SSS co-investing with MIC only in brownfields By Reine Juvierre S. Alberto @reine_alberto
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ESG AS CATALYST FOR CHANGE David Katz, Founder and CEO of Plastic Bank, urges CEOs and senior executives at the 2nd Philippine ESG Investors Summit held at Solaire Resort & Entertainment City in Parañaque City to elevate their environmental and social governance efforts beyond mere compliance. He emphasizes the potential for these initiatives to not only enhance profitability but also to combat poverty and tackle plastic pollution in the country.
ROY DOMINGO
TATE-RUN Social Security System (SSS) President and Chief Executive Officer Rolando L. Macasaet clarified on Tuesday that the pension fund would only co-invest with Maharlika Investment Corporation (MIC), the country’s sovereign wealth fund, in “ brow nfield ” investments. In a press briefing on Wednesday, Macasaet stressed that the pension fund will only invest in an existing project or facility to launch a new activity or invest-
ment opportunity that already has a stable cash f low. “ Pension f u nd k ami, hindi kami development f und. Ang pera ng SSS, hindi ko pwedeng ilagay sa mga high-risk investments. [We’re a pension fund, not a development fund. I cannot put the funds of SSS in high-risk investments],” Macasaet said, referring to “greenfield ” investments or facilities that have yet to be constructed. This, after Macasaet said earlier that the pension fund is keen on co-investing with the MIC in brownfield investments. Macasaet noted that if the MIC
injects its capital into an infrastructure project and if he sees it fit for the pension fund, then he would invest as well. The SSS chief said the pension fund will not invest in a toll road that’s about to be built as this would entail risks. Instead, it would put its funds into an existing one, such as the North Luzon Expressway (Nlex), which already has a stable cash flow. “Ang SSS, hindi ko ilalagay ang pera sa isang kor porasyon na nagsisimula pa lang ang constr uction. [I w il l not put SSS ’s f unds into a cor poration that’s beg inning its constr uction],”
Macasaet underscored. For the SSS to preserve its capital, it invests the contributions of its members to government securities, corporate or multilateral institutions and equities, short and medium-term loans, money markets, and other investment instruments approved by the Bangko Sentral ng Pilipinas. SSS and other governmentowned and -controlled operations providing social security and public health insurance, are prohibited from investing in the Maharlika Investment Fund. See “SSS,” A2
A broader look at today’s business www.businessmirror.com.ph
Wednesday, May 15, 2024 Vol. 19 No. 211
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BILL AMENDING RTL GETS HOUSE 2ND-READING OK n
By Jovee Marie N. Dela Cruz @joveemarie
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HE House of Representatives on Tuesday approved a bill on second reading that seeks to amend the Rice Tariffication Law (RTL). Lawmakers passed House Bill 10381 through a voice vote, aiming to enhance the government’s ability to stabilize rice prices and prevent manipulative pricing and hoarding during periods of market volatility. The bill grants the National Food Authority (NFA) to require the registration of all grain warehouses to ensure compliance with relevant standards and regulations. Additionally, it allows the NFA to inspect these warehouses to maintain standards related to rice quality and supply. House Bill 10381 restores the NFA’s functions of price stabilization and supply regulation and gives the NFA the power to regulate foreign investment in the rice and corn industries. The NFA is mandated to maintain sufficient buffer stock sourced from local farmers and cooperatives. If local sources are insufficient, the NFA is authorized to: (1) purchase local milled rice; (2) buy up to 30 percent from accredited importers at cost; and (3), as a last resort, directly import rice See “RTL,” A2
PREPPING FOR THE RAINS
Backhoe excavators are hard at work dredging the Marikina River in anticipation of the rainy season. Mayor Marcelino Teodoro credits Marikina City’s ongoing dredging efforts across its waterways for significantly bolstering resilience against floods. NONOY LACZA
ECCP PUSHING IMPORT DUTIES REMOVAL ON EUROPEAN CARS By Andrea E. San Juan @andreasanjuan
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EASURES aimed at eliminating import duties for European cars should be included in the EU-Philippines Free Trade Agreement (FTA) with “immediate effect upon ratification,” according to the European Chamber of Commerce of the Philippines (ECCP). ECCP noted in a recent statement that while there is a “positive trend ” toward market increase according to industry players, European
automobile brands tend to “ lose out” in the Philippine market in terms of price competitiveness because their goods are generally in the “high-price-tiered segment.” “Adopting these measures will ensure that European automobile brands are more competitive in the local market,” the chamber noted. The ECCP pointed out that European vehicle firms in the Philippines are subject to “several” taxes and duties, including customs, value-added tax, See “ECCP,” A2
DA chief asks lawmakers to back RCEF extension By Ada Pelonia @adapelonia
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GRICULTURE Secretary Francisco Tiu Laurel Jr. has urged lawmakers to support the Rice Competitiveness Enhancement Fund (RCEF) extension. In his report to the Congressional Oversight Committee on Agricultural and Fisheries Modernization led by Senator Cynthia Villar, Laurel called the Rice Fund a “dynamic economic strategy” that bolstered farmer’s productivity and incomes through the tariffs. “The RTL has leveraged tariff
revenues to fund critical initiatives that have brought transformative changes to our agricultural landscape. Notably, the provision of high-quality seeds and modern machinery through the RCEF has led to a remarkable increase in rice yields and a reduction in production costs,” the agriculture chief was quoted as saying. “Specifically, our data shows that from 2019 to 2023, palay production across the 57 RCEF provinces increased by approximately 7 percent,” he added. The RCEF allocates P10 billion See “RCEF,” A2
PESO EXCHANGE RATES n US 57.7320 n JAPAN 0.3696 n UK 72.5172 n HK 7.3900 n CHINA 7.9815 n SINGAPORE 42.6633 n AUSTRALIA 38.1378 n EU 62.3044 n KOREA 0.0423 n SAUDI ARABIA 15.3935 Source:
BSP (14 May 2024)