Pinoys reduce spending, increase savings – study

By Mayvelin U. Caraballo, Manila Times

IN light of the anticipated slowdown of the economy, Filipinos have reduced their consumption and boosted their emergency savings, a research released on Tuesday by a global information and insights company, TransUnion, showed.

After a strong start to the year, the firm said respondents to its latest "Consumer Pulse Study" expect the Philippine economy to slow down and stop growing quarter on quarter.

"This is highly attributed to the election season affecting spending and investment of both the government and private sectors. Additionally, the local inflation rate increased to 5.4 percent in May due to the continuous global oil price hikes," it said.

Majority or 56 percent of the 1,005 respondents surveyed by TransUnion between May 26 and June 7 this year indicated they had saved more money for emergencies.

In addition, 43 percent of the respondents said they reduced their discretionary expenditure, such as going out to eat, while only 22 percent said they raised it.

Among generations, the company said, Gen X (those born from 1965-1979) and Baby Boomers (born 1944-1964) reported making the most cuts, at 49 and 47 percent, respectively.

Furthermore, it added, "the majority of Filipino consumers were looking to maintain this trend; 61 percent expected large purchase spending to decrease or stay the same."

The category with the highest reported spending rise, however, was bills and loans, where 48 percent of respondents see spending more over the same time period.

On the respondents' ability to pay bills, TransUnion said 46 percent said they could not pay at least one of their existing loans or payments in full.

Nearly half or 46 percent of the respondents plan to utilize money from savings to continue paying bills and loans for those who said they would be unable to pay at least one bill or debt.

Among all generations, Gen Z respondents reported favoring this strategy the most, with 49 percent doing so.

"Most Filipinos (96 percent) believe in the importance of having access to credit and lending products to achieve financial goals," the firm said.

Forty-three percent of respondents overall say they have adequate access to credit and loan options.

Study: Gen Zs need greater finance access

According to the study, Baby Boomers held the majority with 55 percent of the vote, followed by Millennials (born 1980-1994) and Gen Z with 44 and 41 percent, respectively.

Over half or 55 percent of all respondents, TransUnion said, intended to seek new credit or refinance existing credit during the next 12 months.

In a statement, Pia Arellano, president and chief executive officer of TransUnion Philippines, said while credit can stimulate economic growth, many consumers feel excluded or are denied credit because lenders are unable to assess their credit risk with sufficient accuracy.

The study found that 54 percent of customers thought their credit scores would rise if companies used data not present in a typical credit report, she added.

In order to give more Filipinos access to credit during these difficult times, Arellano pointed out, "this use of alternative data in credit scoring and decisions can significantly increase levels of financial inclusion across the country."

SB19 brings fresh twist to this year’s Bb. Pilipinas theme song

by Robert Requintina, Manila Bulletin

With the ever changing times, music has also evolved in different forms to cater to the taste of the modern generation. Today, original pinoy music or OPM has produced diverse sounds, yielding a new type of tune, Pinoy Pop or PPOP for short.

Consistent to its cause of shining a light on the beauty and diversity of Filipino culture, Binibining Pilipinas recognizes how impactful music can be, and has endeavored to banner Pinoy talent in any way that it can. That is why for this year, the prestigious pageant’s official theme song was given the PPOP revamp with the help of the country’s latest music pride – SB19.

SB19’s modern pop rendition of the classic Bb. Pilipinas theme song entitled “Win Your Heart” encapsulates the spirit of the pageant. With its beat and lyrics, it proudly communicates the uniqueness of the Filipina – one who exudes beauty, intelligence, grace and strength.

“Bb. Pilipinas has always been on a mission to empower Filipinos across the international stage, and one of our great qualities as a Filipino is our talent in creating art, such as music. We recognize the importance of featuring our local talents, such as SB19, that is why we hope that with this collaboration, we can show the world that not only are Filipinos intelligent, passionate, and driven, we are also immensely talented,” Irene Jose, Binibining Pilipinas Charities Inc. trustee said.

SB19 will serenade the Bb. Pilipinas stage as the main performers of the pageant’s Grand Coronation Night. But, SB19 isn’t be the only PPOP act to take part in the slew of Bb. Pilipinas activities. Other rising PPOP groups such as DIONE, First.One, 4th Impact, and ALAMAT   made their presence felt with their energetic performances at the Talent Competition, Press Presentation, and the glamorous Fashion Show. 

To watch the Lyric video of ‘Win Your Heart,’ please click this link: https://youtu.be/ofeFrctMJeM. The official music video of the said theme song will also be uploaded on the Bb. Pilipinas YouTube page soon, so stay tuned!

BOI promotes business opportunities for investors, to hold SIPP roadshows nationwide

Aimed at promoting investment opportunities, build connection with the country’s investors, would-be investors, and concerned stakeholders, and make more investments happen in the Philippines, the Board of Investments (BOI), the country’s lead industry development and investments promotion agency (IPA), is conducting its series of roadshows nationwide on the salient features and highlights of the Strategic Investments Priority Plan (SIPP).  

Through the BOI’s Domestic Investments Promotion Service (DIPS) and its Extension Offices, the roadshows will initially be conducted in three key cities: Cebu on July 19, Cagayan de Oro on July 26, and Davao on July 28.  More roadshows are set to be scheduled next month. 

The SIPP, a plan prepared by the BOI in coordination and consultation with the IPAs, the Fiscal Incentives and Review Board (FIRB), other government agencies administering tax incentives, and the private sector, lists the priority industries, sectors, and business projects that may qualify for investment incentives under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. 

The SIPP includes the scope and coverage of the priority activities and the industry tier categorization which influences the period of availment for incentives.  The higher the industry Tier categorization the longer the period of incentives availment. 

Apart from primarily providing information about the priority sectors/industries and investment opportunities under SIPP, the roadshow is also BOI’s in-person public platform to guide investors on how to apply investment projects with the BOI to avail incentives and likewise provide consultation/advisory services for those who want to understand and avail the other services of the BOI. 

The BOI SIPP roadshow is a one-day event with two parts. For the morning session, investments opportunities under the SIPP and the incentives available for qualified projects will be discussed. The afternoon session meanwhile will be for one-on-one consultations with the BOI resource persons on potential projects for registration and other investments concerns.  

The roadshow targets firms with previous projects registered with BOI as well as firms who are planning to expand their operations in the regions, regional business chambers, regional industry associations and organizations, academe, financial institutions, Department of Trade and Industry (DTI) regional and provincial offices, regional National Economic Development Authority (NEDA), and other regional government offices.   

The SIPP serves as a catalyst to shore up various industries and yield more diversified, complex, and sophisticated products and services in the Philippines.  The SIPP plays a significant role in the country’s goal of bouncing back from the economic ramifications brought about by the persisting global health crisis. The Plan also sustains the momentum towards the country’s economic recovery, as it will generate and recover jobs as well as competitively provide for the Filipinos’ basic needs. 

For more information on the SIPP, visit the BOI website: Strategic Investment Priority Plan | Board of Investments (boi.gov.ph) 

Heatwave: Ferocious European heat heads north

By Malu Cursino

BBC News

Firefighters work to contain a tactical fire in Louchats, as wildfires continue to spread in the Gironde region of southwestern France, July 17

IMAGE SOURCE,REUTERS

Fires in the south of France have ravaged more than 15,000 hectares (37,066 acres) of forests since 12 July

Western Europe faces more sweltering temperatures on Tuesday as a ferocious heatwave heads north.

In France and the UK extreme heat warnings were issued while northern Spain recorded temperatures of 43C (109F) on Monday.

Wildfires in France, Portugal, Spain and Greece have forced thousands of people to evacuate their homes.

The UK is expected to see its hottest day ever and experts say parts of France face a "heat apocalypse".

Several parts of France saw their hottest-ever days with the western city of Nantes recording 42C, the national weather office said.

Wildfires in recent days have forced more than 30,000 people to flee, with emergency shelters set up for evacuees.

Gironde, a popular tourist region in the southwest, has been hit particularly badly, with firefighters battling to control blazes which have destroyed over 15,000 hectares (37,066 acres) of land since last Tuesday.

"The idea that comes into my head is, it's a monster," Jean-Luc Gleyze, the president of the Gironde region said of the fires.

"It's a monster like an octopus, and it's growing and growing and growing in the front, in the back, on both sides. Because of the temperature, because of the wind, because of the lack of water in the air... it's a monster and it's very difficult to fight against it."

The UK had one of its hottest days on record on Monday, with a high of 38.1C recorded in Suffolk, in eastern England. Forecasters say Tuesday could see a top of 40C, which would be the highest temperature ever recorded in the country.

There were severe travel disruptions with trains cancelled and flights at London's Luton Airport suspended when part of the runway buckled under the searing heat.

On Monday, the Netherlands recorded its hottest day of the year so far. In the south-western town of Westdorpe, temperatures reached 33.6C.

And it is expected to be hotter on Tuesday, with temperatures forecast to top 39C in southern and central regions of the Netherlands.

Forecasters say the heatwave is heading north, with Belgium, Germany and Italy expected to see temperatures around 40C in the coming days.

In Spain and Portugal, more than 1,000 deaths have been attributed to the heat in recent days.

Temperatures in Portugal hit 47C on Thursday - a record for July. Most of the country has been placed under high fire danger by the national meteorological office IPMA.

Local media reports that 300 people from the northern Murça municipality have been evacuated due to the fire danger - authorities are anxious to avoid a repeat of 2017, when 66 people were killed in wildfires.

In Spain, at least twenty fires are burning out of control. A passenger filmed the moment the train he was travelling on came to a temporary halt - as fires raged on both sides of the carriage near the northern border with Portugal.

Heatwaves have become more frequent, more intense, and last longer because of human-induced climate change. The world has already warmed by about 1.1C since the industrial era began and temperatures will keep rising unless governments around the world make steep cuts to emissions.

Students not required to wear uniforms - Sara

A girl tries on a school uniform at a stall in Commonwealth Market in this photo taken on July 13, 2022. PHOTO BY JOHN ORVEN VERDOTE

By Kaithreen Cruz, Manila Times

PUBLIC school students will not be required to wear school uniforms, Vice President and Education Secretary Sara Duterte-Carpio said on Monday.

She pointed out that it is not a strict requirement for public school students to wear uniforms even before the pandemic to avoid incurring additional costs.

"All the more that it will not be required this school year given the increasing prices and economic losses due to the pandemic," Duterte-Carpio said.

School Year 2022-2023 will open on August 22, with DepEd giving schools flexibility to utilize distance learning modalities, blended learning, or full face-to-face classes until October 31.

The Education department, through DepEd Order No. 34 s. 2022, mandated all public and private schools nationwide to hold five days of in-person learning starting November 2.

Philippines: Highest Risk for climate-changed disasters

PROTECTION – An elderly woman finds ample protection from the sun and rain under an umbrella as she barely fits herself on a stool while sleeping on the sidewalk in front of the Quirino Grandstand in Manila on Monday, July 18, 2022. (Ali Vicoy)
 

Finance Secretary Benjamin E. Diokno said the Philippines, as one of the countries at highest risk for climate-related disasters, was determined to be a world leader in the fight against the crisis. And part of this role would be its initiative to transition from coal to clean energy.

ECB goes on offensive as inflation pressure up

LEADING BANK This July 7, 2022 file photo shows the headquarters of the European Central Bank in Frankfurt, Germany. XINHUA PHOTO

By Agence France-Presse

FRANKFURT: The European Central Bank (ECB) will raise its interest rates on Thursday for the first time in over a decade, but the bank is already under pressure to do more amid record inflation.

The ECB has for months been preparing the end of the era of cheap money that supported the economy through a series of crises in recent years.

To try and counteract a steep rise in prices, the bank has said it intends to raise its interest rates by a quarter point, the first such move since 2011.

The ECB already stopped its bond-buying stimulus program at the beginning of July, as it laid the groundwork for the rise.

The liftoff in rates comes in response to an unprecedented surge in prices, driven higher by supply chain bottlenecks and rising energy costs following Russia's invasion of Ukraine.

Inflation in the eurozone sat at 8.6 percent in June, the highest ever recorded for the currency club and well above the ECB's 2-percent target.

The Frankfurt-based institution continues playing catch up with its peers, like the Federal Reserve, which started hiking earlier and more aggressively.

The ECB deposit rate has been negative for the past eight years, with the key rate currently at -0.5 percent.

The punitive interest rate, which effectively charges banks to park their money with the ECB overnight, was designed to encourage more lending, more economic activity and higher inflation rates.

Rate hike won't cut energy prices – ECB

Stubbornly low for years, prices are now soaring as a result of scrambled supply chains from the coronavirus pandemic and the burst in the price of food and energy caused by the war in Ukraine.

The inflation surge caught central banks, not least the ECB, off guard.

Now the central bank is aiming to lift interest rates out of negative territory by the end of September as part of a "gradual but sustained" series of hikes, according to ECB President Christine Lagarde.

In hindsight, the "cautious normalization process the ECB started at the end of last year has simply been too slow and too late," said Carsten Brzeski, head of macro at ING.

ECB to end stimulus in prelude to rate hikes

With each new data release causing new consternation, the central bank's cautious quarter-point step could lead to a feeling of "disappointment," he added.

Some ECB policymakers may push for faster action, but "it will be a balancing act between the ECB's credibility as being predictable and its credibility as a determined inflation fighter," the ING officer said.

The ECB was faced with an "impossible equation to solve," said Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management.

'Taming inflation amid war harder'

Central bankers, he added, were determined to squash inflation while "the euro area economy is on the brink of recession," circumstances under which they would normally hesitate to raise interest rates.

The outlook for the economy was clouded by the war in Ukraine with eurozone members bracing for a winter in which energy could be scarce and planning to ration supplies if Russia halts gas deliveries to the continent.

Add a weak euro against the dollar, which touched parity recently for the first time in nearly 20 years, and a political crisis in Italy and the monetary calculations became even harder, Ducrozet said.

The withdrawal of a key party from former ECB chief and Italian Prime Minister Mario Draghi's governing coalition has unnerved investors, sending borrowing costs up again.

The quickly rising strain in bond markets had already prompted the ECB to respond in mid-June by speeding up the design of an instrument to fight "fragmentation" in the eurozone.

The new tool was "critical" to avoid "excessive divergence" in the borrowing costs faced by different countries and make sure monetary policy moves were felt evenly across the eurozone, ECB Vice President Luis de Guindos said in early July.

But the idea has been met with skepticism by some governing council members.

Any crisis tool should only be used in "exceptional circumstances" and under strict conditions, warned Joachim Nagel, head of the traditionally conservative German Bundesbank.

After three years of distance learning, internship at this natural farm provides overdue field experience for agriculture students

by Jerome Sagcal, Manila Bulletin

Diane Cabusas is an incoming fourth year agricultural engineering student taking her internship in Sanctuario.

The current generation of college students will graduate, with more than half of their college life reduced to an online experience. There are plans to re-open schools within 2022, but should the COVD-19 pandemic have another resurgence in light of the new cases of Omicron subvariants, resumption of face-to-face classes might be put to a halt.

Diane Cabusas and her friends only have one year left in college before they graduate. They are incoming fourth year students studying agricultural and biosystems engineering in Cavite State University (CvSU) and are now taking up their internship as part of their summer semester. 

Since the number of reported COVID-19 cases had stabilized at relatively low figures until June, the country opened up, allowing more face-to-face activities such as physical internship programs. Perhaps spending the next few weeks of their internship in Santuario Nature Farms, a natural farm in Indang, Cavite, is what Diane and her friends need to make up for everything they did not experience during the pandemic.

Sanctuario Nature Farms is accredited by the Agricultural Training Institute as a learning site for agriculture. It is also a registered farm school under the Technical Education and Skills Development Authority (TESDA) for students aiming to take Organic Agriculture Production NCII. The farm covers an area of 2.5 hectares, all of it dedicated to natural farming. They grow lettuce, their main crop, and a vast assortment of medicinal and culinary herbs. They also raise pigs, goats, chickens, and rabbits.

“Parang nandito na lahat na pwede naming matutunan — may crops, livestock, and irrigation (It seems the farm has everything we need to learn. They have crops, livestock, and an irrigation system),” Diane said.

Diane’s three friends are also taking their internship in Sanctuario.

Diane took up a degree in agricultural engineering because of the influence of her family. “Noong elementary ako, sa farm nagwowork yung tatay ko. Then minsan sinasama kami sa farm. Nung nag-college yung kuya ko, sa agriculture din siya, nakita ko po yung mga papers niya. Medyo natuwa ako sa pagbabasa ng ganyan (When I was in elementary school, my father worked at a farm, where he also used to take us. When my older brother entered college, he also took agriculture. I saw his papers, which were fascinating to read),” Diane said.

Asked if she and her friends considered other places for their internship, she said that they could have worked for the Department of Environment and Natural Resources (DENR). “Sa DENR po sana, kaso admin work. Okay sana doon kaso dahil required po sa amin mag-field, naghanap pa po kami ng iba na pwede. Kaya eto yung nakita nami. (We could have worked at DENR but it was only admin work. Our  internship requires field experience, so we tried looking for other places and found this farm),” Diane said.

“Expectations ko talaga ay marami akong matutunan dito kasi virtual kami natututo. Di naman kasi sa lahat ng oras sa virtual ay matatake-in ng utak kung paano ba talaga eto gawin, kung tama ba ginagawa ko. Through sa experience ko dito, malalman po namin yung tamang way and ano pa dapat yung kailangan malaman talaga (I expect to learn a lot here. It’s hard to absorb knowledge in virtual classes. I feel like I’m not doing things correctly. By taking my internship here, I’ll learn to do things the right way and understand the things we need to learn),” Diane said.

Sanctuario Nature Farms accepts students from any school. Other than CvSU, farm managers and couple Katherine Calingasan and Cliff Ballesteros said that the farm has taken students from De La Salle University Dasmariñas (DSLU-D) and has previously collaborated with University of the Philippines Los Baños (UPLB) and Central Luzon State University (CLSU).

Couple Katherine Calingasan and Cliff Ballesteros are the farm managers of Sanctuario Nature Farms.

The couple said that they want to tailor their student’s interning experience to fit what they need to learn, according to their specialization. Diane and her friends are taking up agricultural engineering. For this, Katherine and Cliff aim to get them exposed to the farm’s engineering infrastructure, particularly their drip irrigation system. 

On top of that, students will also get exposed to different aspects of farming. “Tinanong namin sila, ‘are you okay to try farm tourism, herbs?’ And they’re willing, kasi parang additional knowledge na yun (We asked them if they want to learn about farm tourism and herbs. They said they were willing because it is additional knowledge for them),” Katherine shared.

“e’re not like other companies na just to accomplish the 240 hours, we’ll let you do anything lang. Halimbawa linisin mo yan, okay na yan, tapos time out ka na — hindi. We’ll make sure na may matutunan (We’ not like other companies that have basic internship programs where students just do simple tasks. We will make sure that they will learn,” Katherine added. 

Sanctuario’s roots trace back to educating the youth

The farm’s inclination to support students goes way back to its past. The farm was founded in 2006 by a practicing Buddhist philanthropist. It is said that the farm was meant to be educational in nature. “Yung initial conception is just an educational farm kaya malapit sa CvSU. The former owner, gusto niya ma-elevate yung farmers… Gusto niyang ipakita sa mga bata na may other way of farming pala (The initial conception of the farm was to be educational, therefore the reason it’s near CvSU. The former owner wanted to elevate the life of farmers. He wanted to show the youth that there are other ways of farming),” a board director of Santcuario Nature Farms Corp said.

On top of allowing students to take their internship in the farm, students are encouraged to use the facilities of the farm for their research. They may use a plot of land and utilize other resources in the farm free of charge.

“Inencourage namin yung mga students to do their research here. Tapos kung magsusulat sila ng book o thesis, pwede nila isulat na Sanctuario as their research center, yung lang yung kapalit. Baka ma-fund pa sila ng Sanctuario (We encourage students to conduct their studies here. All they have to do in return is to indicate that they conducted their research here. The farm might even fund their study,” Cliff said.

Katherine added that students just need to send a project proposal to indicate what they need from the farm. They added that Sanctuario has helped not only college students, but also more experienced graduate students and even high school students.

After years of being a private farm that was mostly utilized as a research center, the farm was incorporated into Santcuario Nature Farms Corp in 2015, which was when the farm was opened to the public. 

The farm has a dedicated area for concoctions where they demonstrate how natural fertilizers are made.

The farm now offers guided farm tours where visitors can get to experience all sorts of various farming activities. They may interact with and feed farm animals such as pigs, goats, chickens, and rabbits. They may help in sowing seeds and in harvesting crops that they want to buy and take home. 

The farm also has a dedicated area for concoctions where they demonstrate how natural fertilizers such as fermented plant juice, fermented fruit juice, and oriental herb nutrients are made. Outside the concoction area is a pathway lined with different herbs. The tour guide would go through each of the herbs, explaining their use, while engaging the visitors by letting them taste the herbs on the spot.

Visitors may also learn about the several varieties of bamboo that grow in the farm. Other learning opportunities include the farm’s drip irrigation system and how the farm is able to sustainably nourish their soil through vegan vermiculture.

Visitors may take a longer stay in the farm by renting a dorm.

Farm tours are packaged with snacks and drinks but they may also order additional meals if they want to try rabbit meat, cochinillo, salad, and other dishes. For visitors looking to enjoy farming life for a longer period of time, they may rent a space in a dorm for a reasonable price of P3,500 per month.

3 storms may hit PH until end of July

By Arlie O. Calalo, Manila Times

THERE may be two to three tropical storms that will possibly enter the country within the month of July, according to weather specialist Benison Estareja of the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa).

A storm is a violent disturbance of the atmosphere with strong winds and usually rain or snow or thunder, among others.

The state-run weather agency will be closely monitoring the storms, Estareja said on Friday.

He also said the low pressure area (LPA) that stayed in the Philippine area of responsibility (PAR) for a couple of days has dissipated, and a generally fair-weather condition is expected until over the weekend.

The southwest monsoon or habagat will be experienced particularly in the western section of Northern Luzon and Central Luzon until the weekend, Estareja added.

"It's good news for us because we will have a generally fair weather condition as we are not expecting any storm or even an LPA that may enter PAR until over the weekend," Estareja said in an interview with The Manila Times.

Pagasa said the southwest monsoon is bringing cloudy skies with scattered rain showers and thunderstorms to Western Visayas.

Metro Manila and the rest of the country will likely have partly cloudy to cloudy skies with isolated rain showers or thunderstorms mostly in the western section of Luzon caused by the habagat and localized thunderstorms, the weather bureau added.

Heavy rains spawn floods

Workers clean up trash brought by floods in Araneta Ave. in Quezon City on Sunday,  July 17, 2022. The area was submerged by floods on Saturday night. PHOTO BY ISMAEL DE JUAN

By Francis Earl Cueto, Manila Times

Many areas in Metro Manila and other parts of the country were swamped with floods on Saturday night as heavy rains triggered by a localized thunderstorm pounded Luzon.

Areas that were chest-deep in floods included Maria Clara St., Araneta Avenue and Barangay Vasra in Quezon City.

Quezon Avenue, EDSA, E. Rodriguez Ave. and Ortigas Ave., Timog Ave. and EDSA Taft Rotonda were also flooded.

The Metropolitan Manila Development Authority said that floods subsided a few hours later.

The Marikina River swelled to 13.6 meters. Several streets in Providence Village were flooded.

All the floodgates of the Manggahan floodway were opened.

In Alabel Sarangani province, at least 200 families were evacuated due to flooding in two villages.

In Maitum, Sarangani, some houses were swept away when the river overflowed.