The PH world rank in financial promo

Philippines ranks 2nd in Asia, 8th worldwide for financial inclusion promotion

By TED CORDERO
GMA News
December 18, 2020

The Philippines remains among the top leaders in financial inclusion, according to the 2020 Global Microscope on Financial Inclusion of the Economist Intelligence Unit (EIU), the research arm of The Economist Group.

The country ranks second in Asia, next to India; and eight worldwide, tied with Brazil, in the EIU study, which assessed the financial inclusion environment in 55 countries.

The EIU study rated countries across five dimensions, namely Government and Policy; Stability and Integrity; Products and Outlets; Consumer Protection; and Infrastructure.

Together with Thailand and Russia, the Philippines posted the highest improvement in Asia and Eastern Europe, in view of the government’s push to promote digital channels as part of its responses to the COVID-19 pandemic, according to the study.

The Philippines got a perfect score of 100 points in Products and Outlets dimension, which covers Bangko Sentral ng Pilipinas (BSP) regulations on e-money, simplified accounts like the Basic Deposit Account (BDA), and financial outlets such as cash agents.

Focusing on the role of financial inclusion in the COVID-19 response, the EIU study recognized the initiatives of the Philippines to mitigate the adverse economic impact of the pandemic.

The report cited the regulatory relief measures of the BSP to ease liquidity constraints in the financial system, restore business confidence, and sustain the flow of credit amid the unprecedented health crisis.

These include the temporary relaxation of compliance to reporting requirements, easier access to rediscounting facility, and waiver of licensing fees and charges for financial institutions setting up their electronic payment and financial services.

It also cited the initiative of financial service providers to suspend fees for electronic fund transfers during the community quarantine period.

In addition, the EIU report highlighted measures to promote MSME financing such as allowing banks to include loans granted to MSMEs as alternative compliance with reserve requirements, reducing the credit risk weight of MSME loans that are current in status to 50% from 75%, and reducing the minimum liquidity ratio (MLR) for stand-alone thrift banks, rural banks and cooperative banks to 16% from 20% until end-December 2020.

While the Philippines scored lowest in the Infrastructure dimension with 69 points, there is noted improvement from last year’s level owing to ongoing initiatives on digital connectivity, digital identification, and digital payments infrastructure.

The report emphasized the importance of digital infrastructure that includes access to identification, mobile phones, and financial accounts to facilitate efficient delivery of cash assistance to vulnerable segments.

It also noted that better data integration is needed for proper targeting of cash aid program beneficiaries.

The Global Microscope is an annual cross-country assessment of the enabling environment for financial inclusion. Since 2009, the Philippines consistently belongs to the top-ranked countries in terms of having a supportive framework for inclusive finance.

Latin American countries namely Colombia, Peru, Uruguay, Argentina, and Mexico dominated the top five spots of 2020 Global Microscope. —KBK, GMA News

...the Philippines in Asian Century

The opportunity for the Philippines in the Asian century 

The Corner Oracle

Andrew J. Marasigan

Philippine Star 

23 October 2019

The 300-year reign of the west as the world’s economic epicenter is coming to a close.

By next year, the collective size of all Asian economies will eclipse that of the rest of the world combined. Thus, the year 2020 marks the official beginning of the Asian Century, declared the United Nations Conference for Trade and Development (UNCTAD).

Asia is now the new center of the world as it is home to more than half of the world’s population and half of the world’s middle class consumers. It is also where 21 out of the world’s 30 largest global cities are located. Experts agree that the average growth rate of Asian economies will be more than double that of the rest of the world in the next 20 years.

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Driving Asia is the phenomenal rise of China, India and ASEAN as economic powerhouses. To provide perspective on the phenomenal rise of the continent, Asia accounted for only one-third of global output in the year 2000. It now comprises 50 percent of the planet’s gross domestic product.

On a purchasing power parity (PPP) perspective, China’s economy is now bigger than that of the United States. India has overtaken Japan to become the 3rd largest economy. Within ASEAN, Indonesia is well on its way to becoming the 7th largest economy while Vietnam has overtaken 17 countries to take 32nd position. The Philippines, despite challenges in its manufacturing sector, has overtaken seven countries and it now has 26th largest economy. If the Philippines plays its cards right, it can be the 16th largest economy by the year 2050.

Prospects are promising for ASEAN. With China and India slowing down due to the trade war, ASEAN is in the position to take center stage as the world’s engine of growth. ASEAN’s economy is now bigger than that of Great Britain.

ASEAN’s development came in waves with Singapore and Brunei being the first to achieve high income status. Thailand and Malaysia achieved rapid growth in the 90’s and are now counted among upper middle income economies. In the last ten years, however, Indonesia, Vietnam and the Philippines have lead the way in as far as economic development is concerned. The three nations have clocked-in an average annual growth rate of between five and six percent since 2010. The Philippines is seen to graduate to upper-middle income status next year.

As I mentioned, China and India’s slowdown have made Indonesia, Vietnam and the Philippines the most dynamic global economies today. All three are in stiff competition to attract foreign investments. But to compete on an equal footing, the Philippines must resolve several structural weaknesses.

The gaping hole in the Philippines’ growth story is its manufacturing sector. It is weak, to say the least. For context, our merchandise exports revenues of $67 billion is less than a fourth of Vietnam’s $297 billion. We have become a nation dependent on imports – from simple ball pens to heavy equipment. This is why our budget deficit (and current account deficit) is growing at an alarming rate every year.

Deficits are covered by debt so it goes without saying that the country’s debt load is growing at an alarming rate too. Sure, it is still manageable today, but if government fails to balance the national budget soon, we could face a serious debt crisis.

To put it simply, we need to export more to pay for the debts government is amassing for its infrastructure program and for its massive importations of consumer goods.

The crux of our woes is our inability to attract foreign investments. Again, for context, the Philippines attracted $9.8 billion worth of investment last year while Vietnam attract $35.5 billion. Foreign investments are the silver bullet to our problems since they bring both capital and technologies needed to build factories. These factories export goods and provide the local market with what it needs, thus, making the country less import-dependent.

The structural weaknesses I referred to earlier are those that contribute in making the Philippines unattractive to foreign investors. They include the constitutional provisions that restrict foreign investments in certain industries, expensive power cost, insufficient infrastructure and difficulty to do business (due to bureaucratic red tape). Exacerbating matters is that corporate income tax in the Philippines is 30 percent, compared to only 20 percent in Vietnam and 25 percent in Indonesia.

The Philippines must address these structural weaknesses if it is to compete. Our economic managers have numerous reforms waiting to be approved by Congress.Whether our legislators have the political will to enact these reforms without watering them down is another story.

On corporate income tax, the CITIRA Law proposes to gradually reduce corporate income tax from 30 percent to 20 percent over a ten-year period. I reckon, however, that 10 years is too long. If we are to be a real contender, this should be accelerated to just three years. Indonesia just passed a law to reduce its rate to 20 percent next year. The CITIRA Law is now pending in the Senate.

As far as infrastructure is concerned, while construction of several roads, rails and ports are ongoing, it is still grossly insufficient. Only 9 out of the 75 projects in Build Build Build are under construction today. Government must work faster and with more urgency lest it fail to deliver its promise of a “golden age of infrastructure”.

Another reform we must undertake is to open up more industries in which foreigners can participate as a majority stakeholder. Unfortunately, the 1987 Constitution was written with a protectionist intent and it has been a great impediment to attracting investors. That said, only an amendment of the Constitution can fix this. Even if politically contentious, we must confront this issue eventually.

The transport and telecommunications backbone of the country needs to be strengthened if we are to be truly competitive, especially in the information and communication technology space. The Open Access in Data Transmission Act and the amendment to the Public Services Act will address this. Both bills are pending in Congress.

As for bureaucratic red tape goes, the Ease of Doing Business and Efficient Government Service Delivery Act has already been passed into law and is now awaiting implementation. When completely rolled out, it is envisioned that all front-line government services will be fully automated, making it easier to conduct business. Again, the devil is in the execution.

Apart from this, Congress must revisit the EPIRA Law which has proved ineffective to bring down power cost.

Conditions are right for the Philippines to break away economically. However, we must first get our house in order before investors come. It would be a shame if the Asian century happens and we are left behind.

...the Ju Jitsu next big hub

The Philippines could be the next big hub for Jiu-Jitsu superstars

With height and physical strength not much of a factor, and our longstanding heritage in combat sports, the grappling martial art can be the next big thing for Pinoy athletes. And, with its debut in the Southeast Asian Games next month, our fighters can showcase what they've got to the rest of the world.

Nissi Icasiano
ABS-CBN Sports
09 October 2019

Grappling is one of the oldest forms of combat in the world. Cave drawings in France from over 15,000 years ago appear to depict people engaged in acts of grappling. Babylonian and Egyptian artifacts show people employing most of the maneuvers known today. In Greece, wrestling served as the main attraction in the ancient Olympic Games. 

Various grappling disciplines evolved across the globe, including Sumo in Japan, Turkish oil wrestling, and Uzbekistan’s Kurash among others. In the Philippines, traditional indigenous martial arts are practiced in different regions like Bultong in the Cordilleras, Dumog in Western Visayas, and Layug in Central Visayas and Mindanao.

Due to American colonization, modern-style wrestling made its way into the country and has remained up to the present time. Many Filipinos have etched marks in this field, notably in the 1954 Asian Games, where Nicolas Arcales and Mansueto Napilay brought home silver medals, and Basilio Fabila captured bronze. It was the only year in Asian Games history that the Philippines claimed medals in wrestling. Filipino wrestlers were privileged to compete at the Summer Olympics from 1936 to 1988. Since the implementation of continental qualifiers the year after, not a single grappler has had the opportunity to set foot on an Olympic mat.

Next big thing

Through lifelong Filipino martial artist Alvin Aguilar in the mid-90s, Brazilian Jiu-Jitsu was formally introduced in the Philippines. The grappling art was formed from the Kodokan Judo fundamentals that were taught by a number of individuals, including pioneers Takeo Yano, Mitsuyo Maeda, Soshihiro Satake, and Isao Okano.

Brazilian Jiu-Jitsu eventually came to be its own discipline through the experiments, practices, and adaptation of Judo through Carlos and Helio Gracie in the 1900s. Though our nation is heavily engrossed with basketball, boxing, billiards, and currently volleyball, one Filipino practitioner believes that Brazilian Jiu-Jitsu could find a foothold in the Parthenon of Philippine sports.

Franco Rulloda, who earned his black belt in Brazilian Jiu-Jitsu under the tutelage of Aguilar last May, sees a bright future for Filipinos in the sport because, unlike basketball, it does not require height. It is built on the concept that a smaller person can successfully defend against a bigger and heavier assailant. This you can do by using proper technique, leverage, and taking the fight to the ground before applying joint-locks and chokeholds to subdue the opponent.

“The fighting spirit and passion for combat sports makes Brazilian Jiu-jitsu perfect for Filipinos,” Rulloda explains. “It is honing one’s physical attributes and using acquired knowledge to his or her advantage. It does not require too much strength, height, and athleticism.”

Rulloda points out that a lot of our prominent and successful athletes come from combat sports.

 “Manny Pacquiao, Nonito Donaire, Eduard Folayang, and the list goes on. Fighting has been ingrained in every Pinoy’s DNA,” he says. “Martial arts have deep roots in Filipino culture. History has proven that Filipinos have that warrior spirit.”

There are already a handful of Filipino competitors who have made a name for themselves internationally, including Meggie Ochoa and May Masuda. Ochoa captured three-straight gold medals from 2014 to 2016 at the World Jiu-Jitsu Championship or the Mundials. On the other hand, Masuda became the first Filipina to snare a gold medal at the Mundials in 2009.

Eros Baluyot, meanwhile, had his career-defining moment in 2010 by bagging a gold medal at the age of 17. Joey Lepiten, Gian Dee, Kaila Napolis, Annie Ramirez, Kim Custodio, Vince Ortiz, and Marc Lim have likewise made it to the podium in different overseas tourneys.

“Filipinos learn fast. We somehow have this gene attributed to absorbing techniques quickly and applying them right away. We are dedicated athletes. We put our heart and soul into whatever it is we are doing. We invest so much in our endeavors, and we are passionate about what we believe in,” Rulloda says.

Making a mark

The Philippines now houses the most number of Brazilian Jiu-Jitsu black belts in Southeast Asia: Aguilar, Rulloda, Masuda, John Baylon, Fritz Rodriguez, Pichon Garcia, Allan Co, Toffy Ilagan, Froilan Sarenas, among others.

Currently, there are 10 clubs in the country that have been recognized by the International Brazilian Jiu-Jitsu Federation including DEFTAC-Ribeiro, Atos Philippines, KMA-Fabricio, John Baylon BJJ, and Cobrinha BJJ Manila.

Aguilar, who holds the distinction as the first homegrown black belt here, says the sport has come a long way since he first piloted a small class in his garage. “Back then, Jiu-Jitsu was only comprised of four or five people. Right now, we have at least more than a thousand competitors,” he shares. “I am very happy with the level and the standard that we’ve already established here in the Philippines because we’ve produced a lot of champions.”

The pioneering fighter says that we are definitely number one in Southeast Asia, and top three in Asia. “These are the things we should take advantage of. We have so many good grapplers. Everybody here is so good, not just from my team,” he adds. “You put them in any gym around the world, and they will always be able to produce.”

Brazilian Jiu-Jitsu in the Philippines made significant strides last year when both Philippine Olympic Committee and Philippine Sports Commission declared the Jiu-Jitsu Federation of the Philippines as the sport's national governing body. The sport will also make its much-awaited debut at the Southeast Asian Games, which our country will host from November 30 to December 11.

Ochoa is more than excited to participate in the regional biennial meet, as she doesn’t get a lot of opportunities to compete in her country. “It is a big deal because we’re the host, and I’m definitely going to prepare for that,” she says, “Not just me but every Filipino athlete is going to prepare for that. We want to show what we are really capable of.”

 Spreading the gospel

Despite the success of a few homegrown talents in Brazilian Jiu-Jitsu, Rulloda admitted that it still has a lot of work to do to adapt to Filipino taste. “The growth has been steady through the years. However, the biggest hindrance to the growth of the art is the lack of awareness of what really happens in an actual self-defense situation and how Jiu-Jitsu can be an effective tool for it,” he stresses. “The sporting aspect has a slow progress because the low awareness level leads to low exposure and that results in difficulty of getting sponsorships for deserving athletes.”

To help in this cause, Rulloda stages a yearly tournament called Arte Suave Manila. It started in 2015, and aims to excite at a grassroots level. “Whatever noise this event will create is going to help the future of these athletes. I want them to get exposed, I want them to be discovered, and I want them to get sponsors,” he reveals.

The two-day competition originally focused on white and blue belters, but it opened its doors to purple belts in 2016. One of its main attractions is the submission-only super-fights, where combatants will contend in a ten-minute match. If there is no submission by the end of the given time, a draw will be declared.

Arte Suave Manila is set to hold its fifth annual event from October 19 to 20 at the Commercenter Alabang in Muntinlupa, and Rulloda is expecting a promising turnout. “It is a league by fighters, for fighters. The sport is growing in the country, and so we’re expecting to see high-level Jiu-Jitsu displayed on the mats again this year,” he promises.

Rulloda reiterates that Filipinos have the potential to do great things in the sport. “We can take Jiu-Jitsu to the next level, not only here in our country, but to the Asian level, and even worldwide,” he declares.

...the Asian farm tourism leader

PHL set to lead Asia in farm tourism

Gelyka Ruth R. Dumaraos
Busines Mirror
06 October 2019

The Philippines has all it takes to be the leading country as far as farm tourism is concerned, former Department of Tourism (DOT) Secretary and International School of Sustainable Tourism (ISST) Chairman Dr. Mina T. Gabor said.

ISST encourages farm tourism enthusiasts to learn more about best practices and techniques on farming.

To prove just that, the country is set to welcome local and international delegates to ISST’s sixth Philippine Farm Tourism Conference 2019 from November 6 to 8 in Cebu.

ISST looks into welcoming over a thousand delegates in the conference compared to 2017’s 500 participants, which consists of farmers and cooperatives, farm tourism operators, landowners, government officers, entrepreneurs and sustainable agriculture enthusiasts.

With this global summit, Gabor eyes to anchor farm tourism in the Philippines as globally competitive and future-ready with discussions on adaptation of agriculture sector in climate change, aquaculture, urban farming and product-focused discussions.

With the theme “Building Community Relationship for Sustainable Development through Farm Tourism,” the conference aims to learn and share the best practices done by experts in farm tourism industry, as well as fighting for food security.

Starting young

With the abundance of emerging farm tourism sites across the country,  Gabor said that more enthusiasts are encouraged to put up their own, most especially the younger generation.

“It’s really the craze,” Gabor said, saying it is a symbol of a brighter farming in the Philippines. “Since we operated in 2012, from that time on up to now, it’s a quantum leap.”

She added that the future of farming is bright with their creativity and new ideas that are disrupting current trends. “They’re bringing in new innovations, and that’s what’s making it exciting. That’s why I believe we can be the next farm capital in Asia.”

Urban farming

One of the current trends ISST is looking into is urban farming in partnership with various local government agencies in Metro Manila, starting with Parañaque City. As a way of community-building, urban farming paves the way for people to make use of vacant lots as small farms.

Recently, ISST tied up with Bokashi Pinoy, a start-up company introducing bokashi-making among livelihoods.

Bokashi is a way of turning food wastes, such as meat and dairy, into a soil amendment through fermentation. It serves as a soil-builder and a source of nutrients for plants.

ISST believes that through this, kitchen wastes in urban areas can be addressed. It can also be another source of livelihood for those who want to sell their own bokashi.

Challenges

While DOT focuses on farm tourism,  Gabor acknowledges the challenges that come with it, most especially climate change. “When there is climate change, the first that will be affected will be the farm,” she said. “But it is also the farm which can mitigate it.”

For one, she considers as a big challenge is water, what with the coming El Niño season. She said, “We are working closely now with a team of climate specialist. We might bring in this subject so that we can prepare and educate our farmers on interventions for water shortage.”

In addition,  Gabor considers the soil another challenge in urban farming. She said it is imperative that farmers are well educated on the importance of proper nourishment for their soil to yield best results for their produce.

Last,  Gabor sees that infrastructure should be considered to boost farm tourism in the country.  She hopes that with the support of the government, roads leading to farms even in remote areas can be accessed easily, bringing in more potentials tourists for the area.

With the pressure that comes with start-up farms, some farm tourism sites come with premature opening to the public. Noting that some farms which are focused more on their landscapes, looking into tourists’ welfare, such as having PWD-friendly pathways, and comfortable comfort rooms are not yet a priority.  Gabor said that this includes continues training for local guides. For their part, ISST is continuously offers lectures, such as farm guiding, marketing and financing, eco guiding and tourism master planning for farm tourism enthusiasts.

...the Busan Asia Content awardee

Maja Salvador lone Filipino winner at Asia Contents Awards in Busan 

Manila Standard
08 October 2019


Actress and Star Magic artist Maja Salavador bagged the first-ever Best Actress award for drama in the 1st Asia Contents Awards held in Busan, South Korea, for her portrayal of the lead character in the hit TV series, Wildflower. 



Maja, who is also the lone winner from the Philippines, portrayed the role of Lily Cruz who changed her identity to Ivy Aguas, a feisty young woman out to avenge her parents’ death and fight the oppression brought by the cruel and corrupt Adriente clan.

The actress and her show were the only nominees from the Philippines as Wildflower was also nominated in the Best Drama category.  


Wildflower competed with other outstanding Asian TV series from South Korea, China, Japan, Hong Kong, Taiwan, Indonesia, Malaysia, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia.

The 1st Asia Contents Awards recognized the region’s finest TV dramas that were produced in the last five years. It is organized by the renowned film festival Busan International Film Festival and Asian Film Market, an annual film market in South Korea.


Wildflower has begun airing in three French-speaking countries, including New Caledonia, Polynesia, and Reunion Islands, with the recent partnership of ABS-CBN with Ampersand fiction, a French content distributor and will soon air in Madagascar this October with ABS-CBN’s deal with Startimes.

...the PH new ports

New ports lure Asia’s biggest cruise ship to the Philippines


Bangkok Post | Bloomberg Asia
08 October 2019

MANILA: The Philippines, a country of more than 7,600 islands where you’re rarely more than a few miles from the sea, wants a bigger slice of Asia’s growing cruise-tourism industry.

Sun loungers sit on The Spectrum of the Seas cruise ship, operated by Royal Caribbean Cruises Ltd.'s cruise line brand Royal Caribbean International (RCI), as the ship sits berthed at the Marina Bay Cruise Center in Singapore, on May 21, 2019. (Bloomberg photo)

For years the Southeast Asian nation has lagged behind its neighbours in attracting cruise visitors, partly because of spotty infrastructure. That’s bound to change as more ports are built and officials look at cruise tourism as a key source of arrivals.

With the economy in danger of notching its slowest expansion since 2011, attracting tourists is a key focus of efforts to boost growth. Tourism accounted for 12.7% of the Philippines’ gross domestic product last year, already beating the government’s goal of 10% by 2022. Government officials are revising up the targets in the country’s tourism development plan.

“There is great potential in cruise tourism,” Tourism Undersecretary Benito Bengzon told Bloomberg by email. “While our Asian neighbours have the advantage of a regional land connectivity, our archipelago is ideal for cruise tourism.”

The Philippines’ cruise strategy focuses on Manila, Boracay and Puerto Princesa, as well as potential new destinations in the northern part of Luzon, the country’s main island. Salomague Port in Ilocos Sur province, scheduled to open this month, will receive Royal Caribbean Cruises Ltd’s biggest ship in Asia in December; the “Spectrum of the Seas” will return again in January and February.

In April 2021, Manila’s first cruise-dedicated port is scheduled to open at the Solaire Cruise Center.

“These cruise ports will allow more access to the Philippines and encourage more shorter itineraries from north Asian markets like China, Hong Kong, Taiwan, Korea and Japan,” Bengzon said.

Cruise tourism brings large numbers of people to concentrated areas for brief periods, multiplying and focusing the economic impact. At a recent trade show, government officials and representatives of major cruise lines discussed the possibility of adding the Philippines to Asian itineraries from 2020.

The private sector is on board for the infrastructure push.

“Cruise calls in Manila, and the Philippines in general, have been growing quite strongly,” said Enrique Razon, chairman of casino-resort operator Bloomberry Resorts Corp. “Aside from Manila, we’re looking for one cruise-ship facility in the north and possibly two in the south.”

International Container Terminal Services Inc, also owned by Razon, is looking to invest 8.7 billion pesos 5.1 billion baht) to upgrade a port in the central Philippine province of Iloilo, which the company says may eventually include a terminal for cruise-ship passengers.

Tourism has been growing steadily in the Philippines in recent years, reaching 7.2 million visitors last year and 4.85 million in the first seven months of 2019. The government’s target is about 8.2 million visitors for 2019 and 12 million by the end of 2022, but that still pales next to Thailand, which expects more than 40 million tourists this year.

Employment in tourism and related industries has been rising faster than overall job growth. Tourism accounted for 13.4% of Philippine jobs in 2018, projected to rise to 14.4% by 2022, according to the Department of Tourism.

Central bank Governor Benjamin Diokno said the amount of foreign currency tourism brings into the country should rise now that Boracay island, which was closed for six months last year for environmental rehabilitation, has reopened to tourists.

While cruise arrivals can spur development of new tourist spots, they have more environmental impact than land-based tourism, said Robert Dan Roces, chief economist at Security Bank Corp in Manila. Sometimes dubbed “floating cities,” cruise ships have a relatively large carbon footprint, dump fuel into the ocean and leave a lot of waste at their destinations.

Tourism Secretary Bernadette Romulo Puyat is urging more support for sustainable tourism to spread benefits throughout the country.

“After all, tourism is everybody’s business,” she said in a statement.