Vital food issues

Several weeks ago, our column called the attention of the Food and Drugs Administration (FDA) regarding two important food safety concerns.

First is the proliferation of condiments being sold in public markets on “takal” basis. We echoed concerns by the public that the safety and sanitary condition of this mode of retailing was highly questionable.

Secondly, we asked whether or not the FDA is aware of the global concern regarding a carcinogenic substance in soy sauce products called 3-Monochloropropane or 3-MCPD. We wondered if the FDA does testing for our soy sauce products to ensure that they comply with international standards. Countries like New Zealand, Singapore and the European Commission have set the 0.02 per kilogram mark as the limit for 3-MCPD presence in soy sauce to assure they are safe for human consumption.

We are glad that the FDA has acted on the concerns we raised.

Last week, the FDA announced it is tying up with local government units to look into the sanitary condition and safety of condiments being sold on “takal” basis. FDA assistant director Nazarita Tacandong has also gone on the air to warn the public against buying unbranded soy sauce and similar products that have no labels.

The FDA also said it is coordinating with Customs officials to monitor the entry of soy sauce from China which may have 3-MCPD limits over and above the safe levels.

And just to calm the public, our sources from the FDA have assured us that soy sauce brands being sold in the country have gone through testing in a renowned laboratory in Singapore.

Not all have passed the tests, however, we were told. But three of the more popular competing brands being sold in supermarkets have been confirmed safe by local test results and from laboratory studies done in Singapore.

Good news for Japanese food lovers, the Singapore tests show that the imported Kikkoman brand appears  safe for sushi dips. Two competing local brands are also on the safe list: the Mama Sita Premium Soy Sauce label and its rival, the popular bestseller Datu Puti Soy Sauce.

As to why other brands have yet to meet local and international standards is a matter best left to FDA to explain to the public.

At least, for now, consumers know what the safe options in the market are.

We hope the FDA continues to pursue this vital food safety issue.

Step in the right direction

Possibly one of the biggest accomplishments of the Aquino administration is the unprecedented upgrade in the Philippines’ sovereign ratings by Standard and Poor’s (S&P), Fitch and Moody’s. The three credit rating agencies have given the Philippines a rating, which is one notch below investment grade. Actually, the Fitch upgrade marks the fourth positive ratings action in 11 months.

Just as corporations have credit ratings to determine their ability to repay their debt, so do countries. A country with a higher credit rating is considered a safer investment than a country with a lower credit rating.

Many investors choose to place a portion of their portfolios in foreign securities. The decision to invest overseas begins with a determination of the riskiness of the investment climate in the country under consideration. Country risk refers to the economic, political and business risks that are unique to a specific country, and that might result in unexpected investment losses. (Source: www.investopedia.com)

The economy staged a strong recovery in 2010 growing by 7.3 percent. This growth was made possible through a strong consumption base, high average rate of investment and a robust external account position. We of course have the country’s economic team, led by Finance Secretary Cesar Purisima, to thank for that.

Despite political unrest in the Middle East-North Africa region, high oil prices and Japan’s natural calamities, the Philippine economy grew by 4.9 percent year-on-year in the first quarter of 2011.

The economy is targeted to grow by seven to eight percent this year to be supported by investments, remittances and by growth sectors such as BPOs, tourism, agro-industry, shipbuilding.

Gross international reserves expanded to a record $68.4 billion at end-April 2011 – these reserve holdings can cover more than 10x the country’s short-term external debt on original maturity.

Remittances remain strong, expanding by 8.2 percent in 2010 and by 5.9 percent in the first quarter of 2011. The business process outsourcing (BPO) industry, one of the driving factors behind the improving net services trade balance, is growing at an average of 20 percent annually.

The Philippine banking system is in a position of strength, characterized by steady asset growth, efficient flow of funds through financial intermediation, continued improvement of asset quality ratios, strong capital base and good profitability metrics.

Banks’ liquidity ratios indicate that there is ample liquidity in the system. Liquid assets-to-deposits ratio increased to 60 percent in 2010, while loans-to-deposits ratio decreased to 64 percent. Ongoing industry consolidation and improvement of the existing regulatory framework has led to a healthier, leaner and wider network of banks

For the medium-term, the Aquino administration has enumerated a number of goals, which includes increasing tax effort to 15.6 percent of GDP by 2016 or an annual incremental increase of 0.3 percentage points in the collection effort of BIR and 0.1 percentage points increase for BOC; reducing fiscal deficit /GDP to three percent and consolidated public sector debt/ GDP to 1.5 percent by 2013; implementing public expenditure management reforms to ensure that resources are allocated to priority investments; and peer pressuring the BIR and BOC in order to expedite the resolution of Run After Tax Evaders (RATE) and Run After the Smugglers (RATS) cases, among others.

Trouble at sea

How true is it that the owners of Negros Navigation/ATS do not see eye to eye on some very important matters involving the company?

For instance, after the recent appointment of Ramon Villordon as president/CEO, the former president and now chairman with the backing of a representative of the Kuwaiti owners of Negros Navigation (minority group in the new Negros Navigation/ATS) reportedly wants to be reinstated as president.

Unfortunately, the majority owners – China Asean Fund which last year bought a majority stake from the Kuwaitis in Negros Navigation and using the former as vehicle, bought Aboitiz Transport System to form Negros Navigation/ATS – do not agree.

Another flashpoint in the ongoing internal squabble is the alleged reneging by the representative of the Kuwaitis on the agreement with the Aboitizes to jointly fund an incentive program for affected Aboitiz Transport officers.

It is a known fact in the transport industry that the Aboitizes place premium in their people by developing them and giving them the necessary tools to reach their potential. And reneging on an agreed upon incentive package is just not their way of treating their people.

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