Boutique developer breaks ground for Ridgewood Towers Premier

May 1, 2018 | 12:01 am

BOUTIQUE developer C-5 Mansions Development Corp. broke ground last March 26 for Ridgewood Towers Premier, the centerpiece of its Ridgewood Square development along C-5 Road and close to Bonifacio Global City (BGC).
“This milestone affirms our promise to have Ridgewood Towers Premier available by 2022. By committing to our schedule, we prove that C-5 Mansions values our clients’ investments. We will deliver this premier project and perhaps even exceed their expectations in the process,” C-5 Mansions General Manager Alfonso Keh, Jr. said in a statement.
Ridgewood Towers Premier, which is scheduled for completion in 2022, will complete the four-tower development located at the periphery of the business district BGC. It is 400 meters from SM Aura Premier, and within walking distance of McKinley Hill.
C-5 Mansions’ founding chairman, the late Richard Chiongbian, had acquired the property where Ridgewood is located back in the 1990s. Mr. Chiongbian had “envisioned a project that simultaneously provides quality housing options, an affordable investment cost, and the geographical advantage to BGC,” so he brought together a group of like-minded businessmen and formed C-5 Mansions.
“We are now close to achieving Mr. Chiongbian’s vision for Ridgewood Square,” Mr. Keh said.
With the construction of new office towers and commercial areas in BGC, Mr. Keh said these activities have only “drummed up investor interest” for his project.
Ridgewood Towers Premier also boasts amenities such as a lap pool, kiddie pool, jacuzzi, private gym, private theater and a “sky garden.”
A professional real estate management team will manage the building.
“A semi-furnished one bedroom with balcony unit would easily reach a monthly lease rate in the mid-teens and projected to be leased out fast given projections for rosy employment forecasts in BGC over the next few years,” C-5 Mansions said.

UnionBank Q1 income up

May 1, 2018 | 12:01 am

UNIONBANK of the Philippines (UnionBank) saw its net income surge in the first quarter of the year as it sustained double-digit growth in its businesses.
In a disclosure, UnionBank said its net profit grew 31.8% to P2.9 billion in the January-March period from the P2.2 billion it booked in the same period in 2017.
Its net revenue also climbed 21.5% to P6.9 billion.
The Aboitiz-led lender told the Philippine Stock Exchange that it continues to “sustain double-digit growth in terms of customer businesses.”
The bank’s total loans rose by 15.9% year-on-year to P293.1 billion in the first quarter as its consumer business accounted for 34% of the bank’s loan book.
Deposits, on the other hand, were at P439.6 billion, current accounts and savings accounts making up more than one-third of UnionBank’s total deposits.
Overall, UnionBank’s total assets grew to P608.4 billion as of end-March, up 17.3% from the figure logged in the comparable year-ago period.
The bank’s asset growth was also supported by the medium-term note program conducted in November last year, through which it raised $500 million.
“The strong earnings resulted to an annualized return on equity and return on average assets of 15.9% and 2.0%, respectively,” the bank added in the disclosure.
“Given our positive earnings performance in the first quarter, we are confident that we can attain our full-year target,” said UnionBank Treasurer and Chief Financial Officer Jose Emmanuel U. Hilado. “We expect earnings in the succeeding quarters to once again come from recurring income as we continue to grow our balance sheet.”
“Our solid profitability results are quite timely as it allows us to fast-track our investments in digital transformation,” UnionBank President and Chief Executive Officer Edwin R. Bautista was quoted as saying in the disclosure.
In an exposition held in Taguig City last Thursday, Mr. Bautista said the bank will embrace blockchain technology to help connect rural banks, as well as improve the efficiency of internal processes.
UnionBank also announced it will raise P10 billion in additional capital through a stock rights offer (SRO) as approved by its board of directors.
“The additional capital will increase the common equity tier 1 and total capital adequacy ratio of the bank,” it said in the disclosure, adding that the proceeds will be used to allow for continued growth of its assets.
Banks have been conducting fundraising activities to bolster their capital and finance their growth and operations.
Earlier this month, Metropolitan Bank & Trust Co. completed its rights offer, raising P60 billion to fund its business operations and expansion.
The SRO of Bank of the Philippine Islands, on the other hand, also wrapped up last week. The Ayala-led bank’s capital-raising activity is also expected to raise P60 billion.
UnionBank shares closed at P91.25 each on Monday, gaining P1.05 or 1.16% from Friday’s finish. — KANV

Burning Man founder Larry Harvey, 70

May 1, 2018 | 12:01 am

LOS ANGELES — Larry Harvey, the man who founded the popular Burning Man countercultural festival, died Saturday after suffering a massive stroke in early April, event organizers said. He was 70.
Harvey died surrounded by family members at his San Francisco home, the official online Burning Man Journal said.
“Larry was a visionary, a mentor, a philosopher, and a passionate advocate for Burning Man’s culture and principles,” a statement on the website said. “The world has lost a great human being.”
Harvey began the Burning Man tradition in 1986 when he and a group of friends set fire to an oversized wooden man on a beach near San Francisco.
It soon became a summer solstice ritual, and as the wooden effigy grew and the event attracted more people it moved in the 1990s to Nevada’s Black Rock desert.
Today the multi-day annual Burning Man event, held in late August and early September, attracts tens of thousands of people and features interactive art exhibits as well as big-name music performers.
Participants create a city in the middle of the desert that is “a temporary metropolis dedicated to community, art, self-expression, and self-reliance,” and end their week-long gathering by burning a giant wooden statue of a man.
Harvey is survived by his son Tristan, his brother Stewart, “and a global community of devoted Burning Man participants inspired by his vision to build a more creative, cooperative, and generous world,” the website said. — AFP

SEC warns vs online Ponzi schemes

May 1, 2018 | 12:01 am

THE Securities and Exchange Commission (SEC) has warned the public against so-called online “paluwagan” schemes that collect money from investors with the promise of high returns within a short period of time.
In an advisory posted on its website, the country’s corporate regulator listed 30 social media accounts which it described as a Ponzi scheme, or a fraudulent investment operation where old investors are paid off using payments from new investors instead of real cash-generating business activities.
Administrators of the social media accounts were found to follow a scheduled collection of money from their respective members through remittances, wire transfer, and cash deposits, among others. The SEC noted that the social media accounts were also widely used for the promotion and operation of the scheme.
In exchange, members are promised high returns ranging from 10% to 757% in a span of one to ninety days, based on their payout schedule.
“Unfortunately, many of their respective members incurred huge loss of money and the administrators were reportedly unable to refund their investments. In view thereof, the public is hereby advised to stop investing in these kinds of activities and to take necessary precaution in dealing with these groups or their representatives,” the SEC said.
The SEC has continuously been tracking down investment schemes without prior registration with the commission. People found to act as salesmen, brokers, dealers, or agents in such schemes may face fines of up to P5 million, or jailed for a maximum of 21 years, as per the Securities Regulation Code.
People found to be inviting the public to join these illegal investments may also be held criminally liable or be sanctioned in accordance with the law.
In addition, the SEC noted that the names of people involved in illegal investments will be submitted to the Bureau of Internal Revenue for the proper assessment of their penalties and/or taxes. — Arra B. Francia
The social media accounts are as follows:
1. Road To Stockmarket/Dream Builders — Rtsm 2;
2. Steady Money Onpal;
3. G-Funds;
4. Team Amazing Grace;
5. Donatos Team — Gig;
6. Team Donatos;
7. Building Bridge;
8. Gbs New Hope;
9. Gbs Trust Traders;
10. Whilmz Team International;
11. Whilmz International Online Paluwagan;
12. Rosca — Money’s Worth Onpal;
13. Warriors Team Onpal;
14. Team Warriors;
15. Xplosion;
16. Red Packet;
17. Elite Savers Club;
18. Share Ko Profit Ko;
19. Sutm & Boj;
20. Real Team Angel International;
21. Original Team Angels;
22. Return Of The Comeback Team Angels Internationals;
23. Cone Weekly Investment;
24. 2do Marketing Services;
25. Power7 M2g;
26. Onpal Adhoc;
27. Swift Earners Guild;
28. Exclusive Circle Of Earners;
29. Old Tbc; and
30. Lover’s Profit Sharing.

More Filipinos flocked to overseas job markets in 2017 – PSA

May 1, 2018 | 12:00 am

How PSEi member stocks performed — April 30, 2018

May 1, 2018 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, April 30, 2018.

Inflation accelerates in Q1 for low-income households — PSA

April 30, 2018 | 10:21 pm

INFLATION, as experienced by low-income households, accelerated to a three-year high in the first quarter of 2018 on account of higher prices for food and utilities, the Philippine Statistics Authority (PSA) reported yesterday.
Consumer prices for the bottom 30% of households saw inflation rising to 5.3% in the first quarter, up from 3.5% logged in the fourth quarter of 2017 and 2.8% a year earlier. The first-quarter reading was the highest reading since 6.8% posted in the third quarter of 2014.
For all households, the PSA is scheduled to report April inflation data on Friday.
The Consumer Price Index for the bottom 30% income segment reconfigures the model basket of goods to reflect a heavier weighting for food, beverages and tobacco (FBT) index. This and other weightings are thought to more accurately capture the spending patterns of the poor.
“Higher excise taxes on selected sweetened beverages led upward prices of these items in most of the regions. Price gains in kerosene and cigarettes also contributed to the uptrend. On the other hand, lower charges in electricity rates were observed in many regions including NCR (National Capital Region) during the quarter,” the PSA said in a statement.
The fuel, light, and water index led the uptick in prices as inflation in this segment rose 6.1%, which was slower than the 6.3% recorded in the fourth quarter and 6.2% a year earlier.
Meanwhile, the FBT index rose 5.9% in the first quarter from 3.6% in the fourth quarter and 2.8% a year earlier.
The food index increased 5.3% from 3.4% in the fourth quarter and 2.7% a year earlier.
The PSA said rice prices rose 3.1% from 1.3% in the fourth quarter. Also rising were prices for corn (8.5% from 5.5%); cereal preparations (2.1% from 1.7%); dairy products (1.6% from 1.1%); eggs (2.1% from 1.6%); fish (11.5% from 9.4%); fruits and vegetables (6.5% from 3.4%); meat (7.3% from 5.8%); and “miscellaneous foods” (0.60% from minus 0.10%)
Inflation for the bottom 30% segment in the NCR was 5.9%, accelerating from the 4.7% recorded in the fourth quarter of 2017. Those outside the NCR saw a price pickup of 5.3% from 3.4% in the previous quarter.
“The lower 30% were actually previously tax-free or did not necessarily pay taxes because of their meager incomes in the first place. This segment of the population is supposed to be the target of unconditional cash transfers that were rolled out past March,” Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines, said.
Still, the economist noted that “[d]efinitely, they are not at an advantage” with regard to the price upticks seen in necessities such as utilities and food.
“I hope the safety nets work,” he added.
Moving forward, Mr. Asuncion noted that inflationary pressures for the bottom 30% “are starting to slow,” but are still expected to “remain elevated in the next coming months, mirroring overall inflation.” — Jochebed B. Gonzales

DBM hopeful of credit rating upgrade in 2018

April 30, 2018 | 10:21 pm

THE DEPARTMENT of Budget and Management (DBM) is confident the Philippines can secure a credit rating upgrade within the year, noting this would be favorable for the government’s plan to increase the share of borrowed funds from abroad.
“We are confident that sustaining our fiscal reform agenda, primarily with Tax Reform and Budget Reform, will lead to a credit upgrade within the year,” Budget Secretary Benjamin E. Diokno said in a statement yesterday.
S&P Global Ratings last week raised its outlook on the Philippine economy to “positive” from “stable,” signaling a stronger chance of getting a rating upgrade in the next six months to two years.
The Philippines currently holds a “BBB” rating from S&P, which is a notch above minimum investment grade. The rating has been on a “stable” outlook since April 2015 prior to this revision.
A higher credit rating allows a country to borrow funds from foreign sources at cheaper rates.
S&P said it is watching if the Tax Reform for Acceleration and Inclusion (TRAIN) law will generate lower-than-expected fiscal deficits and if it drives down government debt.
“The encouraging news is especially relevant in the purview of the government’s medium-term financing program,” said Mr. Diokno.
The Development Budget Coordination Committee (DBCC) in its meeting on April 24 raised its revenue program, taking into account Package 1B of TRAIN that consists of separate bills pending in legislation covering the general tax amnesty, estate tax amnesty, the easing of bank secrecy restrictions, and the Motor Vehicle Users Charge increase.
The two tranches of the first package of the tax reform program are expected to yield P124.9 billion this year, growing to P215.8 billion in 2022. This is larger than the P82.3 billion it first expected for 2018 and P153.6 billion for 2022, which only factored in Package 1A, or the lowering of personal income tax rates, while hiking levies for cigarettes, cars, coal, minerals, and sugary drinks, among others.
The Budget Reform bill, meanwhile, seeks to institutionalize the shift to a one-year validity of appropriated funds that would speed up disbursements.
The DBCC also revised the borrowing program this year to a 65-35 mix, in favor of local sources, from the 74-26 ratio earlier set for 2018 and the 80-20 portfolio programmed last year.
From 2019 to 2022, this will be revised to 75-25 ratio.
“The adjustment is owing to the government’s strategy of diversifying its investor base and tapping new markets to meet its financing requirements,” Mr. Diokno said.
“A potential credit upgrade will only maximize the benefits of this revised financing program. The economy stands to benefit greatly as it will potentially translate to lower borrowing rates to finance our priority programs and projects,” the Budget chief added.
However the government’s fiscal position has been beating targets in the first quarter.
The fiscal deficit stood at P162.2 billion in the first quarter, 96% wider than the P83 billion logged in the same period in 2017, although lower than the P219.1 billion expected.
Overall revenue for the January-March period grew 16% to P619.8 billion, beating the P536.7 billion target while total government disbursements surged 27% to P782 billion, surpassing the P755.8 billion goal.
The government programmed a P523.7-billion budget shortfall for 2018 — equivalent to 3% of Philippine gross domestic product — with P2.846 trillion in revenue and P3.37 trillion in expenditure.
“We are only motivated to work harder given the international recognition with our fiscal reform agenda. But we will not stop here as our ultimate aim is to expand economic opportunities and uplift the lives of our constituents,” Mr. Diokno said. — Elijah Joseph C. Tubayan

DAR says ready to process Boracay plots for land reform turnover

April 30, 2018 | 10:21 pm

THE DEPARTMENT of Agrarian Reform (DAR) said it will begin talks with the Department of Environment and Natural Resources (DENR) on the turnover of agricultural land on Boracay island.
Agrarian Reform Secretary John R. Castriciones told BusinessWorld that both departments will be discussing the turnover at the next interagency meeting on the Boracay rehabilitation.
“As of now, there’s no marching orders yet to subject the agricultural land to a land reform program,” Mr. Castriciones said during the panel discussion.
“But we are anticipating that if the president so orders, we will immediately implement a land reform program on Boracay […] because there is valid and legal grounds for us to implement land reform.”
Once the Palace gives the order, Mr. Castriciones said DAR can award land to beneficiaries within 121 days, which excludes demolition and clearing out by other agencies if necessary.
However, Undersecretary for Policy, Planning and Research David D. Erro said that the DENR needs to formally hand over agricultural land to DAR.
Citing two executive orders, Mr. Erro said that all agricultural land owned by government agencies and unused land should be turned over to DAR for land reform.
“There has to be a positive act coming from DENR to turn over the land for us to place it under agrarian reform,” he added.
“Until DENR transfers the land to us, we have no jurisdiction even if those are agricultural.”
The DAR on Monday said 15.5 hectares (ha) of agricultural land can be immediately processed for land reform after Mr. Castriciones and other DAR officials conducted an inspection last week.
Another 408.51 ha can also be repurposed for farming after government clears out all illegally built structures.
President Rodrigo R. Duterte last month said that he wants Boracay island to be turned over to land reform beneficiaries.
Mr. Erro during the briefing said that by virtue of presidential proclamation 1064, the 628.96 ha. of land in Boracay island is considered as “alienable and disposable,” which can be used for agriculture, while 377.68 ha. has been classified as forest land.
Mr. Erro said proposed farmer beneficiaries are mostly indigenous Atis who used to farm the island before being driven off to make way for development.
Assistant Secretary for field operations Lucius G. Malsi told BusinessWorld that the search for beneficiaries has turned up 48 Ati families composed of 165 individuals.
“Out of 165 [individuals], 70 to 80 were above 15 years old. One way to qualify as a farmer beneficiary is to be at least 15 years old,” he added. — Anna Gabriela A. Mogato

BCDA issues invitation to bid for Clark airport O&M

April 30, 2018 | 10:19 pm

THE BASES Conversion and Development Authority (BCDA), with the Department of Transportation (DoTr), is inviting bids for the Clark International Airport operations and maintenance (O&M) contract.
BCDA released a project primer yesterday containing general information on the procedures for bidding on the O&M contract.
Bid documents will be available on May 7, and will cost a non-refundable P1 million. The documents will include the Invitation to Bid, the Instruction to Bidders and Annexes, and the O&M Concession Agreement.
In a statement, BCDA said it hopes to award the contract by August.
“Upon award, the O&M Concessionaire will take over the management and operations of the existing passenger terminal, and the new terminal building upon its completion and successful commissioning,” the agency said in a statement.
The BCDA also invited interested parties to a pre-bid conference on May 21.
Clark International Airport in Pampanga is being positioned as an alternative gateway to decongest the Ninoy Aquino International Airport. Clark’s upgraded terminal is expected to be operational by the first half of 2020.
“It’s on track. We have no indications of delay. It’s moving full speed ahead and I think we can even gain more momentum as we move towards the next phases of construction,” BCDA President Vivencio B. Dizon was quoted as saying.
In December, listed company Megawide Construction Corp. and airport operator GMR Infrastructure Ltd. won the engineering, procurement, and construction (EPC) contract for Clark International Airport’s new terminal, and signed a contract with the BCDA in February. — Denise A. Valdez

DTI hopes to recover top 100 ease-of-doing business ranking

April 30, 2018 | 10:18 pm

THE Department of Trade and Industry (DTI) is hoping to return to its top 100 ranking on the World Bank’s Ease of Doing Business (EDB) list for 2019 after falling 14 places in 2018.
In a briefing at the Board of Investments, DTI Undersecretary for EDB Rowel S. Barba said Monday that a team from the World Bank arrived last week to validate some of the country’s reform programs in preparation for the 2019 EDB ranking.
Mr. Barba said he would be “happy” to recover the 2017 ranking of 99^th.
“We hope to improve on the rankings and that the reforms are institutionalized,” he added.
The reforms include adopting automating business-registration transactions and one-stop shops for business permits.
Pending EDB legislation requires all government offices and agencies, including local government units, to reduce processing time for business permits and official documents.
“We’re confident that it will be passed by Congress this year,” Mr. Barba told reporters.
However, he said Congressional approval may miss the next World Bank ranking cycle, which covers the period June 2017 to May 2018.
The EDB bill calls for the reduction of processing time of “simple” transactions to a maximum of three days; “complex” transactions have a seven-day deadline; and “highly-technical” applications 20 days.
Failure to do so will be punished with suspensions of 30 days without pay for a first offense and a three-month suspension without pay for a second offense.
A third offense carries the penalties of dismissal and disqualification from holding public office; forfeiture of civil service eligibility and retirement benefits; and one to six years’ imprisonment.
Mr. Barba noted that the government continues to target a top 20% EDB ranking by the time it steps down.
In the World Bank’s Doing Business 2018 report released in October, the Philippines was 113^th among 190 economies, down from 99^th in 2017 — although the report noted that changes in method for compiling the list made it impossible to directly compare the two reports. — Janina C. Lim

BIR revised guidelines and procedures in registering new businesses

April 30, 2018 | 10:18 pm

People today are more geared towards being entrepreneurs. With the availability and accessibility of different online platforms for business opportunities, people can have their own business without having to own or lease a physical storefront. However, many are unaware of the regulatory requirements of starting a business. For those who are aware, they are sometimes too impatient to register their business first before starting their operations, because of the impression that the registration process takes a long time and is very complicated. Hence, many businesses, especially home-based businesses, are not registered with the Bureau of Internal Revenue (BIR).
Over the years, the BIR has sought to simplify and minimize the processing time of registering taxpayers. However, there have been reports that the old procedures and requirements (e.g., lease agreements for self-employed individuals) are still being followed and required by some Revenue District Offices (RDOs), resulting in delays in the issuance of the Certificate of Registration (COR). The inconsistent requirements of the RDOs is causing confusion among the taxpayers. In light of this, the BIR issued Revenue Memorandum Order (RMO) No. 06-2018 on Jan. 18, to improve frontline services and further streamline the process by introducing the implementation of a single-window policy in receiving and releasing documentary requirements for business registration. The single-window policy is implemented by establishing a counter or special lane specifically to accommodate new business registrants.
On April 25, the BIR issued RMO No. 19-2018, which provided revised guidelines and procedures for registering new businesses. Following is a summary of the procedures to be followed by registrants under the said RMO:
1. Prepare requirements provided in the Checklist of Documentary Requirements (CDR) before going to the RDO having jurisdiction over the place of business or residence of the taxpayer.
The CDR attached as Annexes A1 to A3 of RMO No. 19-2018 is the same as the requirements provided under Revenue Memorandum Circular No. 137-2016, with the following amendments:
a. Adding of Special Power of Attorney (SPA) and ID of authorized person, in case of authorized representatives who will transact with the Bureau (for individuals and international organizations);
b. Adding of Board Resolution indicating the name of the authorized representative and Secretary’s Certificate, in case of authorized representative who will transact with the Bureau (for non-individuals); and
c. Removal of new sets of permanently bound books of account.
2. Secure a queuing number for the New Business Registrants Counter (NBRC).
3. Submit duplicate copies of the following, together with the complete documentary requirements per CDR:
a. Signed CDR;
b. Filled out Application for Registration (BIR Form No. 1901/1903, whichever is applicable), and;
c. Accomplished BIR Form 0605 for payment of registration fee.
4. In case the taxpayer has an existing TIN, but is not registered with the RDO, the taxpayer shall apply for a transfer of registration by accomplishing BIR Form No. 1905.
5. Once called for payment, pay the registration fee and/or other tax liabilities or penalties on registration to the NBRC or New Business Registrant Officer.
Registrants with existing TIN have the option to pay the registration fee before going to the BIR through any of the following payment channels by accomplishing the BIR Form 0605 under ATC-RF:
a. Authorized Agent Banks (AABs);
b. ePayment channels of AABs; and
c. Mobile payment through GCash.
6. Claim the Certificate of Registration (COR), auto-approved Authority to Print (ATP), and “Ask for Receipt” Notice from the NBRC upon approval together with the eReceipt as proof of payment of the Registration Fee and/or other tax liabilities or penalties.
After securing these documents, new business registrants may proceed with the registration of books of account within 30 calendar days from date of registration.
7. Sign the log sheet provided to confirm receipt of the COR and ATP.
8. Accomplish the Standard Taxpayer Feedback System, and drop at the designated drop box.
9. Attend the scheduled taxpayer’s initial briefing to be conducted by the concerned RDO for new business registrants in order to know their rights, duties/responsibilities, and tax compliance.
RMO No. 19-2018 also enumerated the various officers assigned and their corresponding duties and responsibilities in implementing the Single Window registration processes.
Two main goals of RMO No. 19-2018 are to make the registration process more convenient and to improve taxpayer satisfaction. With these goals in mind, we hope that taxpayers can expect an efficient and consistent implementation of the above-mentioned RMOs throughout all RDOs. This will encourage more taxpayers to register, which will benefit both the BIR and taxpayers. For the BIR, more business registrants mean more revenue collection. For taxpayers, it will open more business opportunities, since many companies only transact with legal businesses that issue BIR-approved official receipts/invoices for purposes of claiming input tax and expenses.
Despite process improvements, it is still not going be a walk in the park with the many requirements, especially for first time registrants. Hence, seeking professional help in setting up their business may be a good investment.

Juvy de Jesus is a senior of the Tax Advisory and Compliance of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.