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Singapore may allow virtual banks

SINGAPORE could follow Hong Kong in handing out virtual banking licenses, according to the head of the largest local lender, in a move that would create another source of competition for the city state’s established banks.

“I see no reason why it would not,” DBS Group Holdings Ltd. Chief Executive Officer Piyush Gupta said in an interview with Bloomberg Television, when asked whether the Singapore authorities might issue similar licenses to Hong Kong. But he downplayed the likely impact on Singapore’s existing banks, which are already competing with international giants like Citigroup Inc. as well as financial technology start-ups.

Provided incumbent lenders have been upgrading their digital capabilities, any virtual banking newcomers shouldn’t be considered a threat, Gupta said. “To my mind, that’s just basically giving a few more banking licenses,” he added.

Among the firms to receive virtual licenses in Hong Kong, three have partnered with financial institutions such as Standard Chartered Plc, BOC Hong Kong Holdings Ltd. and ZhongAn Online P&C Insurance Co. Fintech firm WeLab Holdings Ltd. has also received a Hong Kong banking license. The new entrants are targeting a market dominated by HSBC Holdings Plc, which has a leading share of the local market for retail and corporate lending, mortgages and credit cards.

Virtual banks typically have lower operational costs than traditional lenders that rely on brick-and-mortar branch networks. Last month, Gupta told DBS’s annual shareholder meeting that a new digital bank could generate $100 of income from a cost base a little above $30.

LEVEL PLAYING FIELD
In the interview, Gupta said he’d only see a problem in Singapore if virtual banks are allowed to operate on more lenient terms than the incumbents, for example in terms of the capital they are required to hold. “The real challenge is if the regulators create an unlevel playing field, and let the new bank licensees come in and do banking on different terms,” he said. But he said most regulators “don’t seem to be inclined” to do that.

Singapore’s banking landscape is dominated by the three local lenders — DBS, Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. — though foreign firms such as HSBC and Citigroup also have branch networks.

Virtual licenses are “a broader banking policy that has to be studied carefully,” Singapore’s Education Minister Ong Ye Kung, who sits on the MAS board, said in a parliamentary speech in January. “The real question is whether there are benefits for Singapore to increase the number of banks in Singapore by admitting primarily digital start-up banks,” Ong added.

Gupta said DBS’s training programs have been successful in minimizing job losses as technology disrupts the finance industry, and reduces the number of staff needed in branches. Some 1,200 employees have been retrained and about 900 have moved to new roles, he said.

Even for people in their 60s and 70s “if you know how to use FaceTime and you can Skype and you order an Uber or a Grab, if you can make the change in your personal life, there’s no reason to believe that you can’t be reskilled and retrained in your professional life,” Gupta said. — Bloomberg

Concepcion earnings up 14%

EARNINGS of Concepcion Industrial Corp. (CIC) went up by 14% in the first quarter, on the back of easing inflation figures and a more stable foreign exchange environment.

In a statement issued Monday, the listed appliances manufacturer said profit after tax and minority interest climbed to P187 million during the period. This came on the back of a seven percent increase in net sales to P3.3 billion.

“The first three months of 2019 has shown signs of a more stable outlook with steady commodity prices, less volatile FX (foreign exchange) and a more controlled inflation scenario,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion said in a statement.

CIC’s first-quarter results mark an improvement from its performance in 2018, which saw net income drop by five percent to P1.4 billion. The company attributed the slowdown to rising costs as a result of higher commodity prices, fluctuating foreign exchange rates, and unfavorable weather especially in the third quarter.

“Highlights of our Q1 topline performance include strong sell-in offerings to counter the relatively slower consumer market as well as a stronger pipeline and order intake in the commercial segment,” Mr. Concepcion added.

The company said it will continue to look at expanding its product and services that will offer relevant and innovative solutions to Filipino families and businesses.

One of CIC’s most recent acquisitions is tech start-up Teko Solutions, Inc., which provides real-time access to professionals who can provide service and repairs for home appliances through a proprietary platform.

“Our key focus areas for this year include expanding our product and services not just through technology but better customer experience and reach as well as enabling our organization to pursue more synergies and innovation,” Mr. Concepcion said.

Incorporated in 1997, CIC is the company behind air-conditioners and refrigerators under the Carrier, Toshiba, Condura, and Kelvinator brands. — Arra B. Francia

Luxurious living spaces at Botanika

THE BOTANIKA Nature Residences offers “a life of utmost privacy, exclusivity, and ease in a lush vertical setting.”

Located within Filinvest City in Alabang, Botanika’s first tower is ready for occupancy, offers 101 units with spaces similar to the layout of single detached units.

Residents of the garden-inspired condominium can enjoy amenities such as a tiered children’s pool and lap pools amid lush greenery and an outdoor play area. Indoor facilities include a library and business center. Members also have direct access to the exclusive Palms Country Club.

How PSEi member stocks performed — May 6, 2019

Here’s a quick glance at how PSEi stocks fared on Monday, May 6, 2019.

 

Price pressures soften for low-income households in March (2019)

Price pressures soften for low-income households in March (2019)

Man claiming to be ‘Bikoy’ video uploader surfaces

A MAN claiming to be “Bikoy” surfaced on Monday at the country’s mandatory bar organization, to claim that controversial identity behind the “Ang Totoong Narcolist” (The Real Narcolist) videos linking members of President Rodrigo R. Duterte’s family to illegal drugs.

In a press conference at the Integrated Bar of the Philippines (IBP) main office in Pasig, Peter Joemel Advincula identified himself as the “Bikoy” behind the said videos which have prompted Mr. Duterte’s ire and subsequently led to an investigation and pursuit of the video perpetrators by the Department of Justice.

Mr. Advincula said he went to the IBP to seek legal assistance against the drug syndicate in which he tagged presidential son Paolo Z. Duterte, senatorial candidate and special assistant to the President Christopher “Bong” T. Go, and the younger Mr. Duterte’s brother-in-law, Manases Carpio. Mr. Advincula also identified as part of the drug network a “Quadrangle Group” from the Bicol region.

“Nagdesisyon akong lumabas dahil una — merong banta sa aking buhay. Ikalawa — dahil sa tawag ng konsensya. Nakikita ko ang pagwasak ng pamilya na dulot ng droga, na kung saan naging bahagi ako sa pagkakalat nito nuong miyembro pa ako ng sindikato,” Mr. Advincula said, quoting a prepared statement at the IBP press conference that was video-streamed by CNN Philippines and Rappler.com, among others.

(I have come out because, first — there’s a threat to my life. Second — because of my conscience. I have seen the destruction of families because of drugs, and I took part in its proliferation as a member of the syndicate).

Mr. Advincula denied being affiliated with the Liberal Party-led senatorial slate Otso Diretso, with journalists tagged by Mr. Duterte as plotting his ouster, nor with Rodel Jayme, the video sharer presented by the DoJ last Thursday and who was charged on Monday afternoon with inciting to sedition.

Mr. Advincula recalled in his statement his employment with a marketing company in Bicol that he claimed was involved in the drug trade and through which he knew Mr. Go and the younger Mr. Duterte.

“Bahagi po ng gawain ng aming team ay ang pag-scan ng mga codes na nakaukit sa tattoo ng mga senior members ng sindikato tulad nila Paolo Duterte at Bong Go,” he said.

(Part of our work is to scan codes embedded in the tattoos of the senior members of the syndicate like Paolo Duterte at Bong Go).

“Ilang bases din na ako mismo ang nag-scan ng code sa tattoo ni Bong Go, kaya tinitiyak ko po sa inyo na may dragon tattoo siya pati na rin si Paolo Duterte.”

(I myself have scanned the tattoo codes of Bong Go a number of times, which is why I can tell you that he has a dragon tattoo and so does Paolo Duterte).

In a press conference while stumping in Calamba, Laguna, on Monday afternoon, Mr. Go. as he did last month, again bared his back to the media, to show he had no tattoo. ‘Hinahamon ko na lang po ang mga Pilipino. Kung naniniwala po kayo kay Bikoy at sa mga akusasyon n’ya sa pamilyang Duterte at sa akin, iboto n’yo po ang Ocho Diretso, sina Bam Aquino at sila (Magdalo Party-List Rep. and senatorial candidate Gary) Alejano,” Mr. Go also said.

(I challenge the Filipino [voters]. If you believe bikoy and his accusations against the Duterte family and against me, vote Ocho Diretso, the likes of Bam Aquino and Alejano).

In his statement, Mr. Alejano said: “I urge the government to swiftly conduct a thorough investigation on Bikoy’s surfacing because the entirety of this issue merits serious attention from everyone. War on drugs has been the central policy of the administration and it has already claimed thousands of lives. The suggestion to investigate is also in line with Senator Lacson’s response that the Senate will not initiate an inquiry if Bikoy will not identify himself.”

“In the same manner, those who were named in the Bikoy series should be investigated. My challenge for them remains the same: sign bank waivers to prove themselves. Similarly, Mr. Paolo Duterte must also show his back while Mr. Bong Go should undergo a thorough examination under the supervision of tattoo experts and dermatologists.”

For their part, Senate leaders said they will consider investigating Mr. Advincula’s claims. — Vann Marlo M. Villegas, with Charmaine A. Tadalan

Nationwide round-up

Comelec: Broken seals of ballot boxes ‘accidental’

Comelec logo
THE COMMISSION on Elections (Comelec) assured the public on Monday that the broken seals on some boxes containing ballots for the May 13 elections delivered last Friday were accidental.

“I asked the Shipping Committee to take a look at the images and by the end of the day, they were able to come up with a conclusion that the tear was accidental. The most telling thing there is the torn edges were uneven and was not consistent with the deliberate breaking of the seal,” Comelec Spokesperson James B. Jimenez told reporters in a briefing.

A picture of a torn paper seal on ballot boxes delivered to the Pasig City treasurer’s office was shared and became viral online last week.

Mr. Jimenez also explained that checking for possible tampering with ballots should be undertaken with the whole package and a broken paper seal is not automatically indicative of fraud.

“In order to check the integrity of the entire shipment, you don’t just look whether or not if the exterior sticker is intact, but you check if whether the packaging of the cargo is intact,” he said, adding that the ballot boxes in Pasig were still perfectly sealed with shrink-wrap.

Other seals found in the ballot boxes were also untouched.

The Comelec spokesperson also noted that the vehicle used to transport the ballots was a wing van, which means the cargo is expected to be not perfectly stable while in transit.

PENS
On another issue, Mr. Jimenez said replacement marking pens to be used for voting have been tested, passed the requirements, and already shipped out.

Some voting precincts have previously reported receiving defective markers.

“We don’t see any more problems with the marking pens because the new pens have been tested and they come up with our requirements… (defective) pens are in the custody of the election officer and will be pulled out completely afterwards. We started shipping more than a million replacements,” he said.

An average of 12 marking pens will be available for each clustered precinct.
Gillian M. Cortez

DoTr-TESDA Tsuper Iskolar program open to ‘as many as willing’ to join — Tugade

DOTR

THE GOVERNMENT’S “Tsuper Iskolar” program, a skills-training scholarship for jeepney drivers and their dependents who will be affected by the transportation modernization project nationwide, is aiming to accommodate as many interested applicants as possible, according to Transport Secretary Arthur P. Tugade. The program is being implemented by the Technical Education and Skills Development Authority (TESDA) in partnership with the Department of Transportation (DoTr). “There no cap (to the number)… as many as there are who are willing to participate in the program. TESDA and DoTr are not closing their doors,” said Mr. Tugade during Friday’s launch of the program in Davao City. The launch was attended by the first batch of more than 700 beneficiaries, which included jeepney drivers and operators, indigenous people, and rebel returnees. The trainings being offered include auto mechanics, accounting and bookkeeping, and other business management skills, among others. An initial budget of P350 million for this year has been downloaded to TESDA. — Maya M. Padillo

Oil prices break uptrend this week

OIL COMPANIES are rolling back the prices of gasoline, diesel and kerosene this week after four straight weeks of price increases the previous month. In their advisories on Monday, oil firms said they were cutting the price of gasoline by P0.90 per liter (/L), while reducing the cost of diesel and kerosene both by P0.80/L. Most of the companies that sent their advisories will implement the cut at 6:00 a.m. today. Ahead of them, Phoenix Petroleum Philippines, Inc. announced on Friday that it would reduce the per liter price of gasoline and diesel by P1.00 and P0.80, respectively, by noon on Saturday. Last week, oil companies raised the prices of gasoline, diesel and kerosene by P0.75, P0.90 and P0.80, respectively. — Victor V. Saulon

Moises Padilla town placed under Comelec control

THE COMMISSION on Elections (Comelec) has placed the municipality of Moises Padilla in Negros Occidental under its control due to “political violence,” citing the recent killing of two town councilors seeking reelection. “These events show that they fall squarely under the parameter…for an area to be declared under Comelec control. This is urgent and necessary,” said Comelec Spokesperson James B. Jimenez. Councilor Michael Garcia and his uncle, former ABC Party-list president Mark Garcia, were shot dead inside their vehicle after coming from a campaign sortie last April 25. Another councilor, Jolomar Hilario, was gunned down by alleged New People’s Army rebels on March 30. The Philippine National Police has confirmed that the police recommended the measure, which was approved in a resolution by the Comelec en banc. Other areas under Comelec control include Daraga City in Albay and Cotabato City. Under Comelec control, the election body takes immediate supervision over all national and local officials and employees required by law to perform duties and/or to comply with certain prohibitions relative to the conduct of the elections — Vince Angelo C. Ferreras, with a report from Gillian M. Cortez

DoH reminds on health risks as Iloilo City hits highest heat index in 9 years

ILOILO CITY recorded its highest heat index since 2010 at 48°C last May 2, the City Disaster Risk Reduction Management Office (CDRRMO) reported based on its local weather monitoring station. Heat index, as defined by the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), indicates the human discomfort level with the “apparent” temperature that the body feels. CDRRMO operations and warning officer Darwin Joemil G. Papa said the 48°C level lasted for about 25 minutes starting as 2:26 p.m. Meanwhile, the Department of Health-Western Visayas (DOH-6) cautioned the public of the health risks arising from the high temperature. DOH-6 Infectious and Emerging Disease Cluster head Elvie P. Villalobos said, “Common diseases that can be experienced because of extreme heat are sunburn, heat stroke, and diarrhea,” as well as skin infections. “The construction workers are high risk especially on heat stroke, that is why they need to drink 3 to 4 liters of water and maintain healthy diet,” he said. — Emme Rose S. Santiagudo

Aftershocks recorded after magnitude 5.4 earthquake in Ilocos Norte

AT LEAST 2 aftershocks, with magnitude 3.5 and 2.2, were recorded on Monday following the magnitude 5.4 earthquake off the coastal town of Pagudpud in Ilocos Norte at 10:48 a.m. Intensity 4 was felt in Pasuquin, Ilocos Norte and Tuguegarao City, Cagayan. Instrumental intensities were also felt in the following area: 5 in Claveria, Cagayan; 4 in Pasuquin, Ilocos Norte; and 3 in Sinait and Vigan City, Ilocos Sur. There were no immediate reports of damage. Ilocos Norte was hit by a major earthquake in 1983 with a magnitude of 5.3. “This was the most severe earthquake in North-western Luzon in 52 years and probably the second largest earthquake event to hit Laoag City and it’s immediate vicinity in historical times,” according to the historical record of the Philippine Institute of Volcanology and Seismology. It killed 16 people, injured 47, and damaged concrete buildings and old churches.

Davao City allocates P7.8M to assist 22 LGUs hit by El Niño

THE DAVAO City government is allocating P7.8 million to help 22 local government units (LGUs) heavily affected by the long dry spell. The budget was approved by the city council last week. The biggest slice of the fund, which will be disbursed through the Philippine National Red Cross, will go to Camarines Sur in the Bicol Region at P1 million. The cities of Kidapawan and Zamboanga will get P500,000 each, while the town of Sultan Kudarat in Maguindanao will receive P400,000. The city government will also hand over a check of P300,000 each to the towns of San Isidro, Davao Oriental; Alabel, Sarangani; Matalam, Alamada, Aleosan, Magpet, Pigkawayan, Mlang, Pikit, Tulunan, and Arakan in Cotabato; Bagumbayan and Lutayan in Sultan Kudarat; Paracelis, Mountain Province; Dupax del Norte, Nueva Vizcaya; and, Santa Barbara, Januay and Maasin in Iloilo. Alfredo D. Baloran, chief of the City Disaster Risk Reduction and Management Office, explained that the amounts are not the same as “some municipalities, cities, and provinces were greatly affected by the dry spell.” Earlier, the city government said it is not placing the city under a state of calamity just yet as damage, especially to agriculture, remain minimal. Nonetheless, it is planning to set aside P25 million to set up or rehabilitate small irrigation systems where these are needed. — Carmelito Q. Francisco

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