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Yields on government debt rise on inflation concerns

By Mark T. Amoguis
Senior Researcher

YIELDS ON benchmark government securities (GS) increased last week, fueled heavily by inflation concerns amid the still-ongoing Taal Volcano eruption.

GS yields inched up by a week-on-week average of six basis points (bps), based on the PHP Bloomberg Valuation Service Reference Rates as of Jan. 17 published on the Philippine Dealing System’s website.

“Local yields were generally higher this week amid local inflation concerns from possible increase in prices following the Taal Volcano’s eruption,” a bond trader said in an e-mail interview last Friday.

“Risk-off sentiment has also driven yields higher ahead of the mutual signing of the first phase bilateral US-China trade agreement in Washington DC [last] week,” the trader added.

For his part, ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said: “Investors have switched to a more cautious mindset and have been trimming positions, pushing yields higher [last week],” on the back of “still-unknown” inflationary implications of the Taal Volcano eruption as well as the market speculation on the possibility of a retail Treasury bond issuance in the first quarter of this year.

Mr. Liboro also said the partial awarding of Treasury bills (T-bills) during last Tuesday’s auction provided initial catalyst for the upward movement of yields last week.

The Taal Volcano in Batangas has been erupting since Jan. 12 and over 82,000 people have been evacuated. A 14-kilometer exclusion zone around Taal remains in place.

Socioeconomic Planning Secretary Ernesto M. Pernia estimated that Taal’s eruption is projected to book P7.63 billion worth of economic losses in Batangas alone as of Monday last week, which translates to 0.3% of total output of the Calabarzon Region — comprised by the provinces of Cavite, Laguna, Batangas, Rizal and Quezon.

Calabarzon had the second-largest contribution to the country’s gross domestic product (GDP) with a 17% share in 2018, after National Capital Region’s 36% share.

However, Department of Finance Secretary Carlos G. Dominguez said on Thursday that the inflationary impact of Taal Volcano’s activity will be minimal and manageable.

Meanwhile, the Bureau of the Treasury (BTr) raised P16.875 billion in T-bills out of its P20-billion program last Tuesday despite strong demand as rates went up across-the-board.

National Treasurer Rosalia V. de Leon said the government plans $3.7 billion in external borrowings this year, but has yet to secure approvals from the regulators.

She also said that the BTr will still consider selling retail Treasury bonds, as the sale of the debt papers will always be an option.

Offshore, the United States and China signed last Wednesday the “phase one” of its trade deal, inching closer to resolving its ongoing conflict over tit-for-tat tariffs.

Following the signing of the trade deal, US Vice-President Mike Pence said the discussions about the second phase of the pact between the world’s two largest economies are already on track, Reuters reported.

At the close of trading last Friday, bond yields rose across-the-board with 91-, 182- and 364-day T-bills increasing by 3.4 bps, 6.2 bps, 7.6 bps, respectively, to 3.298%, 3.489% and 3.825%.

Yields on the two-, three-, four-, five- and seven-year Treasury bonds (T-bond) went up 4.4 bps, 6.6 bps, 8.5 bps, 9.7 bps and 9.4 bps, respectively, to 4.092%, 4.244%, 4.367%, 4.472% and 4.626%.

At the long end of the curve, the 10-, 20- and 25-year T-bonds went up 6.9 bps, 2.4 bps and 0.7 bp, respectively, to yield 4.744%, 5.268% and 5.289%.

“For [this] week, local yields are still expected to increase due to optimism ahead of likely stronger Philippine economic growth report for the last quarter of 2019,” the bond trader said.

The Philippine Statistics Authority will report official fourth-quarter and 2019 GDP data on Jan. 23.

A BusinessWorld poll of 20 economists late last week bared a GDP growth median estimate of 6.4% for the fourth quarter and 5.9% for full-year 2019 amid strong household consumption and a rebound in government spending.

If realized, the estimate will be below the 6.2% growth recorded in 2018 and will miss the downward-revised 6-6.5% target set by the government.

For his part, Mr. Liboro said the outcome of the reissuance of seven-year bonds on Tuesday will determine market action this week.

“Given the cautious tone at present, investors are likely to bid at higher levels. The yield curve will reprice depending on where the auction clears,” he said.

“Should the BTr opt to reject the auction, we could see yields stabilize in the short-term and a slight move lower off the highs.”

The Treasury will auction off reissued seven-year debt worth P30 billion on Tuesday. The bond has a remaining life of six years and 24 days and has a coupon rate of 6.25%.

The government is looking to raise P1.4 trillion this year both from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of the country’s total output. — with Reuters

Brokers, dealers told to register with AMLC

THE Securities and Exchange Commission (SEC) is reminding its covered persons that have not registered with the Anti-Money Laundering Council (AMLC) to start doing so.

In a notice posted on its website, the country’s corporate regulator told covered persons that are supervised or regulated by the SEC to sign up with AMLC through its online registration system.

Compliance officers of the covered persons are also told to update their user account information in the AMLC system every two years.

The SEC said among the covered persons who must comply with the requirement are securities dealers, brokers, salesmen, investment houses and other similar persons managing securities or rendering services as investment agent, advisor or consultant.

Also included are mutual funds, close-end investment companies, common trust funds and similar persons.

Entities dealing with currency, commodities or financial derivatives based on valuable objects, cash substitutes and other similar monetary instruments or property are likewise part of the covered persons.

The SEC issued last year its anti-money laundering module, which aims to guide covered persons in abiding by the Anti-Money Laundering Act, its revised implementing rules and regulations, the recommendations of the Financial Action Task Force and other regulatory issuances of the AMLC and the SEC.

The AMLC was formed through the Anti-Money Laundering Act of 2001, tasked to ensure the confidentiality of bank accounts to prohibit any instance of money laundering in the country.

The council is formed by the governor of the central bank, the commissioner of the Insurance Commission and the chairman of the SEC. — Denise A. Valdez

Could 2020 be our Olympic breakthrough year?

By Michael Angelo S. Murillo, Senior Reporter

IN 2020 the Philippines will take part in the Summer Olympics once again, the 10th since 1984 and 22nd appearance since the country first competed in 1924.

But unlike in previous Olympiads, there is increased confidence in the lead-up to the Tokyo Games that this year could be the year the Philippines wins that elusive first gold medal.

Sports officials said the confidence over 2020 being a golden breakthrough year is not necessarily unwarranted, believing that the athletes are “better prepared” this time and capable of making things happen.

In nearly a century of competing in the Olympics, the Philippines has produced 10 medals to date — three silver and seven bronze.

Boxers Anthony Villanueva (1964) and Mansueto Velasco (1996), and weightlifter Hidilyn Diaz (2016) are the country’s silver medalists while bronze came from swimmer Teofilo Yldefonso (1928 and 1932), high jumper Simeon Toribio (1932), runner Miguel White (1936), and boxers Jose Villanueva (1964), Leopoldo Serantes (1988) and Roel Velasco (1992).

For the 2020 Olympics in Tokyo, which will take place between July 24 and Aug. 9, two Filipino athletes have qualified — pole-vaulter Ernest John Obiena and gymnast Carlos Yulo — with more expected to join them after Olympic qualifiers in various sports this year.

‘WE HAVE A CHANCE’
“We have a chance definitely,” said Mariano Araneta, Philippine chef de mission to the 2020 Olympics, when asked for his thoughts on how the country would fare in this year’s edition of the sporting spectacle.

“There is always a chance, of course, but this time preparation of our athletes has really been intense. Support is being given to them both by the government and the private sector and they are showing much determination,” added the chef de mission, who is also the president of the Philippine Football Federation.

As of September last year, some P1 billion has been spent by the Philippine Sports Commission (PSC) according to reports. The PSC is the agency tasked to oversee training and foreign exposure of Filipino athletes for international competitions, including the recently concluded 30th Southeast Asian Games here and the Olympics.

The PSC, under the leadership of its chairman William Ramirez, has committed sustained support to the athletes and the thorough development of sports through various programs.

Mr. Araneta said the PSC is hoping to field at least 20 athletes for this year’s Olympics, an improvement from the 13-athlete contingent of the Philippines in the 2016 Rio Olympics.

EYE ON TOKYO
Due to the groundbreaking manner Mr. Yulo qualified for the Tokyo Games, many are bullish on the 19-year-old becoming the country’s first-ever Olympic gold medalist aside from his world championship.

Mr. Yulo earned a spot in the Olympics after making the cut in the all-around events at the 2019 World Artistic Gymnastics Championships in Stuttgart, Germany, in October.

Also in the same tournament, the Filipino gymnast won the country’s first-ever world artistic gymnastics gold, making it a double celebration for Philippine gymnastics.

Mr. Yulo bagged gold in the floor exercise final with a score of 15.300, besting Artem Dolgopyat (15.200) of Israel, who finished second, and Ruoteng Xiao (14.933) of China for bronze. In the all-around, Mr. Yulo wound up 10th in the competition.

The Gymnastics Association of the Philippines (GAP) considers it a massive achievement to see one of its own in the Olympics, more so in the person of Mr. Yulo, who has had Tokyo in his sights ever since he moved to Japan in 2016 to hone his skills to be at par with the best in the world.

Mr. Yulo, who picked up the sport at the age of seven, will be the first Philippine gymnast to compete in the Olympics in five decades after Ernesto Beren and Norman Henson in 1968.

In 2016, Mr. Yulo, then only 16, relocated to Tokyo to train under coach Munehiro Kugimiya.

GAP was first cool to the idea but with the insistence of Mr. Yulo’s coach, it eventually agreed, a decision the organization, in hindsight, is thankful to have made.

“We really looked for ways to bring him to Japan after seeing how he would really improve there. The moment when he moved to Japan it was to compete in (the) Tokyo (Games),” said Bettina Pou, GAP secretary-general in an interview.

Ms. Pou said at first it was tough for the young gymnast as he not only had to deal with the tough training but he also had to adjust to a new environment away from his parents.

So difficult was the situation for Mr. Yulo early on, Ms. Pou said, that the young athlete considered giving up altogether.

But when Mr. Yulo eventually adjusted to his new situation and saw his hard work starting to pay off, there was simply no stopping him from going after his goal of making it to the Olympics.

In 2018, when he started competing as a senior, Mr. Yulo began getting valuable points for qualification, consistently winning medals in various international competitions in Melbourne; Baku, Azerbaijan; Doha; and Stuttgart in October clinched it all for him.

“He is very excited for the Olympics. He has achieved his goal and he is now working to be the first gold medalist of the country. And he has a good chance of doing it in the floor exercise. That’s his goal,” said Ms. Pou.

“His mindset is much better. And winning the world championship really boosted his confidence,” she added.

The GAP official said the association is doing everything it can to support Mr. Yulo, who apart from his coach has a psychologist and nutritionist working with him to be in the best possible shape in the Olympics.

Mr. Yulo competed in the 30th SEA Games in December where he won two gold medals (all-round and floor exercise) and five silver (pommel horse, still rings, vault, parallel bars and horizontal bars).

He was set to continue his training in Japan after the SEA Games to prepare for the Tokyo Games.

DIDAL AND OTHERS
Apart from Messrs. Yulo and Obiena, who qualified for the Tokyo Games by clearing 5.81 meters in topping the Salto Con L’Asta competitions in Piazza, Italy, in September, and has been training at the special International Association of Athletics Federation (IAAF) training camp under the tutelage of Serbian coach Vitaly Petrov, Mr. Araneta said skateboarding, weightlifting, boxing, judo and golf are the potential sports that could send athletes to the 2020 Olympics.

In skateboarding, in the mix is 20-year-old Asian Games gold medalist Margielyn Didal, who has steadily been earning Olympic qualifying points in international competitions, the most recent of which was the OI STU Open Street/Park Skateboarding event in Brazil in November.

“I just came from Brazil for the STU qualifier for the Olympics. I did not enter the finals but I was in the top 10 which is a good number. Currently I’m in the top 14 in the world and we are on the right path, so there is a chance. If the Olympics started today we can qualify,” Ms. Didal said in an interview.

The Cebu City native said that she is confident of making it to the Summer Games this year but underscored the need for continued support in the push to achieve qualification.

“I’m confident of entering the Olympics. But there are a lot of competitions that I have to compete in starting January. We need all the support that we can get for these events to sustain the momentum we have built and get the points needed to stay in contention for a spot in the Olympics,” said Ms. Didal, who was recently added to the roster of athletes supported by energy drink Red Bull worldwide.

“If fortunate enough to qualify for the Olympics, we’ll try our best. I’ll give everything I have in training and in the competition.”

Ms. Didal was a two-time gold medallist in the SEA Games debut of skateboarding recently, winning in street skateboarding and Game of S.KA.T.E.

Following a silver-winning performance in the 2016 edition of the Games in Brazil, Hidilyn Diaz, 28, for her part, has become all the more determined to win the top hardware in the Olympics.

Four years ago in Rio, Ms. Diaz finished second to Chinese Taipei’s Hsu Shu-Ching. The former lifted 200 kilograms to the Taiwanese’s 212, settling for the silver medal in the women’s 53-kg division.

In vying for a spot for this year’s Games, the Zamboanga City weightlifter has been leaving no stone unturned, even soliciting more support for what she is trying to accomplish, including over social media.

She has vowed to do everything she can to appear in the Olympics for a fourth straight time.

“Training continues for me in my bid for the Olympics. I won’t take a break over Christmas and New Year. I will make that sacrifice to reach our goal and bring honor to the country,” Ms. Diaz said after winning her first SEA Games gold medal last month.

Ms. Diaz is coming off a “fruitful” 2019 where she also won two bronze medals at the Weightlifting World Championships in September.

She is set to compete in the 2020 Roma World Cup in January as part of her bid to make it to the Olympics.

Boxing, traditionally a steady source of Olympic athletes for the Philippines, has also made noise with the recent success of Nesthy Petecio, who won a gold medal in the 2019 AIBA Women’s World Boxing Championships in October in Russia, and Eumir Marcial, silver medallist at the 2019 World Boxing Championships in September.

In 2016 in Rio, two boxers competed for the country — light flyweight Rogen Ladon and lightweight Charly Suarez.

In judo, Filipino-Japanese judoka Kiyomi Watanabe has an inside track for the Olympics while golfer Yuka Saso is targeting to make it as well.

The Philippine 3×3 basketball team also earned a berth in the Olympic Qualifying Tournament in India in March.

COULD 2020 BE THE YEAR?
Given the kind of momentum Philippine athletes have been building, and the circumstances they are in, heading into the Tokyo Games, could 2020 be the year the country wins that elusive gold?

GAP’s Ms. Pou said the organization firmly believes that Mr. Yulo has what it takes to bring home the gold but admits it would be anything but easy.

“We are confident of his chances and we hope he stays healthy all the way to the Olympics. Given his preparations and the mindset he has now as well as the support of the government, the federation, his family and others, he has all the ‘tools’ going in and just needs to go for it and give his best shot,” said Ms. Pou, adding that floor exercise, parallel bars and vault are the gymnast’s strong suits.

“In winning gold in the world championships he showed what he is capable of and the Olympics could be the next thing,” she added.

“For the 2020 Olympics we have athletes who are capable of winning. They are up there in the rankings in their respective fields. And when you’re at that level anything can happen,” Mr. Araneta said.

“We are not going to the Olympics just to show up but more to compete and win. Nor are we going there clueless. We will prepare as best as we can. Of course, luck and prayers, too, would help,” he added.

And what if we fall short anew?

“I don’t think it would be a huge disappointment if we do not win gold. As long as we do our best and compete and prove we belong there at that level it is still a success,” according to the Philippine chef de mission.

“A gold definitely would be a huge bonus. But if we don’t win we’ll go back to the drawing board, look at what we did right and what we did wrong, and take another shot at it next time,” Mr. Araneta added.

Bamboo sustainability could be biggest draw; regulations pose a hurdle

THE BAMBOO industry is well-positioned to become an alternative building material with a growing niche because of its sustainability, and very little capital and time needed for farmers who intend to grow the crop, a former agriculture department official said.

“The market is big, so para sa akin, kailangan lang ‘yung produkto natin i-place kung saan mong niche gusto (the product can fill any niche you want),” former Agriculture undersecretary for policy and planning Segfredo R. Serrano told BusinessWorld in an interview.

There are 62 species of bamboo has 62 species, 21 of which are endemic to the Philippines. Bamboo grows three to six inches per day and takes two to three years to reach harvestable height. Bamboo eventually regenerates, eliminating the need to replant. Its main applications include furniture, building materials, and agricultural use in fishpens.

Mr. Serrano said demand for organic materials is also increasing, providing an opportunity for growers. It can substitute for wood.

“There is species of bamboo for virtually every purpose. Construction, composites,” Mr. Serrano said, noting that bamboo is underexploited.

Philippine Institute for Development Studies (PIDS) Research Fellow Roehlano M. Briones said bamboo could be an export product if proper regulation is in place.

“If we can solve the regulation issue, malaki ang potential (the potential is large),” he said in a text message.

He cited permits to cut bamboo as a possible hurdle to the sector’s growth.

The Department of Environment and Natural Resources (DENR) requires bamboo farmers to obtain a cutting permit under the Revised Forestry Administrative Order No. 11, dated Sept. 14, 1970. Its regional offices issue the permits. Bamboo inside tree plantations and private land covered by title or tax declarations are exempt from having to obtain permits.

The DENR also monitors the transport of bamboo. Shippers need to be able to provide a Certificate of Non-Timber Forest Products Origin (CNFPO) under DENR AO no. 59, issued Sept. 30, 1993, except for those planted inside titled and tax-declared land.

The Philippine Bamboo Industry Council (PBIC) is planning to convert 19,000 hectares of land, with 13,000 hectares located in the Western Visayas, to bamboo plantations this year. The Department of Trade (DTI) will be providing shared service facilities for processing bamboo.

Bamboo production and processing is entitled to tax incentives under the DTI’s Strategic Investments Priorities Plan. — Vincent Mariel P. Galang

Greener fashion industry could unlock more than $100B in value

GLOBAL FASHION’s “take-make-dispose” model needs a sustainability makeover.

That’s according to a report out last week from Barclays titled “Green is the new black,” which projects the fashion industry can unlock some €110 billion ($123 billion) in value by addressing key environmental issues related to water, energy, chemicals and waste. If business continues as usual, €45 billion in profit is at risk by 2030.

The industry’s “immense water-consuming, energy-exhausting, and wasteful supply chain practices are creating an environmental and social concern that we can no longer afford to ignore,” said the authors, led by Anushka Challawala and Hiral Patel.

Environmental, social and governance concerns for investors have come to the forefront in recent years, with multiple fund launches and flows pouring into the strategy. Stock allocation to so-called ESG funds have increased sharply, while investors have also turned to green bonds in their search for yield.

Fashion accounts for 8% of global greenhouse-gas emissions, more than international flights and maritime shipping put together, according to Barclays. And an estimated $500 billion in value is lost each year due to “clothing being barely worn and rarely recycled.” Analysts at the London-based bank drew from estimates by Boston Consulting Group, the nonprofit Global Fashion Agenda and the Ellen MacArthur Foundation, which promotes thinking on a “circular economy.”

Barclays sees profit risk from rising input costs as well as looming regulation, shifting popular opinion, and increasing pressure from consumers concerned about climate change and micro-plastic pollution.

Younger shoppers “are often willing to pay 50%-100% more than other age cohorts for environmentally friendly goods,” Bloomberg Intelligence analyst Poonam Goyal wrote late last year.

With conventional cotton and virgin polyester making up about 85% of total fibers in today’s apparel, Barclays sees the need for more sustainable materials in the mix. Other proposed solutions include increasing resource efficiency in processing and manufacturing of clothing as well as reducing post-consumer waste — an issue worsened by the “fast-fashion era and overconsumption.”

In the EU, Asos Plc and Boohoo Group Plc are “more exposed” to these issues due to their “reliance on affordable prices and rapid consumer trends,” according to Barclays analysts. Meanwhile, Associated British Foods Plc’s Primark stands out for its focus on sustainable cotton and brick-and-mortar stores, avoiding the “last-mile environmental impact” of home delivery and returns.

Hennes & Mauritz AB (H&M), an early mover in sustainability efforts, has lately become interested in scaling up experimental materials including “pineapple leather,” “lab-grown cotton,” and “mushroom leather,” Barclays said.

Among US apparel companies, the report highlights Nike Inc., Gap Inc., Lululemon Athletica Inc., PVH Corp., Ralph Lauren Corp. and VF Corp. as “best positioned,” while EBay Inc. would stand to benefit from a business model that emphasizes second-hand, rental and direct-to-consumer.

As for Amazon.com Inc., Barclays analyst Ross Sandler in the report said the e-commerce giant became “significantly more transparent” last year by releasing its sustainability goals, and remains “well placed” as the industry shifts toward sustainable practices. — Bloomberg

Start the new decade by driving home a brand new Subaru

MOTOR IMAGE PILIPINAS, Inc., the exclusive distributor of Subaru vehicles in the Philippines, encourages you take a second look at the new year markdowns being offered nationwide for the last remaining 2018 model year units available:

Don’t let this decade pass without owning a Subaru that has over 100 safety features! All new vehicle purchases will be covered by 5-year comprehensive warranty so be assured of more confident drives every time. Promo runs until Jan. 31, 2020, so head to the nearest Subaru showroom and let our sales consultants help you on which deal will suit you best.

Peso to strengthen anew ahead of Q4 GDP report

THE PESO is seen to strengthen this week on the back of expectations of strong fourth-quarter economic growth.

The local unit finished trading at P50.891 per dollar on Friday, depreciating by six centavos from its P50.831 close on Thursday, according to data from the website of the Bankers’ Association of the Philippines.

It also weakened by 23.1 centavos from its P50.66-per-dollar finish on Jan. 10.

The sideways trading seen for the day was due to the lack of local leads, according to UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

Meanwhile, a trader said the slightly weaker peso performance was on the back of a “disappointing” phase one trade deal between the Washington and US on Jan. 15.

“I think there’s a little bit more disappointment that there wasn’t more clarity to some parts of the deal. Moving forward now, that there are questions for the phase 2 deal,” the trader said.

Reuters reported that among the provisions of the landmark deal is the reduction of US tariff on Chinese goods in exchange for China’s commitment to buy additional $200 billion worth of products including agricultural, energy, and manufactured goods for the next two years.

For this week, Mr. Asuncion said the market will be on the lookout mainly for data inon the country’s fourth quarter (Q4) and 2019 gross domestic product (GDP) growth set to be released by the Philippine Statistics Authority on Jan. 23.

“This would be the biggest market driver. Q4 economic growth is expected to be at least six percent and would likely strengthen the peso,” he said.

The economy grew by 6.2% in the third quarter of 2019, bringing the GDP growth average for the first nine months of the year to 5.8%.

Fourth-quarter GDP growth needs to hit at least 6.7% in order for the full-year figure to hit the minimum target of six percent set by the government.

Meanwhile, the trader said other key factors for trading this week would be demand for dollars and news on the US-China trade talks.

“There will be dollar demand, corporate demand…And we’ll look into developments of US-China…probably phase two deal,” the trader said.

Mr. Asuncion sees the peso trading at P50.50-50.90, while the trader gave a range of P50.70-P51.20. — L.W.T. Noble with Reuters

Copper miner’s P164-M tax refund claim dismissed

THE Court of Tax Appeals (CTA) dismissed for lack of jurisdiction the appeal of a mining firm over the denial of P163.8-million tax refund claim for 2009.

In a Jan. 2 decision, the court, sitting en banc, affirmed the November 2017 decision and April 2018 resolution of its first division, which denied the claim of Carmen Copper Corp.

The court said the petition of the corporation lacked compelling ground to reverse the rulings of its division as there were no new arguments in its appeal.

“It merely reiterates the arguments it raised in its Motion for Reconsideration which have been extensively addressed by the Court in Division in the Assailed Resolution,” the court said.

“Needless to state, the issue of jurisdiction over Carmen Copper’s judicial claim for input VAT (value-added tax) refund has already been laid to rest in the Assailed Decision and Assailed Resolution,” it added.

The court noted that Carmen Copper filed its judicial claim to the court beyond the prescriptive period under the Tax Code.

According to Section 112 of the National Internal Revenue Code of 1997, a VAT-registered entity may apply to the Bureau of Internal Revenue (BIR) for the issuance of refund or tax credit of its creditable input tax traced to its zero-rated sales, within two years after the end of the quarter when the sales were made.

The commissioner may grant the application within 120 days from the filing or submission of complete documents. But in case of full or partial denial or failure of the BIR to act on the claim, the taxpayer may appeal to the CTA within 30 days.

The court said the corporation “belatedly filed its judicial claims for refund before this Court on June 13, 2014, under the mistake assumption” that the 30-day period to file a judicial claim comes after its receipt of notice in the month before.

The court noted that the end of the 30-day period was on May 3, 2010 and January 3, 2011, after the end of the 120-day period for the BIR to act on the claims for the first and second quarter, and third and fourth quarter filings, respectively.

“Evidently, Carmen Copper belatedly filed its Petition for Review with the Court in Division on June 13, 2014. The Court in Division did not acquire jurisdiction,” the court said.

“Such non-compliance with the said mandatory period of 120 + 30 days is fatal to Carmen Copper’s claim of refund on the ground of prescription, resulting in the First Division’s lack of jurisdiction over the said judicial claim. With the foregoing findings, the Court deems it unnecessary to resolve other matters raised,” it added.

The decision was penned by Associate Justice Ma. Belen M. Ringpis-Liban. — Vann Marlo M. Villegas

Sime Darby cold export more crude palm oil

KUALA LUMPUR — Malaysia’s Sime Darby, the world’s largest oil palm planter by land size, could export more crude palm oil (CPO) to India and divert refined oil to other markets after India placed curbs on refined imports, an executive told Reuters on Friday.

India, the world’s biggest buyer of edible oils, last week changed rules to effectively, say traders, ban imports of refined palm oil from Malaysia, the world’s second-biggest producer and exporter of palm oil after Indonesia.

The step came after repeated objections by India’s Hindu nationalist government to criticism from Mahathir Mohamad, the prime minister of Muslim-majority Malaysia, of some recent policies that critics say discriminate against Muslims. The move was also aimed at helping Indian refineries raise their utilization.

Traders in India are already buying more Indonesian crude palm oil as a result, even at a premium to Malaysian prices.

“Regulatory challenges are part and parcel of the palm oil industry. (But) we have yet to see the impact of India’s recent decision on our export volume to India,” Mohd Haris Mohd Arshad, managing director of Sime Darby Oils, said.

“Nevertheless, Sime Darby Plantation is well placed to manage this risk if it arises, given our presence in both Malaysia and Indonesia. Since our existing export sales from both Malaysia and Indonesia include CPO and refined products, we are able to direct shipments of refined products to other countries, and CPO to India.”

He did not immediately say how much it sold to India last year, but historically the South Asian country is one of its top-3 markets.

In the first nine months of last year, Sime Darby produced about 4 million tonnes of fresh fruit bunches, the raw material for palm mills, in Malaysia. About half that amount was produced in neighboring Indonesia.

Malaysian CPO prices were about 3% higher on average than those of Indonesia during that period.

“For Sime Darby Plantation, the group exports mainly CPO to India,” TA Securities said in a note. “As such, the impact to the group’s earnings should be minimal.”

India’s palm oil imports in the marketing year to Oct. 31 could fall to between 8.4 million and 9 million tonnes from 9.4 million last year, a spot survey of six industry officials showed, hit by a rally in prices and the row with Malaysia. — Reuters

Mitsubishi Motors Philippines delivers 265 Xpander and L300 units to DoH

MITSUBISHI MOTORS Philippines Corp. (MMPC) recently delivered Multi-Purpose Vehicles (MPV) to the Department of Health (DoH) through the Procurement Service (PS) — an attached agency of the Department of Budget and Management (DBM).

Through the centralized procurement of motor vehicles at PS, agencies can order the vehicles via online and have it delivered to the agency doorstep after validation and payment of request. This initiative aims to further streamline the process of procuring motor vehicles while maintaining the principles of economy, efficiency, and check and balances. The total number of approved units to be delivered by MMPC to PS-DBM are 232 units of L300 with FB Body and 33 units of Xpander GLX Plus AT through CitiMotors Makati and Diamond Motors Fairview, respectively.

In a ceremony held at the DoH’s grounds, MMPC handed over four units of L300 to Health Secretary Francisco Duque. The Secretary cited how dependable and efficient the L300 is throughout the years, which is why he considers the new Euro 4 L300 units as a welcome addition to their fleet.

PS-DBM Executive Director Elisa May Arboleda-Cuevas also expressed her satisfaction to the smooth transaction and efficient delivery of the vehicles: “Being one of the partners of PS, we support the government’s thrust to reform the government procurement system and ensure transparency, efficiency, and economic use of tax payer’s money.”

Aside from the DoH, MMPC is set to deliver more units to various agencies with vehicle requirements from PS-DBM in the coming months.

MMPC is one of the country’s leading automotive assemblers and distributors. It is the longest staying automotive company in the Philippines. Occupying a 23-hectare plant in Sta. Rosa, Laguna, MMPC’s manufacturing plant has a maximum production capacity of 50,000 units. MMPC locally manufactures the Mirage, Mirage G4, and L300.

Elegant Kim Jones collection stars on Dior menswear runway

PARIS — Sleek double-breasted suits, luxurious patterns and silky fabrics mingled to celebrate tailoring in a timeless menswear collection at the Christian Dior catwalk in Paris on Friday.

For one of the most anticipated shows of the week, Dior erected a gigantic tent in the middle of Place de la Concorde, overshadowing its Egyptian obelisk.

David and Victoria Beckham sat front row alongside Robert Pattinson and Kate Moss to watch models parading across the top of a series of plastic, see-through boxes emitting colorful smoke.

The collection, designed by Kim Jones, featured a collection of heavy coats, long silky shirts, paisley motifs and embroideries in shades of grey and blue.

Jones revisited Christian Dior trademarks in the form of the Toile de Joy on a silky shirt and the Oblique canvas with a new version of the iconic Saddle bag.

“Classy, elegant, expensive,” French model Robin Avignon said to describe the collection after the show where he wore a greyish aviator jacket over stripped pants.

Some models wore bi-colored bomber jackets in a more casual look but always with a pair of long gloves to add a vintage touch. Jewel — metallic necklaces and brooches with metallic tassels — adorned this winter collection.

Jones, who has collaborated with the artist Daniel Arsham, KAWS, and Hajime Sorayama, paid tribute to late British punk stylist Judy Blame, with whom he once worked while at the helm of Louis Vuitton menswear.

The Paris menswear fashion week runs through Sunday. — Reuters

Central bank to adjust TDF offers as demand wanes, issue own debt

AUCTIONS FOR THE term deposit facility (TDF) of the central bank will be “adjusted accordingly” as the preference for cash meant for holiday spending starts to subside in January, according to Bangko Sentral ng Pilipinas (BSP) Monetary Policy Sub-Sector Officer-In-Charge Dennis D. Lapid on Friday.

In the same briefing, the central bank chief said the BSP is also looking to start floating its own debt securities within the year to boost its market operations.

“If you notice in December, also in November, we were undersubscribed in some of our weekly auctions because there were higher preferences by the public for cash for holiday spending,” he told reporters in a press chat on Friday held at the central bank.

The Bangko Sentral ng Pilipinas offered a total of P160 billion on term deposits last Wednesday. This offering was met with bids amounting to P274.15 billion. Despite this, yields continued to be relatively lower compared to the previous week.

“If you look at the market interest rates, they actually have gone down… So there is a gradual and general easing in fund conditions in the market…,” Mr. Lapid said, noting that they expect liquidity to return to the system in January.

He also noted both bank lending and money supply growth have quickened, based on recent data.

Bank lending in November grew at a faster pace of 10.1% from 9.3% in the previous month. Meanwhile, money supply saw a quicker expansion of 9.8% from the 8.5% print logged in October, according to data from the BSP.

“So it shows a gradual pickup in liquidity and specifically bank lending activity,” Mr. Lapid said.

Aside from the TDF, BSP Governor Benjamin E. Diokno said the BSP will also be offering securities in the second quarter of 2020 following the amendment of its charter allowing it to issue its own debt papers.

“We will have a soft launching by first quarter and we will launch it formally in the second quarter this year,” Mr. Diokno said during the press chat.

Mr. Lapid said the central bank will hold a market-sounding exercise in the first quarter.

“We will be discussing with counter-parties the features of the new securities and just to get an idea on their preferences. We are also working with the Bureau of the Treasury…” he said.

Republic Act 11211 or the New Central Bank Act allows the BSP to issue securities, aside from the TDF.

In accordance with the law, the Bureau of Internal Revenue is exempting the BSP from paying taxes from its revenues coming from the said securities. — Luz Wendy T. Noble

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