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DoE allows Semirara mine to resume operations

THE Department of Energy (DoE) has lifted the suspension order imposed on Semirara Mining and Power Corp’s (SMPC) coal mining operations in Semirara Island in Antique province.

“We wish to inform the Exchange that today the Company received official notice from the DOE lifting the suspension order and approving the resumption of mining operations except in the area adjacent of the former Casay Lake until such time that all liquefiable materials in the area have been removed,” the Consunji-led firm said in a disclosure on Friday.

The DOE ordered the suspension of SMPC’s mining operations under Coal Operating Contract No. 5 in a letter dated November 14 after a mudflow incident on October 2, 2019, which led to the death of SMPC’s mining operator.

The company noted that the suspension could result in opportunity loss in production per day of as much as 45,000 metric tons (MT), with value depending on the prevailing price of coal.

Despite this, SMPC noted that its total production is already 12% more than the volume in 2018, or is at 14.5 million MT. Coal shipments also reached 14.6 million MT, 26% higher, year-on-year.

The DoE also fined the company P1.735 million for violating section 3 of Department Circular No. DC2012-05-0006, or the Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users over alleged unabated and continuous coal trading despite the suspension of its accreditation.

Shares in SMPC climbed 5 centavos or 0.23% to close at P22 apiece at the stock exchange on Friday. — Vincent Mariel P. Galang

Boracay Airport continues operations after typhoon

THE Boracay (Godofredo P. Ramos) Airport in Caticlan continues to operate amid widespread damage in the Visayas region caused by typhoon Ursula, according to San Miguel Corporation’s (SMC) infrastructure unit.

In a statement, SMC Infrastructure said the Boracay airport has accommodated additional flights, as the Kalibo airport remains shut after sustaining damage from the typhoon.

“We would like to ask for your understanding and patience for any delays and inconvenience you are experiencing at the Boracay (Godofredo P. Ramos) Airport, at this time,” the company said.

“Because of the continued closure of Kalibo Airport due to damage sustained from typhoon Ursula, the Civil Aviation Authority of the Philippines (CAAP) has diverted all Kalibo flights to Boracay Airport.”

From its usual 26 flights daily, the Boracay airport operated 40 outbound flights as of Dec. 26. This included the take-off of eight Airbus planes after sunset, SMC Infrastructure said.

“Also, because of widespread damage affecting Caticlan and many other areas, communication lines are still down and only Smart lines are intermittently available. Bank ATMs also continue to be offline at the moment. There is no electricity, however, the airport is currently running on generators,” the company said.

SMC Infrastructure operates the Boracay Airport in Caticlan.

Inflation seen quickening in December

THE overall rise in commodity prices likely accelerated in December on the back of an uptick in electricity rates and oil prices as well as price pressures on certain food items due to weather-related incidents, the Bangko Sentral ng Pilipinas (BSP) said.

“The BSP Department of Economic Research projects December 2019 inflation to settle within the 1.8 — 2.6 percent range,” it said in a statement on Friday.

The range is higher than the 1.3% print logged in November. However, this is lower compared to the 5.1% headline inflation recorded in December 2018.

“Higher electricity rates and oil prices together with the impact of weather-related disturbances on selected food items are the primary sources of upward price pressures for the month,” the BSP said.

Manila Electric Co. (Meralco) said in early December that consumers will see an increase in their bills this month as prices rose in the spot market.

The generation charge for December stood at P5.1967 per kilowatt-hour (/kWh), up by P0.1650 per kWh from the November rate. With this, power users in Metro Manila and surrounding areas may see their December bills increase by P0.3044/kWh, Meralco said.

Meralco said households with electricity consumption of 200 kWh can expect December rates to rise to P9.8623/kWh from P9.5579/kWh in November. This translates to roughly a P61 increase in their monthly bill.

“Meanwhile, inflation could be tempered by the continued easing of domestic rice prices,” the BSP said.

Economists have attributed the decline in local rice prices to the implementation of the Rice Tariffication Law (RTL) or Republic Act 11203 which banned quotas on rice imports.

“RA 11203 is possibly the single most effective inflation fighting development in 2019 and will likely help keep inflation in-check going into 2020,” ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa said in a note sent to reporters on Dec. 24.

Inflation in November averaged 2.5% in the first 11 months of the year, which is still well within the central bank’s 2-4% target range in 2019.

“Looking ahead, the BSP will remain watchful of evolving price trends and ensure that the monetary policy stance remains appropriate to maintain price stability that is conducive to a balanced and sustainable economic growth,” the BSP said.

The Philippine Statistics Authority will release the official data on December inflation on Jan. 7. — Luz Wendy T. Noble

DTI no longer pursuing safeguard duties on ceramic tile imports

THE Department of Trade and Industry (DTI) will no longer apply safeguard measures on ceramic floor and wall tile imports, Trade Secretary Ramon M. Lopez told reporters last Friday.

The DTI will not be challenging the Tariff Commission’s recommendation against the measures. The commission in a Dec. 18 report said that it found no evidence of increases in ceramic tile imports that can cause serious injury to domestic production.

In May, the DTI had imposed a 200-day provisional safeguard duty of P3 per kilogram on ceramic tile imports in an effort to protect the domestic industry.

The Philippine ceramic tile industry consists of two companies: Mariwasa Siam Ceramics, Inc. and Formosa Ceramic Tiles Manufacturing Corp. Another firm, Eurotiles Industrial Corp., became a pure importer in 2017. First Lepanto Ceramics, Inc. ceased operations in 2013.

Following the commission’s decision, Mr. Lopez said that DTI will instead focus its efforts on standard compliance for ceramic tiles, glass, plywood, hollow blocks, and roofing materials.

Products under mandatory compliance are assessed by recognized testing centers for certification to protect consumers from substandard products.

“Babalikan namin ‘yung kaso nung sa glass (We will return to the case on glass),” Mr. Lopez said.

DTI in March issued a Department Administrative Order to place flat glass products under mandatory certification. The order had been suspended after importers were able to acquire court injunctions against it.

Mr. Lopez added that the department has also acquired additional funding in its budget to upgrade product quality testing facilities. — Jenina P. Ibañez

DPWH orders faster construction of two projects

THE DEPARTMENT of Public Works and Highways (DPWH) has ordered the faster completion of two big ticket projects under the government’s Build, Build, Build, program in Central Luzon.

In a statement on Friday, DPWH Undersecretary for Unified Project Management Office (UPMO) Operations and Technical Services Emil K. Sadain said the construction of the Arterial Road Bypass Project Phase III (Plaridel Bypass Road) in Bulacan and the Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low Lying Areas of Pampanga Bay should accelerated since these are intended to solve problems being faced in the two locations.

“These DPWH road and flood control projects financed by ODA (Official Development Assistance) will be beneficial in improving existing traffic conditions especially in congested areas of Daang Maharlika in the Province of Bulacan and mitigate flooding in low-lying areas of Pampanga,” it said.

The road project in Bulacan is a 24.61-kilometer road forms the two contracts funded by a loan agreement with Japan International Cooperation Agency (JICA). It has already reached 74% completion for the first package of the contract, while the two remaining packages are set for bidding in January 2020.

This runs from North Luzon Expressway in Balagtas, Bulacan to Daang Maharlika in San Rafael, Bulacan.

The flood control project is funded by the Export-Import Bank of Korea for $80.48 million, which is already 20% completed. It is just one of the other disaster resiliency infrastructure projects funded by the country, which include Flood Early Warning System in Greater Metro Manila, as well as an earth-filled dam, irrigation facilities, multi-purpose access roads, and reforestation of watershed area along the Pasa River in Isabela Province.

The UPMO is currently managing 26 projects under the infrastructure program of the government. These are intended to increase “productive capacity of the economy, generate more jobs, and strengthen the investment climate leading to sustained inclusive growth of the Philippines.” — Vincent Mariel P. Galang

DOTr TWG on motorcycle taxis releases total number of authorized drivers

THE TECHNICAL working group of the Department of Transportation (DoTr) has released the actual number of authorized drivers submitted by motorcycle taxi service providers.

Data collected by the motorcycle taxi pilot run Technical Working Group (TWG) showed that JoyRide has 6,907 authorized drivers; Angkas (DBDOYC, Inc.) has 2,204; and Move It has 1,414.

“This will therefore set the record straight in so far as compliance to the documentary and regulatory requirements of the TWG is concerned, most especially on the need to fully register and declare the names and number of contracted riders by the service providers,” it said.

On Dec. 20, the TWG decided to extend the pilot program for motorcycle taxis to March, with the addition of two new players, namely JoyRide and Move It.

The extended pilot program started Dec. 23, and will end March 23, with an overall allotted cap of 39,000 registered bikers — 10,000 bikers per operator in Metro Manila and 3,000 per operator in Cebu.

Angkas was the sole service provider in the initial six-month trial which involved 27,000 bikers. The operator warned about job losses after its number of bikers were capped.

Senator Maria Imelda Josefa “Imee” R. Marcos said the Senate may investigate the policy.

The Land Transportation Franchising and Regulatory Board said there were six motorcycle taxi firms that submitted their proposals to the TWG to be included in the pilot program. Four were considered, evaluated, and inspected.

The DoTr said it heard proposals from six new motorcycle taxi companies on Nov. 20, which include JoyRide and Move It, as well as Citimuber, EsetGo, Sakay, and VroomGo. — V.M.P. Galang

General government debt share in GDP up at end-June

THE COUNTRY’S general government (GG) debt as a share of the economy rose in the first half, the Department of Finance (DoF) reported Friday.

In a statement, the DoF said GG debt relative to gross domestic product (GDP) as of end-June stood at 37.6%, inching up from the 36.1% ratio recorded in the same period a year ago.

It said the country’s consolidated GG debt stood at P6.8 trillion in the first half, 13.4% higher year-on-year and up 1.49% from the first quarter’s P6.7 trillion.

The latest figure was nevertheless lower by 1.05% compared to the first quarter when the GG share in GDP was at 38%.

Of the P6.8-trillion total, more than half or 63.2% to P4.3 trillion were borrowed from domestic creditors, while the remaining 36.7% or P2.5 trillion were from foreign lenders.

The national government’s debt net of the Bond Sinking Fund went up 1.38% to P7.3 trillion in the first half from the P7.2 trillion in the first quarter and was higher by 12.7% year-on-year.

Of this total, domestic debt also rose by 1.9% while the external debt went down by 1.2% from the first quarter record, the DoF said.

Meanwhile, local governments’ debt likewise climbed 17.4% year on year and by 3.6% compared to the first quarter.

Obligations by the social security institutions such as the Government Service Insurance System and Social Security System did not add to the debt stock during the six-month period but were able to increase their intra-sector holdings of government securities by 2.2% compared to the first quarter. — B.M. Laforga

DTI assists more than 100,000 micro-entrepreneurs via P3 program

THE DEPARTMENT of Trade and Industry (DTI) has assisted over 110,000 micro-entrepreneurs after releasing P5.1 billion worth of loans through its Pondo sa Pagbabago at Pag-asenso (P3) program.

The P3 program was launched in 2017 to provide an alternative to predatory “5-6” loans.

“The P3 program was created so that even the smallest of entrepreneurs, like the sari-sari stores owners and market vendors, will have an opportunity to grow their business without the usurious 5-6 loans,” DTI Secretary Ramon M. Lopez said in a statement.

“I encourage all entrepreneurs in need of capital to avail of the P3 program through the DTI Negosyo Centers and accredited credit delivery partners.”

DTI’s micro-financing arm Small Business Corporation (SB Corp.) released assistance to 110,006 entrepreneurs as of Dec. 23.

SB Corp. released the P5.15 billion worth of loans through 412 partner micro-finance institutes to reach rural and far-flung areas. SB Corp. in July had also partnered with 10 credit delivery partners for efficient loan delivery.

Through the program, micro-businesses can borrow between P5,000 to P200,000. The loan amount is based on business need and repayment capacity.

Interest rate and service fees are capped at 2.5% monthly, compared with the 20% nominal interest rate given to small businesses by the “5-6” money lending industry. P3 has no collateral requirement.

The P3 program also released P7.5 million of loans to 457 Maranao borrowers in the Bangon Marawi initiative following the armed conflict in the region.

Soldiers and police officers who were either wounded or killed in action during the conflict were also given assistance. The 412 individuals or their families were given P31 million in assistance. — Jenina P. Ibañez

Banks’ FCDU loans rise in Q3

FOREIGN CURRENCY loans disbursed by local banks inched up in the third quarter backed by borrowing firms’ higher working capital requirements paired with lower interest rates.

Outstanding loans by foreign currency deposit units (FCDU) of banks stretched to $17.8 billion as of end-September, up by 1.9% from the end-June level of $17.5 billion, according to data from the Bangko Sentral ng Pilipinas (BSP).

Year-on-year, the FCDU loans of lenders jumped 10.8% from $16.1 billion.

“The growth in loans may be attributed to borrowing firms’ higher working capital requirements,” the central bank said on Friday.

FCDUs are central bank-approved bank units which performs transactions involving foreign currencies, mainly by accepting deposits and handing out loans.

Data released by the BSP showed that the biggest chunk of outstanding loans went to towing, tanker, trucking, forwarding, personal and other industries (23.7%), followed by merchandise and service exporters (15.3%); public utility firms (8.3%); and producers/manufacturers, including oil companies (4.9%).

Gross credit disbursed in the third quarter of the year amounted to $17.3 billion, up 3.7% quarter-on-quarter. Loan disbursement growth was boosted by the increase in funding requirements of an affiliate of a branch of a foreign bank, the BSP said.

Loan repayments also grew 5.7% which resulted in overall net disbursements.

Central bank data showed that overall loans-to-deposits ratio inched up to 43.3%, higher than both the 42.3% seen as of the second quarter and the 41.5% recorded a year ago. — L.W.T. Noble

Peso ends 2019 higher

THE PESO strengthened versus the dollar on the last trading day of 2019 as remittance inflows continued to surge for the holidays and amid risk-on sentiment due to positive news on the US-China trade deal.

The local unit closed at P50.635 versus the greenback on Friday, climbing 18.6 centavos from its finish of P50.821 per dollar on Thursday, according to data published on the Bankers Association of the Philippines’ website.

Week-on-week, it appreciated by 18 centavos from its close of P50.815 on Dec. 20.

The local unit also rose P1.88 from its Jan. 2 close of P52.515 against the dollar. Year-on-year, the peso strengthened by P1.945 from its Dec. 28, 2018 finish of P52.58 against the greenback.

On Friday, the peso opened the session at P50.78 against the greenback. Its weakest showing was at P50.94 while its intraday best versus the dollar was at its close of P50.635.

Dollars traded climbed to $1.33 billion from $1.076 billion on Thursday.

Traders attributed the peso’s movement to remittance flows and developments in the US-China trade negotiations.

“The peso appreciated today from increased remittances and some dollar unloading mainly due to the Philippine holiday season,” a trader said in an email on Friday.

“The peso was stronger on the back of the risk-on sentiments on the US-China trade deal and the remittance flows for the weekend,” another trader said in a phone call.

Reuters reported that US soybean futures inched up in early trade on Friday, hovering below an 18-month high hit in the previous session on the back of bullish sentiment that Beijing, which is the world’s largest market for soybeans, will beef up soy purchases following a recently struck trade deal.

The world’s two most powerful economies struck a “phase one” deal that includes a commitment by Beijing to amp up buying US agricultural products.

China’s commerce ministry said on Thursday that Beijing was in close contact with Washington, adding that both sides were still going through necessary procedures before the signing of the deal. — L.W.T. Noble with Reuters

PSE index slips on last trading day of 2019

By Vincent Mariel P. Galang, Reporter

LOCAL shares continued its sluggish performance on the last trading day of 2019, on as investors took profits ahead of the long holiday.

The 30-member Philippine Stock Exchange index (PSEi) slipped 27.02 points or 0.35% to close at 7,815.26 on Friday. The broader all-share index gained 6.47 points or 0.14% to end 4,649.67.

“Last-minute profit-taking ahead of the holiday brought our local market down by 0.34% to 7,815.26,” Japhet Louis O. Tantiango, research associate at Philstocks Financial Inc., said in a text message.

Mr. Tantiango noted net outflows on Friday stood at P817 million, a reversal from the previous session’s net inflows at P143.38 million. Value turnover was at P6.6 billion with 565.493 million issues, higher than the previous session’s 911.474 million issues valued at P3.602 billion.

“The good thing here is that the market was able to hold its ground above the 7,700 — 7,800 support range. At the same time, we were still able to close 2019 with gains with the market up by 4.68% year-to-date,” he added.

For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the main index’s performance for the last trading day of 2019 was driven by window dressing, “investors wanting to remain on the sideline while market is closed for 5 days, and flows into the other regional markets.”

Reuters reported the number of weekly jobless claims in the United States fell by 18,000 to a seasonally adjusted 222,000 for the week ended December 21, which means that Americans filing for unemployment benefits declined. This in return helped drive the US markets higher.

Dow Jones Industrial climbed 105.94 points or 0.37% to 28,621.39, the S&P 500 index gained 16.53 points or 0.51% to 3,239.91, while the Nasdaq Composite increased 69.51 points or 0.78% to 9,022.39.

For Asian markets, Japan’s Nikkei 225 fell 87.20 points or 0.36% to 23,837.72; Kospi Index increased 6.28 points or 0.29% to 2,204.21; HongKong’s Hang Seng index gained 361.21 points or 1.30% to 28,225.42; and Shanghai Composite fell 2.32 points or 0.08% to 3,005.04.

At the PSE, all sub-sectors gained except holding firms, which fell 61.70 points or 0.81% to close 7,592.07, and property, which was down 3 points or 0.07% to close at 4,154.52.

Meanwhile, mining and oil gained 64.05 points or 0.80% to end at 8,091.98; industrial inched up 11.23 points or 0.12% to 9,635.07; services rose 3.13 points or 0.21% to close at 1,531.10; and financials added 2.94 points or 0.16% to 1,863.65.

Gainers outnumbered losers, 104 to 86, while 43 issues were unchanged.

Trading at the PSE will resume on Jan. 2, 2020.

SM Mall of Asia to celebrate the New Year with Grand Mascot Parade 2020

#ComeToMallofAsia and join us as we start the new year with the biggest and merriest giant balloon and mascot parade – The MOA Grand Mascot Parade, now on its 11th year.

Get to see your favorite characters plus giant flying balloons with our marching bands, flag bearer and drum beaters as we welcome everyone for a parade like no other on January 1, 2020, 4PM at the North and South arcades followed by a grand finale at the Seaside Blvd and Meet and Greet at Music Hall.

#MOAGrandMascotParade2020
#MOAYourHomeForTheHolidays

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