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Tax bureau suspends mission orders

THE BUREAU of Internal Revenue (BIR) has suspended investigations of taxpayers, saying yesterday it needs to review policies and procedures in this regard after its head said last month that the practice has not improved collections.

The BIR said in a statement that it has recalled all mission orders (MOs) issued by its National Investigation Division (NID) and ordered the unit’s revenue officers to submit a list of all outstanding MOs, including those already cancelled and terminated.

“The order also suspended and/or terminated any further investigation, field audit, or any form of business visitation pursuant to the said MOs unless otherwise authorized in writing,” the statement read.

In a separate order, the BIR also directed the NID to submit a status report on all letters of authority (LAs).

An LA authorizes a revenue officer to examine a taxpayer’s books of accounts and other business records in order to determine if he has paid appropriate taxes.

“The bureau aims to improve current audit guidelines, policies and procedures — including reporting requirements governing tax audits/investigations — within the context of a responsive system of tax collection/enforcement measures,” the BIR said in its statement.

BIR Commissioner Caesar R. Dulay told reporters on Jan. 25 that LAs have not made significant contribution to collections.

“Because I feel personally that the letters of authority — they’re supposed to contribute to our collection efforts. But I don’t see much improvement. And some like the first time I came in, I had an inventory… matagal (the audit takes too long),” Mr. Dulay had said.

“Matagal hinahawakan (Revenue officers take too long to investigate). There’s a certain limit there: 180 days. That’s six months, then you come out with your report. Then you should assess if you feel that there is a deficiency tax for the tax payer.”

Tax Management Association of the Philippines President Raymund S. Gallardo welcomed the order when sought for comment. “That’s okay, since if it goes beyond 180 days, some have to explain to the Commissioner [why it is taking them long to audit a taxpayer],” Mr. Gallardo said in a telephone interview yesterday. “Mapapa-speed up ‘yung collections, since the BIR is asking for reasons why hindi natapos ang investigations…”

The BIR raked in P1.779 trillion last year, 12.92% more than 2016’s P1.576 trillion. That was 97.27% of an original P1.829-trillion collection goal but bigger than the downward-revised P1.763 trillion target.

This year, the BIR has been tasked to collect P2.039 trillion. — Elijah Joseph C. Tubayan

House panel targets ‘early March’ approval of tax amnesty measure

By Elijah Joseph C. Tubayan
Reporter

THE HOUSE of Representatives’ Ways and Means committee hopes to approve a tax amnesty measure by “early March,” its chairman said on Monday, as it irons out details to make sure it brings more tax evaders into the fold.

“Early March possibly,” Quirino Rep. Dakila Carlo E. Cua told reporters after a public hearing yesterday when asked when he expected the bill to be approved at his committee’s level.

House Bill No. 7105, filed by Speaker Pantaleon D. Alvarez, Majority Leader Rodolfo C. Fariñas and Mr. Cua, seeks to “enhance revenue administration and tax collection by granting an amnesty on all unpaid internal revenue taxes imposed by the national government.”

The measure offers a flat eight percent tax on the net worth of those who will avail of amnesty covering taxable year 2017, or P10,000 to P10 million, depending on taxpayer bracket “whichever is higher,” in exchange for immunity from civil, criminal and administrative penalties.

The bill also relaxes bank secrecy restrictions, allowing the BIR to inspect the bank accounts of those who will avail of tax amnesty in order to ensure the accuracy of their declarations.

The amnesty forms part of a follow-up to Republic Act No. 10963 — or the Tax Reform for Acceleration and Inclusion Act — as that law, enacted in December and which took effect last month, saw projected revenues whittled down to over P90 billion from P133.8-157.2 billion originally after both chambers of Congress watered down some provisions.

The follow-up package, which also includes a proposed increase to the motor vehicle users tax that is pending in the committee, is designed to bring projected revenues closer to the original intent.

There will be up to five tax reform packages that are meant to cover a fourth of the P8-trillion planned state infrastructure investments until 2022, when President Rodrigo R. Duterte will end his six-year term.

The second package, submitted to the House last Jan. 16, consists of a proposed cut in corporate income tax to 25% from 30% currently in order to put the Philippines at par with its Southeast Asian competitors, as well as removal of redundant fiscal incentives that have been costing the government more than P300 billion annually in foregone revenues.

Mr. Cua said the proposed new tax amnesty should “be more successful than the past” since it will employ new technology to clean up the Bureau of Internal Revenue’s taxpayer database.

“This is important since we already passed the (first) tax reform (package) and we’re going to package 2,” Mr. Cua said, citing the need to ensure that the reformed tax system will have a more reliable taxpayer database.

The committee is focusing on details like amnesty rate, target revenue, scope of those qualified to avail, as well as the extent of privileges to be granted.

During the hearing, Donaldo B. Boo of the Finance department’s National Tax Research Center, proposed that the rate should be imposed on taxpayers’ assets — similar to Indonesia’s model — to avoid bloating of liabilities that would result in a lower tax assessment. “It is simpler than the net worth. The use of total assets can be considered to avoid bloating or overstatement of liabilities just to lower the net worth,” he said.

He also proposed a three-year assessment period against the bill’s proposed one year, to “give more time to the Bureau of Internal Revenue to study and verify the correctness of their statement of assets and liabilities and their tax amnesty return.”

Mr. Boo also proposed to give a lower amnesty rate to those who would avail early in the offer period.

The proposed amnesty offer, however, will be limited to those who do not have pending criminal cases filed in court for tax evasion, money laundering or for unexplained wealth.

Maria Lourdes P. Lim, tax managing partner at PwC Philippines, advised the committee to review the proposed eight percent amnesty rate by taking inflation and target revenues into consideration. “The minimum amount appears to be low, since it’s the same rate as the 2007 tax amnesty law,” Ms. Lim noted.

Mr. Cua cited the need to strike a balance as the committee tackles amnesty details.

“We need to study it because its a risk-and-reward issue,” he explained.

“There’s a logic that if we are to strict, then they may not find the package that attractive and not actually avail. Then again… we need to study how much the government is willing to pardon the infractions of these people.”

Macau faces major challenges if China casino monopoly ends

HONG KONG — A plan to allow gambling on the Chinese island of Hainan and pave the way for casinos less than 300 miles (480 kilometers) from Macau could pose a challenge to the $33-billion industry fueling revenue for Las Vegas Sands Corp. and Wynn Resorts Ltd.

Government agencies are considering allowing online betting and other gambling on Hainan Island, and the proposal could open the door to physical casinos south of the former Portuguese colony, according to people familiar with the talks.

The move would reshape gaming in China’s territories, especially in Macau, which is hosting a surge of mainland visitors. Currently, Macau and Hong Kong are the only Chinese cities where gambling is allowed, while Macau is the only one that hosts casinos.

An index of Macau casino firms tumbled on the news, with Sands China Ltd. and MGM China Holdings Ltd. dropping up to six percent and Wynn Macau Ltd. falling up to 6.7% before paring losses.

The world’s largest gambling hub faces key challenges if gambling and casinos eventually take hold in Hainan.

COMPETING MARKETS
Hainan, often referred to as China’s Hawaii for its white sand beaches, presents an alternative destination for Chinese gamblers on the mainland.

It could sap the flow of tourists to Macau, where casino gaming revenue last month showed the strongest growth since 2014.

The bulk of Macau’s gaming revenue comes from Chinese tourists. Out of 3 million visitors in December, more than 2 million were from the mainland.

The two destinations could also be competing over the same type of customers.

Macau, which has relied on high rollers to drive a rebound in business over the past year and a half, has been shifting to attract Chinese tourists and families to the territory. That’s the same target audience in Hainan’s push.

Macau’s gambling revenue from casual gamblers accounted for nearly half of December’s total, the highest split with VIP since July 2016, according to Bloomberg Intelligence.

Analysts played down the potential risks for Macau. Morgan Stanley expects the territory’s growth trend to continue, with analysts writing in a note that legalization of gambling outside Macau is unlikely and the process would take time. Analysts at Sanford C. Bernstein & Co. noted that talks are preliminary, saying, “We do not see casino development in China as a real threat to Macau.”

RESORT INVESTMENTS
Casino operators’ expansion plans for Macau may become more risky if Hainan draws away visitors.

Companies are doubling down on investments in Macau, adding hotel suites and junket rooms to bring in more VIP and mass-market business. They are also creating more family friendly attractions to target Chinese recreational gamblers.

Billionaire Sheldon Adelson’s Las Vegas Sands has invested over $13 billion in Macau since 2002, and plans to spend $1.1 billion in a remodel to bring a London-themed resort.

MGM Resorts International is expected to open its Cotai property as early as this month.

Infrastructure upgrades, such as the Hong Kong-Zhuhai-Macau Bridge, are in the works to allow more traffic and better access from mainland China and Hong Kong.

REGULATORS AND RIVALS
Macau is often the elephant in the room as China aims to stem billion of dollars in outflows, with the territory’s casino industry considered a primary exit point.

Last year, regulators required cash machines to be deployed with facial recognition software to limit withdrawals by Chinese cardholders and curb potential money laundering schemes.

Allowing gaming on the mainland would be one way for Chinese authorities to limit capital outflows and ensure gaming revenue benefits the provincial economy on the mainland.

Hainan’s plans also come at a sensitive time as Macau regulators outline the process for the bidding of gaming concessions this year, with operators’ licenses expiring beginning in 2020.

The casino industry is also being roiled by the sexual harassment allegations against Steve Wynn, raising concerns that the scandal could taint Macau’s reputation as it pushes for a more family-friendly image.

Hainan would add another destination for global gamblers to choose from as casinos pop up from Australia to Manila in an effort to draw tourists from China.

Japan is also ramping up plans to introduce casino resorts, with expectations for doors to swing open sometime after the 2020 Tokyo Olympics.

Casinos in the Philippines and Vietnam are also drawing Chinese gamblers. — Bloomberg

Indonesia’s growth best in 4 years; consumption weak

JAKARTA — Indonesia’s economy grew at its fastest pace in four years in October-December, propped up by investment and government spending, but sluggish consumption is still keeping growth from moving much above five percent, where it has been for years.

In the fourth-quarter, gross domestic product (GDP) rose by 5.19% from a year earlier — the highest since 2013’s last period, while full-year growth was 5.07% — making 2017 the best year since 2013.

Consumption, the biggest contributor to Indonesia’s economy, picked up pace in the fourth quarter from the previous one, but gains remained slightly below five percent on an annual basis, the statistics bureau’s data showed.

The head of the bureau said consumers opted to put more into banks savings in the last quarter rather than spending.

“What prevented them from spending the money? Is it simply just the right time for them to save or are they scared about future prospects?” said Mr. Suhariyanto, who predicted consumers would hold off buying big ticket items in the first quarter.

Car sales in Indonesia grew by 1.6% last year, but those of motorcycles fell 0.8%.

Capital Economics said it sees “little prospect of a sustained recovery” in economic growth.

Despite interest rates cuts, credit growth remains very weak, the firm said, adding that it expects economic growth of five percent both this year and in 2019.

Others were more optimistic. ANZ is forecasting 5.3% growth this year as consumption demand improves and with Indonesia’s hosting of the Asian Games with 45 nations participating also set to help.

Still, economic growth remains well below the near seven percent levels recorded for 2017 in neighbors such as Vietnam and the Philippines.

The government of President Joko Widodo, whose five-year term ends in 2019, has rolled out a series of deregulation moves in a bid to attract more investment and cut reliance on consumption as a growth engine.

In the fourth quarter, investment grew by 7.27% according to the statistics bureau, picking up pace from 7.11% in the third quarter.

For the full year, investment rose 6.15%, up from 4.48% in 2016, making it the second-biggest contributor to growth after consumption.

“We are seeing signs the investment up-cycle is broadening from public infrastructure projects to more private sector spending on machinery and equipment,” said Euben Paracuelles, an analyst at Nomura in Singapore, who forecast 5.6% GDP growth in 2018.

Government spending increased in the fourth quarter and grew by 2.14% for the full year, after a small contraction in 2016.

Gundy Cahyadi of DBS said that if commodity prices remain at current levels, investment growth will possibly have “positive spillover impact to household consumption”.

Indonesia’s business community sees overall business conditions as positive but regulatory hurdles remain a problem.

“The central and regional government are not synchronized. Many overlapping (regulations) and the coordination between ministries and agencies is yet to be maximized,” said Shinta Widjaja Kamdani, a deputy chief of Indonesia’s Chamber of Commerce and Industry.

Investment board chief Thomas Lembong warned last week that the country is still losing out on attracting foreign investment to the Philippines, Thailand and Vietnam.

Indonesia posted a trade surplus nearly every month in 2017, and price improvements in energy-related commodities and palm oil boosted commodity exports.

Exports grew 9.09% in 2017, while imports rose 8.06%, the statistics bureau said. — Reuters

Smaller lenders seen equipped to meet new liquidity standards

By Melissa Luz T. Lopez,
Senior Reporter

SMALLER BANKS are well-equipped to meet new liquidity standards the central bank is looking to impose on them, parallel to a risk management tool which currently covers big lenders, a senior official said.

Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. said thrift, rural, and cooperative banks can easily comply with the minimum liquidity ratio (MLR), which will require lenders to have high-quality liquid capital equal to 20% of its total liabilities at any given time.

The MLR will cover smaller banks as well as quasi-banks (QBs) like investment houses which are not covered by liquidity standards under the international Basel 3 regime.

The draft rules define the MLR as the share of a firm’s stock of liquid assets against total liabilities. Considered as eligible liquid assets are a bank’s cash on hand, other cash items, claims from the BSP, debt securities tagged with a zero risk weight, and deposits in other banks, subject to a 50% haircut.

“Based on a more recent simulation involving 531 banks and QBs using data as of end-March 2017, MLR-covered institutions generally meet the 20% requirement with average ratio of 74.9% for thrift banks and 68% for rural and cooperative banks,” Mr. Espenilla said in an e-mail interview with BusinessWorld.

“Only a few banks will need the observation period to adjust to the quantitative requirement.”

All firms must also submit a monthly report on its MLR compliance, according to the draft regulation. To add, the banks should also monitor the share of liquid assets in terms for both the peso and foreign currency deposit units where there is “significant activity.”

The MLR is the equivalent of the liquidity coverage ratio imposed on universal and commercial banks, which requires them to hold high-quality and easily convertible assets to cover their total net cash outflows for a 30-day period. Banks must have assets that will cover 90% of their monthly cash outflows this year, which will go up to 100% by 2019.

The central bank wants all banks to remain liquid at all times, as their inability to service withdrawals or payment transactions could bear “unacceptable costs” and affect their financial footing. The BSP also wants to put in place a scheme to report intraday liquidity levels.

For the MLR, Mr. Espenilla said the regulator is looking to introduce a one-year trial period before the rule becomes binding by Jan. 1, 2019.

“During the observation period, the concerned banks/QBs should assess their compliance with the minimum requirement.”

Those which cannot comply with the standard for two consecutive weeks need to prepare a liquidity buildup plan that will “clearly articulate” strategies for the firm to meet the MLR. A shortfall in the amount of liquid assets will merit heightened supervision from the central bank, while a failure to meet the standard for a “prolonged” period would entail remedial action and possible sanctions on the entity and its officials.

These liquidity management measures form part of the Basel 3 regime crafted by international policy makers to improve risk management and prevent a repeat of the 2008 Global Financial Crisis. Excessive lending led to massive credit defaults, which triggered the collapse of big banks and caused widespread recession worldwide.

Megaworld to open P2.2-billion mall in Iloilo City

By Arra B. Francia, Reporter

MANDURRIAO, ILOILO CITY — Megaworld Corp. is set to open a P2.2-billion lifestyle mall in this city in April, as it looks to end the year with a total of 18 malls.

Located inside the company’s 72-hectare Iloilo Business Park, Megaworld said the 90,000-square meter (sq.m.) Festive Walk Mall will be the largest and first full-scale mall outside Luzon.

“We are excited to bring our lifestyle mall concept to Iloilo, our first outside of Luzon. This full-scale mall will further expand our offerings in Iloilo Business Park as it matures as a township,” Megaworld Senior Vice-President and Head for Lifestyle Malls Kevin Andrew L. Tan said in a press briefing here on Monday.

Festive Walk Mall will offer around 40,000 sq.m. of net leasable space. The company expects around 75% of the space to be taken up by tenants once it opens, and hopes to raise this to 90% within three months of opening.

Mr. Tan said they are currently talking with the SM group and the Metro Gaisano group to open two supermarkets at Festive Walk Mall. The development will also feature seven cinemas, three activity centers, a children’s playground, and around 1,000 parking slots.

An open space with gardens and greeneries, a chapel, and a dog park will be located at the third level, collectively called The Deck. 

Mr. Tan noted Festive Walk would be different from other malls in Iloilo as it would have more food and beverage tenants, pegged at around 30% of total occupants.

“Malls here now are run-of-the-mill shopping malls, grocery, bookstore, that’s it. Here we’re redefining it, providing a round- the-clock lifestyle mall that fits the younger demographic,” the Megaworld executive said.

The mall will also have an annex building connected by the 1.1-kilometer Festive Walk Parade. The annex will house government offices, with the Land Transportation Office, Social Security System, and Philippine Health Insurance Corp. already contracted as tenants.

The company is also in talks with the Bureau of Immigration and Department of Foreign Affairs to set up shop in the annex.

“We’ll have a complete government center in the annex, and we’ll also have medical facilities there that will compete the service offerings,” Mr. Tan said. 

The Festive Walk Mall is the first lifestyle mall that Megaworld will be opening this year, bringing the company’s gross floor area to 690,000 square meters from 15 malls.

This year, Megaworld is slated to open malls in Pasig City, Alabang, and Boracay Newcoast.

“Not as big as Iloilo, but smaller formats… so we’ll end the year with 18. We are on track to hit that 28 malls by 2020. We still have more townships being developed right now,” Mr. Tan said. 

The mall expansion is part of Megaworld’s efforts to generate P20 billion in recurring income by 2020, of which lifestyle malls will contribute 50%. Business process outsourcing firms will account for the other half.

Megaworld’s net income attributable to the parent grew 11% to P9.98 billion in the first nine months of 2017, following a 5% increase in revenues to P35.4 billion for the period.

Shares in Megaworld dropped 11 centavos or 2.22% to close at P4.85 each at the Philippine Stock Exchange on Monday.

BPI net income climbs

BANK of the Philippine Islands (BPI) booked slightly higher net earnings in 2017 driven by the growth of its net interest income.

In a disclosure to the Philippine Stock Exchange on Monday, the Ayala-led BPI said it recorded a net income of P22.42 billion last year, up by 1.7% from 2016.

For the fourth quarter alone, BPI’s net income grew 14.9% to P5.37 billion from the P4.67 billion posted in the comparable year-ago period.

BPI’s net interest income climbed 13.4% to P48.04 billion in 2017, driven by growth in its assets and improvement in its net interest margin.

Meanwhile, non-interest income slid 4.9% to P22.98 billion last year in the absence of trading gains. The bank’s lower non-interest income was partially offset by higher fee-based income, which rose 15.6% to P19.9 billion year-on-year. This was driven by higher credit card fees, trust and investment management fees, insurance fees, bank commissions and service charges. This brought BPI’s total revenues to P71.02 billion in 2017, up 6.7%.

Total loans grew 15.5% year-on-year to P1.20 trillion on the back of corporate loans. Despite an increase in lending, BPI’s asset quality improved as its gross 90-day non-performing loans ratio declined to 1.29% from 1.46%. Its reserve cover ratio also increased to 129.2% from 118.7%.

Total deposits, meanwhile, stood at P1.56 trillion, up 9.1%, with the bank’s current account and savings account ratio at 71.2%. Its loan-to-deposit ratio stood at 77%.

The bank’s assets expanded to P1.9 trillion at end-2017, up 10.3%, while total capital grew 9.4% to P180.69 billion, net of P7.09 billion in cash dividends paid.

Capital adequacy ratio and common equity Tier 1 ratio stood at 12.74% and 11.84%, respectively, both down by 0.26 percentage point.

Operating expenses grew 10.3% to P38.53 billion driven by higher expenses on technology, operations and marketing, as well as the growth in assets accompanied by increase in regulatory costs.

BPI’s securities position was stable at P306.12 billion, slipping by 0.41% from 2016. Over 90% of the bank’s securities portfolio was in held-to-maturity assets, and thus less exposed to interest rate risk.

“The bank continues to be a leader in profitability metrics, with cost-to-income ratio of 54.3%, slightly higher compared to 52.5% in 2016, driven mainly by digitalization initiatives,” BPI said in the disclosure.

Return on equity was 12.8% and return on assets was 1.3%, slightly lower by 1.0 and 0.12 percentage points, respectively.

“We come out of 2017 stronger than ever”, BPI President and Chief Executive Officer Cezar P. Consing was quoted as saying in the statement. “While the [bank] has grown significantly in the past several years, we intend to continue to invest in people, technology and branches to support and benefit from a surging Philippine economy. Inclusive, profitable growth will be our focus.”

BPI earlier the creation of its business banking segment which caters on the banking needs of the country’s small and medium enterprises. Operations of the segment commenced at the start of the year.

Meanwhile, BPI raised P12.24 billion from its issuance of long-term negotiable certificates of time deposit, the largest issuance by far in the industry.

BPI shares closed at P121.80 each yesterday, up P1.80 or 1.5% from its previous finish. — KANV

AboitizPower wants binding contract for big ‘captive’ customers

By Victor V. Saulon, Sub-Editor

ABOITIZ POWER Corp. (AboitizPower) wants big electricity users who opt to stay as captive customers of distribution utilities to also be required to enter into a binding contract for a definite period similar to what is imposed on those who switch to retail electricity suppliers (RES).

“If you are a potential contestable customer, you then decide whether you want to be contestable or you want to be captive. Either way, if you go contestable there are contracts — two years, three years, five years, whatever it is,” Antonio R. Moraza, AboitizPower president and chief operating officer, told reporters.

“The same should apply [to] captive [customers]. You have to commit to the utility that you will stay with them for so long so that they can also commit that requirement to the generator. I think that’s just fair,” he added.

At present, an electricity user whose consumption for the past year has reached an average of at least 1 megawatt (MW) a month are required to buy power from licensed retail electricity suppliers.

Regulations that make the switch from being a captive customer of a distribution utility (DU) are meant to foster greater participation from new players, thus spurring competition and lowering power costs.

These rules covering retail competition and open access (RCOA) are meant to apply first to the 1-MW users, although the threshold will be gradually lowered until they reach the consumption of a regular household.

However, the lowering of the threshold has since been put on hold after the Supreme Court issued a temporary restraining order (TRO) in response to a complaint by some sectors pointing, among others, to RCOA’s mandatory provisions.

Although the Department of Energy (DoE) has issued new regulation that makes the switch voluntary, Mr. Moraza said customers that had contracted with licensed RES remain confined to those using 1-MW and above.

The Energy Regulatory Commission (ERC) earlier said it would wait for the lifting of the TRO before taking any action as called for by the new DoE circular.

“What we want to suggest is that on the DU side, it also has to be contracted. In other words, you can’t say: ‘No, I want to stay with the DU’ and then next week change your mind because the DU is also going backward and contracting capacity in your behalf then all of the sudden you just change your mind,” Mr. Moraza said.

Mr. Moraza said he was speaking on behalf of AboitizPower’s distribution utilities. The company also has licensed retail electricity supplier units, either on its own or under subsidiaries or affiliates.

Asked if the proposal has been formally presented to regulators, Mr. Moraza replied: “We’re always talking. Us, the industry, we’re always in dialogue with DoE, ERC.”

Towards the end of last year, the DoE signed a new circular that will reverse contentious provisions of a previous circular as well as resolutions from the ERC requiring contestable customers to move away from being part of the captive market of a distribution utility.

The new circular will also allow the ERC to continue issuing licenses to retail electricity suppliers, which was among the provisions placed on TRO as sought by a number of educational institutions and a business group. The order was issued by the high court in February 2017.

RCOA is called for under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), the law that restructured the power sector, as well as its implementing rules and regulation.

Bourse operator’s net profit grows 18% in 2017

EARNINGS of the Philippine Stock Exchange, Inc. (PSE) grew by 18% in 2017, propped up by higher trading activity in the bourse as well as one-time gains from the sale of its Tektite office in Ortigas district.

In a statement issued Monday, the PSE said it recorded a net income of P825 million in 2017, higher than the P702 million during the same period in 2016. The PSE generated P1.63 billion in operating revenues and other income, up 10% year on year.

The PSE attributed its positive performance due to increased trading, as it saw a 3% climb in average daily turnover to P8.06 billion in 2017. The use of the PSE’s online trading platform as well as introduction of new products pushed subscription fees and market data income higher by 26% for the period.

“The Exchange’s successful execution of its major initiatives in 2017 resulted in this positive financial performance of the Company. The new products and services that were introduced provided more mechanisms for capital raising and supported our thrust of expanding the retail investor base,” PSE President and Chief Executive Officer Ramon S. Monzon was quoted as saying in a statement.

The PSE saw three issuances of dollar-denominated securities last year, raising $370 million for Del Monte Pacific Ltd. and Cirtek Holdings Philippines Corp.

Operating income, however, dropped by 3% as less companies went public last year. To recall, four firms conducted initial public offerings in 2017: Wilcon Depot, Inc., Eagle Cement Corp., Cebu Landmasters, Inc., and Chelsea Logistics Holdings Corp.

This year, the bourse operator looks to introduce more products, as the guidelines for short selling is now pending with the Securities and Exchange Commission. The name-on-central-depository, creation of new indices, and launch of structured warrants and derivative products are also in the PSE’s lineup of new products for the year.

“Discussions with the SEC are on going on many of these programs to ensure that we are able to provide the most suitable model for the Philippine market,” Mr. Monzon said.

The company said it is also on track with its stock rights offering, which will bring down broker ownership in the PSE to less than 20%. The offering, set to run from Feb. 26 to March 2, is essential in moving forward with its acquisition of the Philippine Depository System Holdings Corp. (PDSHC).

“We have set even bigger targets and milestones for the Exchange in 2018. With our stock rights offering proceeding within schedule, we hope to finally get the exemptive relief from the SEC for our acquisition of PDS. The consolidation of the equities and fixed income markets will result in a bigger and more efficient capital markets for the country,” Mr. Monzon said.

This year, the PSE is moving to its new office in Bonifacio Global City, Taguig City. Together with its expected merger with the PDS, Mr. Monzon said these will lead to higher expenses for 2018.

“We are continuously studying how to restructure and rationalize the operations of PDS to enable us to realize the operating and cost synergies that can be had in this acquisition. We’re always looking for ways to improve our operating efficiencies and reduce our operating expenses,” Mr. Monzon added.  — Arra B. Francia

Film fest welcomes the new lunar year with drama, comedy, and monsters

CELEBRATE the Lunar New Year with a host of contemporary Chinese-language films at this year’s Spring Film Festival, running from Feb. 13 to 18 at the Shang Cineplex in Shangri-La Plaza mall in Mandaluyong City.

Now on its 12th year, the annual festival — organized by the Ricardo Leong Center for Chinese Studies of the Ateneo de Manila University — presents six films with the aim of promoting the “Chinese language and culture in mainstream Philippine society, particularly among young Filipinos,” said Jubilee G. Ong, acting director of the Ricardo Leong Center, during the launch on Feb. 2.

Admission is free on a first-come, first-served basis at the Shang Cineplex Cinema 4.

Included in this year’s film lineup is Our Shining Days (2017) by Ran Wang. The film festival’s opening film on Feb. 13, this is a story about misfits and cosplaying outcasts who band together to form a Chinese music ensemble. What was initially a reluctant alliance slowly becomes a journey of self-discovery and, finally, a quest to revitalize the aging musical tradition.

A family-centered comedy-drama, What a Wonderful Family (2017) by Lei Huang, tells what happens to a family when the mother, after a marriage spanning 50 years, suddenly asks for divorce as her birthday present.

Walking Past the Future (2017) by Ruijun Li, is a drama about the daughter of an aging migrant worker who dreams of a better future while coping with the harsh reality in an era of drastic changes in China. In a last-ditch effort to secure her family’s future, she decides to take part in a series of highly paid medical experiments, with tragic consequences. The film won the Prize of Un Certain Regard at the 2017 Cannes Film Festival

The only musical in this year’s festival, Office (2015) by Johnnie To, sees Hong Kong megastar Chow Yun Fat playing the chairman of a billion-dollar company that is poised to go public. But as the company prepares for the IPO, company secrets are revealed as a neophyte enters the company with his youthful ideal and dreams.

Cold War 2 (2016) is the follow-up to the 2012 police thriller film by Sunny Luk and Longman Leung. The sequel, directed by Mr. Leung (without Mr. Luk) takes place after the events in the first film where the rescue operation of five police officers was deemed a partial success. Sean Lau (Aaron Kwok) who led the rescue was promoted to police commissioner. He then faces a personal crisis when his wife is kidnapped and her release is conditioned on the freedom of the leader of the criminal group involved in the previous case.

Finally, there is the fantasy film Monster Hunt (2015) by Raman Hui, about a world where monsters rule and humans fight to seize the land. Driven out after a long war, the monsters plot their return and overthrow the current monster regime, forcing the monster queen to flee. Humans get wind of a bounty on the queen’s head and the chase begins.

Aside from the Spring Film Festival, Shangri-La Plaza mall will also host a Chinese Painting Exhibit at the mall’s grand atrium on Feb. 13 featuring works by students and masters of the Ateneo Confucius Institute. The exhibit will run until the 18th and will culminate with a Chinese Painting workshop (Paint your Jeans) where Chinese traditional paintings will be done on several pairs of jeans at 2 p.m. The event is open to the public on a first-come, first-served basis.

Chinese New Year on Feb. 16 will be welcomed with the annual mall-wide Chinese Dragon and Lion walkthrough starting at noon. The following day, visitors will get the chance to listen to a Chinese Music concert at 2 p.m. at the grand atrium which will include a performance by the Philippine York Lin School Chorale, among others.

For more information on, and the schedule of, the film festival and other events in celebration of the Lunar New Year, call 370-2597 to 98 or visit facebook.com/shangrilaplazaofficial. — Zsarlene B. Chua

Want to know what’s in store in the Year of the Earth Dog?

FEB. 16 WILL be a day of lion and dragon dances, fireworks, placing a variety of round fruits on the dining table, singing “Gong Xi, Gong Xi” (the Chinese New Year song), eating tikoy (a glutinous rice cake), and, of course, getting a forecast of what’s in store for 2018 — all part and parcel of a Chinese New Year celebration in the Philippines.

In line with Resorts World Manila’s Imperial Festival celebrations for the occasion, the “world leading authority in the field of Chinese Metaphysics” and chief consultant of the Joey Yap Consulting Group, Dato’ Joey Yap will hold the Manila leg of his Feng Shui and Metaphysics world tour on Feb. 7, 8:30 a.m., at the Manila Ballroom of the Marriott Hotel Manila at Pasay City’s Resorts World Manila (RWM). Mr. Yap will discuss forecasts on health, wealth, career, and relationships, the 2018 global economic outlook, and the use of auspicious dates (for weddings, renovations, opening a business, etc.) in 2018.

“We are not fortune-tellers… we do destiny analysis,” Joey Yap Consulting Group master consultant Iverson Lee said at a press briefing on Jan. 18 at RWM’s Passion restaurant.

Mr. Lee elaborated that the practice of metaphysics guides one on how to take action to fulfill one’s destiny. “In order to become successful, [we] are not just dependent on luck alone. Luck is just one portion of the success equation. We also talk about the five formulas to success. Luck is one of them… Then, the second one is skills… We never stop learning. The third [thing] is choices. Fourth, look for strategy. Fifth, [the] environment — choosing the people we spend time with.”

Mr. Lee also added that the seminar will tackle one’s personal opportunities, and obstacles and how to solve them. “Do not underestimate what we can do in one year. It will make [a] huge impact,” he said.

A typical analysis of one’s life potential may be read using a BaZi (astrology) chart which helps one realize opportunities and focus on solutions. A personal BaZi chart may be plotted after entering one’s complete name, birthdate, and time of birth through the following link — http://bazi.masteryacademy.com/App/Basic/Default.aspx.

During the press briefing, Mr. Lee explained how to read one’s opportunities in wealth, relationship, and health. Mr. Lee said that wealth opportunities can be checked through visible animal signs in one’s chart such as the horse, ox, goat which fall under four columns — year, month, day, and hour. “The best animal sign [falls] in the month because it represents [your] career of business.”

For relationship opportunities, the animal signs are pig, snake, and rabbit. “The rabbit in 2018 represents passion in the relationship,” Mr. Lee said. As for the pig animal sign, it represents a happy event related to a relationship such as getting married, and/or having children or grandchildren. Lastly, the rooster, dog, and rat animal signs focus on maintenance on good health. “The chart does not cause you sickness… [It’s just] to notify you so you can take precaution.”

The BaZi chart may also be used to forecast the fortune of companies, businesses, and the country. For a company or business, the chart is traced from the founding date and time, while a country’s is traced from its independence date.

When asked how the practice of Chinese metaphysics is beneficial to companies, Mr. Lee told BusinessWorld that the analysis varies per the company’s department and employee designation. Mr. Lee added that it is used “to select people for the right job,” for “analysis and strategy” in the marketing department, and “to see the blind spots in the market” for the executive level.

For tickets to Joey Yap’s Feng Shui and Astrology Live Seminar 2018, visit http://joeyyap.com/fsaseminar/. For more on RWM’s Imperial Festival celebrations, visit www.rwmanila.com or call the Tourist/Visitor Hot line at 908-8833. — Michelle Anne P. Soliman

No Pacquiao but Ancajas on right path to stardom

By Michael Angelo S. Murillo
Senior Reporter

FILIPINO Jerwin “Pretty Boy” Ancajas made an impressive United States debut last Sunday as he successfully defended his International Boxing Federation (IBF) super flyweight title against Mexican challenger Israel Gonzalez via a 10th-round knockout.

And as expected, much praise was thrown the Panabo City native Ancajas’ way for the dominating performance he had, with some underscoring his standing as the next biggest thing in Philippine boxing after eight-division world champion Manny Pacquiao.

But while undeniably Mr. Ancajas is very deserving of all the success he is reaping as a prized fighter, local fight analyst Nissi Icasiano believes that boxing fans must not be too caught up with comparing Mr. Ancajas to Mr. Pacquiao and instead appreciate the former for the special boxer that he is, whose best years are still ahead of him.

“Definitely, he is not Manny Pacquiao. We should really stop the comparisons. Now that he is on the global stage, we should be happy that Jerwin Ancajas is his own man. Ancajas is more of a methodical pugilist like former Filipino champion Gerry Peñalosa. Most of the Filipino boxing fans are still used to Manny Pacquiao’s relentless style, but Jerwin Ancajas presents a different flavor,” said Mr. Icasiano when asked by BusinessWorld for his thoughts following Mr. Ancajas fight at the weekend in Corpus Christi, Texas.

“At the moment, I won’t change a single thing in his current stature as he is methodical and exciting. He’s not the kind of pugilist who will burn up the punch numbers. He is an enduring tactician who is most interested in getting the win. Although he maps out his victory in a systematic manner, he has a packed power in his fists that can bring his opponents to their knees,” added the analyst, who writes and talks about boxing and mixed martial arts for various media platforms in the country.

Mr. Icasiano went on to say that Mr. Ancajas’ overpowering performance against Mr. Gonzalez, who the Filipino knocked down three times during the fight, was a testimony to what he is as a fighter.

“In his title defense against Gonzalez, his methodical approach paid dividends in dismantling his challenger, consistently jabbing to stop the Mexican on his tracks and firing a series of damaging lefts straight and hooks that had Gonzalez bleeding in the nose,” he said.

“Gonzalez courageously proved that he wouldn’t easily bend against the Filipino champion. But the left hand wrote the final sentence. He is methodical in approach, but how he marinates his opponents with his surgical style adds a touch of excitement. Simply put, he is a cerebral assassin,” Mr. Icasiano added.

The analyst, however, rued that Mr. Ancajas was not able to show much of his body-punching in his latest title defense, something that he is very capable of doing, as Mr. Gonzalez chose to be more cautious to engage after being dropped in the opening round.

Nonetheless, Mr. Icasiano said it hardly diminished the scintillating performance that Mr. Ancajas had.

Moving forward, the analyst said bigger things should come for Mr. Ancajas, now sporting a 29-1-1 record after the win, after a successful first foray in the US and that his handlers should play their cards correctly.

“It’s a high time for Jerwin Ancajas to take a big step by joining HBO’s second installment of “Superfly” this year, taking on the best pugilists of the division like Srisaket Sor Rungvisai and Naoya Inoue. I believe he is ready to share the squared-circle with either of the two,” Mr. Icasiano said.

Personally, though, he would like to see Mr. Ancajas take on compatriot Jonas Sultan, something that is a welcome bout considering rarely does it happen.

“I would also like to see Jerwin Ancajas face Jonas Sultan, who is IBF’s mandatory no. 1 contender. If an Ancajas-Sultan title bout pushes through, it will be the first time in nearly 93 years that two Filipinos will clash for a world boxing crown. The last all-Filipino title boxing match was in May 1925 when Pancho Villa beat Clever Sencio to retain his world flyweight championship in Manila,” he said.

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