25 7.95 12.14 68 12.8 43 58 113.2 26.15 198.4 59.1 2.05 18.62 4.79 1.2 770 0.91 178.8 1.11

4490 1264100 3638600 66100 200 448400 2754250 5400 29700 2910 80 217800 1058570 770 9000 5400 448000 103000 10 24000 180 7000

257726 187505703 340534881 1652165 1407 5421938 188681764 69120 1276910 168540 9034 5692885 209769852 45758.5 18270 100230 2125930 123750 7700 21840 32188 7650

INDUSTRIAL

257726 80489079 25441450 -2500 1552040 -65098994.5 90360 8532343 -0 -

ALSONS CONS ABOITIZ POWER BASIC ENERGY FIRST GEN FIRST PHIL HLDG MERALCO MANILA WATER PETRON PETROENERGY PHINMA ENERGY PHX PETROLEUM PILIPINAS SHELL SPC POWER AGRINURTURE AXELUM CENTURY FOOD DEL MONTE DNL INDUS EMPERADOR SMC FOODANDBEV ALLIANCE SELECT GINEBRA JOLLIBEE LIBERTY FLOUR MACAY HLDG MAXS GROUP MG HLDG PEPSI COLA SHAKEYS PIZZA ROXAS AND CO ROXAS HLDG UNIV ROBINA VITARICH CONCRETE A CEMEX HLDG DAVINCI CAPITAL EAGLE CEMENT EEI CORP HOLCIM MEGAWIDE PHINMA TKC METALS VULCAN INDL CHEMPHIL EUROMED LMG CHEMICALS MABUHAY VINYL PRYCE CORP CONCEPCION GREENERGY INTEGRATED MICR IONICS PANASONIC SFA SEMICON CIRTEK HLDG

1.29 38.55 0.25 25 79.15 363.6 20 5.06 4.16 2.76 10.82 33.9 7.25 15.5 4.33 15.1 5.55 8.43 6.99 90.6 0.69 48.4 233 38.95 7.85 13.08 0.185 1.73 11.16 1.96 2.22 157.2 1.23 69 2.46 5.8 15.4 10.44 14.8 17.98 9.36 1.07 1.16 120 1.59 5.2 3.4 5.38 31.7 2.4 8.12 1.5 5.04 1 8.86

1.32 39.3 0.255 25.15 79.35 367 20.05 5.08 4.35 2.77 11 34 7.34 15.8 4.34 15.16 5.67 8.47 7 90.75 0.71 48.5 233.4 39 8.69 13.12 0.199 1.74 11.18 1.98 2.29 160 1.24 70 2.47 6.14 15.42 10.5 14.88 18 9.41 1.1 1.17 135 1.73 5.26 3.51 5.4 32.35 2.43 8.16 1.52 5.47 1.03 8.87

1.29 38.6 0.25 25.3 79.3 367 20.2 5.09 4.16 2.6 10.9 34 7.31 15.8 4.35 15.16 5.67 8.5 7.03 91 0.7 48.7 233 33.05 8.3 13.2 0.183 1.76 11.2 1.95 2.27 158.5 1.25 71.45 2.47 6 15.6 10.66 14.9 18.06 9.5 1.06 1.15 120 1.59 5.21 3.51 5.4 32 2.45 8.22 1.48 5.48 1.01 8.58

1.32 39.3 0.255 25.6 79.3 367 20.25 5.09 4.16 2.8 11 34.15 7.34 15.8 4.41 15.2 5.67 8.51 7.03 91 0.71 48.95 233 39 8.69 13.2 0.183 1.76 11.2 1.97 2.27 160 1.27 71.45 2.47 6 15.6 10.66 14.9 18.06 9.5 1.12 1.17 120 1.59 5.26 3.51 5.44 32.1 2.45 8.33 1.53 5.48 1.01 8.89

1.29 38 0.245 24.9 79.05 362.2 20 5.05 4.16 2.6 10.82 33.9 7.25 15.48 4.3 15.08 5.55 8.43 6.97 90 0.69 48.35 232 33.05 8.3 13.08 0.183 1.71 11.18 1.95 2.2 156.8 1.22 70 2.43 6 15 10.4 14.76 17.94 9.41 1.05 1.15 120 1.59 5.2 3.51 5.39 32 2.38 8.05 1.48 5.48 1 8.58

1.32 39.3 0.255 25 79.15 367 20 5.06 4.16 2.77 11 33.9 7.25 15.8 4.34 15.16 5.55 8.43 7 90.75 0.7 48.4 233 38.95 8.69 13.08 0.183 1.73 11.18 1.96 2.22 160 1.24 70 2.46 6 15.42 10.44 14.88 18 9.41 1.1 1.17 120 1.59 5.2 3.51 5.4 32.1 2.43 8.16 1.52 5.48 1 8.86

51000 1290500 940000 1747400 78710 123730 587200 192900 8000 65457000 37600 222900 71800 148000 5018000 496500 1600 914000 1095700 273090 446000 284200 203210 900 4400 28400 10000 1938000 379200 245000 132000 1381230 4932000 670 903000 30000 102300 49700 200300 614300 368800 736000 1784000 10 1000 52100 1000 304700 5400 6776000 562400 8000 200 88000 226900

66370 50277555 234800 44247220 6230064 45224854 11747655 978129 33280 177924650 411568 7574570 523733 2332010 21820090 7504950 8892 7745584 7683632 24784675.5 311430 13756610 47289972 33495 37890 372228 1830 3355830 4242512 479660 293190 219614644 6167640 46914.5 2215080 180000 1564446 519266 2978646 11,052,986( 3474795 808800 2070820 1200 1590 271236 3510 1645840 173100 16386370 4606009 12070 1096 88530 1987681

ABACORE CAPITAL ASIABEST GROUP AYALA CORP ABOITIZ EQUITY ALLIANCE GLOBAL AYALA LAND LOG ANGLO PHIL HLDG ATN HLDG A ATN HLDG B COSCO CAPITAL DMCI HLDG FILINVEST DEV FJ PRINCE A GT CAPITAL HOUSE OF INV JG SUMMIT KEPPEL HLDG A LODESTAR LOPEZ HLDG LT GROUP MABUHAY HLDG METRO PAC INV PACIFICA PRIME MEDIA REPUBLIC GLASS SOLID GROUP SM INVESTMENTS SAN MIGUEL CORP SOC RESOURCES SEAFRONT RES TOP FRONTIER ZEUS HLDG

0.88 12.54 871.5 53.2 11.7 3.64 0.7 1.12 1.15 6.7 8.85 13.3 3.78 860 5.63 73.85 5.06 0.485 4.3 13.7 0.59 4.95 0.038 1.37 2.81 1.26 996 166 0.85 2.4 219.6 0.231

0.89 12.78 878 53.95 11.72 3.65 0.72 1.15 1.17 6.75 8.86 13.4 4.5 862 5.65 73.9 5.39 0.51 4.35 14.16 0.61 4.99 0.039 1.38 2.91 1.29 1004 166.3 0.88 2.41 220.6 0.235

0.87 13.18 879 53.1 11.52 3.53 0.7 1.14 1.16 6.64 8.7 13.3 4.49 853 5.63 71 5.06 0.5 4.31 13.84 0.59 4.9 0.038 1.42 2.91 1.29 995 166 0.84 2.41 221 0.23

0.88 13.18 888 53.95 11.7 3.69 0.72 1.15 1.17 6.75 8.9 13.4 4.5 862.5 5.63 73.9 5.06 0.51 4.31 14.1 0.61 5.03 0.039 1.42 2.91 1.29 1004 166.5 0.88 2.41 221 0.239

0.85 12.54 870.5 53.1 11.4 3.49 0.7 1.12 1.15 6.64 8.59 13.3 3.76 850.5 5.63 70.8 5.05 0.5 4.29 13.7 0.59 4.87 0.038 1.31 2.91 1.26 983 165.7 0.84 2.4 220 0.23

0.88 12.78 878 53.95 11.7 3.65 0.72 1.15 1.17 6.75 8.85 13.4 3.76 860 5.63 73.9 5.06 0.51 4.3 14.1 0.61 4.95 0.038 1.38 2.91 1.26 1004 166 0.85 2.4 220 0.23

10365000 6300 224840 657700 4203400 5161000 51000 531000 349000 1564500 10958000 1700 107000 109870 345500 1343610 6900 3000 80000 334700 144000 68679000 3500000 1202000 16000 2000 650630 192460 164000 19000 540 1670000

9045500 -981250 80274 197557000 13350170 35240898 6285386.5 48864926 21026722 18726890 -718750 35820 600450 404030 169390 10460497 2286075 96,367,513( 45,470,877.9999) 22640 -2660 407480 93946465 25183705 1945165 -874902 98663317 63564952 34877 1510 344510 -202329.9997 4675548 929168 85180 339632150 -67803880 134000 1649120 46560 2550 1260 649095555 503150995 31943779 -3927293 139650 45640 118982 -4310 389320 -

HOLDING & FRIMS

16548740 26910355 -4728058.5 20612924 -8418140 54093 -710530 -891470 -731 -37860 77730.0001 1646688 -8325 -3209209 -3008600 13887131 13411115 10009186 -129648 545720 -58172 -97500 14492464 -50100 -908080 458498 345300 -148400 6,556,983.9996) -33300 -41840 -173100 1213710 1898991 -641460

PROPERTY ARTHALAND CORP 0.85 0.86 0.86 0.88 0.85 0.86 985000 844430 -10320 ANCHOR LAND 9.31 9.99 9.99 9.99 9.99 9.99 2000 19980 AYALA LAND 48.95 49.1 48.05 49.2 48 49.1 6759600 330833550 185723980 ARANETA PROP 1.77 1.85 1.79 1.85 1.75 1.85 63000 111440 BELLE CORP 2.02 2.03 2.03 2.07 2.03 2.03 814000 1653480 20299.9999 A BROWN 0.82 0.83 0.81 0.83 0.81 0.83 660000 539400 CITYLAND DEVT 0.85 0.87 0.86 0.86 0.86 0.86 1000 860 -860 CROWN EQUITIES 0.203 0.21 0.21 0.21 0.202 0.203 550000 111930 CEB LANDMASTERS 4.69 4.7 4.69 4.7 4.68 4.69 27000 126680 -23440 CENTURY PROP 0.55 0.56 0.55 0.56 0.55 0.55 12399000 6860540 10600 CYBER BAY 0.39 0.4 0.39 0.39 0.39 0.39 90000 35100 DOUBLEDRAGON 20.7 20.8 20.9 20.95 20.7 20.7 61600 1280340 -677095 DM WENCESLAO 9.77 9.78 9.78 9.82 9.76 9.78 67000 655798 -26373 EVER GOTESCO 0.121 0.129 0.121 0.121 0.121 0.121 20000 2420 FILINVEST LAND 1.61 1.62 1.61 1.62 1.59 1.62 9447000 15184210 5795290 GLOBAL ESTATE 1.2 1.22 1.2 1.2 1.2 1.2 43000 51600 6000 8990 HLDG 15 15.02 15.04 15.04 15 15 629700 9460752 -7500 PHIL INFRADEV 1.37 1.38 1.36 1.39 1.36 1.38 488000 674160 KEPPEL PROP 4.36 4.68 4.5 4.5 4.5 4.5 15000 67500 CITY AND LAND 0.73 0.75 0.73 0.73 0.73 0.73 59000 43070 MEGAWORLD 4.77 4.78 4.72 4.82 4.71 4.77 45498000 217282290 -26982800 MRC ALLIED 0.295 0.305 0.3 0.305 0.295 0.305 4690000 1408550 PHIL ESTATES 0.42 0.45 0.41 0.42 0.41 0.42 80000 33500 PRIMEX CORP 2.01 2.04 2.03 2.04 2.01 2.04 157000 316690 ROBINSONS LAND 25.3 25.55 25.5 25.6 25.15 25.55 2014400 51430310 7732780 PHIL REALTY 0.37 0.375 0.37 0.37 0.37 0.37 60000 22200 ROCKWELL 2.24 2.25 2.3 2.3 2.25 2.25 282000 635690 STA LUCIA LAND 2.64 2.65 2.76 2.76 2.65 2.65 1884000 5062210 266800 SM PRIME HLDG 38.5 38.65 38.1 38.9 38 38.65 5829500 224830615 91792650 VISTAMALLS 5.67 5.7 5.65 5.74 5.65 5.69 25000 141441 SUNTRUST HOME 0.89 0.92 0.92 0.92 0.92 0.92 29000 26680 VISTA LAND 7.66 7.69 7.68 7.69 7.65 7.69 2334900 17935541 -7798679

SERVICES ABS CBN 18.8 19 19.34 19.34 19 19 114400 2182510 GMA NETWORK 5.2 5.22 5.25 5.25 5.2 5.2 136400 709710 GLOBE TELECOM 1839 1840 1837 1870 1836 1840 77485 143301435 24468060 PLDT 1115 1121 1105 1127 1100 1115 65715 73381665 1568610 DFNN INC 5.6 6 5.65 5.65 5.6 5.6 10000 56100 -56100 ISLAND INFO 0.108 0.112 0.107 0.107 0.107 0.107 160000 17120 ISM COMM 4.92 4.93 4.9 4.96 4.89 4.92 1312000 6453710 179650 JACKSTONES 2.57 2.63 2.78 2.78 2.5 2.57 794000 2052690 NOW CORP 3.04 3.05 3.12 3.14 2.97 3.05 4424000 13510810 101830 TRANSPACIFIC BR 0.315 0.32 0.315 0.325 0.315 0.32 1920000 612900 PHILWEB 3.17 3.18 3.14 3.18 3.14 3.18 281000 890340 -37890 2GO GROUP 10.1 10.3 10.1 10.28 10.1 10.1 8400 84966 ASIAN TERMINALS 16.12 17 16.98 17 16.98 17 74000 1257980 68000 CHELSEA 6.98 7.03 7.05 7.05 6.93 7.03 528500 3694652 -110710 CEBU AIR 96.45 96.55 95.1 96.8 94.75 96.45 584940 56289493 46579826 INTL CONTAINER 121 121.3 120.5 122.2 120 121.3 1275220 154428929 -17502734 LBC EXPRESS 13.54 15.46 15.48 15.48 15.48 15.48 3200 49536 LORENZO SHIPPNG 0.9 0.94 0.9 0.95 0.9 0.94 402000 361890 MACROASIA 18.26 18.3 18.36 18.42 18.24 18.3 137500 2519772 METROALLIANCE A 1.09 1.14 1.11 1.15 1.09 1.09 119000 130940 METROALLIANCE B 1.07 1.15 1.15 1.15 1.06 1.07 183000 198880 PAL HLDG 8.2 8.29 8.25 8.29 8.25 8.29 1700 14085 HARBOR STAR 1.56 1.59 1.59 1.59 1.55 1.59 420000 662550 ACESITE HOTEL 1.56 1.66 1.64 1.67 1.54 1.66 96000 153430 GRAND PLAZA 9.99 11.48 10.68 11.5 10.6 11.5 2100 22430 WATERFRONT 0.66 0.67 0.67 0.69 0.66 0.67 1708000 1143220 CENTRO ESCOLAR 6.91 7.04 7.04 7.04 6.91 6.91 700 4863 FAR EASTERN U 901 925 920 925 900 925 210 191240 IPEOPLE 8.15 8.25 8.15 8.15 8.15 8.15 6000 48900 STI HLDG 0.67 0.68 0.68 0.68 0.67 0.68 478000 324020 -187340 BERJAYA 2.33 2.38 2.32 2.32 2.32 2.32 9000 20880 BLOOMBERRY 10.66 10.7 10.9 11 10.56 10.66 3644200 38857036 -25823440 PACIFIC ONLINE 2.87 2.89 2.88 2.89 2.88 2.88 23000 66260 LEISURE AND RES 3 3.03 3.01 3.01 2.96 3 793000 2372130 23980 MANILA JOCKEY 3.32 3.35 3.35 3.35 3.35 3.35 13000 43550 PH RESORTS GRP 4.9 5.1 4.9 4.9 4.9 4.9 13500 66150 PREMIUM LEISURE 0.68 0.69 0.7 0.7 0.68 0.69 423000 289870 ALLHOME 11.48 11.56 11.5 11.56 11.46 11.56 15868000 182794484 -61841494 METRO RETAIL 2.41 2.44 2.43 2.44 2.39 2.44 150000 361700 -28850 PUREGOLD 39.9 40 40.55 40.8 39.6 39.9 2715100 109,550,480( 26,202,244.9999) ROBINSONS RTL 76.8 77.65 77.6 77.95 77 77.65 7330 568941.5 -252150.5 PHIL SEVEN CORP 133 134 135.2 135.2 134 134 784570 105155865 -175518 SSI GROUP 2.56 2.59 2.46 2.6 2.45 2.56 4910000 12564240 -1176480 WILCON DEPOT 16.72 16.82 16.4 16.84 16.4 16.82 274500 4588800 2654992.0003 APC GROUP 0.56 0.57 0.56 0.58 0.56 0.57 4770000 2722600 -198360.0002 EASYCALL 9.05 9.07 9.04 9.3 9.04 9.05 24300 220428 GOLDEN BRIA 431 439.6 431.2 439.8 431.2 439.8 50 21802 PRMIERE HORIZON 0.52 0.53 0.51 0.53 0.51 0.53 17777000 9343260 -1005160 SBS PHIL CORP 9.14 9.25 9.25 9.25 9.14 9.14 98600 901689

MINING & OIL ATOK 11.62 12.38 12.6 12.6 11.58 12.44 800 9538 APEX MINING 1.13 1.14 1.13 1.14 1.13 1.14 1063000 1202310 -309219.9999 ABRA MINING 0.0017 0.0018 0.0017 0.0018 0.0017 0.0018 212000000 361800 ATLAS MINING 2.5 2.55 2.52 2.52 2.5 2.5 263000 657790 BENGUET A 1.1 1.21 1.1 1.1 1.1 1.1 5000 5500 CENTURY PEAK 2.6 2.62 2.58 2.58 2.58 2.58 25000 64500 DIZON MINES 7.42 7.69 7.51 7.79 7.43 7.69 14600 109559 FERRONICKEL 1.73 1.74 1.7 1.74 1.68 1.74 39427000 68067610 161400 GEOGRACE 0.202 0.211 0.212 0.213 0.203 0.211 660000 135860 10600 LEPANTO A 0.105 0.106 0.106 0.106 0.104 0.105 1490000 155850 LEPANTO B 0.105 0.109 0.105 0.108 0.105 0.108 130000 13770 MARCVENTURES 1.15 1.16 1.14 1.16 1.12 1.16 101000 114410 NIHAO 1.02 1.06 1.06 1.08 1.02 1.07 100000 102900 NICKEL ASIA 4.05 4.06 3.93 4.08 3.93 4.05 5326000 21397170 1829910 OMICO CORP 0.47 0.5 0.475 0.475 0.47 0.47 280000 132250 ORNTL PENINSULA 0.85 0.86 0.84 0.86 0.84 0.86 160000 135410 PX MINING 3.6 3.62 3.6 3.62 3.6 3.62 221000 797900 198780 SEMIRARA MINING 22.7 22.8 22.95 23 22.6 22.8 680500 15517965 -7803685 UNITED PARAGON 0.006 0.0062 0.0062 0.0062 0.006 0.0061 32000000 195800 ORNTL PETROL A 0.011 0.012 0.012 0.012 0.012 0.012 5000000 60000 ORNTL PETROL B 0.011 0.012 0.011 0.011 0.011 0.011 5000000 55000 -55000 PHILODRILL 0.01 0.011 0.011 0.011 0.011 0.011 6100000 67100 PHINMA PETRO 10.8 10.88 11.1 11.28 10.52 10.88 3356700 36827458 1062772 PXP ENERGY 12.3 12.38 12.3 12.64 12.3 12.3 577500 7187682 751652

PREFFERED

HOUSE PREF A 96.75 98.15 97 98.15 96.75 96.75 20510 1984977.5 96900 AC PREF B1 500 507 508 508 500 500 8010 4006180 AC PREF B2 488 500 486 500 486 500 20 9860 ALCO PREF B 100.5 103.8 103.8 103.8 103.8 103.8 10 1038 DD PREF 100.3 101 100.3 101 100.2 101 56800 5716037 -2283469 SMC FB PREF 2 995.5 997 995 995.5 995 995.5 90 89585 FGEN PREF G 107.7 109.9 107.9 107.9 107.7 107.7 10080 1086616 GLO PREF P 503 510 503 503 503 503 500 251500 GTCAP PREF B 970 980 980 980 970 970 150 146600 LR PREF 0.99 1.01 0.99 0.99 0.99 0.99 483000 478170 MWIDE PREF 101 101.2 101 101.2 101 101.2 3940 397956 PCOR PREF 2B 1018 1025 1015 1036 1015 1036 205 208220 PCOR PREF 3A 1050 1055 1050 1050 1050 1050 2250 2362500 SMC PREF 2C 78 78.2 77.8 78.25 77.8 77.8 21070 1642032.5 SMC PREF 2D 75.5 75.9 75.5 75.5 75 75.5 2300 173400 SMC PREF 2E 76 77.9 75.65 75.65 75.65 75.65 64800 4902120 SMC PREF 2G 76 76.5 76 76 76 76 9230 701480 SMC PREF 2I 75.7 76 76 76 75.7 76 130600 9901600 PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR GMA HLDG PDR

17.92 5.02

18 5.05

18.44 5.16

18.44 5.16

18 5

18 5.04

441800 318300

8044586 1599324

WARRANTS LR WARRANT

1.56

-7161226 -1154100

1.6

1.54

1.54

1.54

1.54

2000

3080

-

ITALPINAS 6.6 KEPWEALTH 11.7 MAKATI FINANCE 2.48 XURPAS 0.89

6.61 11.74 2.54 0.9

6.59 11.34 2.53 0.9

6.61 11.98 2.53 0.91

6.42 11.34 2.46 0.89

6.6 11.7 2.48 0.89

118500 1030400 29000 1217000

777912 12062586 71990 1086830

35686 -70200 35600

FIRST METRO ETF

118.5

SMALL & MEDIUM ENTERPRISES

EXHANGE TRADE FUNDS 118.4

118.5

118.5

118

118.4

2860

338419

-

The World Editor: Angel R. Calso

Thursday, October 17, 2019

B3

China threatens to retaliate if US enacts Hong Kong bill

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hina threatened unspecified “strong countermeasures” if the US Congress enacts legislation supporting Hong Kong protesters, in a sign of the deepening strain between the world’s two largest economies as they attempt to seal a trade deal.

China’s foreign ministry issued the warning on Wednesday after the US House passed a package of measures backing a pro-democracy movement that has rocked the former British colony for more than four months. Among them was the Hong Kong Human Rights and Democracy Act, which subjects the city’s special US trading status to annual reviews, and provides for sanctions against officials deemed responsible for undermining its “fundamental freedoms and autonomy.”

The threat roiled markets during Asian trading, at one point wiping out a 0.8 percent rally in the regional equity benchmark. Futures on the S&P 500 Index were still down 0.2 percent as of 8:06 a.m. in London after falling twice that much in Asia. The yuan was also 0.2 percent lower against the dollar offshore.

While the legislation must also pass the US Senate and be signed by President Donald J. Trump to become law, it already has strong bipartisan support in the Republican-run upper chamber. The Hong Kong measures were passed by the Democrat-controlled House by unanimous voice votes on Tuesday.

Chinese Ministry of Foreign Affairs Spokesman Geng Shuang warned American lawmakers to stop meddling in China’s internal affairs “before falling off the edge of the cliff,” without specifying how it would retaliate. The House action “fully exposes the shocking hypocrisy of some in the US on human rights, and democracy and their malicious intention to undermine Hong Kong’s prosperity and stability to contain China’s development,” Geng said.

Both Trump and Chinese counterpart Xi Jinping have so far prevented the international uproar over Hong Kong from scuttling their trade talks. The two sides went ahead with negotiations and reached some broad agreements last week, even though the House vote was widely expected at the time.

“I don’t think this will undermine the prospect of signing a partial deal next month,” said Wang Huiyao, an adviser to China’s cabinet, and founder of the Center for China and Globalization in Beijing. “The Hong Kong bill is not a done deal and there is still room for redemption.”

A spokesman for the Hong Kong government “expressed regret” over the House action, which came hours before Chief Executive Carrie Lam was slated to deliver her annual policy address. Earlier this week, tens of thousands of protesters gathered in Hong Kong’s central district urging the legislation’s passage as sign of international support, many of them waving American flags.

US lawmakers have embraced the Hong Kong protesters’ cause as the yearlong trade war fuels American support for pushing back against China, and they have hosted some of the city’s activists on Capitol Hill in recent weeks. The National Basketball Association’s struggle to manage Chinese backlash against a Houston Rockets executive’s support for the movement has only focused wider attention on the debate.

On Tuesday, the House passed House Resolution 543, a resolution reaffirming the relationship between the US and Hong Kong, condemning Chinese interference in the region and voicing support for protesters. Lawmakers also passed the Protect Hong Kong Act, HR 4270, which would halt the export to Hong Kong of crowd-control devices, such as tear gas and rubber bullets.

Representative Chris Smith, a New Jersey Republican and a sponsor of the main Hong Kong bill, predicted that the Senate would pass the legislation and dismissed the threats from Beijing.

“Retaliation, that’s all they ever talk,” Smith told Bloomberg TV. “They try to browbeat and cower people, countries, presidents, prime ministers and the like all over in order to get them to back off. We believe that human rights are so elemental, and so in need of protection. And that’s why the students and the young people are out in the streets in Hong Kong virtually every day.”

In addition, the House adopted a resolution by Foreign Affairs Committee Chairman Eliot Engel of New York and the panel’s top Republican, Michael McCaul of Texas, urging Canada to start US extradition proceedings against Huawei Technologies Co. Executive Meng Wanzhou. The resolution, House Resolution 521, also calls for the release of two Canadians detained in China and due process for a third sentenced to death for drug smuggling.

Republican Sen. Rick Scott of Florida, Ted Cruz of Texas and Josh Hawley of Missouri visited Hong Kong over the two-week congressional recess that ended on Tuesday. Hawley met with local pro-democracy activist Joshua Wong and got into a back-and-forth with Lam over whether Hong Kong is becoming a “police state.”

The Chinese Ministry of Foreign Affairs’ local branch in the city issued a separate statement warning the US against “playing the Hong Kong card.” “They are lifting the stone only to drop it on their own feet,” it said.

David Zweig, an emeritus professor at the Hong Kong University of Science and Technology, and director of Transnational China Consulting Ltd., noted that the US legislation stopped short of altering the Hong Kong Policy Act of 1992, which provides the city’s special trading status. So both the bill and any Chinese retaliation would have limited impact.

“China needs to posture with a retaliation of some kind,” Zweig said. “But this is really a secondary issue as long as they keep the Hong Kong Policy Act intact. The House could have gone much further with the Hong Kong Policy Act. And they didn’t.” Bloomberg News

B4 Thursday, October 17, 2019

J’s Diamond to open branch at Ayala Malls Manila Bay

SM Southmall hosted a grand royal celebration of ‘Super Kids Day 2019’

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M Supermalls holds its annual Kids’ Month, a month-long celebration featuring a series of fun events and activities that are perfect for the young and young-at-heart.

"We aim to build a family-friendly community where everyone, especially the kids, can have a one–of-a-kind shopping and entertainment experience. Kids’ Month is our way of letting kids be themselves and enjoy their childhood in our malls," said SM Supermalls senior vice president for

marketing Jonjon San Agustin.

Here are top 5 kiddie treats to look forward to at SM this October: Music of the World. As part of the annual UN celebration, SM celebrates diversity with Raise Your Flag happening from October 8 to 24 featuring cultural song and dance presentations as well as colorful display of national flags from around the world!

Colors of the World. From the saris of India to the kimonos of Japan, kids can join and flaunt their national costumes at the

Colors of the World Contest for a chance to win SM gift certificates from October 11 to 25. Shop for different costumes and sweets at Fang-tastic Alley at SM from October 18 to 31.

Zombie Mob Dance. Are you crazy for zombies? Be sure to catch and dance with the zombies around the mall on October 31.

Halloween treats. Kids can also join a fun trick-or-treat at their favorite shops at SM from October 30 to 31. Kids who come in their “too cute to spook” costumes have a chance to win special prizes on October 31.

SuperKids Game. To unveil more surprises, kiddos can play the SuperKids Royal Dash Facebook Filter Game from October 5 to 31. Simply scan the QR code posters located in select areas in the mall and Toy Kingdom branches for a chance to win amazing treats!

For more information, check out www.smsupermalls.com, or its Facebook, Twitter and Instagram accounts: @ smsupermalls.

Manila welcomes Earl of Sandwich

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HESE days, people are really so busy that they can’t even take the time to eat a full course meal. The struggle is real. Deadlines vs work. And for many, work wins.

But busyness getting in the way of meals is not unique to modern-day individuals. In fact, one man in the 16th century was so engrossed with his card game that he did not want to leave the gaming table. Perhaps he was on a winning streak? Or maybe he needed to recoup some losses? No matter the reason, he was not about to let hunger pangs get in the way.

This was in 1762, and the man who could not be disturbed was John Montagu, the 4th Earl of Sandwich.

Instead of going to the dining table, he asked that some roast beef be placed between two slices of bread, which he then could easily eat with his hands. And in honor of his brilliant dining concept, bread served this way was named the Sandwich.

Some 250 years later, the legacy of the Earl of Sandwich lives on with sandwich restaurants serving quick and easy meals on the go. In 2004, Lord John Montagu, the 11th Earl of Sandwich, and his son, the Honorable Orlando Montagu, direct descendants of the inventor of the sandwich, partnered with Robert Earl, founder and CEO of Planet Hollywood®, to launch the Earl of Sandwich® restaurants.

At SM Megamall branch opening, from left: Jenna Crawford, Operations Support Manager, Earl of Sandwich (EOS), Marissa Florete – Gorriceta , EVP - Marketing and Merchandising, F&C Group of Companies (F&C), Susan Florete, Director and Matriarch (F&C), Alex Garland, (EOS ) managing Director for Europe, Middle East & India, Marcelino Florete Jr., - President and CEO, (F&C), Marcelino Florete III, EVP - Audit and Finance (F&C) and behind is Brian Stoudenmire, (EOS) Culinary Operations Manager

Today, the Earl of Sandwich® can be found in 35 locations across USA, one in Paris and one in Manila, Philippines located at the 4th level, Bridgeway, SM Megamall.

Through the centuries, the Earl’s sandwich selection has grown and evolved into its signature sandwiches, which are all built to order with unique compositions of flavors.

To complement these hot sandwiches are freshly tossed salad greens, topped with fresh ingredients and innovative flavor combinations, as embodied in the Earl's Cobb, Chicken Caesar and Apple Cranberry.

Hand-crafted wraps with flavors like Buffalo Chicken, Thai Chicken, Chicken Caesar, Spicy Tuna and Turkey & Cheddar

are also palate pleasers.

Earl of Sandwich also serve an assortment of freshly-made PASTAS ( Spaghetti with Meat Sauce, Chicken Pasta, Baked Ziti & Spicy Shrimp Pasta ) , PIZZA BREADS ( Cheese Pizza Bread, Pepperoni &Pizza Bread ) RICE PLATES ( Roasted Chicken, Asian Pork, Squid Calamari & Beef Tapa ) Artisan Soup and DESSERTS ( Cakes & Brownies ) And for those who really cannot stay, there is the Grab ‘n Go, a full line of products always ready for take-out. This menu includes hot sandwiches freshly baked on white or wheat artisan bread, hand-crafted wraps, fresh green salads, pizza breads, rice plates, pastas, soup, drinks & desserts.

J

’S Diamond is a renowned jewelry brand that originated in Hong Kong and has established itself in the Philippines since 2012. J’s Diamond initially started with an exquisite collection of timeless pieces of rings tailored for engagement and wedding occasions. It has been patronized by customers for its specialty in bridal accessories and for the refined and sophisticated craftsmanship of its jewelry pieces.

J’s Diamond’s success has been constant throughout the years and yet again, it reached a greater height. J’s Diamond is set to open up a new branch, its fourth boutique in the country. Along with its accompanied success, J’s Diamond has decided to expand its range of products from rings and now to bracelets and necklaces to adapt to the continuously changing consumer behavior.

To celebrate another milestone reached, we invite you to discover our new flagship store that will present a sensational showcase of our latest captivating designs. Our new boutique possesses the unintimidating yet modish atmosphere, emanating the millennial vibe. It is designed to mirror the magnificence of our modern jewelry collection and to shine a light on our flawless creations that are well-crafted by professional artisans. Our stylish and classy jewelry pieces

are always fashioned to celebrate the gift of love. Each piece is purposely created to symbolize the different values – a love that lasts for a lifetime, a joy that is profound, an undying devotion, and steadfast loyalty and fidelity.

Immerse yourself into the ultimate J’s Diamond experience as you partake in our grand opening that will be held on October 17, 2019, at 5 PM in one of the luxurious malls in the country, Ayala Malls Manila Bay. Find a treasure trove of bedazzling pieces of jewelry that you will forever adore only in J’s Diamond.

CEBSI hosts Manila experience event, begins tour in Batangas

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HRISTIAN Era Broadcasting Service International, Incorporated held the "CEBSee and Experience Interactive Media Roadshow" on Saturday, October 12, 2019 at the Lipa Academy of Sports, Culture, and Arts in Lipa City, Batangas, Philippines.

CEBSI, noted for its high quality and award-winning TV, radio programs and films, visited Philippine provinces and cities sharing a unique and memorable media experience with communities.

"The CEBSI Interactive Media Roadshow aims to provide information to the public about the contents that we have in CEBSI through our media broadcast arms, INC Radio, INCTV, and INCMEDIA," explained Brother Roy Monreal, CEBSI Marketing and Promotions head. "We want to share the contents that we have through these live events. ... We want people to enjoy," he added.

Mr. Mikee Morada, a city councilor who attended the event, said he was impressed with its overall design."I was truly surprised!

As I came in, the ambiance was really good.

The set-up was very beautiful, especially for millenials and our generation."

The venue was filled with instagrammable exhibits including a giant chair and headphone, and a vintage mic.

"We put exhibits that are highly instagrammable so that they will not only be able to see but also experience interactive booths," Brother Monreal said.

Batangas Vice Governor Marc Leviste said he learned a lot from the CEBSI media roadshow. “The experience is exciting. It's feels like you're in an indoor or mini theme park.

Here you can witness the technology that the Iglesia Ni Cristo is presenting. You can experience what they are introducing," ViceGov. Leviste said.

CEBSI's Monreal explained that they want to showcase the truth in the CEBSI media experience. "That's why we have shows that showcase truth about life, truth about faith and we also showcase values which are core to one's attitude. And we also want to tell them that CEBSI is child-friendly," he said.

The CEBSee and Experience Interactive Media Roadshow is set to visit Palayan City, Nueva Ecija and Laoag City, Ilocos Norte on November 16 and 30, respectively.

Robinsons Bank wins in two international banking awards

Toyota starts impossible with simultaneous national coastal clean-up and mangrove planting

T

OYOTA Motor Philippines (TMP) recently led 1,900 volunteers spread out across 35 locations nationwide for its very first “Start Your Impossible” National Coastal Clean-up and Mangrove Planting weekend.

Held in partnership with TMP’s dealership network, NGO and LGU partners plus various coastal communities all over the Philippines, the volunteers were able to plant 40,000 mangrove propagules and collect 1,200 sacks of waste by the end of the activity.

“With each and every volunteer cleaning up the coasts and planting mangrove seedlings, all spread out across 35 locations nationwide, we are indeed starting our impossible, one place at a time. If we continue doing these small acts for our environment, soon our big vision of building sustainable communities will become possible,” says TMP President Satoru Suzuki during the opening

program at Lian Mangrove Park, in Batangas.

In the Philippines, Toyota’s Start Your Impossible movement is inspired by Filipino champion para athlete Ernie Gawilan who, as someone who grew up and honed his swimming skills in a coastal community in Davao, has been advocating for cleaner oceans. Gawilan, together with fellow para athlete Edwin Villanueva and his team from the Philippine Paralympic Committee joined the coastal clean-up and mangrove planting activity in Batangas.

With this event, TMP is helping Gawilan bring his advocacy all over the county. TMP mobilized its employees and dealership network to conduct cleanups and mangrove planting in coastal areas of Metro Manila and the following provinces: Batangas, Bulacan, Rizal, La Union, Pangasinan, Zambales, Bataan, Ilocos Norte, Camarines Sur, Albay, Mindoro, Negros Oriental,

Samar, Bohol, Cebu, Bukidnon, Davao, Agusan del Norte, Zamboanga del Sur, Misamis Oriental, Lanao Del Norte, South Cotabato.

This is just one of TMP’s Start Your Impossible initiatives. Locally launched last November 2018 during the Toyota Classics, TMP has accomplished numerous projects under Start Your Impossible.

To support the country’s Paralympic athletes, the proceeds of the aforementioned classical benefit concert was donated to Filipino ParaAthletes through the Philippine Paralympic Committee (PPC) for their training requirements such as sports wheelchairs. TMP also donated a 29-seater coaster which was turned over last January 2019 to help the PPC and para-athletes’ mobility and transportation requirements.

Last May 2019, TMP started a 10day Swim Clinic that aims to encourage aspiring swimmers aged 6 to 14 to take the first step in their athletic journey, and pursue their interest in swimming.

For more Toyota updates, visit www.toyota.com.ph or check out Toyota’s official social media pages at ToyotaMotorPhilippines (Facebook and Instagram), and @ToyotaMotorPH (Twitter).

R

OBINSONS Bank (RBank) emerges as the Philippines’ “Best Commercial Bank” in the International Banker 2019 Banking Awards and “Fastest Growing Commercial Banking” in the 2019 Global Business Outlook Awards.

Putting premium on the contributions of the Bank to the country’s economy and its community, the awards hailed the Bank's efforts to uplift and improve the lives of its clients.

Through the years, Robinsons Bank expanded its geographic reach, created regional centers, issued Corporate Bonds worth Php 5.0B, increase of capital stock to P27B, and introduced new products and services such as Simplé Savings, DOS® Mastercard, IPONsurance®, Cashback Credit Card and more to fulfill the community's changing needs.

The International Banker 2019 Banking

Awards and 2019 Global Business Outlook Awards recognize top-ranking industry members who have attained a high performance across the global banking industry.

Recently, Robinsons Bank products were also recognized in the 2019 Global Business Outlook Awards with its Simplé Savings as the “Most Innovative Banking Product” and DOS® Mastercard as the “Most Innovative Credit Card Product.”

As of June 2019, Robinsons Bank ranks 18th among the universal and commercial banks in the country, with assets amounting to P120.7Bn. Currently, RBank has 151 branches and 391 ATM networks nationwide.

Its wholly owned subsidiary, Legazpi Savings, also continues to expand its footprint with 17 branches and 17 ATMs. For inquiries and concerns, you may reach Robinsons Bank through its Customer Care Center at (02) 8637-CARE (2273) or domestic toll-free 1-800-10-637-CARE (2273); or go to its website at www.robinsonsbank.com.ph.

Like them on Facebook at www.facebook.com/ robinsonsbank/ and follow them on Twitter @ RBankCorp.