Manila Standard Business -- Stimulating the Philippine Economy by Manila Standard

STIMULATING THE PH ECONOMY

Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandard.net extrastory2000@gmail.com MONDAY, SEPTEMBER 16, 2019

High-rise buildings in Bonifacio Global City, also known as the Central Business District in Taguig City. Manny Palmero

Philippine economy plays catch-up By Julito G. Rada

FTER a blip in the first few months of 2019, the Philippine economy is steering itself back on a stronger growth track.

Economic managers of the Duterte administration and even analysts from the private sector are one in saying the economy is bound to recover in the second half from the sluggish 5.6-percent expansion in the first six months. They see the delay in the approval of the national budget for 2019—which primarily caused growth to dip to a four-year low of 5.5 percent in the second quarter— as a “one-off ” that could be offset by the government’s efforts to accelerate fiscal spending in the remaining months of the year, particularly on infrastructure projects under the unprecedented and ambitious “Build, Build, Build” program. Economic Planning Secretary Ernesto Pernia said in an forum organized by the Economic Journalists Association of the Philippines Aug. 27 that the previous growth target of 6 percent to 7 percent remained doable. “We are hoping to achieve the low end of the target range, which is 6 percent. Meaning, we must average by 6.4 percent in the second half to achieve this,” Pernia told business reporters, editors and columnists. Despite the promising outlook, Pernia said it would require a redoubling of efforts of the government, especially on public spending in infrastructure projects on a “24/7 work mode.” Th e Ph i l i p p i n e S t at i s t i c s Authority said economic growth in the second quarter further slowed to a four-year low of 5.5 percent from 5.6 percent a quarter ago and 6.2 percent a year ago, weighed down by the El Niño dry spell, rising protectionism in advanced economies, delay in the approval of the national budget for 2019, and the ban on construction activities in the run-up to the midterm elections last May. The sluggish and slowerthan-expected expansion for the April-to-June period was the slowest since the 5.1-percent GDP expansion in the first quarter of 2015. It was also the second

successive quarter that economic growth stood below 6 percent. The performance brought the first-half GDP average to just 5.6 percent, below the low end of the target range of 6 percent to 7 percent earlier set by the government for the entire year. President Rodrigo Duterte affixed his signature to the P3.7trillion budget for 2019 in April after months of impasse between the two houses of Congress. As a result, the government operated on a reenacted budget that slowed economic growth in the process. STRONG HOUSEHOLD SPENDING Data provided by Finance Undersecretary Gil Beltran, the DoF’s chief economist, showed that household consumption remained robust, equaling last year’s first-half growth at 5.8 percent as consumer prices have trended down following quick response by the President on the streamlining of food supplies. All other expenditure components declined— government consumption, from 12.6 percent to 7.1 percent; capital formation, from 14.9 percent to -0.1 percent, and exports, from 12.6 percent to 5.0 percent—as trade tensions rattled international value chains and dampened

Economic Planning Secretary Ernesto Pernia

global investment. But what is notable is that “private construction and services also maintained robust growth, providing hints of a quick recovery moving forward,” Beltran said. He said the pickup in private construction from 6.5 percent to 23.1 percent cushioned the decline in public construction.

Source: San Miguel Corp. website

Private construction contributed 1.1 percentage point to the 5 . 5 - p e rc e n t g ro w t h i n t h e first semester, tempering the negative contribution of public construction of minus 0.7 percentage point. “Had the growth in public construction been at most zero, GDP growth could have reached

6 percent,” Beltran said. Services rose from 6.7 percent last year to 7 percent, with the financial sector paving the way, from 7.7 percent to 9.7 percent. But agriculture continued to be the laggard, almost not moving from its 0.7 percent semestral growth. “Nevertheless, the fiscal sector remains strong and can support higher growth. In the first semester, national government revenues rose by 0.4 percent of GDP, boosted mainly by tax revenues,” Beltran said. SHORT-TERM STRATEGIES Pernia cited a number of short-term strategies to ensure a more inclusive economic growth in the next couple of years. These include the full implementation of the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, modernization of gover nment regulator y and other processes and the proper utilization of the Rice Competitiveness Enhancement Fund to enhance the productivity and competitiveness of the rice sector. Pernia said lawmakers must now be aware of the consequences of the delayed approval of the national budget to economic growth. He even urged lawmakers to pass on time the national budget for 2020 to make sure economic growth will be sustained. The Department of Budget and Management has proposed a record P4.1-trillion national budget for 2020.

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

Tax reforms to reinforce fiscal stability

STRONG revenue base instills fiscal discipline and ensures sustainable economic growth.

Finance Undersecretary Gil Beltran

The Department of Finance is guided by this belief and sees the passage of the remaining packages of the Comprehensive Tax Reform program into law vital to ensure a steady source of revenues for the country’s economic modernization. Finance Undersecretary Gil Beltran, who is also the DOF’s chief economist, stressed need to complete the passage of the remaining packages of the Duterte administration’s comprehensive tax reform program to ensure the equitable sharing of funds for the government’s social and infrastructure programs, while securing fiscal stability long into the future. Beltran expects revenue collections to reach P3.5 trillion, with P187.1 billion coming from tax reforms. These include P153.8 billion from the first CTRP package or the Tax Reform for Acceleration and Inclusion (TRAIN) Law; P15.7 billion from Republic Act No. 11346, which raised excise taxes on tobacco products; and an estimated P20 billion to be collected from Package 2 Plus, which aims to increase excise taxes on alcohol and e-cigarette products. Package 2 Plus was already approved by the House of Representatives on third and final reading on Aug. 20. Expenditures in 2020 are expected to reach P4.2 trillion or 19.8 percent of the gross domestic product, which translates into a deficit target of P677.6 billion, or 3.2 percent of GDP that is well within the norm for deficit spending, Beltran told senators in a Development Budget Coordinating Council meeting late August. The executive branch will continue to be engaged with the legislature in passing the remaining tax reform packages to generate additional revenue streams for government to fund social amelioration programs, he said. ‘A’ INVESTMENT GRADE RATING Beltran said the passage and implementation of the remaining tax reform packages and the rest of the fiscal reform agenda would help bring the country to the “A” rating territory “within the next couple of years.” More importantly, he said completing the reform programs would further secure the country’s fiscal stability and help fulfill the shared goal of a decent and comfortable life for all law-abiding Filipinos. “This means achieving our ultimate goal of bringing down poverty incidence from 21.6 percent in 2015 to only 14 percent by 2022,” Beltran said.

He said the Philippines’ elevation from lower- to upper-middle income country status ahead of schedule next year was proof that the government could accomplish its goal of beating extreme poverty within a generation, “if we stay on course and continue to invest in the right things.” Beltran said for 2022, revenue and disbursement projections were estimated to rise to P4.4 trillion (17.2 percent of GDP) and P5.2 trillion (20.4 percent of GDP), respectively. Given the revenue and disbursement program adopted by the Development Budget Coordinating Council, the deficit target would be maintained at 3.2 percent of GDP from 2019 to 2022 to sustain the government’s investments on infrastructure and human capital development, he added. Beltran said the public sector deficit was projected to grow marginally to about 1.3 percent of the GDP by 2020 owing to the government’s aggressive spending to support the “Build, Build, Build “infrastructure modernization program. A NOTCH HIGHER The government’s fiscal performance, debt management and policy reforms presented before senators were earlier reported by Beltran during a separate briefing held by the DBCC on Aug. 22 before the House of Representatives appropriations committee. Global debt watcher S&P Global Ratings in late April raised a notch higher its long-term sovereign credit rating on the Philippines to “BBB+” from “BBB” with a stable outlook, citing the country’s above-average economic growth, a healthy external position, and sustainable public finances. The upgrade put the Philippines at par with Mexico, Peru, Thailand and Trinidad and Tobago. It was also higher than the “BBB” ratings of Italy, Portugal, Hungary, Panama and Uruguay and put the Philippines’ rating a notch away from the most-coveted “A” rating category. S&P said the rating upgrade reflected the Philippines’ strong economic growth trajectory, which is expected to continue to drive constructive development outcomes and underpin broader credit metrics over the medium term. S&P further said the government has so far achieved partial success with its “Comprehensive Tax Reform Program.” The program aims to ensure that finances remain sustainable while addressing the nation’s pressing infrastructure needs and chronic underinvestment. Julito G. Rada

STIMULATING THE PH ECONOMY

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

External and domestic risks may stifle growth

Bangko Sentral ng Pilipinas Governor Benjamin Diokno

Philippine exports vulnerable to US-China trade hostilities

THE country exports remain one of the economy’s weakest links despite a modest growth. ING Bank Manila senior economist Nicholas Antonio Mapa sees them as vulnerable to the ongoing trade war between the US and China. Philippine Statistics Authority data as of June 2019 showed the countrys balance of trade-in-goods deficit shrank to $2.47 billion from a gap of $3.55 billion a year ago, as imports declined 10.4 percent while exports posted a marginal increase of 1.5 percent. This resulted in the trade deficit of $19.004 billion in the first half, lower than the $19.235-billion deficit in the same period last year. First Metro Investment Corp. president Rabboni Francis Arjonilo said due to the global economic slowdown amid the US-China trade war, exports were expected to grow weaker at 2.6 percent. But imports will continue to outpace exports and are seen to sustain a double-digit growth of 10 to 14 percent due to the strong government spending on infra and private investments. Data showed total external trade in goods in June 2019 amounted to $14.49 billion, reflecting a decrease of 5.8 percent from the $15.39 billion external trade in the same month of the previous year. Julito G. Rada

HE Philippine economy is still navigating choppy seas on its way to calmer waters.

An array of external and domestic risks could stifle growth going forward and derail the government’s ambition for the economy to continue outperforming most of its peers in the region. From the external front, these are the easing of global growth, lingering trade tensions between the world’s two leading economic powerhouses US and China, volatility in global oil prices and disruptive technologies that could displace labor force. From the domestic front, risks could emanate from natural hazards, power disruptions and energy sector challenges, delays in infrastructure projects, absorptive capacity of local government units to carry out devolved functions, and policy uncertainties. “We remain vigilant and wellpositioned against these downside risks to growth,” Economic Planning Secretary Ernesto Pernia assured. The slower-than- expec ted economic expansion in the first half compelled the International Monetary Fund to lower its growth forecast for the Philippines this year and in 2020. Yongzheng Yang, IMF’s resident representative to the Philippines, said the multilateral lending agency slashed its GDP growth forecasts to 6 percent this year and to 6.3 percent for next year. The latest projections are lower than the previous forecasts of 6.5

percent for 2019 and 6.6 percent for 2020. Yang said the downward revision reflected weaker-than-expected external demand and weaker-thanexpected public investments, partly due to the delayed approval of the national budget. But Yang said despite the revision, the forecast was still among the highest in the region, and that growth would continue to be driven by strong domestic demand. Meanwhile, global debt w a t c h e r M o o d y ’s I n v e s t o r s Service for the second time this year trimmed its growth forecast for the Philippines in 2019 to 5.8 percent from the previous estimate of 6 percent, taking into account the lackluster expansion in the first half. Moody’s said in a report late August that the budget delay exacerbated external weakness and although domestic demand was seen to recover, it would not be enough to propel growth to at least 6 percent. Moody’s already reduced the GDP forecast for the Philippines this year to 6 percent from 6.2 percent because of the 5.6-percent growth in the first quarter, due to the budget delay. BANGKO SENTRAL UNFAZED Bangko Sentral ng Pilipinas Governor Benjamin Diokno shrugged off the threats posed by both external and domestic

factors, saying he remained optimistic about the prospects of the Philippine economy. “... We are well-positioned to deal with these challenges. We now have an encouraging mix of a manageable inflation environment alongside steady economic growth, which affords policymakers sufficient space to respond appropriately to evolving domestic and g l o b a l c o n d i t i o n s ,” D i o k n o said during the EJAP economic forum. Overall liquidity and credit conditions remain suppor tive of the countr y ’s g r o w t h r e q u i r e m e n t s . “ We likewise continue to have a fiscal target that both delivers effective government spending while remaining prudent in meeting debt obligations,” he said. He said the sound and stable banking system was aided by strong prudential regulation and supervision. The continued lending activities of Philippine banks indicate their effectiveness in facilitating a smooth flow of funds in the economy, boosting economic growth. Banks remain sufficiently capitalized, while their past due ratios have consistently declined over the years. This e n h a n ce s t h e i r c a p a c i t y to manage risks and at the same time increase profitability. “We expec t these improvements to continue given the positive outlook on the macroeconomy,” Diokno said. Julito G. Rada

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

‘New thinking’ key to lifting agriculture By Othel V. Campos

EWLY-APPOINTED Agriculture Secretary William Dar believes agriculture requires “new thinking” to bring the farming sector to the next level.

Agriculture Secretary William Dar

Dar crafted a policy paper recommending measures on how to maximize farm resources to bring the local agriculture to a new level of modernization and industrialization. Dubbed as the “New Thinking”, the policy paper aims to double the income of farmers and fisherfolk. “Furthermore, the proposed policies aim to collectively empower farmers and fisherfolk and the private sector to increase agricultural productivity and profitability, taking into account sustainability and resilience,” Dar said. “The mission and vision should guide the actors and stakeholders in the agriculture sector to ensure the achievement of the objective of making farmers and fisherfolk prosperous, with the eight paradigms below putting in place the required policies, programs, projects and funding,” Dar said. To bring Philippine agriculture to the next level, the Agriculture Department identified eight paradigms to support this bid. They include modernization, industrialization, export promotion, consolidation of small- and medium-sized farms, infrastructure development, higher budget and investment in agriculture, legislative support and roadmap development. An assessment by the depar tment shows that the country’s farming and fisheries sector is in a “critical” stage as it has erratically grown in the past five years.

C h a l l e n g e s f a ce d by t h e f ar ming se c tor range f rom low farm productivity to lack o f l a b o r, u n a f fo rd a b l e a n d inaccessible credit, limited use of technology, limited farmland diversification, undeveloped agri-manufacturing and export, severe deforestation/land degradation, aging farmers and fisherfolk and climate change. Records show that in 2014, the sector grew by 1.83 percent, slid 0.11 percent in 2015 and bounced back by 1.41 percent in 2016. In 2017, it grew 3.95 percent but posted a dismal 0.56-percent growth in 2018 which was nowhere near the government’s growth target of 4 percent. The OECD in a 2017 review of Philippine agricultural policies recommended several policies to enhance the longterm productivity growth of the agricultural sector. These include a policy package to improve food security by enhancing diversification of production, consumption and income and using safety net measures such as conditional cash transfers and food vouchers. It advised the country to refocus agrarian land policies from land distribution to securing property rights through land governance reforms. Other recommendations include focusing the budgetary support on long-term structural reform, re-orienting agricultural knowledge systems, adopting

‘The proposed policies aim to collectively empower farmers and fisherfolk and the private sector to increase agricultural productivity and profitability, taking into account sustainability and resilience.’ a holistic approach to risk management with a policy focus on catastrophic risks, assessing insurance and cash-transfer schemes that can encourage adaptive decisions and improving the sector’s capacity to adapt to climate change. While there are laws and proposed measures that push for the modernization of domestic a gr i c u l t u re, o n e re ce nt l ypassed law which liberalizes rice importation is seen as a gamechanger. As far as the Agriculture D epar tment is concer ned, the law which abolished the quantitative restriction on rice imports and established the Rice Competitiveness Enhancement Fund provides an opportunity to lift rural incomes by enhancing farm productivity and helping farmers produce high-value crops.

STIMULATING THE PH ECONOMY

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

Foreign investors remain bullish on PH By Othel V. Campos

ORE foreign businessmen are coming to the Philippines despite the lingering trade tension between the world’s two largest economies—the US and China. The Board of I nvestments reported that it approved P609 billion worth of new investment commitments in the first eight months of 2019, up by 126 percent from just P269.3 billion a year ago. Data from the BOI show that domestic investments climbed 61.2 percent in the eight-month period to P404.5 billion from P251 billion in the same period last year while foreign investment pledges surged more than 10 times to P204.5 billion from P18.3 billion. Singapore was the top source of foreign investment commitments with P170 billion followed by the Netherlands with P9.2 billion, Thailand with P8.6 billion, Japan with P6 billion and the United States with P2.4 billion. Meanwhile, merchandise exports grew for the fourth straight month, narrowing the trade deficit as imports continued to move in the negative territory. The Philippine Statistics Authority said exports grew 3.5 percent in July on the back of higher revenues from agro-based products, forest products and electronics. The Philippines registered the thirdhighest exports growth among selected Asian economies, following Thailand and Vietnam. “Philippine exports remained resilient during the second quarter of 2019 despite the continuing external challenges such trade

tensions between the US and China, the bleak outlook in Europe, and the uncertainty of the future of Brexit,” said Economic Planning Secretary Ernesto Pernia. US-CHINA TRADE WAR The public and the private sectors have different perceptions about the ongoing trade spat between the world’s two biggest economies. The Trade Department sees the squabble as an opportunity to gain more investors as US companies exit China and creating an opening for the Philippines to push for a bilateral free trade agreement with the US. “We look forward to a more calm trading relationship between the US and China. Hopefully, they come up with a deal that will provide certainty, that’s the bottom line there, and that it doesn’t worsen. The bigger picture here is the economic slowdown of the two giant trading countries. And because this is a global value chain, every country, nation, state will be affected eventually. But we can say at least in the Philippines, the impact to us, has in fact, not been that severe, for now,” said Trade Secretary Ramon Lopez. The department believes that at the current degree of the USChina trade war, the repercussion is marginal and one reason is that the Philippines is not an exportoriented economy compared to

most of its peers in Southeast Asia. If the trade war escalates and persists in the medium to longterm, this could pose adverse effects on the Philippine economy such as a slowdown in GDP growth, an increase in unemployment and inflation and moderation in trade growth and investment growth. “We see growing export to both the US and then to the China market from the Philippines. That means the products we export were not subjected to the tariffs being applied by the two countries.

to the trade program. The program covers 5,057 products or tariff lines or roughly 47.7 percent of the 10,600 total US tariff lines. “ When it comes to China, investments have been pouring in. China’s investments have expanded amid the US-China trade friction. Chinese foreign trade investments climbed to $198.7 million from $28.8 million in 2017. BOI-approved investments from Chinese firms went up to P48.7 billion from P576 million in 2017. We are now in a better place in terms of exports.

‘We look forward to a more calm trading relationship between the US and China. Hopefully they come up with a deal that will provide certainty.‘ And you know, China has opened a market for Philippine products so we are seeing growth. On record, I think, we are growing on an average of 10 percent, year-on-year, on our export to China. We are not adversely affected,” Lopez said. He said that Philippine exports to the US are also growing by about 9 percent as the country “still enjoys the GSP [Generalized System of Preferences] privilege”. “We can say that in both countries involved in the trade war, we have an independent relationship. We export to China and we export to the US. So far the markets have been open,” said Lopez. The Philippines will continue to benefit from the US GSP program until 2021, after US President Donald Trump approved in March 2018 the Philippines’ subscription

From a level of $83 million in 2015, exports shot up to $476 million in 2018. If this is not clearly growth, I’m not sure how to call it,” Lopez said. Many companies from China, Hong Kong and Taiwan are coming to the Philippines. Foreign direct investments from these countries reached $95 million in the first five months of 2019. BREXIT Lopez said the United Kingdom’s decision to leave the European Union created some confusion in terms of how trading with the UK would look like post-Brexit. “On the part of the Philippines, our top priority has always been to ensure continuity and the least possible disruption in our trade with the UK. There is still a lot of uncertainty on the final scenario under which the UK will leave the

EU. While talks are still ongoing, the most ideal would be for the UK to leave EU in the most orderly fashion, preferably with a clearly defined deal in place to minimize disruptions,” he said. “The impact of Brexit to the Philippines would largely depend on the exit deal that the UK will be able to negotiate with the EU. Furthermore, the possible implications of Brexit are, to some extent, defined by our current economic relations with the EU under the GSP+,” he said. Brexit may have an impact on certain sectors that currently benefit from duty-free access under GSP+. Among the EU member states, the UK ranked as the fourth biggest market for Philippine exports in 2018 and the third top EU destination for Philippine GSP exports in 2018. Given this, the Philippines secured the UK’s commitment to establish its own GSP scheme which will largely mirror the current EU GSP scheme. This means that after Brexit, Philippine exporters will continue to enjoy the same level of preferences that they currently enjoy in the UK market under the EU GSP+ scheme. To e a s e t h e p o s t - B r e x i t transition, the UK scheme will also adopt the same rules of origin and documentary requirements to claim the GSP preference. “We are in constant dialog with EU counterparts on our continued enjoyment of GSP+ preferences. As a GSP+ beneficiary, the country committed to engage the EU, through a binding undertaking, in a continuous dialog regarding the country’s implementation of 27 international conventions,” Lopez said.

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

POGOs pullout seen to shake real estate By Othel V. Campos

BUSINESS group is worried that a sudden exit of Chinese-owned Philippine online gaming operators may shake the local property sector.

The Philippine Chamber of Commerce and Industry said a mass exodus of POGOs would not only depress the growth of the real estate sector but also strip the Philippine economy of additional revenues. “The amount of money leaving China is worth 100 billion renminbi a day. This is about P700 billion in Philippine money. This money goes to Southeast Asian countries were POGO is a legal activity. The Philippines could easily account by as much as P7 billion from among ten countries in Southeast Asia hosting POGO operations,” said PCCI chairman emeritus and former Philippine Stock Exchange president Francis Chua. POGO operators and Chinese businessmen emerged as the single biggest lessee/buyer of space especially in the Bay Area where entertainment resorts and casinos have risen. Office supply data from KMC Savills show that Chinese POGO operators took up 76,000 square meters of office space or half of the new supply in the Bay Area last year. However, the take-up was slower compared to 166,000 sqm in 2017. Rental rates for the Bay Area, where m os t P O G O co m p a n i e s o p e rate, continued to outperform other property submarkets with another double-digit growth of 11.6 percent to P833.7 per square meter a month this year. Expectations for the sustained real estate growth in the Bay Area are now uncertain after China made known its stance against POGO operators. “In the Philippines, POGO is legal, but in China it is not. The only thing the Chinese

Resorts World Manila lives up to its claim as IR with most hotels

As it celebrates its 10th anniversary, the pioneering IR continues to boost Philippine economy with more hospitality brands

By Aileen Martin

n 2009, the country saw the birth of the first integrated resort (IR) in the country. Resorts World Manila (RWM) introduced a thriving concept that was previously exclusive to the Philippines’ neighboring countries in the Asian region like Macau and Singapore. During the same time, the country braced for an anticipated increase in tourism numbers brought about by efforts made by the government that ushered in the Philippine Tourism Decade. Fast forward to 10 years and the country’s gross gaming revenue from various IR developments is projected to reach US$4.1 billion according to PAGCOR Chairman Andrea Domingo. With such staggering

Belmont Hotel Manila’s Deluxe Twin Room

economic growth in the IR industry that RWM pioneered, more investors remain adamant in following suit. In terms of tourism, the IR industry has attracted more tourists with its vibrant array of world-class options. RWM likewise gears up to buttress the influx by ensuring full operations of seven prominent hotel brands within its Newport City property. Soon, another acclaimed hotel brand in Hotel Okura Manila will open its doors

Holiday Inn Express Manila Newport City Guest Room

to guests from all over as RWM continues to make its mark as the IR with the most number of hotels in the country. Offering a diverse mix of accommodation brands that are all within the proximity of the IR’s Garden and Grand wings, RWM continues to thrill guests with staycation choices that grant them convenient access to topnotch entertainment and lifestyle alternatives with a Filipino touch. Established international

government can do is to clamp down on those engaged in this business. Those who won’t stop [operating] will be put in a blacklist. If they go back to China, they will be barred from leaving their country. Right now, real estate is booming because of these POGO people. The good side is that, when they leave, our real estate will be reasonably priced again. Filipinos can afford to buy property spaces once prices stabilize. The bad [thing] is that growth of the real estate sector will slow down. Growth may still be there but not as fast as right now,” Chua said. There are about 200 POGOs in the Philippines employing close to 200,000 people, most of them Chinese. About 61 of the POGO entities are operating at Philippine Economic Zone Authorityaccredited buildings. The PCCI believes that aside from the real estate sector, the tourism sector will also feel the pressure as restaurants and malls frequented by the Chinese nationals will miss out on opportunities. “Anything that is related will be affected. What I’m saying is that a certain percentage of our economy which could be minimal will be hit due to this. As far as our service export is concerned, the major money comes OFWs. Then, the second used to be contact centers or the BPO industry. But with the rising popularity of POGOs, it seems possible that BPO and POGO could share in the second slot,” Chua said. Before POGO turned up in the Philippines, the BPO sector had dominated the office space take-up, accounting for about 70 percent of the new stock.

brands Maxims Hotel, Marriott Hotel Manila and Sheraton Manila Hotel, and Hilton Manila cater RWM’s more upscale and discerning guests, while Megaworld brands Savoy Hotel Manila and Belmont Hotel Manila welcome visitors who are more into business and pleasure. The country’s first Holiday Inn Express, which is also the largest in Southeast Asia, likewise brings its standard of excellence to RWM. The IR meticulously reviews its roster of hotel brands that set up shop at its Newport City property to give its guests of varied tastes perfect accommodations according to their needs. During RWM’s early years when just three hotels were in operation, the IR immediately won multiple awards from the prestigious Hospitality Asia Platinum Awards (HAPA) in 2011 for its all-suite signature Maxims Hotel which was cited as the Overall Best in Asia for Service Excellence, Best in the Philippines for Service Excellence, Best 5 in Asia for Signature Serviced Residences, and Best 10 in Asia for Concierge. Belmont Hotel Manila likewise made waves when it opened in 2015, when it was recognized as the Airport Hotel of the Year Award in 2018 and as one of the brands chosen for The World Luxury Hotel Awards this year. As more prospects for meetings, incentives, conventions, and events (MICE) opportunities are coming to the country, RWM’s partner hotels likewise built their respective facilities to take advantage of the inflow with Marriott Hotel Manila boasting a flexible events ballroom complete with a full-

service business center, and the largest ballroom in the country, the Marriott Grand Ballroom which opened in June 2015. Savoy Hotel Manila also features the Squares, or 24-hour coworking spaces for guests who are on-the-go, while Holiday Inn Express Manila houses a 215-square meter meeting space. Likewise, newly-opened Hilton Manila welcomes corporate travelers with six flexible meetings and events spaces, plus an executive floor and lounge, while Sheraton Manila Hotel houses a ballroom, seven meeting rooms, studio, and the ColLab’s Loft co-working spaces as well as Private Labs. After the all-suite Hotel Okura Manila opens soon at the RWM Grand Wing, the IR’s hospitality portfolio will appreciate to an approximately 3,600 keys. Even then, further developments will continue within the property as the country’s tourism industry and economic prospects remain bullish, including the first Ritz Carlton Hotel in the country which operates a chain of upmarket hotels in over 30 countries and territories. Making its mark as the pioneering integrated resort in the country, RWM continues to come up with more worldclass offerings and innovative campaigns for its guests including the Grand Staycation Package which lets guests experience select hotel accommodations while enjoying the many thrills in RWM. Visit www.rwmanila.com or download the RWM Mobile App to avail of the exclusive promo.

STIMULATING THE PH ECONOMY

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

Policy reforms expected to cut electricity rates By Alena Mae S. Flores

HE implementation of appropriate policies and reforms will lead to a transparent and competitive energy market and bring down electricity rates, according to the Energy Department.

Stable rice supply softens inflation rate THE government has finally tamed the high inflation rate, which last year fanned speculation of a rice shortage and threatened to derail the economic growth track. The Philippine Statistics Authority reported that inflation in August dropped to a 35-month low of 1.7 percent from 2.4 percent in July, a development that could prompt monetary authorities to further reduce interest rate in a meeting later this month. A further decline in the price of rice and non-alcoholic beverages and base effect caused inflation to fall sharply in August. The inflation rate in August last year stood at 6.4 percent before peaking to 6.7 percent in September and October in the same year. The much-lower inflation rate

last month is a clear signal for the Bangko Sentral ng Pilipinas to reduce interest rates on the funds it lends to private banks, which, in turn, will pass the lower cost of borrowing to consumers and other clients. The reduced cost of borrowings, hopefully, will spur companies to expand, hire more workers and eventually increase economic activities. BSP Governor Benjamin Diokno n o ted t h at “am pl e do m es tic food supply conditions along with lower global oil prices have contributed to a manageable inflation environment.” Surging rice prices resulting from inadequate supply had caused the inflation to spiral in the latter part of 2018. The sharp increase in the price of the basic commodity

prompted lawmakers to pass the Rice Tariffication Law that essentially liberalized imports. The legislative action had an immediate impact on rice prices. Hoarders were forced to unload their stocks and flood the market for fear of losing out to incoming rice shipments. Rice prices eventually stabilized on ample supply. Rice and food inflation carry much weight on the consumer price index. As a result, lower prices of food items, which account for close to 32 percent of the CPI basket, have softened the inflation rate. Authorities, especially the Department of Agriculture, must ensure the steady supply of food items like rice and vegetables to prevent inflation from behaving erratically again.

“It is true that the Philippines continues to have one of the highest electricity tariffs in the ASEAN region. High electricity bills are a constant complaint we all often hear. For investments, this makes us less attractive as a destination for doing business. It means higher overheads for the business. For Filipinos, it means waiting for everyone to come home before switching on the TV. Of course, this does not paint a complete picture,” Energy Secretary Alfonso Cusi said. Cusi said that unlike some of its ASEAN neighbors, Filipinos pay the true cost of electricity because prices are not kept artificially low by “unsustainable subsidies.” Cusi said that if one takes a closer look, the annual inflation of electricity prices in the five-year period from 2014 to 2018 is actually lower than the average annual inflation rate. “So real electricity prices are in fact on its way down... We have a long way to go before our energy prices are as competitive as our neighbors but I believe that by operating a transparent and competitive energy market, we will get there,” the energy chief said. He cited the case of Manila Electric Co. whose residential customers have experienced a 4-percent increase in their monthly bills against a 7-percent rise in the consumer price index since 2016, despite the fuel price increases and local currency depreciation. Cusi said the Energy Department put in place policies and reforms that will have an impact on electricity prices and consumer empowerment. “Over the last three years, we introduced the mandated competitive selection process [CSPs] for all PSAs [power supply agreements] as well as turned over the operations of our spot market, the WESM [Wholesale Electricity Spot Market] to an independent market operator,” he said. “We also introduced the voluntary RCOA [retail competition and open access] for customers with monthly peak average demand of at least 750 kilowatts. Again, this seeks to empower the consumer by allowing them to choose who they buy their energy from—eliminating captive customers for distribution units to pass-on generation charges,” he said.

50 X 2025 BY 2025, WE COMMIT TO REDUCE OUR USE OF WATER IN ALL PROCESSES ACROSS THE SAN MIGUEL GROUP BY 50%.

While our water management efficiency level is among the highest in the Philippines, and while water conservation and protection has always been a key component of our operations,

WE’RE CHALLENGING OURSELVES TO DO MORE.

ELIMINATE WASTAGE OF WATER ACROSS OUR OPERATIONS.

We will adopt new and stricter measures to improve the efficiency of our water use, as well as utilize water-saving technologies and implement conservation programs.

REUSE AND RECYCLE MORE WATER.

We will optimize all our wastewater treatment facilities to further lessen our water footprint. We commit to make greater use of treated greywater for non-essential purposes.

REDUCE OUR USE OF GROUND AND SURFACE WATER AND PROTECT VITAL WATER SOURCES. HARVEST RAINWATER.

We will continue to lessen our use of ground and surface water, protect these water sources, and empower our communities to do the same.

We will harvest rainwater and runoff water from creeks and rivers – collecting, filtering, and storing it for irrigation and for various other purposes in our facilities. We hope that others will follow our example.

WE ARE EQUALLY COMMITTED TO PROVIDING WATER-CHALLENGED COMMUNITIES NOT JUST WITH ACCESS TO SAFE, POTABLE WATER, BUT ALSO THE ABILITY TO BE SELF-SUSTAINING WHEN IT COMES TO WATER MANAGEMENT.

WHY DO WE CARE?

Because it’s everyone’s water.

www.sanmiguel.com.ph/ www.facebook.com/smcbetterworld

STIMULATING THE PH ECONOMY

Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandard.net extrastory2000@gmail.com MONDAY, SEPTEMBER 16, 2019

Traffic congestion stalls capital region By Darwin G. Amojelar

RAFFIC congestion in Metro Manila is costing billions of pesos a day in terms of man-hours and economic opportunities. The daily cost is expected to increase if government sits idly and offers no solutions. The administration of President Rodrigo Duterte vowed to improve the traffic situation in Metro Manila with several big infrastructure projects lined up under its “Golden Age of Infrastructure.”

“I don’t know the exact number of percent [of complete projects], but most of the projects are in advanced stages already. We are halfway through,”Secretary Mark Villar of the Department of Public Works and Highways said. “We will complete all the projects under the Build, Build, Build,” he added. The government plans to spend P8 trillion to P9 trillion, or roughly $160 billion to $180 billion until 2022 for its boldest infrastructure development program, called “Build, Build, Build”. “It’s all systems go for Build, Build, Build program,” he said. EDSA DECONGESTION A PRIORITY Villar assured Filipino motorists about major improvements in the traffic situation in Metro Manila later this year. “We’ll continue next year up to the point

that we finish the project. You can expect definite by the end of President Duterte’s term, there would be an improvement in traffic especially in Metro Manila,” he said. Villar noted that the completion of four key infrastructure projects in Metro Manila would remove about 300,000 vehicles from Edsa. “We need to take out 250,000 to 300,00 cars from Edsa daily in order to revert it back to an acceptable level of traffic,” he said. About 380,000 vehicles use Edsa, the biggest thoroughfare in Metro Manila, daily. “The Skyway, once it’s completed, will reduce the traffic count by 100,000. When we finish the Connector Road, that is likely to reduce at least 50,000. When we finish C6, we will reduce another minimum of 50,000. When we build the Sta. Monica-Lawton Bridge, that will reduce another 50,000,” Villar said.

The Metro Manila Skyway Stage 3 Project is an 18.68-km elevated expressway from Buendia, Makati City to the North Luzon Expressway in Balintawak, Quezon City. The NLEx-SLEx Connector Road is an 8-km elevated expressway, extending the NLEx southward from the end of Segment 10 in C-3 Road, Caloocan to PUP Sta. Mesa, and connecting it to the Skyway Stage 3. Meanwhile, the Southeast Metro Manila Expressway (C6) Project is a proposed 32.6-km toll road that will run from Skyway/FTI in Taguig City to Batasan Complex in Quezon City. “When all these are finished, we would be able to bring back EDSA to its former state which is acceptable traffic. Rest assured this dream of Edsa is not a dream. It’s come from a point of inevitability. We will decongest EDSA,” Villar said.

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

Free internet to bridge digital divide By Darwin G. Amojelar

S THE population grows, the digital gulf widens.

Faced with the challenge, the Department of Information and Communications Technology plans to accelerate the rollout of free internet access nationwide to bridge the rapid digital divide. In line with the government’s thrust of providing internet access for all, the Pipol Konek Free Wi-Fi Internet Access in Public Places Project was geared

toward the acceleration of enhancing internet accessibility and connectivity and hastening economic, social and educational opportunities nationwide. To date, the Pipol Konek has provided free internet access to about 2.5 million unique devices/users through the establishment of 2,565 live sites covering 17 regions, 58 provinces and 394 municipalities. “We have a backlog for that [free Wi-Fi in hospitals]. We will be doing this in sequence. Because if we go back to the ultimate rule which is the constitution, we want to secure and protect the right, liberty and property,” said DICT Secretary Gregorio Honasan. The DICT as of 30 June had 53 integrated free Wi-Fi Internet sites in public hospitals

DICT Secretary Gregorio Honasan

Rapid economic expansion taking its toll on water and electric utilities T HE robust economic growth of the P h i l i p p i n e s i s t a k i n g i t s to l l o n i t s utilities. A rising population and increased economic activities, along with the El Niño phenomenon, have raised the demand for water and electricity, but these should not serve as an excuse for the shortage and tight supply being experienced by consumers today. Government regulators must have foreseen the situation where demand will soon outstrip supply given the 7 percent to 8-percent economic growth targets laid down by the state’s economic planners over the medium- and long-term periods. They should have dispatched the perceived shortages by approving new water and power projects with a sense of urgency. The water supply shortage in Metro Manila, for

one, could have been averted had authorities cleared private sector proposals to develop new sources of raw water much earlier. The National Water Resources Board, thus, reduced the allocation to water distributors to 40 cubic meters per second from 46 cms from June 19 to 21 amid the fast reduction in the level of Angat Dam—the main source of water in Metro Manila. National Grid Corporation of the Philippines, meanwhile, has placed the Luzon grid on red alert on several occasions due to a shortage of power generation capacity. Luzon’s power supply is generally tight during the dry months when demand is high and the hydropower plants are forced to operate below capacity due to the low water level of the dams. The power shortage problem, or the

prevailing thin reserves, however, stemmed partly from red tape or overzealous local government units. San Miguel Corp. president Ramon Ang, whose company is one of the major power generators in the Philippines, noted that reserves were thin because no new plants were built in the past three years. Power developers, according to him, faced numerous challenges such as the delayed issuance of environment compliance certificate and other permits. He warned that the shortage in electricity supply was worsening and that the countr y “might have some problems soon.” The demand for water and electricity, indeed, will become greater in the immediate future when the economy expands more and the population rises further.

in the country. “We will first connect everybody to each other—government to governments, domestic to global, government to business, government to the citizens and everybody to each other. And we will do this in a faster, cheaper if not in a free manner and in a more secure manner,” Honasan added. The government also rolled out the implementation of the National Broadband Plan in response to the clamor for faster internet speed and affordability throughout the country. The NBP to date has successfully tested and surveyed 100 percent of the dark fiber in Mindanao, 90 percent in Visayas and more than 60 percent in Luzon. The NBP has also started the construction of the cable landing and the repeater stations, while the 240-km route will be done by this month at the earliest. The two terabyte capacity will be harnessed through the operations of the Cable Landing Stations. In accelerating the establishment and rehabilitation of communications tower in the Philippines, the government has signed a total of 21 memorandum of understandings with so-called Common Tower Providers. “Common tower policy will be driven by the overriding objective. The tower is not operating in a vacuum so the tower policy is an enabler, that’s the means and what’s the end –connectivity,” Honasan said. “Our goal is to connect the government to other governments, domestic and global; government to business, encourage foreign investments; and government to citizens and everybody to each other,” he added. The Philippines just has 16,300 towers serving around 130 million combined subscribers of the existing telcos, resulting in the country having one of the lowest tower density in Asia. The government estimated that building a tower would cost an average of roughly $100,000 each, and require $50 billion to roll out 50,000 towers nationwide.

BDO FOUNDATION GIVES BACK TO KEY SECTORS OF PH SOCIETY THROUGH FINANCIAL EDUCATION IT HAS been widely said that education is the greatest gift that can be given to one’s self or to others. Thus, imparting knowledge, skills, and virtues is considered a noble and caring act because it leads to the growth of individuals and communities. The same holds true for teaching financial management. Learning financial management, like any other basic skill or knowledge, primarily begins at home. Parents (or older relatives and mentors) are expected to sow in their children the value of proper money management. And for the fruits to grow, children need to practice these financial skills and make them a habit, a lifestyle until adulthood and old age. BDO Foundation, the corporate social responsibility arm of the country’s largest bank, believes that Filipinos are eager and ready to learn about proper financial management. They just need to be given the right education, training, motivation, and encouragement. That’s why BDO Foundation is presently providing financial education to public school teachers and students, overseas Filipinos (OFs), and farmers, among other sectors. Caring for Those Caring for Us As parents have to spend time working, they tend to delegate all other aspects of their children’s education to teachers. In the Philippines, majority of basic education is conducted in some 47,000 public elementary and high schools spread throughout the country. For school year 2019-2020, around 900,000 public school teachers are shaping the minds of around 24 million students. When combined, this forms around 20% of the country’s population, which is expected to hit 109 million by year’s end, based on government estimates. Given the public school sector’s size in population and responsibility, it needs utmost care for it to continue nurturing future generations of Filipinos. BDO Foundation has chosen to heed this call of financial education by partnering with the Department of Education (DepEd) and the Bangko Sentral ng Pilipinas (BSP). Under the tripartite partnership, the program is expected to contribute to DepEd’s efforts to strengthen the financial literacy component of its K-12 curriculum and to train its teachers and non-teaching staff on skills related to personal financial management. It will support Bangko Sentral’s programs under its National Strategy for Financial Inclusion, specifically the financial education and consumer protection pillar. It will also help push BDO Foundation’s thrust of promoting financial inclusion among many sectors of society. To achieve these goals, the partners

have developed education materials consisting of short videos and lesson plans or discussion guides which are expected to serve as tools for teaching and learning. The learning materials, which were issued in accordance with DepEd Memo No. 32, Series of 2019, are available on the department’s online learning portal for teachers. To complement the effort for teachers, lessons on proper financial skills are taught to public school students through an age-appropriate curriculum. This is done through classroom lessons on basic financial management, usually related to saving and spending wisely. The lessons are incorporated into selected subjects under the K-12 curriculum. Besides teachers, BDO Foundation plants seeds of financial know-how to farmers— the people who feed the nation with their produce. Given that the agricultural sector is the second largest contributor to the country’s labor force at 26% or 10.9 million farmers, BDO Foundation found it important to give back to this sector. BDO Foundation is working with SM Foundation and the National University (NU) in providing lectures and seminars to farmers under SM Foundation’s Kabalikat Sa Kabuhayan program. The program aims not only to pass on basic financial skills like saving and accounting but also to help empower farmers so that they can become farmer-entrepreneurs. Under the program, BDO Foundation develops the financial education modules. Meanwhile, professors from NU’s College of Business and Accountancy and

other local partner institutions conduct training sessions on basic accounting and bookkeeping. BDO Foundation believes that it is better for a farmer to become finance and business savvy so that he can advance from being just a tiller of land to a business owner who can maximize the potential earnings from his farming skills and his property. Being a farmer-entrepreneur is really the ideal situation for all Filipino farmers. BDO Foundation is also engaged in similar financial education programs for OFs, whose remittances significantly contribute to their families and to the economy. Just last year, OFs contributed $32.2 billion in remittances or close to 10% of the country’s gross domestic product, based on BSP data. Most OFWs go abroad to earn for their families, as salaries are generally higher than here at home. Interestingly, the BSP’s Consumer Expectations Survey for the 2nd quarter of 2019 revealed that most families of overseas Filipinos (96.4%) allocate their loved ones’ remittances for food and other household expenses. This is followed by education (68.9%) and medical expenses (49.8%). Savings only comes in at fourth at 33.9%. While it is good for the families to spend on immediate necessities and education, BDO Foundation saw the need for them to improve when it comes to saving for their future. To help OFWs and their families achieve greater financial freedom, BDO Foundation has partnered with the Overseas Workers Welfare Administration (OWWA) in conducting lectures and seminars on financial education.

Humorous, hugot, inspirational BDO Foundation and its partners start the teaching and learning experience through short but insightful and highly engaging educational videos. OFs get to watch the videos during their Pre-Departure Orientation Seminars and again at their Post-Arrival Orientation Seminars. Meanwhile, their families get to watch the videos during support seminars conducted by OWWA. Public school students also watch the videos as part of their classes. The videos are part of the financial literacy learning tools released by the DepEd earlier this year. Financial education lessons, which have been integrated into the K-12 curriculum, are to be taught using the said materials. As for the teachers, a set of videos are shown to them during their own financial education seminars. In fact, a rather funny video entitled “Scamatayan” was made for them. The title is a wordplay on kamatayan. “Scamatayan” shows a public school teacher being haunted by various scams. The scams (text scams, online scams, Ponzi schemes, etc.) are represented as supernatural creatures that torment her.

Behind the video’s humor though, is a serious message: Getting involved in scams and get-rich-quick schemes can quite literally cause the death or kamatayan of your finances. BDO Foundation’s approach is to teach financial skills to those who can pass on the knowledge to a greater number of learners, who later on become teachers and influencers themselves. Eventually, the teachers teach other teachers and students; students teach classmates and friends; and OFWs teach colleagues and their families. It’s a ripple effect that pays forward the knowledge and benefits received, spreading it to families and communities. Plus, they don’t only learn financial skills but also added knowledge on how to spot and avoid scams. Financial education is the preliminary step toward the greater goal of financial inclusion. Economic experts from the BSP to the World Bank agree that any nation’s financial and social development depends on the degree of financial inclusion attained among its people. The greater and more widespread the financial inclusion; the more access people have to banking services, capital, and various financial instruments; the more progressive and developed a society becomes. People are healthier, wealthier, and happier. Ultimately, BDO Foundation’s efforts are not simply about passing on financial skills. Rather, they are ways to create a better future for all: one teacher, one student, one farmer, one soldier, one Filipino at a time.

STIMULATING THE PH ECONOMY

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

PH pins hopes on LNG to solve electricity woes By Alena Mae S. Flores

HE Philippines may have found the energy solution to the lack of electricity in the countryside.

Bulacan airport, Makati subway to lift economy TWO major infrastructure projects of late have received the clearance from authorities to proceed. They are among the big “Build, Build, Build” projects lined up under the administration of President Rodrigo Duterte in support of the government’s bid to boost the economy. The $3.5-b subway project in the Makati financial district aims to connect key points in the city and significantly cut the travel time of thousands of workers in the urban center. As proposed, the subway will link the central business district from the corner of Ayala Ave. and Sen. Gil Puyat Ave. to Circuit City, Makati City Hall, University of Makati, Ospital ng Makati, and other new growth areas within the city. Once completed, the subway will serve over 700,000 passengers daily. The subway rail mode clearly addresses the physical limit of Makati’s road network. It will significantly reduce the number of buses, cars, jeepneys and taxicabs plying the narrow streets of Makati, as commuters gravitate toward the

convenience of using the subway rail. The Department of Transportation, meanwhile, is set to award the P735billion New Manila International Airport project in Bulacan province to San Miguel Corp. in the absence of rival bidders. Construction of the ambitious airport in Bulakan town, Bulacan province could start early next year after the groundbreaking ceremony in the fourth quarter this year. The alternative airpor t will decongest air traffic in the Ninoy Aquino International Airport, which has long exceeded its passenger capacity amid the tourism boom. The new airport, more importantly, will decongest Metro Manila as airline passengers take a different route, away from the busy thoroughfares of Metro Manila. The project involves the construction, operation and maintenance of an international airport and building an 8.4-kilometer tollway that will connect the New Manila International Airport to North Luzon Expressway in Marilao, Bulacan.

The introduction of modular or small-scaled liquefied natural gas power projects could answer the countr y ’s quest for total electrification. These modular LNG facilities are proven energy solutions that can be easily built and transported in islands around the country, thus securing power supply while putting the Philippines in the global LNG map. The facilities are also flexible in terms of capacity, which can be scaled up if needed, making it an ideal energy solution especially to far-flung areas. Proponents of LNG projects have answered the call of the Department of Energy to place the country as a Southeast Asia LNG hub in preparation for the eventual depletion of the Malampaya gas field in northwest Palawan, and are looking at modular LNG as possible markets. “With the Malampaya gas field nearing depletion, quick action must be taken to safeguard our energy security. In response to this, the DOE has initiated the legislation and framework to establish the Philippines as a Southeast Asian LNG hub,” Energy Secretary Alfonso Cusi said. “This plan, while ambitious,

has been validated by the overwhelming interest we have received from global investors in a race to establish the first LNG hub in the Philippines. This LNG hub will serve the dual purpose of facilitating future LNG imports while taking advantage of drastic changes in the global LNG trade flows that has put the Philippines at the centre of global LNG trade,” Cusi said. The energy chief added the LNG hub would be a vital lever of economic growth for the Philippines: new jobs for engineering and technical professionals not just in operations but in other related services such as LNG trading. One of the active LNG project proponents, Lopez-led FGen LNG Corp., wants its planned LNG terminal in Batangas to become an LNG hub that could serve and provide gas to smaller islands around the country. “We want to bring LNG to other parts of the PH, not just Luzon. So we’re excited with the idea of small scale LNG. We want to be able to bring it in other parts of Luzon, also other islands Visayas and Mindanao. There should be quite a lot of options to expand in the future but we need to start somewhere, we have to start with bringing it in. The only other

choice is coal, which I think is a bad choice for the Philippines,” First Gen executive vice president and chief commercial officer Jon Russell said at the sidelines of Powertrends 2019 conference. Russell earlier his company was “building a facility which allows smaller LNG vessels to be filled with LNG and they can sail within the islands and deliver LNG to smaller terminals we can establish throughout the islands.” He said smaller power plants with a capacity of 50 MW or less that may want to switch to natural gas from diesel as a choice of fuel can do so. “They can easily switch to LNG which will be more cost effective and be much more environmentally friendly,” Russell said. “The opportunity... it hasn’t been done to my knowledge anywhere in the world in this kind scale. It only really works in an island nation. The Philippines is perfect... but it’s an opportunity to do something that could be really world-class, it would be really something different for the Philippines,” the official said. First Gen is pushing for its own LNG facility to meet the natural supply requirements of its power plants, namely the 1,000-MW Santa Rita, 500-MW San Lorenzo, 420-MW San Gabriel and the 97-MW Avion power plants. FGen LNG plans to initially establish a floating, storage and re-gasification unit (FSRU) at its energy complex in Batangas while its onshore LNG terminal is being constructed.

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

BPI commits to role in fostering economic growth

GAINST a backdrop of a bullish economic growth, the Bank of the Philippine Islands (BPI) vows to continue doing its part in stimulating the economy to promote greater financial inclusion in the country.

“Everything we do today, we do for the long term. We’re doing it to ensure ourselves of longevity and sustainability. We’re doing it to make sure we remain a partner in the country’s growth,” said BPI President and CEO Cezar P. Consing. To achieve this, the Bank is focusing on four key agenda: digitalization, inclusivity, customer experience, and sustainability.

digital lending and cash management for SMEs; digitalizing E2E processes; adopting a mobile first distribution strategy; adopting the latest digital marketing methodologies to accelerate customer acquisition; and leveraging big data and advanced analytics.

Inclusivity Data from the Bangko Sentral ng Pilipinas (BSP) show that around 35% of Filipinos aged 15 years old and up have bank accounts. Hoping to improve this numDigitalization The Bank is now on the second ber, BPI remains aggressive on reaching phase of its digital transformation more of the unbanked Filipinos as part journey which aims to make banking of its thrust to promote greater financial inclusion in the country. experience “richer and better” In support of this commitfor its growing customer base. ment, BPI is also mak“Digitalization is important ing credit fafor us, because we think it will

“Everything we do today, we do for the long term. We’re doing it to ensure ourselves of longevity and sustainability. We’re doing it to make sure we remain a partner in the country’s growth,” said BPI President and CEO Cezar P. Consing. neurs, BanKo targets to have 300 branches by year-end. “We are very excited about this segment of the market. Our country continues to grow at an impressive pace, investment-led growth is beginning to challenge consumption-led growth for leadership, and self-employed micro-entrepreneurs are becoming central to this growth thesis,” Consing added. Customer experience BPI believes that the customer journey has become more paramount in recent years. “The customer of today, many times, wants instant information. In some cases, they want instant gratification. So we have to focus on the customer experience,” Consing said. To be able to provide a better customer experience, BPI acknowledges that its digitalization

lower our costs to serve. If we lower our cost to serve, it will allow us to touch many more people, and also allow us to provide Filipinos with truly world class product offerings,” Consing said. As part of its digitalization efforts, BPI has been continuously improving its product offerings on mobile and online platforms. “We will lead with mobile. The whole digitalization push vis-à-vis the client, at least, will be a mobile-first strategy,” he added. BPI’s second phase of digitalization journey involves nine focus areas: the orchestration of a digital ecosystem; becoming the partner of choice for digital platforms and ecosystem owners; reshaping payments in the country; pushing financial inclusion;

be a sustainable business. We have to be a sustainable nation,” he said. In line with this, BPI is providing opportunities for individuals, communities, and businesses to achieve financial wellness. The Bank is also offering financing options, such as the BPI Sustainable Energy Finance (SEF) program, that support and promote a greener economy and society,. Offered in partnership with the International Finance Corporation of the World Bank Group, the SEF provides businesses with technical training and funding for efficient energy generation, energy distribution, and energy use. “We have to harness our resources in ways that make it better for the people that follow us. We owe it to the next generation,” Consing said. Internally, BPI also tracks its environmental impact by monitoring its energy and water consumption

cilities more accessible to underserved segments of the population, such as the small and medium enterprises (SMEs). “SMEs are such an important factor in our nation’s growth. Yet as a segment, they have underbanked, and not enough credit goes to the SMEs in the country,” said Consing. With this, BPI laid the groundwork to help SMEs achieve financial security by providing access to easy, convenient, and affordable loan products, such as through its microfinance arm, BPI Direct BanKo. In just three years, BanKo has released over Php 4 billion in loans to almost 60,000 entrepreneurs. To reach more self-employed small entreprejourney also calls for a cultural transformation. The Bank recently rolled out its #OneBPI campaign to encourage its employees to work collaboratively, be more customer centric, and take accountability for results as part of a more digital BPI. “The whole digitalization journey also has to be accompanied with a cultural journey. The cultural journey has to begin with figuring out what are we going to do to make the customer experience truly first-rate,” Consing shared. Sustainability Amidst all the Bank’s digitalization and financial inclusion efforts, Consing said BPI is also committed to working on and promoting sustainability. “We’re getting to the point where we realize that we have to

and carbon emission in its branches, head offices, and business centers. Sticking to its commitment to help protect the environment, the Bank ensures responsible disposal of its paper, plastic and electronic wastes. By focusing on these four key areas, BPI hopes to be instrumental not only in the country’s continuous growth but ultimately, be able contribute to building a better and more financially inclusive Philippines. “As the Bank that currently lends about one of every eight pesos lent in the system, and receives about one of every eight pesos that is deposited into the system—what we choose to do; who we choose to do it with; and, equally important, what we choose not to do can really shape the kind of country we have,” Consing said.

Restrictive investment rules dog economy THE Philippines, despite registering solid economic growth rates year after year, is still the sick man of Southeast Asia when gauged in terms of foreign investments. Decades-old Philippine investment laws are hampering the entry of foreign capital in the country. Economic Planning Secretary Ernesto Pernia has conceded the existing “restrictive” investment environment in the country is driving away foreign investors, who preferred more liberal regimes in the region. The countr y ’s economic chief planner stressed a need to pass into law more key reforms that would attract more investments, such as the Foreign Investment Act, Retail Trade Act and Public Service Act. The Philippines, he says, can expect a triple or even quadruple increase in foreign direct investments if pending investment bills are passed into laws. Senator Grace Poe echoed Pernia’s concerns. For one, she found a need to amend the 81-year-old Public Service Act to remedy the country’s restrictive economic environment, provide more jobs and ensure reasonable rates of services. The chairperson of the Senate committee on public services says the proposed amendments aimed to address the confusion in the definition of public utility and public services, which, for several decades, hampered economic growth. Senator Sherwin Gatchalian agrees. The Philippines remains a relatively unattractive investment destination because Philippine investment laws were less open and generally more inhibitory compared with its neighbors in Southesat Asia. The 1987 Philippine Constitution, meanwhile, restricts the operation of a public utility to companies whose ownership is at least 60-percent Filipinoowned. The equity restrictions apply to public utilities like telecommunications, electricity, water and transportation.

LGUs should heed Duterte’s call to ease permit rules PRESIDENT Rodrigo Duterte’s directive to local government units is clear and unmistakable. They should promote investments in their respective areas and ease the environment of doing business in the Philippines. Mr. Duterte, in his State of the Nation Addressin July, wants to reduce the period of processing business permits to just three days. “I am directing you publicly. All clearances, permits emanating from your office that would also need your approval, must be out, at the very least in three days,” Duterte said in his speech. LGUs should view Mr. Duterte’s directive as marching orders from a superior, who has time and again fired officials for ineptness and perceived corruption. It should serve as a fear factor and a warning on LGUs that they should get their act together, cut the red tape and eliminate a major source of corruption in their level. President Duterte’s order is long overdue. He signed on May 28, 2018 Republic Act 11032, or the Ease of Doing Business and Efficient Delivery of Government Services Act of 2018, that seeks to make the process of establishing and running a business in the country more efficient and easier. The law amended the Anti-Red Tape Act of 2007. Many businessmen and entrepreneurs, however, have complained of the tedious process in getting a simple permit from LGUs. It is no surprise then that the Philippines ranked 124th out the 190 economies in the World Bank’s latest Ease of Doing Business report. The Department of Finance and the Department of the Interior and Local Government recently issued a joint circular providing the guidelines in setting reasonable rates for regulatory fees and other service charges as part of government’s efforts to improve the ease of doing business in the country.

STIMULATING THE PH ECONOMY

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

Major IPOs excite equity investors By Jenniffer B. Austria

SLEW of initial public offerings in the second half are stirring Philippine Stock Exchange investors and may lure back foreign funds to the local equities market.

Azure Urban Resort Residences houses the first man-made beach in a residential development— complete with fine white sand, undulating waves, and fun water features.

COME HOME TO YOUR OWN PIECE OF PARADISE IN THE CITY LOOKING forward to your next vacation? It’s easy to book a flight to your favorite getaway, but wouldn’t it be better if you get to feel like you’re on vacation every day? At Azure Urban Resort Residences, the beach is just an elevator ride away. This tropicalinspired residential community offers summer all year round with summer fun amenities that let you frolic and soak up some sun. Here’s what it’s like to live in Azure: RELISH BEACH-INSPIRED LIVING Designed by award-winning architectural firm, Broadway Malyan, the nine-tower tropical-inspired community takes inspiration from the most beautiful beaches in the world. Residents can make the most of natural light and ventilation—making them feel like they’re in a secluded paradise far from the city. MAKE YOUR DREAM ISLAND LIFE COME TRUE Tired of the standard swimming pools? Why not spend a day at the beach—right in your own backyard? Azure Urban Resort Residences houses the first man-made beach in a residential development —complete with fine white sand, undulating waves, and fun water features. There’s also a Lap Pool, Infinity Pool, and a Lagoon Pool where you can relax and forget your worries.

RELAX LIKE AN ICON When you’ve made the most of the pools and outdoor amenities, you can level up the tropical experience at The Paris Beach Club, a one-of-a-kindamenity designed by Paris Hilton. You can dine al fresco, schedule a spa appointment, or spend a few hours in the Game Room. BE WORRY-FREE WITH A CONCIERGE YOU CAN COUNT ON From keeping you informed about announcements and managing parcel services, to helping you book a ride to reserving amenities – you can expect firstrate service from highly trained individuals. LIVE IN AN ACCESSIBLE LOCATION Worried about the traffic? Azure Urban Resort Residences is conveniently located along SLEX West Service Road corner D. Soledad Avenue, Bicutan, Parañaque City. You can’t miss it because it’s directly beside SM Bicutan. Know more about Azure Urban Resort Residences when you visit www.century-properties.com/ property-for-sale/azure. If you’re looking for more real estate properties in the Philippines, call (+63) 917 555 5274 or e-mail ask@century-properties.com to learn more about condos for sale and other real еstatе properties by Century Properties.

After a dearth of IPOs in the first half amid the volatile market conditions, investors can now look forward to the IPOs of All Home Corp., Axelum Resources Corp., Cal-Comp Technology (Philippines) Inc. and Metro Pacific Hospital Holdings Inc. (MPHHI). Axelum and All Home secured regulatory approvals to push through with their IPOs while the applications of Cal-Comp and MPHII are now being evaluated by the Securities and Exchange Commission and the PSE. Except for Axelum which is targeting only the domestic investors, All Home, Cal-Comp and MPHHI are allocating up to 70 percent of their offer shares to international investors which, according to analysts, would fuel an increase in foreign fund flows. “We are excited with the back-to-back maiden offerings as we know investors have been waiting for IPOs in the stock market. We are pleased that Axelum and AllHome decided to raise capital through the equities market as both companies are a welcome addition to the roster of listed firms in the Exchange,” said PSE president and chief executive Ramon Monzon. Axelum is one of the leading manufacturers and exporters of coconut water and the company behind Vita Coco, the global leader in coconut water. The company plans to offer up to 1.13 billion shares at P6.81 per share to raise as much as P7.7 billion in proceeds. The offer period will run from Sept. 24 to Sept. 30 while the target listing date is Oct. 7.

The net proceeds from the primary offer will be used to fund the company’s strategic acquisitions, expand its domestic and international distribution networks, install new manufacturing facilities for new products and improve and expand the company’s existing manufacturing facilities. A portion of the proceeds will also be used to retire the company’s loans, reduce payables and for other capital expenditure requirements. “We are very excited about Axelum’s debut in the equities market. We think this is the investment opportunity that investors have long been waiting for,” First Metro Investments Corp. president Rabboni Francis Arjonillo said. “The company is poised to continue its market leadership and is wellpositioned to expand its market base because it is one of the most complete players in the coconut industry given its access to raw material inputs, diversified portfolio of high-quality coconut products, exclusive and companyowned distribution facilities, and strong relationship with well-established customers,” Arjonillo said. AllHome, a home furnishing chain owned by the country’s richest man Manuel Villar, is looking to raise up to P20.7 billion in proceeds. Under the plan, AllHome will sell up to 1.1 billion common shares, representing 3 4 . 5 p e rce nt o f t h e co m p a ny ’s outstanding capital stock, at an offer price of up to P16 apiece. Net proceeds from the IPO will be earmarked to fund store expansion.

Source: All Home Facebook Page

Property sector remains buoyant PROPERT Y developers remain bullish despite the uncertainty of offshore gaming operations in the county. Property firms said that while Philippine offshore gaming operators emerged as one the largest office space customers in the past few years, the demand from traditional offices and business process outsourcing companies remained steady and would readily compensate for any decline in POGO demand. Leechiu Property Consultants chief executive David Leechiu reported in July that POGO would become the largest consumer of office space in Metro Manila before the end of 2019, overtaking the business process outsourcing sector despite the government’s move to tax POGO workers. “But we expect the POGO industry to be the biggest demand driver by yearend due to its faster site selection and the effect of the recent moratorium on PEZA [Philippine Economic Zone Authority] applications in Metro Manila,” Leechiu said. DoubleDragon Properties Corp. chairman Edgar Sia II said he was unfazed by the uncertainty of POGO operations. “While would like that to continue because we get better yields from POGO, under the worst-case scenario, we are covered because have a diversified leasable space,” Sia said. Sia said the company’s office space leased to POGO, currently representing 12 percent of the group’s total leasable space, were fully covered because the lease contract was locked for a period of 12 months. The location of office spaces leased by

offshore gaming operators—the Bay Area in Pasay City—is a prime site which makes it easier for the company to lease out the office space to other locators in the event that offshore gaming operations were banned in the country. Sia said DoubleDragon has diversified leasing portfolio that also includes hotels, community malls and industrial space. Megaworld Corp., the biggest lessor of office space in the Philippines, also said the POGO issue would not affect its office and residential businesses as its exposure to the sector remained manageable. Megaworld said POGO accounted for 12 percent of the group’s total rental space in terms of gross leasable area and contributed about 8 percent of total rental income. Vista Land & Lifescapes Inc., an integrated property firm owned by the Villar family, said it remained bullish on its leasing business despite the crackdown on POGOs. Vista Land president and chief executive Manuel Paolo Villar said the group’s leasing portfolio was comprised mainly of retail malls and commercial center and had very limited exposure to POGOs. “Our leasable spaces are mostly retail malls which limit our POGO exposure and any crackdown to those POGOs will not impact on our overall financial performance,” Villar said. The government is currently tightening its regulations on the POGO sector, which is dominated by Chinese workers. China signaled a crackdown on crossborder gambling which is being linked with money laundering and other criminal activities. Jenniffer B. Austria

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

Stock market likely to bounce back in Q4 By Jenniffer B. Austria

HE local stock market, which fell below the 8,000-point mark in September, is raring to bounce back in the fourth quarter on the back of strong earnings outlook, according to analysts.

After declining to as low as 7,700 this quarter amid the negative developments overseas such as the lingering concerns over the US-China trade war, the 30-company Philippine Stock Exchange index slowly climbed toward the 8,000-point level this month. Given the recent market drop, some investors were worried that the year-end target of 8,400 to 8,600 level would not be achieved. Despite the recent trend, online brokerage COL Financial Group Inc. research head and chief equity strategist April Lynn Lee-Tan said the company was keeping the 8,600-point year-end target. COL Financial even raised its growth target for earnings of PSEi companies to 13 percent from an initial goal of just 11 percent at the start of the year as banks and property firms were expected to sustain their strong growth in the second half. “The strong sectors for this year would be property because of residential and leasing and banks, which are expected to post a strong recovery this year on higher trading gains as well as healthy loan growth,” Tan said. The road to the 8,600 level, however, is bumpy as the global economic outlook remains sluggish. Tan said the global economy is showing signs of slowing down because of policy uncertainties brought about by the US-China trade war and the United Kingdom’s exit from the European Union. “Although central banks are loosening their monetary policies, it remains uncertain if they will succeed in addressing economic growth concerns,”Tan said. She said that in the domestic front, the Philippines would continue to suffer from an above-average budget deficit and a current account deficit. Tan, however, expects the bull market to emerge soon as the factors that hurt the market’s performance last year such as high inflation and interest rates, peso depreciation and foreign fund

outflows all reversed in favor of the Philippines. COL Financial’s top stock picks for this year include Ayala Land Inc., Megaworld Corp. and Filinvest Land for the property sector and Metrobank and Security Bank for the banking sector. Tan said she also likes D&L Industries Inc, Store Specialists Inc., Max’s Group Inc. and Century Pacific Foods Inc. for the consumer sector and Ayala Corp for the conglomerate sector. Meanwhile, First Metro Investments Corp. expects the PSEi to end the year within the 8,400 to 8,600 range as investor sentiments will be boosted by lower interest rates and the expected earnings growth for listed firms. FMIC vice president and head of research Ma. Cristina Ulang said in a recent mid-year economic briefing that the compounded annual growth rate of earnings of listed companies was expected to increase. “Our confidence arises from the fact that the consensus earnings estimate moving forward is upward and we’ve seen CAGR [compounded annual growth rate] earnings-wise,” Ulang said. Ulang said earnings CAGR of companies averaged 5.9 percent from 2010 to 2015, before rising to 8.1 percent from 2016 to 2018. Ulang expects this figure to even increase to 10.6 percent from 2019 to 2021. FMIC is also counting on the monetary easing policies promised by the Bangko Sentral ng Pilipinas to boost the market. Bangko Sentral ng Pilipinas Governor Benjamin Diokno promised another rate cut before the end of the year. He also committed to cut down the reserve requirement ratio to a single-digit during his term. “We are seeing the PSEi react to the RRR cut and the promise of policy rate cut of more in the second half of this year,” Ulang said. FMIC’s stock picks for the period include BDO

Unibank Inc. and Metropolitan Bank & Trust Co. (Metrobank) for banks; Universal Robina Corp., San Miguel Food and Beverage Inc. and Wilcon Depot Inc. for consumer firms; and Ayala Land Inc., Megaworld Corp. and Robinsons Land Corp. for property. It also likes Megawide Construction Corp. and Eagle Cement Corp. for infrastructure and picked Ayala Corp., JG Summit Holdings Inc., Metro Pacific Investments Corp. and GT Capital Holdings, Inc. for conglomerates. In the

power sector, it prefers Aboitiz Power Corp. and Manila Electric Co. The PSEi gained 6.88 percent in the first eight months of the year to close at 7,979.66 on Aug. 30 while the broader all-share index went up 6.46 percent to 4,809.48. Foreign investors remained net buyers in the eight-month period at P11.6 billion, as total foreign b u y i n g re a c h e d P 6 8 4 . 3 3 b i l l i o n while foreign selling amounted to P672.73 billion.

PARKLINKS: OFFERING A BALANCED AND HEALTHY URBAN LIFESTYLE HEALTHY city living amidst greenery and wide-open spaces? This seems farfetched for many working Filipinos who are used to just two options: living a compact but practical life in the city, or living in the more spacious suburbs but enduring long daily commutes. Developers such as Ayala Land, Inc. (ALI) and Eton Properties Philippines, Inc. (EPPI) are well aware of the city dwellers’ plight, and have focused on creating solutions that provide people with a more balanced and enriched way of life. One such solution is Parklinks, their greenest urban development to date that puts a premium on open space, healthy and active living, connectivity and accessibility. Located within Pasig and Quezon City, the 35-hectare joint venture between ALI and EPPI is master planned to maximize access to parks and open spaces—all of which would be a mere five- minute walk from residences, offices and commercial areas through a well-designed and managed walkway system. “What sets Parklinks apart is that 50% of its 35 hectares are devoted to open spaces,” said Mel Ignacio, ALI Head of Project Development, adding that the C5 area will surely benefit from an increase in parks and recreation space. The estate’s master plan includes a three-hectare central park located at the heart of the estate and will highlight the natural features of the Marikina River

through an esplanade, river park terraces, running and bike trails and riparian gardens. Aside from accentuating the natural topography of the land, these facilities will encourage the community to appreciate the river system surrounding the development. “We want to offer something innovative to the market and Parklinks’ features and amenities will provide opportunities for a different lifestyle,” said Juan Antonio Gatuslao, EPPI Deputy Chief Operating Officer. “We enhanced the whole development with various zones where residents and visitors can relax and engage in recreational activities. Parklinks features zones that are complete with gardens, waterfront entertainment and an outdoor amphitheater. Parks lined with restaurants, multipurpose lawns, eco walks and view decks along the Marikina River are also included in the estate’s design. Perhaps the most awaited feature of Parklinks is an iconic 110-meter long and 25-meter wide bridge that will link Quezon City and Pasig over the Marikina River. This new route will help ease vehicular traffic in the northeast and eastern portions of Metro Manila. The bridge will have dedicated lanes for bikers and pedestrians that would allow for a safe and convenient commute around the development.

Parklinks Mall will have five floors of premium shopping and a sports complex promoting an active lifestyle.

“We’re transforming this development into a community that balances leisure and business, an urban hub that maximizes access to parks and open spaces.”

Parklinks Bridge will offer a safe and convenient route connecting Pasig and Quezon City.

Parklinks will be accessible via C5, Amang Rodriguez Avenue and Ortigas Avenue. It will further benefit from a multi-lane elevated flyover to be built in the area as part of the government’s Metro Manila interchanges construction drive. Residents of the estate will also have easy access to major central business districts such as Makati, Bonifacio Global City, Ortigas Center and Triangle Park Quezon City. Parklinks offers all the benefits of estate living with its well-designed fusion of residential, office and commercial developments. It distinguishes itself however by setting new standards in sustainable waterfront living. The estate will feature Ayala Land Premier’s (ALP) Parklinks North Tower, the first luxury residential development along the C5 corridor. Residential towers by Alveo and Avida will likewise be developed within Parklinks. The anchor of the development will

be the Parklinks’ lifestyle mall, opening in 2023. The regional mall will be situated along the estate’s C5 frontage with five floors of premium shopping. Above the mall will be a 3,500- square meter sports complex that would allow residents to enjoy an active lifestyle through its basketball, volleyball, badminton, gym and dance facilities. Furthermore, three office towers are already in the pipeline under phase one of Parklinks’ development. The first of these will also be situated above the Parklinks Mall, providing office workers and visitors with seamless access to and from commercial and office areas. “We’re transforming this development into a community that balances leisure and business, an urban hub that maximizes access to parks and open spaces,” said Ignacio. “It is a reflection of our purpose to enrich lives and make things better than before for everyone’s benefit.”

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

POGOs: Good or bad to economy? By Julito G. Rada

CONOMIC managers like to find out if Philippine offshore gaming operators are beneficial or not to the economy. The Bangko Sentral ng Pilipinas is interested to see the benefits the industry brings to the country, aside from taxes collected from Chinese workers that should reach P24 billion annually. BSP Governor Benjamin Diokno said in a recent economic forum hosted by the Economic Journalists Association of the Philippines that monetary officials were studying the economic impact of the rapidly-growing offshore gaming operations including the possible financial stability risks that could emanate from the industry. “I don’t know but we are studying to find out what good it is going to bring for the country. One of the BSP’s mandates is financial stability, so we want to see the financial risks [associated with it] and study the POGO issue,” Diokno said. “What if they leave? What will be the impact to the property sector,” he said, referring to earlier reports that POGO operations have been causing the increasing take-up of property spaces especially in the Bay Area. “You know the GFC [global financial crisis] started in the real estate sector, not from banks itself,”he said, pertaining to the crisis that rocked the global financial markets 11 years ago. The financial crisis of 2007–2008 is considered by many economists as the most serious global economic crisis since the Great Depression of the 1930s. Diokno said the Bangko Sentral might also require banks to provide pertinent information regarding their lending to POGOs. Economic Planning Secretary Ernesto Pernia said the National Economic and Development Authority had not yet quantified the value-added impact of POGO operations in the country.

“We have not yet studied that,” he said. Pernia said he preferred that POGOs go to the regions and not congregate in Metro Manila. “There are too many buildings in Manila. They should locate in the regions so that there would be improvements in the regions,” Pernia said. “They must also be regulated on where they should operate.” CHINA’S POSITION The Chinese embassy in Manila earlier urged the Philippine government to crack down on the POGO operations in the country, saying several Chinese citizens were illegally recruited and hired in offshore gaming operations in the Philippines. State-run Philippine Amusement and

taken away from them. It said that the Chinese are confined to live and work in certain designated places and some of them were subjected to extortion, physical abuse, torture and other ill treatments. At the same time, the embassy said dozens of kidnappings and torture cases of Chinese citizens who gamble or work illegally were reported in the Philippines. It said some Chinese citizens were physically tortured, injured or even murdered. The embassy said that crimes and social problems in China had increased due to a large number of Chinese citizens “lured” into illegal gambling. The Finance Department and the Bureau

‘One of the BSP’s mandates is financial stability, so we want to see the financial risks [associated with it] and study the POGO issue.’ Gaming Corp. said it stopped accepting new applications for offshore online gaming licenses in August after Beijing called on Manila to crack down on gambling operations targeting its citizens. Pagcor chairman Andrea Domingo said the agency would “stop first and look at other concerns that we have not met comfortably.” The regulating body will also weigh the social costs and benefits from POGOs. Domingo said there were 58 licensed offshore gaming operators in the country and three more applications were pending. The Chinese embassy told the government to pay more attention to its position and concerns and take concrete and effective measures to prevent and punish local casinos, POGOs and other forms of gambling entities for their illegal employment of Chinese citizens and crack down related crimes that hurt Chinese citizens. The embassy said most of these illegally recruited Chinese workers had their passports

of Internal Revenue expect to collect at least P2 billion in personal income taxes per month from foreign workers. So far, the government initially collected P200 million from the sector in July 2019. Domingo said POGO hubs were being constructed in Luzon but said these facilities would not limit the freedom of the workers. Instead, they would offer convenience and protection to foreign workers who are mostly Chinese, she said. Earlier, the Labor Department said foreign nationals working for POGOs were estimated at 138,000. In a report to Dominguez recently, the Labor Department and the Bureau of Immigration came up with a reconciled list of 138,001 workers, of which 54,241 were issued alien employment permits and another 83,760 were granted special working permits. Dominguez said assuming that each foreign national was earning an average of $1,500 a month and taxed at 25 percent of his

or her gross income, the government could raise P32 billion a year in income taxes from these workers. Industry sources say regular workers manning call center operations and chat rooms are paid average monthly salaries of P40,000 to P50,000; supervisors up to P75,000; and managers up to P100,000. CHINESE ESPIONAGE? Lawmakers, however, raised concerns over the influx of Chinese nationals in the country, saying they could be used by China to spy on the activities of different government agencies particularly those concerning national security. They particularly mentioned the proximity of POGO operations to vital police and military camps in the metropolis which could pose possible threats to national security. No less than Defense Secretary Delfin Lorenzana said POGO hubs put up near military camps could easily be turned into facilities for spying by the Chinese government. Lorenzana particularly cited POGO hubs at Araneta Center and Eastwood City in Quezon City, both near Camp Aguinaldo and Camp Crame, the headquarters of the Armed Forces of the Philippines and the Philippine National Police, respectively. Other POGO hubs are located near the base of Philippine Air Force in Pasay City and the Philippine Army in Taguig City. The POGO hub being constructed in Kawit, Cavite—located at the Island Cove or Covelandia—is more or less two kilometers from the Philippine Navy headquarters in Sangley Point in Cavite City. Reports said residents in Las Piñas City were concerned about the presence of what they described as “military-looking” Chinese workers in a POGO facility in the city. Rep. Eric Pineda of 1Pacman party-list, who chairs the House committee on labor, said residents saw some Chinese workers there whose haircuts and body build “resemble” those of soldiers. Bayan Muna party-list Reps. Carlos Zarate, Ferdinand Gaite and Eufemia Cullamat filed Resolution 221 urging lawmakers to conduct an investigation into the validity of POGO facilities in the country.

STIMULATING THE PH ECONOMY

Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandard.net extrastory2000@gmail.com MONDAY, SEPTEMBER 16, 2019

BSP adopting accommodative policy

HE Philippine economy needs a boost after a lackadaisical performance in the first two quarters of 2019. It requires stimuli, along with pump-priming from the national government. Economic Planning Secretary Ernesto Pernia also knew that the Bangko Sentral ng Pilipinas had to step into the picture and come up with a response to jolt the economy out of its stupor. Pernia had confidence that BSP Governor Benjamin Diokno would push the right button . “I’m sure the BSP will do something…. Diokno knows it by now. He is a pro-growth central bank governor... I’m quite optimistic he will do the right thing,” Pernia said in early August after the government officially released the GDP figures for the second quarter. The economy grew 5.5 percent in the second quarter, the slowest in four years, as the El Niño dry spell, delayed approval of the government budget, and the ban on construction activities during the midterm elections tempered household demand and government spending. Economic growth in the first half averaged 5.6 percent, below the low end of the government’s target range of 6 percent to 7 percent set for the entire year. The Monetary Board, as if on cue, immediately reduced the reserve

requirement ratio of universal and commercial banks by 200 basis points in three stages within two months to 16 percent from 18 percent to bring more liquidity into the financial market. The RRR cut was expected to release additional liquidity of about P230 billion into the financial system based on the P11.576trillion deposits held by universal and commercial banks as of end2018 as reported by Philippine Insurance Deposit Corp. The Bankers Association of the Philippines welcomed the RRR, saying it would help boost the economy. “ The 2% cut in reserve requirements recognizes the BSP’s effectiveness in strengthening the country’s banking system. It is a bold move, coming on the heels of a policy rate cut, but equally appropriate given how our financial system has advanced under the BSP’s stewardship,” said BAP president Cezar Consing. The BAP expressed optimism that the RRR reduction, together with the easing of policy rates, would sustain the growing economic

momentum. Diokno announced the RRR cut a week after the board reduced the overnight borrowing rate by 25 bps to 4.5 percent. Reserve requirement, also called cash reserve ratio, is a central bank regulation that requires commercial banks to hold a minimum fraction of customer deposits and notes as reserves which they cannot lend out. The reserve requirement ratio in the Philippines at 18 percent is one of the highest in the region. Nicholas Mapa, a senior economist of ING Bank Manila, said with inflation gliding back to within target and expected to remain benign well into 2020, this was the perfect opportunity for the BSP to cut both the policy rate and reduce RRR as the gross domestic product grew at a four-year low of 5.6 percent in the first quarter.

Inflation eased to a 16-month low of 3 percent in April 2019 from 3.3 percent in March on more stable prices of food and other commodities. This brought inflation in the first four months to an average of 3.6 percent, within the government target range. “The gradual reduction in RRR will definitely help alleviate the current tight liquidity conditions and complements its recent policy rate cut,” Mapa said. “After slamming hard on the proverbial brakes in the third quarter of 2018 by jacking up rates by 175 bps, the central bank believed it was time to give the economy a much-needed breather especially with the inflation objective well in hand,” he said. The BSP is not done with its accommodative policy. Diokno said the central bank was inclined to reduce the benchmark borrowing rate by another 25 basis points to 4 percent before the end of the year as the inflation rate is expected to ease further. “We will [continue to] review the pertinent economic data and other developments,” Diokno said during the midyear economic forum organized by the Economic Journalists Association of the Philippines at the Ayuntamiento de Manila. Diokno said giving a hint of another 25-bps cut in policy rate could allow the banking sector more time to prepare on what to

do with extra liquidity. He did not say if the policy rate cut would be made ahead of the planned reserve requirement ratio reduction. “Anything can happen between now and late September [which is the next policy meeting]. Reserve requirement cut remains a live issue,” Diokno said. The Monetary Board, the policymaking body of the BSP, on Aug. 6 slashed the overnight borrowing rate by 25 basis points to 4.25 percent, taking into account the downward trajectory of the inflation rate and the sluggish economic growth in the first half. Diokno said the latest baseline forecasts of the BSP indicated that inflation would likely settle within the target range of 2 percent to 4 percent for 2019 up to 2021. ING Bank Manila senior economist Nicholas Mapa said he was expecting the BSP to cut the policy rates again by 25 bps in its September meeting given the previous comments from Diokno pointing to a total of 50 bps worth of rate cuts before the end of the year. “Furthermore, we expect the BSP to reduce reserve requirements further in the fourth quarter after it completes its 2019 rate cut cycle to help infuse fresh liquidity into the market. RRR reductions will be put on hold as BSP gauges whether additional funds are diverted to productive activities and not simply parked at BSP’s overnight facilities,” Mapa said in a report. Julito G. Rada

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

STIMULATING THE PH ECONOMY

Airport projects to enhance mobility By Darwin G. Amojelar

HE Transportation Department is on a mission to enhance mobility and connectivity by completing major airport projects before the end of the Duterte administration in 2022. “Under the Duterte administration, we are committed to improving existing airlines and creating new airports,” Transportation Secretary Arthur Tugade said. “These are our commitment in order to have mobility and connectivity,” he said. One of the accomplishments of the agency was the issuance of the notice of award to San Miguel Holdings Corp. for the Bulacan International Airport project in Bulakan, Bulacan. “ This new international airport is important in helping ease the congestion of the Ninoy Aquino International Airport,” Tugade said. “Together with the expansion of Clark Airport and the construction of additional facilities at Sangley Airport, Bulacan Airport is a part of ‘baskets of solutions’ to bring further connectivity to the Filipino people,” he said.

O&M of the new terminal at CIA to Luzon International Premier Airport Development Corp. The new terminal, the first hybrid PPP project implemented under the Duterte a d m i n i s t rat i o n , wa s 7 4 . 5 8 - pe rce nt completed as of July and would be operational by 2020. By then, the airport capacity would treble from the current 4.2 million. LIPAD Corp. is the consor tium of Filinvest Development Corp., JG Summit Holdings Inc., Philippine Airport Ground Support Solutions Inc. and Changi Airports Philippines (I) Pt. Ltd. Aside from handling the O&M of the new terminal and its existing facilities, the consortium is also set to develop the commercial assets, operate and maintain project facilities and fit-out the new terminal.

An artist’s sketch of the New Manila International Airport in Bulakan, Bulacan.

The Bulacan Airport will have a design capacity of 100 million passengers per year but can be expanded to 200 million. With four parallel runways, it targets 240 aircraft movements per hour. The project will also include the construction of an 8.4-kilometer tollway that will connect the airport to the North Luzon Expressway in Marilao, Bulacan. The new international gateway is expected to be operational within four to six years from the start of the construction. SMHC aims to break ground and start the actual construction of the project before the end of this year. San Miguel Corp. president and chief operating officer Ramon Ang said the $15-billion Bulacan airport project would generate over a million direct and indirect jobs, improve the quality of life of thousands of families and give rise to small industries in Bulacan and neighboring provinces that will support workers. “Over and above that, once completed, this new international gateway will help in significantly boosting tourism—leading to million more new jobs across many industries all over the country. With more tourists, more flights and more options for air passengers, travel costs will also go down,” Ang said. “Another major benefit is traffic decongestion for Metro Manila. By locating this airport in Bulacan and connecting it via mass rail and expressways to Metro Manila, it will unclog traffic in major cities near the current airport,” he said. Tugade also said the turnover of the operation and maintenance of Clark International Airport to the private sector would further improve its services. The DOTr and the Bases Conversion and Development Authority turned over the

The government is also in the process of improving the Ninoy Aquino International Airport through the unsolicited proposal of NAIA Consortium. The consortium’s members are Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., AEDC, Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp. The P102-billion proposal involves expanding and interconnecting the existing terminals of NAIA, upgrading airside facilities, developing commercial facilities to increase airline and airport efficiencies, enhancing passenger comfort and experience and elevating the status of NAIA as the country’s premier international gateway. The project aims to increase NAIA’s capacity up to 65 million passengers per year from about 40 million at present. It will elevate NAIA to the level of major regional airports such as Changi in Singapore and Suvarnabhumi in Bangkok. It is also seen to become a viable transit hub for the ASEAN region. The NAIA Consortium tapped Changi Airports International Pte. Ltd. of Singapore to provide technical support in the areas of master planning, operations optimization and commercial development. Besides building and improving existing airports, the DOTr also teamed up with local airlines to decongest the Ninoy Aquino International Airport. The airlines committed to help in the decongestion of NAIA through an improved on-time flight performance, supporting the development of other gateways including Sangley Airport in Cavite and improving the travel experience of air passengers.

STIMULATING THE PH ECONOMY SPECIAL REPORT ON THE ECONOMY ANITA F. GREFAL Operations Head RAY S. EÑANO Business Editor

BALDWIN FELIPE Head, Advertising Solutions

RODERICK T. DELA CRUZ Assistant Business Editor

PAULA REYNOSO Head-Supplements

DARWIN G. AMOJELAR JENNIFFER B. AUSTRIA OTHEL V. CAMPOS ALENA MAE S. FLORES JULITO G. RADA Reporters

MERCEDITA PASCUAL SHIRLEY UMALI BELINDA GOOD ALBERT LEGASPI Ad Solutions Specialists

VICKIE R. AYENG MC MACARANAS Layout Artists

SHEILA SUAREZ JOAN VELASCO ERIC JUTIC EDELYN ELAMPARO PETER PAUL DURAN Advertising Support Group

STIMULATING THE PH ECONOMY

MONDAY, SEPTEMBER 16, 2019 extrastory2000@gmail.com

Luzon rail opens more opportunities

HE Philippines needs a truly modern railway network that will cut across Laguna, Metro Manila and the provinces of Bulacan, Pampanga and Tarlac to decongest traffic.

The North–South Commuter Railway, or NSCR, and also known as the Clark– Calamba Railway, is one major infrastructure project that aims to ease traffic and make traveling convenient to commuters. The Department of Transportation should pursue the railway project at all costs, after the Asian Development Bank and the Japan International Cooperation Agency both endorsed its economic viability. The 147-kilometer elevated Clark-Calamba railway project, which will run from Calamba to New Clark City in Capas, Tarlac and cost a total of P778 billion, is already in several stages of implementation. Big local companies lately submitted bids for the three contract packages under the Malolos-Clark phase. It will feature the country’s first airport express railway service. Once completed, it will allow commuters to reach the Clark International Airport from Buendia in Makati in just 55 minutes, compared to two hours by private vehicle via expressway. The second phase of the railway system alone is expected to accommodate 340,000 passengers in its opening year in 2022.The rail network project is key to the further economic development of the industrial provinces of southern and northern Luzon. Aside from easing traffic, the rail will speed up the flow of goods and produce from these provinces, after being linked to other future railway networks. Another component of the government railway system is the P175-billion Philippine National Railways South Railways project, a 639-kilometer line from Manila to Matnog, Sorsogon. Connecting the southernmost part of Luzon to the central provinces will boost productivity and commerce in the main island. The government should give top priority to rail projects across the Philippines and within Metro Manila and other urban centers. All right-of-way problems should be settled soon to assure their speedy construction. They should also be spared from unnecessary delays and the petty issues normally raised by local government units.

PLDT-SMART FOUNDATION CELEBRATES

25 YEARS OF CHANGING LIVES

THE PLDT Smart Foundation (PSF) is celebrating its 25th anniversary in September, marking a quarter century of involvement in the fields of education, livelihood and social enterprise, disaster response and recovery, youth, arts, and sports development. As a non-profit organization, the PSF serves as the social outreach arm of the country’s leading telecom and digital services provider PLDT and its wireless subsidiary Smart Communications, and is headed by PLDT and Smart Chairman Manuel V. Pangilinan. “Over the past quarter century, the PLDT-Smart Foundation has been actively pursuing various efforts to change the lives of Filipinos for the better. The Foundation has become a platform for helping the country’s nationbuilding through its diverse CSR efforts. It has pursued these efforts through strong, effective partnerships with corporations, non-government organizations, cooperatives, institutions, and, national and local government units and agencies,” Pangilinan said. SILVER ANNIVERSARY MILESTONE “25 years is a milestone for us. It is a manifestation of our passion for the work that we do, for the many lives we’ve touched, and for the countless hours we have dedicated in reaching out to different people and various communities over the years. In turn, our lives have been changed by these people who have shown such resiliency and bravery,” PSF President Esther Santos said. Two of PSF’s main pillars include education and its partnerships. The PSF believes in investing in our teachers and students through educational programs and scholarship grants that can help elevate the overall quality of education in the Philippines. SACK OF JOY In celebration of PLDT’s 90th year, the PSF fuels the sparks of hope and joy in students across the country by giving out Sacks of Joy. These contain school supplies to help students perform better at school. PLDT employees are encouraged to nominate any public school which needs support by sending the school profile to the foundation. In less than a year, the PSF has reached out to a total of 77 schools nationwide with over 9,000 Sack of Joy bags distributed. GABAY GURO PROGRAM In support of the Department of Education (DepEd)’s goal of improving the quality of education, the PSF, in coordination with the PLDT Managers Club Inc. (MCI), created a program to foster professional development among Filipino teachers. As PSF’s education program arm and flagship project, Gabay Guro provides support through scholarship grants to deserving students taking up Bachelor of Science in Education; teachers’ training; livelihood programs; school broadbanding and computerization; housing and educational facilities; teachers’ tribute; and innovation. Since Gabay Guro’s inception in 2007, there has been a total of 1,313 graduates. Of which 680 are Licensure

Some of the teachers pose for a group photo.

Built to withstand at least 280 kph of wind, the 266 MVP Homes by Tulong Kapatid, which follow a duplex style design with two bedrooms, bathroom, and kitchen, were turned over to the Typhoon Pablo survivors last March 1, 2016.

Every family has a chance to start anew in the MVP Homes Village by Tulong Kapatid. Seen here is a family riding a tricycle which they also use as their source of income.

The 1,200-square-meter evacuation center can accommodate 1,500 people and aims to be the point of convergence for the residents during special events and a temporary shelter in times of calamity.

A teacher from Pamampangin Elementary School shares some of the literacy apps to her students.

A group of kids happily hold their PLDT Sack of Joy bags.

Exam for Teachers (LET) Passers. Over the last 12 years, the Gabay Guro program has trained over 19,000 teachers nationwide. SCHOOL-IN-A-BAG (SIAB) The PSF, together with Smart Community Partnerships, implemented the School-in-a-Bag Program in order to utilize technology to make

Two teachers join Gaby Concepcion onstage during the Gabay Guro Grand Gathering in 2018.

educational materials accessible to schools in remote and underserved communities, especially those without access to electricity and connectivity. The Program uses mobile technology coupled with an innovative, 21st century teaching pedagogy and K+12 content to enable learning. UBS Philippines donated P1M to PSF in 2017 which benefited 10 recipient schools nationwide. The School-in-a-bag contains one LED TV, one teacher’s laptop, five mobile tablets, one solar panel with batteries, one teacher’s tablet, one Smart Bro LTE pocket wi-fi with starter load, and one memory drive for storage of educational content and other school files, curriculumbased educational content and training immersion for teachers, which includes the Dynamic Learning Program (DLP) Methodology. Moreover, the PSF also donated three units of SIAB to the 4th district of Ormoc. It was one of the areas severely affected by Typhoon Yolanda in 2013. DYNAMIC LEARNING PROGRAM Powered by the PSF and Smart, the DLP is a framework for teaching that enables children to become independent learners. It also aims to significantly improve the students’ academic performance despite the multiple socioeconomic constraints. The program uses the curriculum of the DepEd. The DLP was developed by renowned physicists and Ramon Magsaysay awardees, Dr. Christoper Bernido and Dr. Ma. Victoria Carpio Bernido. Created in 2002, Smart and the PSF have been supporting the program since 2011 and has reached out to over 158 schools across the country.

PNP EDUCATIONAL GRANTS The Philippine National Police (PNP) educational grant program provides a one-time grant to the children of PNP officers who were killed or injured during service. A total of 50 dependents have benefited from this program in 2018 alone. Since the partnership’s inception a decade ago, it has helped a total of 571 qualified dependents of PNP personnel. BUILDING STRONG PARTNERSHIPS The last 25 years has enabled the PSF to build strong partnerships over time. The PSF is among the members of the MVP Tulong Kapatid, which is the CSR consortium of the MVP Group of Companies. Some of the most notable projects that the PSF has been a part of through the MVP Tulong Kapatid, includes the MVP Tulong Kapatid Homes in Davao Oriental. Built to withstand at least 280 kph of wind, the 266 MVP Homes by Tulong Kapatid, which follow a duplex-style design with two bedrooms, bathroom, and kitchen, were turned over to the Typhoon Pablo survivors last March 1, 2016. Led by the PSF, in partnership with the Archdiocese of Palo and One Meralco Foundation, the multi-purpose evacuation center in Palo, Leyte is designed to withstand strong typhoons and floods. The 1,200-square-meter evacuation center can accommodate 1,500 people and aims to be the point of convergence for the residents during special events and a temporary shelter in times of calamity. The PSF and One Meralco Foundation also turned over the MVP Technology and Innovation Center to the Pamantasan ng Lungson ng Maynila (PLM). Through the donation, the PSF aims to provide better quality education among PLM students by improving PLM’s infrastructure, facility, and equipment. Every year, the MVP Tulong Kapatid comes together for Paskong Kapatid. Since 2012, the Paskong Kapatid has spread some early Christmas cheer to over 700 kids from different charities and communities.

Some students use the gadgets available inside the School-in-a-Bag.

MONDAY, SEPTEMBER 16, 2019

STIMULATING THE PH ECONOMY Notre Dame Broadcasting Corporation Through The Years “Evangelization through the broadcast media.” This was the dream of Bishop Gerard Mongeau, one of the pioneering missionaries of the Oblates of Mary Immaculate (OMI) in the Philippines. This dream turned into reality with the establishment in 1956, and subsequently the inauguration on February 17, 1957, of Radio Station DXMS (882 kHz) in Cotabato City. This dream also gave birth to the Notre Dame Broadcasting Corporation which has at present three FM and three AM commercial broadcast stations. A. DXMS-AM, 882 kHz, Cotabato City. DXMS holds the distinction of being the first Catholic commercial station in the Philippines. Its call letters stand for Radio Mindanao-Sulu, the primary mission area of the Oblates of Mary Immaculate. In its early years, DXMS served only areas under the Cotabato Diocese by broadcasting mainly religious programs. Amidst this, however, was the ardent desire of the Church to reach more areas, to cope with a growing audience, and to keep pace with the changing times. B. DXND-AM, 747 kHz, Kidapawan City. In 1964, the Oblates put up its second radio station in the then undivided Cotabato Province called Cotabato “empire”. Originally meant to be a non-commercial campus-based radio station, DXND occupied a section of the elementary training department building at the Notre Dame Colleges, now Notre Dame University, in Cotabato City. There it was inaugurated and blessed on August 22, 1964. DXND was programmed as a news-and-music station in contrast to its sister station, DXMS, which had a more varied mix of public affairs, magazine and religious programs. The proclamation of Martial Law by President Ferdinand E. Marcos in September 1972 resulted in the closure of all radio stations in the country. Owing to its important role in Central Mindanao, DXMS was allowed to reopen and broadcast the day after it was closed. All its news reports, however, had to be cleared with the military before being aired. DXND was not as lucky. Marcos’s martial law government issued a policy that no two radio stations of the same network would be allowed to operate in the same locality. It remained closed for two years. In 1973, seeing the need to fill a vacuum in the evangelization thrust of the Church in the newly-established Prelature of Kidapawan, DXND’ s equipment was moved to Kidapawan. On the birthday of Archbishop Gerard Mongeau, OMI, DD, on February 4, 1974, DXND officially went on air and started broadcast from its new home. C. DXOL-FM, 92.7 MHz, Cotabato City and DXDM-FM 88.7 MHz, Kidapawan City. Seeing the growing popularity and influence of FM stations, particularly among the youth in the mid-1980’s, the Oblate Congregation thought it a good vehicle to put the good news across. On July 24, 1987, DXOL-FM (92.7 mHz) was born in Cotabato City. After DXOL, there was no turning back for the Oblates. They saw the importance of putting up a youth-oriented FM station in Kidapawan. This came into fruition when DXDM-FM (88.7 mHz) was formally inaugurated on April 5, 1992. D. DXOM-FM, 91.7 mHz, Koronadal City. After setting up DXDM-FM in Kidapawan, the Oblates also set their sights on an area where they used to do missionary work: South Cotabato. Establishing DXOM-FM (91.7 mHz) in Koronadal City, the Oblates were able to bring back through NDBC, their service to the province of Cotabato (now composed of the provinces of Cotabato, Maguindanao, Sultan Kudarat and South Cotabato). DXOM was formally launched on December 8, 1993. E. DXOM-AM, 963 kHz, Koronadal City. Almost 3 decades passed before Notre Dame Broadcasting Corporation again expanded with the establishment of another AM radio station in South Cotabato. Spurred by its desire to inspire and empower its listeners and provide more people with credible news and information through responsible broadcast journalism, NDBC inaugurated on December 8, 2014 its newest platform in propagating news, music, and public service - DXOM-AM (963 khz) in Koronadal City. The blessing and launching of DXOM-AM by His Eminence Orlando Cardinal Quevedo, OMI, DD, Archbishop of Cotabato and the first cardinal from Mindanao, came as the OMIs celebrated their 75th year of daring missionary presence in the Philippines. NDBC-Media Marketing (NDBC-MM) Finding the need for an office in Manila to represent the NDBC stations to advertisers, on December 8, 1996 NDBC-Media Marketing was created to cater to Manila advertisers, eventually expanding to other advertising medium. The NDBC-Media Marketing (NDBC-MM) is the national sales marketing arm of the company and its affiliates/properties in broadcast, print, cable and television situated in Luzon, Visayas and Mindanao. NDBC-MM is directly handled by the Chief Executive Officer (CEO) who has the final say in the office. He/She is assisted by the Chief Operating Officer (COO) of NDBC-MM who also sits as the National Sales Director (NSD). The COO directs the sales, marketing, collection, processing, communication and broadcast traffic of the NDBC-MM. While having a defined domain for initiative and decision making, as delineated by his/her job description, and as further specified in memoranda as circumstances may require, he/she, nevertheless, reports directly to the CEO. Congress Renews NDBC Franchise On October 18, 2018 R.A. 11099, “An Act Renewing For Another Twenty-Five (25) Years The Franchise Granted To Notre Dame Broadcasting Corporation Under Republic Act No. 8109, Entitled ‘An Act Granting The Notre Dame Broadcasting Corporation A Franchise, To Construct, Install, Operate And Maintain Radio Broadcasting Stations In The Philippines For Religious, Educational And Cultural As Well As For Commercial Purposes’.” Hence, NDBC continues to be of service to their listeners for the next twenty-five (25) years. Presently the network is spearheaded by Chief Executive Officer (CEO), Fr. Rogelio C. Tabuada, OMI. Supporting him in the branches where they operate are the Station Managers: Ms. Grace Vergara-Tanghal, NDBC-Kidapawan; Mr. Carlos C. Bautista, NDBC-Cotabato; and Mr. Edwin O. Fernandez, NDBC-Koronadal. Meanwhile, NDBC-Media Marketing is headed by Chief Operating Officer (COO) and National Sales Director Mr. Rikki D. Climaco, while Regional Sales Director is Ms. Agnes Myra L. Piñol.