Home Blog Page 11819

Vinta weakens into depression

STATE weather bureau Pagasa, in its online bulletin as of 5:00 p.m. of Dec. 22, said Tropical Storm Vinta has weakened into a tropical depression over the Zamboanga del Sur area as of that time.

Vinta’s center is in the vicinity of Sominot town, Zamboanga del Sur, with maximum winds of up to 60 kph near the center and gustiness of up to 90 kph.

Vinta’s forecast movement is west at 20 kph. It is expected at 435 km west southwest of Puerto Princesa, Palawan, by the next 48 hours, and outside the Philippine Area of Responsibility by Monday afternoon.

Tropical Cyclone Warning Signal (TCWS) No. 2 has been downgraded to No. 1 in Southern Negros Occidental, Southern Negros Oriental, and Siquijor in the Visayas; and, in Mindanao, Misamis Oriental, Lanao del Norte, Lanao del Sur, Misamis Occidental, the Zamboanga Peninsula, the western part of North Cotabato, and the northern part of Maguindanao. “TCWS elsewhere are now lifted,” Pagasa said.

“Residents of these areas must make appropriate actions against flooding and landslides, coordinate with their respective local disaster risk reduction and management offices, and continue monitoring for updates,” the bulletin read in part.

Meanwhile, the Department of Public Works and Highways in an advisory also on Friday said four road sections in Regions 10 (Northern Mindanao) and 13 (Caraga) have been closed to traffic due to soil collapse, flooding, fallen trees, and electrical posts:

REGION

 

ROAD SECTION

SITUATION

REGION X

 

 

 

Bukidnon 1st DEO

1.  Kapalong – Talaingon – Valencia Road, K1574+800, San Fernando, Bukidnon

 

 

Closed to traffic due to soil collapse

Bukidnon 3rd DEO

1.  Jct. S.H Aglayan – Alanib Ticala-an Road (Ticalaan – Paganan), Ticalaan, Talakag, Bukidnon

 

 

Closed to traffic due to soil collapse

Cagayan de Oro 1st DEO

1.  CDO – Airport – Bukidnon Road, K1456+000 (Bayanga) Street)

 

 

 

Closed to traffic due to fallen tree and electrical post

 

REGION XIII

 

 

 

Agusan del Sur 2nd DEO

1.  Approaching Upper Baobo BridgeNaval-Caibiran Cross Country Road, K1546+540, Brgy. Sinobong Veruela

 

 

Closed to traffic due to flooding

 

 

 

All other national roads of the affected regions are passable as of the DPWH advisory at 12:00 p.m. The department said it has deployed manpower and equipment, installed warning signs, and is conducting ongoing clearing operations. DPWH will issue further updates.

U.S. Embassy closed Dec. 25, 26

The Embassy of the United States in the Philippines and affiliated offices will be closed to the public on Monday, Dec. 25, in observance of Christmas, and Tuesday, Dec. 26, in observance of a Philippine holiday. The Embassy and affiliated offices will resume services on Wednesday, Dec. 27.

MMDA Alabang area advisory

THE Muntinlupa Local Government will close the National Highway from Susana Heights to Alabang Viaduct on SaturdayDec. 23, from 12:00 to 6:00 p.m. to give way to the Metro Manila Film Festival Parade of Stars. Expect heavy traffic.

Big firms team up for NAIA rehab

SEVEN MAJOR COMPANIES, including some of the country’s biggest conglomerates, have formed a consortium to rehabilitate, operate and maintain Ninoy Aquino International Airport (NAIA), those listed among them said in separate disclosures on Thursday.

The companies concerned — Aboitiz Equity Ventures’ (AEV) Aboitiz InfraCapital, Inc.; Ayala Corp.’s AC Infrastructure Holdings Corp.; Filinvest Development Corp. (FDC); JG Summit Holdings, Inc.; Alliance Global Group, Inc.; Metro Pacific Investments Corp. (MPIC) and Asia’s Emerging Dragon Corp. — have formed a consortium that will submit an unsolicited proposal to the Department of Transportation “for rehabilitation, operation and maintenance of NAIA,” they said in a joint statement.

“The terms of the memorandum of understanding or framework of the consortium are still under negotiation,” the statement read, adding that the group “will work with foreign technical partners with world-class track records in airport operations” on the project.

“Augmenting NAIA’s capacity,” the companies said, “is the quickest way to address airport congestion while other airports are being developed outside Metro Manila.”

NAIA accommodated over 39.5 million passengers in 2016, way more than its 30.5 million designed capacity.

“The consortium believes that NAIA will continue to be a strategic gateway and a key hub of airline operations for the Philippines. With proper upgrades and strategic improvements, NAIA can easily accommodate an additional 11 million passengers annually from the current 39.5M passengers, and can increase its hourly aircraft movements from 40 movements per hour to 48 movements per hour,” the companies said in their statement.

The development complements other initiatives to develop alternative gateways to decongest NAIA.

San Miguel Corp., for instance, has submitted an unsolicited proposal for the construction, operation and maintenance of a P700-billion airport in Bulacan with designed capacity of 200 million passengers per year and equipped with four runways.

Moreover, the consortium of listed builder Megawide Construction Corp. and Bangalore-based airport operator GMR Infrastructure Ltd. has been awarded the contract to build a new terminal building at Clark International Airport that will build for P9.36 billion by 2019 a 82,600-square-meter terminal building designed to handle eight million passengers a year, nearly double the current 4.2 million capacity.

Sought for comment, MPIC Chief Financial Officer David J. Nicol said the proposal involves the entire NAIA system.

“There is no figure at this point. It will take a little while to finalize,” Mr. Nicol said when asked for project cost.

An e-mail from AC Infrastructure’s corporate communications office said the group was “in the middle of assessing the needs and scope for the project”, hence was unable to elaborate.

Harry G. Liu, president of Summit Securities, Inc., said that the proposal showed that the companies were betting big on the economy. “You can see seven big companies joining together. If they work together to rehabilitate NAIA, it means they see that there is economic growth in the country. They will not join together and try to construct if they don’t see any benefit from the airport,” Mr. Liu said in a phone interview.

Thursday saw stock prices of listed firms concerned end mixed.

Those of AEV, JG Summit and MPIC rose 3.05% to P71 apiece, 0.69% to P72.50 and by 0.60% to P6.75 each, respectively.

Stock prices of Ayala and Alliance Global, in contrast, retreated by 0.88% to P1,009 and by 0.38% to P15.88 apiece respectively, while that of FDC was flat at P7.80 each.

MPIC is one of the three key Philippine units of Hong Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Top-level budget planning body to review macroeconomic targets

THE Development Budget Coordination Committee (DBCC) will meet today to review its macroeconomic assumptions for the medium term, with “improvements” expected particularly for merchandise export projections.

The Department of Budget and Management said in an e-mailed media advisory yesterday that the DBCC will meet at 10 a.m. today at the Department of Finance headquarters in Manila.

Asked whether the interagency committee will change economic assumptions for budget purposes, Finance Secretary Carlos G. Dominguez III told reporters last week: “If any it will be higher.”

Finance Undersecretary Gil S. Beltran in the same interview said that export growth will be one of those that will likely be revised upward.

“Export growth should be higher: now double digits,” he said.

Outbound shipment of Philippine goods grew 11.7% as of end-October, versus a 3.0% and 5.9% contraction in the same period in 2016 and 2015, respectively, according to Philippine Statistics Authority (PSA) data.

The DBCC in its June 9 meeting set a 5.0% merchandise export growth assumption this year — from 2.0% previously, 7.0% for 2018 from 5.0%, and 9.0% in 2019 from 7.0%. It also retained the 2020-2022 export growth projection at 9.0%.

“It will be announced later… but all are improvements over the previous,” Mr. Beltran said of annual export growth assumptions.

Aside from export growth revisions, the DBCC in its June meeting also adjusted foreign exchange assumptions for 2018 until 2022 to P48-51 versus the greenback, from P45 to P60, while it retained the assumption this year at P48-50 per dollar.

It also expects gross domestic product (GDP) growth at 6.5-7.5% this year, and 7-8% in 2018-2022.

The DBCC has also capped the budget deficit each year at equivalent to 3.0% percent of GDP until 2022.

For merchandise imports, the DBCC sees a 10% growth this year to 2019, and 11% from 2020 to 2022.

Actual GDP clocked 6.7% in the first three quarters while merchandise imports grew 8.3% as of end-October.

Dubai crude oil price projections were at $45-55 per barrel in 2017, $45-60 in 2018 and $50-65 in 2019 to 2022.

The 364-day Treasury Bill rate was assumed at 2.5-4% for 2017-2022. Foreign interest rate assumptions were at 1.0-2.0% in 2017 and 1.5-2.5% from 2018 to 2022. — Elijah J. C. Tubayan

BSP readies bank stress test guidelines

THE BANGKO SENTRAL ng Pilipinas (BSP) will soon prescribe standards on the conduct of stress tests by banks, as part of efforts to improve risk management protocols and recovery plans, especially for “too-big-to-fail” lenders.

As a rule, banks must conduct stress tests regularly to check how their balance sheets would hold up amid a funding crunch, in the process exposing potential weaknesses.

“Stress testing allows banks to prepare for events with severe financial impact,” the BSP’s policy-setting Monetary Board said in a statement yesterday, noting that the new guidelines are aimed at further strengthening risk governance and boosting the safety and soundness of the banking system.

Routine stress testing assumes “severe but plausible” scenarios — such as assuming a 50% default rate in outstanding loans — which would then show the potential effects and risks posed by these episodes to a bank’s financial position.

“[B]ased on the results of stress testing, banks may adopt proactive measures such as the implementation of capital build-up initiatives or enhancement of risk management practices all aimed at improving their resilience in times of actual crisis,” the central bank explained.

A bank’s board of directors is also expected to consider the results of regular stress tests in capital and liquidity planning, setting of risk appetite levels and planning business continuity measures in order to mitigate potential risks.

In the case of domestic systemically important banks — or the biggest players in the local financial system — the outcome of these stress exercises should also be factored in crafting recovery plans, the BSP added.

Banks have two years from the date the circular takes effect to streamline internal mechanisms and comply with the new standards.

Banks should employ multiple approaches for stress testing from a range of a simple sensitivity analysis to scenario-based exercises, depending on the scale of operations and the complexity of products and services offered.

Simpler requirements are set for thrift, rural and cooperative banks, the BSP said.

Those forming part of conglomerates need to conduct stress tests on a consolidated basis — or at the level of the parent bank, including all banking subsidiaries.

As regulator, the central bank conducts its own stress tests among entities it supervises in order to ensure that the country’s financial system remains sound.

Levels of capital buffers, money supply and real estate exposure are among the key metrics monitored and tested by the central bank in regularly overseeing the financial system. — Melissa Luz T. Lopez

Indonesia bags Fitch rating upgrade after S&P lifts it from junk

JAKARTA — Indonesia won a second sovereign rating upgrade this year, with Fitch Ratings raising its assessment to the second-lowest investment grade, months after S&P Global Ratings lifted the nation out of junk status.

The nation’s stocks and currency rallied.

The rating on the nation’s long-term, foreign currency-denominated debt was raised one level to BBB with a stable outlook, Fitch said in a statement on Thursday.

AT PAR WITH THE PHILIPPINES
The upgrade puts Indonesia on par with the Philippines and Portugal, which received upgrades just this month.

Indonesia’s resilience to external shocks is among the key rating drivers as policy makers focus on stability, Fitch said, echoing similar comments from S&P which returned the country to investment grade in May.

These endorsements of the nation’s economic stability are likely to help President Joko Widodo as he embarks on a $62-billion borrowing plan next year.

“With US treasury yields trending higher lately, this upgrade will help limit any rise in Indonesia’s risk premium and keep yields low,” said Handy Yunianto, head of fixed-income research at PT Mandiri Sekuritas.

“We expect overall Indonesian yields to stay relatively low despite rising US yields. The pieces lined up for Indonesia on the macro front, where we see growth bottoming out while inflation is trending down with low volatility.”

Investors have been rewarded with the nation’s local notes surging 17% this year, compared with 12% for emerging Asian bonds, according to Bloomberg indexes.

The benchmark Jakarta Composite Index rallied as much as 1.1% to a record on Thursday, while the rupiah gained as much as 0.3% to 13,537 per dollar, the highest since Dec. 6, according to data compiled by Bloomberg.

FOREIGN RESERVES
Rising foreign-exchange reserves and strong economic growth are other reasons for the upgrade, Fitch said.

It expects Indonesia’s gross domestic product to rise 5.4% in 2018 and 5.5% in 2019, from 5.1% in 2017. Net foreign direct investment will cover the current-account deficit over the next few years as the ease of doing business ranking improves, the firm said.

Bank Indonesia welcomed the upgrade and said it will continue its commitment to maintaining macro-economic and financial system stability to support a strong, sustainable, balanced, and inclusive economic growth.

Moody’s Investors Service may follow the other two rating companies in upgrading the country, said Josua Pardede, an economist at PT Bank Permata. Mandiri’s Yunianto expects Moody’s upgrade as early as February.

ELECTIONS
Risks include potential emerging market pressure as the US proceeds with rate increases, Indonesia’s high dependence on commodities and high level of net and gross external debt, as well as the upcoming elections.

The possibility that political noise becomes a distraction from economic policy making in the run up to the 2018 local elections and 2019 presidential election represents a risk to the strong reform drive and could undermine domestic and foreign market sentiment, although such an outcome is not Fitch’s base case, it said.

INVESTMENTS ON A ROLL
Investment is set to gain further momentum on higher public infrastructure spending, lower borrowing costs and structural reform implementation.

The budget deficit will probably remain broadly stable at 2.7% of GDP and stay within the three percent ceiling.

Government revenue is very low; among Fitch-rated sovereigns, only four have lower government revenue as a percentage of GDP Sovereign’s exposure to banking-sector risks is limited. — Bloomberg

A guide to this year’s MMFF entries

By Zsarlene B. Chua
Reporter

Christmas in the Philippines — known for being long and festive — is never truly complete without families (the children flush with cash from their godparents and other assorted relatives) trooping to the cinemas come Dec. 25 for the annual Metro Manila Film Festival (MMFF).

The festival runs for two weeks — from Dec. 25 to Jan. 7.

Widely regarded as the country’s premiere film festival, the MMFF was established in 1974 “in recognition of the role of the film industry in providing artistic depictions of both this country’s stories and history” states the website of the Metropolitan Manila Development Authority, — better known as the MMDA — which runs the festival. But an earlier version of it was put into place in 1966 under the name Manila Film Festival, initiated by Mayor Antonio Villegas as a way of getting Filipino films into the city’s so-called “first run” theaters which showed American films back then (Filipino films were screened at second tier cinemas).

“[T]he yearly film festivals that followed popularized Tagalog films, thus convincing theater owners that these were marketable and profitable,” says the CCP Encyclopedia. “In 1975 the filmfest was expanded to include theaters and areas outside Manila and was renamed the Metro Manila Film Festival.”

Eventually, the festival spread throughout the archipelago but retained the name.

LUCRATIVE TIME OF THE YEAR
During the festival’s run, only the offical entries are shown in theaters — no foreign films are allowed to be screened — which makes it the most lucrative time of the year for local film producers. Which also means that competition to be chosen as a festival entry is fierce.

Last year, the MMFF opted not to go for the usual film franchises from Jose Marie “Vice Ganda” Visceral and Marvic “Vic” Sotto and instead went for films with a more independent bent and as a result, raked in considerably less in ticket sales than previous years: P373 million in 2016 compared to 2015’s P1.020 billion.

Still, the MMFF’s executive committee hailed it a triumph for the well-made Filipino films shown and during its awards ceremony, granted the Best Picture trophy to Baby Ruth Villarama’s Sunday Beauty Queen, the first documentary to have ever won the award in the festival’s history.

This year, people helming the festival decided to bring back the tried and true franchises, much to the displeasure of some committee members.

Upon the announcement of the first four entries (chosen based on script submission) which saw film franchises chosen over the Palanca-winning adaptation of the thriller Smaller and Smaller Circle directed by Raya Martin and Loy Arcena’s musical Ang Larawan (a film adaptation of National Artist for Literature Nick Joaquin’s play Portrait of an Artist as Filipino, with libretto and lyrics by National Artist for Theater and Literature Rolando Tinio), three executive committee members handed in their resignations: scriptwriter Ricky Lee, academician Rolando Tolentino, and broadcast journalist Kara Magsanoc-Alikpala.

“The results of the script selection speak for itself,” said Mr. Tolentino then.

The three were replaced by Quezon City Vice-Mayor Ma. Josefina “Joy” Belmonte-Alimurung, film director Maryo J. delos Reyes, and comic actor Arnel Ignacio who is also the AVP for Community Relations and Services of the Philippine Amusement and Gaming Corp.

Life went on and people behind Smaller and Smaller Circles decided to release the film on their own on Dec. 6. The backers of Ang Larawan decided to stay the course and eventually won a spot in the festival after re-submitting it as a finished film.

After all the drama, the festival is nearly upon us and here is a quick rundown of all the films the MMFF has to offer this year — in alphabetical order.

MMFF: All of YouAll of You
Directed by Dan Villegas

A romantic comedy about Gab (Derek Ramsay) and Gabby (Jennylyn Mercado) who met through a dating app. Despite their strong opposing views on marriage, they fell in love and decided to try being in a committed relationship. Then, after three years, the couple reevaluate the state of their relationship.

Mr. Ramsay and Ms. Mercado first hit the screens together in the 2014 MMFF entry English Only Please, which was also directed by Mr. Villegas.

MTRCB Rating: R-13

MMFF: Ang LarawanAng Larawan
Directed by Loy Arcenas

This is the film adaptation of the musical version of National Artist for Literature Nick Joaquin’s play Portrait of the Artist as Filipino. The musical has a libretto and lyrics by National Artist for Theater Rolando Tinio and music by Ryan Cayabyab.

Set in 1941 Intramuros, it revolves around two sisters — Candida (played by Joanna Ampil) and Paula (Rachel Alejandro) — who, despite being destitute, try desperately to hold on to the only painting that their reknowned father finished in years.

Aside from being a story about the choice between ideals and pragmatism, the film is also a painting of Intramuros shortly before it became a costly casualty of the Second World War.

“I saw [the film] as a love letter to the Filipinos. The reason I wanted to do this film is because I feel like we lost so much of [the era] and I wanted to recapture it on film as a record of that era,” Mr. Arcenas told BusinessWorld during a media screening.

The film garnered a rare unanimous A grade from the Cinema Evaluation Board (CEB).

MTRCB Rating: PG

MMFF: Ang PandayAng Panday
Directed by Rodel Nacianceno

The umpteenth iteration of Carlos J. Caparas’ epic tale of a blacksmith-turned-savior-of-the-world sees actor Coco Martin — using his real name, Rodel Nacianceno — in his directorial debut. He also serves as the film’s executive producer and is the lead character.

The movie is about the grandson of the original Panday who discovers that he must follow in his predecessor’s footsteps and save the world after the previous Panday’s archnemesis, Lizardo (Jake Cuenca) decides to wreak havoc upon the world once again. He is then tasked to scour different worlds in order to gain the power of the legendary Panday sword.

“I wanted this film to be in touch with present-day life even if it commonly associated with fantasy… everything has to be real,” The Philippine Star quoted Mr. Nacianceno as saying at a press conference.

MTRCB Rating: G

MMFF: Deadma WalkingDeadma Walking
Directed by Julius Alfonso

A film about friendship, Mr. Alfonso’s Deadma Walking is a dark comedy about Mark (Edgar Allan Guzman), a theater actor who mounts a fake but fantastic wake to fulfill the final wish of his best friend, John (Joross Gamboa), who is terminally ill (the movie’s title is a pun on “dead man walking”).

“There are a lot of films where friendship is a side story, but in this film it’s at the center,” said writer Eric Cabahug during a press conference.

“[It’s a story of how] best friends can be soulmates,” Mr. Alfonso added.

The film’s screenplay won second place at the 2016 Palanca Awards for Literature in the Screenplay Division and was also graded A by the CEB.

MTRCB Rating: PG

MMFF: The Revenger SquadGandarrapiddo: The Revenger Squad
Directed by Joyce E. Bernal

Starring comedians Jose Marie “Vice Ganda” Viceral and Daniel Padilla, and beauty queen Pia Alonzo Wurtzbach, Gandarrapiddo focuses on Gandarra, a gay superhero from another planet who is destined to save the world — unfortunately, his human form has forgotten all about his superhero identity and so the quest begins to make him remember in time to save the world.

This film marks Mr. Viceral’s return to the MMFF after 2015’s Beauty and the Bestie which featured Coco Martin, and is a follow-up to Mr. Viceral’s Super Parental Guardians which was released prior to the MMFF last year.

MTRCB Rating: G

MMFF: Haunted ForestHaunted Forest
Directed by Ian Lorenos

The only horror entry to the festival, the film tells the story of Nica (Jane Oineza), a teenager who relocates to the province after her policeman father Aris (Raymart Santiago) is reassigned. It turns out that the once quiet town they move to is now haunted by a sitsit, a supernatural being who preys on women and leaves the victim’s body in the middle of the forest.

Also in the cast are Jon Lucas, James Blake, and Maris Racal. The film is produced by Regal Entertainment, Inc., the company known for the long-running Shake, Rattle and Roll horror franchise.

MTRCB Rating: PG

MMFF: Meant to BehMeant to Beh
Directed by Chris Martinez

This family comedy is the first film that Marvic “Vic” Sotto and Dawn Zulueta have made together in more than 30 years — their last film together was Okay Ka Fairy Ko! in 1995. Meant to Beh tells the story of a married couple who decide to separate after many years as they realized they never really loved each other. Their children then embark on a mission to get their parents to fall in love with each other — even if they are already in new relationships.

Mr. Sotto (who produces the film) has described the film “a serious film presented in a light manner,” as the film tackles a “quite serious and heavy” theme.

The film is also Mr. Sotto’s attempt “to level up in some ways and do a serious movie,” according to Interaksyon.

MTRCB Rating: G

MMFF: SiargaoSiargao
Directed by Paul Soriano

Known for films such as family drama Thelma (2011), and the suspense thriller Dukot (2016), Siargao marks Mr. Soriano’s first foray into the romance genre. The film revolves around Diego (Jericho Rosales), an island lover and the love interest of broken-hearted video blogger Laura (Erich Gonzales) and environmental activist and Siargao native, Abby (Jasmine Curtis-Smith) who are brought together in the eponymous island where they experience a second chance at love.

Aside from the story’s romance angle, Mr. Soriano also makes the case for environmental awareness all the while showcasing the beauty of the island that is best known for its surfing.

MTRCB Rating: PG

MetroPac Water bags P12.35-billion Iloilo project

METRO PACIFIC Investments Corp. (MPIC) on Thursday said its subsidiary has bagged the P12.35-billion project involving the rehabilitation and expansion of the existing water distribution system of Metro Iloilo Water District (MIWD).

In a disclosure to the stock exchange, the conglomerate said  MetroPac Water Investments Corp. received on Dec. 20 the notice of award for the project, which also includes the operation and maintenance of the water district and the construction of wastewater facilities.

MPIC said its unit and the water district would enter into a joint venture agreement (JVA) upon completion of the post-award activities.

“A joint venture corporation shall be organized pursuant to the provisions set in the JVA. The joint venture corporation shall implement the project including the right to bill and collect tariff for the water supply and wastewater services provided to the customers in the service area of MIWD,” it added.

The project for the 25-year concession has an estimated cost of P12.35 billion. MPIC said an initial equity investment of P600 million is required next year.

The water district’s service area includes Iloilo City and seven municipalities, specifically Pavia, Oton, Maasin, Cabatuan, Sta. Barbara, Leganes and San Miguel. As of 2017, the estimated population in the service area of the water district is 844,618.

The project comes after MetroPac Water in August agreed to form a joint venture company with the Cagayan de Oro water district to undertake the supply of bulk treated water in one of Mindanao’s most populated cities.

MetroPac Water was awarded the 100 million liters per day (MLD) bulk water project in March. The project has a term of 30 years and renewable for another 20. It involves the construction of new water transmission lines and the rehabilitation of the Camaman-an reservoir.

The company also is has an 80% stake in Metro Iloilo Bulk Water Supply Corp. It invested P2.8 billion to produce a capacity volume of 46 MLD, from the previous 32 MLD.

Another one of its projects is the Maragondon Bulk Water Supply, a joint venture agreement with Lucio Tan-led MacroAsia Corp. in partnership with the Maragondon Water District.

For water distribution, MetroPac Water owns 27% of Laguna Aquatech Resources Corp. (LARC). LARC is a joint venture partnership with Equi-Parco Construction Company for the full concession of Laguna Water District.

In waste water solutions, MetroPac Water holds 65% of Ecosystem Technologies International, Inc.

MPIC, with the expertise of its unit Maynilad Water Services, Inc., has been looking to expand its water venture in the Association of Southeast Asian Nations (ASEAN) region.

For the long term, MPIC is looking to develop a pan-ASEAN water company, company Chairman Manuel V. Pangilinan had said in August.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

On Thursday, shares in MPIC rose 0.60% to close at P6.75 each. — Victor V. Saulon

BSP approves rules for ‘branch-lite’ units

By Melissa Luz T. Lopez,
Senior Reporter

THE CENTRAL BANK will soon allow banks to set up dressed-down branches nationwide, as the regulator eases rules on banking offices in a bid to boost financial inclusion.

In a statement, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) said they have approved the option for banks to set up “branch-lite” units, which will allow lenders to set up simplified service outlets from the prescribed brick-and-mortar space.

“A branch-lite is considered a full branch, but then the bank would have the flexibility in designing the branch. It could be the look may not be so formal, because you can’t avoid that some people may be intimidated with the look of a branch,” BSP Deputy Governor Chuchi G. Fonacier told reporters in a recent ambush interview.

For one, Ms. Fonacier said a lite branch may be set up in a marketplace, which would effectively extend full banking services within a structure that’s more open and enticing to low-income Filipinos, versus the imposing vibe of branches often seen in business districts.

Lower processing fees will also be imposed on transactions done in these smaller bank outlets.

Existing BSP rules allow banks to set up branches — which do deposit-taking, service withdrawals, and maintain complete sets of books of accounts — as well as extension offices and other banking offices, including microfinance units. However, branch-lite offices will be excluded from the computation of capital requirements.

All banks may choose to set up branch-lite units, although such plans would still have to be approved by the Monetary Board similar to proposals to open other banking offices.

Through this, the BSP hopes to bring financial services to 570 cities and towns in the country which have no access to banks.

The National Baseline Survey on Financial Inclusion released by the central bank in 2015 showed that only 43% of Filipino adults had savings, with 68% of them opting to keep their money at home rather than placing them as bank deposits.

“With simplified and more flexible provisions, banks will be better able to expand in areas which are unbanked and underserved,” the central bank said, noting that the new rules allow enough room to tailor-fit services for the low-income market.

“The banking products offered in branch-lite units shall exclude those suited for sophisticated clients with high risk tolerance,” the BSP added.

Ms. Fonacier said the branch-lite offices would likewise “level the playing field” between banks and non-bank players in serving rural areas, as it allows room for competition in serving these markets.

Another reform eyed by the central bank is the creation of basic deposit accounts which will have no maintaining balances. This is seen to serve as the entry point for unbanked Filipinos to finally get aboard the formal financial system.

Peso strengthens further on profit taking ahead of holidays

THE PESO continued its rally against the dollar on Thursday as market players took profits ahead of the holiday season.

The local currency closed the session at P50.24, climbing five centavos from the previous day’s finish of P50.29 versus the greenback.

The peso opened stronger at P50.10 versus the dollar, which was also its best showing yesterday. Its intraday low, meanwhile, stood at P50.26 against the greenback.

Dollars traded soared to $630.2 million from the $490.8 million that changed hands a session ago.

A trader said the slight uptick of the peso yesterday was due to “profit taking ahead of the holiday season despite positive news regarding the US economy.”

The Republican-controlled US House of Representatives gave final approval on Wednesday to the biggest overhaul of the US tax code in 30 years, sending a sweeping $1.5-trillion tax bill to President Donald J. Trump for his signature.

In sealing Mr. Trump’s first major legislative victory since he took office in January, Republicans steamrolled opposition from Democrats to pass a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary tax relief to middle-class Americans.

The House approved the measure by 224-201, passing it for the second time in two days after a procedural foul-up forced another vote on Wednesday. The Republican-led Senate had passed it 51-48 in the early hours of Wednesday.

Meanwhile, UnionBank of the Philippines (UnionBank) Chief Economist Ruben Carlo O. Asuncion noted that yesterday’s sideways movement can be attributed to continued optimism on the local tax reform bill.

“[The] dollar was little changed, again [due to] optimism on the result of the tax reform,” Mr. Asuncion said, noting that the market is on a wait-and-see mode as President Rodrigo R. Duterte is set to veto some provisions in the first tax reform package, which was signed into law on Tuesday.

On Wednesday, Budget Secretary Benjamin E. Diokno said the Department of Budget and Management has submitted a list of provisions the president can veto in the tax overhaul, as well as in the 2018 budget.

Mr. Diokno added that Mr. Duterte can “exercise his right for line item veto” when it comes to tariff, budget and tax.

“[The foreign exchange] is still very positive in terms of its response to the tax reform not until if we see some significant parts the president will veto,” Mr. Asuncion added.

For today, UnionBank’s chief economist expects the peso to trade between the P50.05 and P50.45 level, while another trader sees the local currency moving from P50.15 to P50.35.

“The local currency is expected to appreciate further amid profit-taking due to the fact that the markets recently already factored in major possible market movers and started to sell off their positions as the year ends,” a trader said.

Meanwhile, most Asian currencies edged higher against the dollar on Thursday, with the rupiah leading the gainers in the region and touching a two-week high after Fitch Ratings upgraded Indonesia’s credit rating.

“Asian currencies are trading firmer today, led by the Indonesian rupiah which jumped after a Fitch upgrade and a strong yuan fixing earlier,” Peter Chia, foreign exchange strategist at United Overseas Bank (UOB) in Singapore, said on Thursday.

The dollar index, which measures the greenback against a basket of six major currencies, was nearly flat at 0437 GMT.

The South Korean won and the Taiwan dollar gained as much as 0.1% and 0.2% respectively. — KANV with Reuters

8990 Holdings completes 2 buildings in Tondo

8990 Holdings, Inc. is set to complete two buildings in its P8-billion residential project in Tondo, Manila, which the mass housing developer said would attract more buyers.

In a statement issued Thursday, 8990 Holdings said two out of the 13 buildings for Urban Deca Homes Manila project will be completed by the end of 2017, with another six buildings now under construction.

“We’ve proven that the moment buildings are already put up, sales performance increases as well. Once our buyers saw that the buildings are already nearing completion, we noticed a steady increase in our sales. This will definitely keep our brokers very busy this Christmas season,” 8990 Chief Operating Officer Willibaldo J. Uy was quoted as saying in a statement. 

All buildings are expected to be completed by 2020. The company then expects to book P21 billion from the sale of the project’s 13,000 units.

Adjacent to Urban Deca Homes Manila is 8990 Holdings’ first foray into mall development, Deca Mall Tondo. The P452-million community shopping mall will have two floors featuring retail and food tenants.

Deca Malls Tondo will be operational by 2018, by which time units in the first three towers of the residential project will also be turned over to their owners.

“Tondo has such a tightly knit community and the people who grew up there prefer to stay there. It is also attractive to entrepreneurs and employees who have businesses and work in the surrounding areas such as Caloocan-Malabon-Navotas-Valenzuela region and surrounding areas of Manila including Divisoria, Sta. Cruz and Ermita,” Mr. Uy said. 

With its development in Tondo, 8990 remains bullish on Metro Manila’s affordable housing industry. The company will be replicating Urban Deca Homes Manila in Ortigas, which will feature 24 residential buildings with a total of 18,993 units, as well as a shopping mall.

8990 saw its attributable profit fall 22% to P2.47 billion in the first nine months of 2017, from the P3.2 billion it booked in the same period a year ago as it experienced a slowdown is securing permits for projects. Still, the company expects to book P4 billion in earnings by year-end.

Shares in 8990 added 12 centavos or 1.88% to close at P6.50 apiece at the stock exchange on Thursday. — Arra B. Francia