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On setting your intentions

By Raju Mandhyan

It’s an amazing thing — this trait called intention. I can’t really tell you where exactly it is born in the human mind. In the human brain, I suspect it begins as a spark through a neurological synapse deep within the amygdala, the part of the brain referred to as the heart of the brain or the beastly brain. I am slightly biased towards the term “beastly brain,” because once a desire is unleashed from there, it turns into a raging, screaming animal wanting to rip apart anything and everything that gets in the way to its goals.

Identity, intelligence, imagination, and integrity are traits that enable the entrepreneur to systemize, sympathize, and synergize with reality and nature towards attaining one’s goals and entrepreneurial ambitions. Intent integrates all these traits together to drive the entrepreneur into action and consequent success.

Dr. Wayne Dwyer, famous for his works on the Power of Intention and the Law of Attraction, claims that nothing happens unintentionally. Nothing can be conceptualized; nothing can be designed or built if there is no intention. Even the hair on our heads does not grow without intention, claims Dr. Dwyer in his book, the Power of Intention.

When one of my sons was seven years old, he claimed that he’d grow taller than me. We wagered my car. I took on the bet thinking his mother was quite short, and there was no chance our offspring would be any taller than us, especially me. Less than ten years later, he was the proud new owner of a humble old heap of metal, wires, and rubber. I guess my son, too, consciously or unconsciously, knew the power of intention.

So in all things you want to do, want to be, or want to have, first, ask this of yourself. Do you really, truly, and whole- heartedly want it? Do you want to become a business owner? Do you want to be independent, free, and rich? Do you want to do the things you want to do? Do you want to change your world and the world around you? Do you want to conceptualize, create, build, and sustain new worlds? Are you ready to expand your horizons? After having done what you have done, will you be happy and fulfilled by having what you get out of it? Is this the kind of life that you want to have?

Be absolutely certain of this because once you align and unleash the powers of your identity, intelligence, imagination, and integrity in the direction of your true intention, you will get what you asked for. Like they say, “be careful what you wish for, it may come true.”

An extremely crucial and critical word of caution ―if you unleash the power of your imagination and intelligence against the grain of your identity and in an unethical, dishonest, socially-irresponsible way, all your efforts will backfire and hurt not just you, but also those around you. Also, if you are unsure and unclear of what you really and truly want, then all the imagining, reasoning, analyzing, and discipline will acquire for you the wrong things with unhappy results.

SUGGESTIONS ON SETTING YOUR INTENTIONS
• Be totally clear about what you want from the bottom-up, top-down, outside-in, and inside-out of the organization. It must be something you, as the entrepreneur, and your team totally and truly want. Large corporations term this as their mission towards a vision.

• Rage and stay enthused. This rage, this passion will also help you acquire and master entrepreneurial skills and competencies for mastery and success. Make sure that the thing you want excites you to the bone again and again. It must make you jump out of your bed every morning and keep you thinking and planning about it way past your bedtime every night.

• Generate a culture of persistence and resilience among the members of your team to get up and go again, get up and go again, get up and go again.

• Recognize that success and failure are two sides of an endeavor called “event.” If you’ve got your intention, your intellectual work done right, your integrity intact and in alignment with your identity, then your success scores will be consistently high.

• Ignite others from your team and stakeholders, with the same passion that burns inside of you. There is always so much going on in everybody’s life and environment that the distractions can make you and your teams lose focus. As an entrepreneur, you need to also play the part of a chief who self energizes and also helps others refocus their energies again and again.

All this has been time tested. All this is powerful and true.

It is powerful and true because quantum science has put together the facts that our physiology, our psychology, our neurology, and the ecology are all closely, intricately, and powerfully interrelated. All our energies and the efforts are interrelated in one big universal bundle. Our thoughts, words, and actions are just but bits and bytes of that energy.

Ergo, walk with faith. Be intent on doing good, not just for yourself, but for everyone and everything around you as you walk, run, leap, soar towards all that your heart desires.

Raju Mandhyan is an author, coach, and a learning facilitator. (www.mandhyan.com)

DoF wants additional tax bills certified as urgent

By Melissa Luz T. Lopez, Senior Reporter

THE Department of Finance (DoF) is eyeing to certify as urgent the second set of tax-related measures in order to realize the P130 billion additional revenues expected from the first package of reforms, despite a looming legal battle on the new tax regime.

Finance Secretary Carlos G. Dominguez III said they will ask President Rodrigo R. Duterte to certify the remaining parts of the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) law as urgent, which will fast-track its passage in Congress.

The measures include the estate tax amnesty, general tax amnesty, the relaxation of the deposit secrecy law, and the automatic exchange of information. These are geared towards attracting more Filipinos to settle outstanding dues, while also giving tax collection agencies leeway to go after tax evaders.

“[O]nce the committee report is out then we can certify it, so we will get ready for that,” Finance Undersecretary Karl Kendrick T. Chua told reporters on Thursday afternoon.

To recall, Malacañang previously certified the TRAIN bill in May last year, which allowed the House of Representatives and the Senate to forgo the three-day waiting period to approve the measure on second and third readings.

Mr. Chua explained that the fresh round of discussions will take place in the Senate, as the House version of the TRAIN bill already included these provisions.

RA 10963 is expected to generate P89.9 billion in additional revenues in 2018, short of the P130 billion originally programmed under the national budget. It reduces personal income taxes for those earning below P2 million, alongside a simpler system for computing donor and estate taxes.

Foregone revenues will be offset by the removal of some exemptions to value-added tax; increased tax rates for fuel, automobiles, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for stocks not in the stock exchange, and stock transactions; and new taxes for sugar-sweetened drinks and cosmetic enhancements.

Passing the remaining tax measures — which have now been dubbed as Package 1B — will yield the P38.9 billion balance.

“Once they file the committee report, the Senate will tackle it in plenary and then it goes to the bicam,” Mr. Chua added, referring to the bicameral conference committee.

Another measure under the second batch is the increase in the Motor Vehicle Users Charge, which will mean higher registration fees for cars.

The DoF is holding on to a commitment made by chamber leaders to approve these bills within the first quarter.

For his part, Mr. Dominguez said it would be too early to tell which state programs would be left without funding if the second batch of measures are not implemented, noting current revenues can fund projects until the “third quarter of the year.”

“We won’t know which ones we will have to postpone until the latter part of this year so that we do not breach the 3 percent,” the Cabinet official added when asked whether government programs will be delayed in the absence of the full P130 billion collections.

Around 70% of the TRAIN proceeds will be spent on infrastructure, while the remainder will be used for social protection programs including cash transfers to the 10 million poorest families to help them cope with rising commodity prices.

Mr. Dominguez also said they do not expect the Supreme Court to heed the call to impose a temporary restraining order on the TRAIN law.

Three militant lawmakers in the House of Representatives asked the high court on Thursday to declare as unconstitutional and stop its implementation on the grounds that their fellow legislators “railroaded” its passage.

Their central argument has been that the House did not have a quorum and vote on the night the bicameral conference committee report on the tax bill was ratified.

DoF’s Mr. Chua said the chamber can “review and ratify” the minutes of the chamber’s Dec. 13 session to check the presence of a quorum and address the issue.

The TRAIN law took effect Jan. 1, and will be reflected on workers’ paychecks starting this month. Succeeding tax packages will also be submitted by the Executive to the legislative mill within the year.

Megawide-SSS group to bid for NAIA rehabilitation

By Arra B. Francia, Reporter

DIVERSIFIED engineering conglomerate Megawide Construction Corp. and Social Security System are planning to submit to the government an unsolicited proposal for the rehabilitation of Ninoy Aquino International Airport (NAIA).

SSS Chairman Amado D. Valdez on Friday said the state-run pension fund is looking to pursue more projects with Megawide after increasing its stake in the latter earlier this month.

“We’re looking into the feasibility of participating in a consortium in the redevelopment of NAIA,” Mr. Valdez told reporters in a press conference in Quezon City.

SSS officials noted Megawide has an advantage, as the company’s joint venture with Bangalore’s GMR Infrastructure Ltd. won the bid to build and operate the Mactan-Cebu International airport, which is set to be completed this June. The listed firm last month secured the contract to build the new passenger terminal of Clark International Airport.

“We have the edge — interoperability of these two airports will be critical. There will be an advantage when there’s just one operator,” SSS Commissioner Jose Gabriel M. La Vina said during the same event.

The consortium plans to submit the proposal for the NAIA rehabilitation within the first quarter.

The Megawide-SSS tandem’s proposal will be up against one submitted by a “super consortium” composed of Aboitiz InfraCapital, Inc., AC Infrastructure Holdings Corp., Andrew L. Tan-led Alliance Global Group, Inc., Lucio Tan’s Asia’s Emerging Dragon Corp., Gotianun-led Filinvest Development Corp., Gokongwei-led JG Summit Holdings, Inc., and Metro Pacific Investments Corp.

Aside from the NAIA, Megawide said it is also looking to participate in smaller regional airports in the country.

“We’re not limited to NAIA. There are more than 80 airports in the Philippines, so that presents us with a lot of airport opportunities,” Megawide Corporate Information Officer Manuel Louie B. Ferrer said.

Should the Megawide-led consortium win the bid for the project, Mr. Valdez said SSS would be able to take part in the construction of a project that directly affects its members.

Mr. Valdez said SSS and Megawide, as its construction partner, are also looking to work with the Bases Conversion Development Authority for other infrastructure projects in the future.

The state-run pension fund has recently increased its stake in Megawide to 5.17%, equivalent to 110.53 million shares. This comes as the SSS aims to participate in the infrastructure sector to take advantage of the government’s “Build, Build, Build” program.

SSS officials said they are looking to increase its Megawide stake by up to double of what they now have, bringing them closer to the 12.5% needed to get a board seat in the company.

“The commitment is more or less double of what we have now,” Mr. La Viña said.

However, Megawide gave SSS a board seat to be filled by Mr. La Viña as a special accommodation.

“We will see to it that all the safety stops will be followed in making the investments,” Mr. Valdez added.

For its part, Megawide said SSS’ investment in the company is a vote of confidence.

“We’re very happy, this is a vote of confidence, especially since SSS is a public fund. And for us, also we are very active now in going to this infrastructure business so we want partners. Also with SSS as one of the consortium members, we want to help because they want a higher yield,” Megawide Chairman Edgar B. Saavedra said.

Megawide booked a 7% increase in its consolidated earnings for the first three quarters of 2017 to P1.7 billion, on the back of a 4% rise in revenues to P14.3 billion.

Shares in Megawide climbed 22 centavos or 1.24% to P17.94 apiece at the stock exchange on Friday.

WB approves $170M funding for PHL rural projects

THE World Bank has approved $170 million in additional funding for programs that seek to develop provinces Philippines by building more roads, bridges, and irrigation systems.

In a statement, the multilateral lender announced on Friday that it will be extending a bigger credit line for the Philippine Rural Development Project (PRDP), which is a nationwide initiative led by the Department of Agriculture (DA).

The World Bank’s board of executive directors approved the additional funding for the project, with the view that these initiatives will “boost rural incomes and reduce poverty” in the country.

The PRDP is a six-year national project that aims to establish a modern, inclusive, value chain-oriented and climate-resilient agri-fisheries sector. It focuses on building infrastructure for the agricultural sector such as farm-to-market roads and bridges, communal irrigation systems, potable water supply, solar dryers, greenhouses and composting facilities.

Crafted in 2014, the PRDP aims to help at least 2 million farmers and fisherfolk in the countryside by improving rural road networks and providing support to small businesses. The World Bank extended a $501-million loan and grant package for the program.

President Rodrigo R. Duterte approved the expansion of the PRDP in October 2016, which now covers 81 provinces. The expanded pipeline needs P21 billion in fresh funds, on top of the P27 billion previously financed by the World Bank.

“An initial assessment of the project documents its extensive benefits, including an increase in average household incomes by almost 60%, amongst communities with rehabilitated farm-to-market roads; a 43% reduction of travel time in those communities with better roads; and a 54% reduction of hauling costs of agricultural inputs,” the World Bank said in a statement.

Under the program, the DA together with local government units will roll out 232 projects that will deliver a cumulative 1,700 kilometers of roads and bridges, 100 post-harvest facilities, 18 small-scale irrigation facilities covering 1,800 hectares, and 512 enterprise projects with some 100,000 direct beneficiaries.

The DA previously said they are borrowing $450 million from the World Bank, which will support a host of projects costing around P15.56 billion. — Melissa Luz T. Lopez

Poll: Little support for revolutionary gov’t despite Duterte’s high trust ratings

DESPITE higher trust ratings of President Rodrigo R. Duterte, a recent study of the Social Weather System (SWS) showed that there was little support for the proposed proclamation of a “Revolutionary Government.”

In its latest survey conducted by SWS, Mr. Duterte earned a trust rating of +75, with 83% having much trust, 7% with little trust, and 10% undecided.

However, in a parallel poll that sought the public’s opinion on the “Revolutionary Government,” SWS found that: “In terms of trust rating of the president, we also saw strong disagreement with Revolutionary Government among those with little trust in him (with net rating of) -56 and also those who are among undecided in their trust rating of the president at -38. But even among those with much trust in the president, we did not see much support for having Revolutionary Government with only +1.”

Mr. Duterte has repeatedly sought the establishment of a Revolutionary Government or RevGov to bring about rapid changes in the country. He was previously reported as saying that a RevGov needs to be established, even though it may not necessarily be under his watch. However, due to alleged destabilization plots against him, he has said that he may push through with it.

Nationwide, a plurality of 39% disagreed with a RevGov, 31% agreed, and 30% are undecided, resulting in a net rating of -8.

The respondents, 1,200 Filipinos spread evenly within Metro Manila, balance Luzon, Visayas, and Mindanao, were asked if they agree or disagree with a Revolutionary Government. The study was conducted between Dec. 8 to 16 last year, with +/-3% margin of error.

MINDANAO RESIDENTS SUPPORT REVOLUTIONARY GOVERNMENT
By locality, RevGov has garnered much support from Mindanawons with +16 net rating (38% agree, 21% disagree). However, 41% remain undecided.

For the Visayas, 26% agreed, 43% disagreed, and 31% are undecided, resulting in a -17 net rating. Balance Luzon followed with -16 (30% agree, 46% disagree, and 25% undecided) and National Capital Region (NCR) with -7 (34% agree, 41% disagree, and 25% undecided).

By educational attainment, those with high education or college graduates disagreed with -19 net rating while those with low education or elementary graduates approved of the Revolutionary Government.

Likewise, RevGov found more opposition from older age group (-12 to -15) compared with younger respondents (-1 to -7).

Those aged 55 and above had a net rating of -12 (28% agree, 40% disagree, 32% undecided) and those who are 45-54 years old had a net rating of -15 (28% agree, 43% disagree, 29% undecided).

Respondents who are 35-44 years old got -1 net rating (35% agree, 36 disagree, 29% disagree) while those aged 25-34 had -2 net (35% agree, 36% disagree, 29% undecided).

Surveyed 18- to 24-year-olds, meanwhile, had a net rating of -7, with 32% agree, 38% disagree, and 30% undecided.

Respondents who expressed dissatisfaction with the performance of the president said they disagree with RevGov with -43 net rating (16% agree, 60% disagree, 23% undecided). The same is found among those who are undecided if they are satisfied or dissatisfied with the president with -22 net rating (20% agree, 41% disagree, 39% undecided).

However, those who are satisfied with the president’s performance are “neutral” with the RevGov with only +2 net (37% agree, 35% disagree, 29% undecided).

More disagreement with respondents was seen from those who said a Revolutionary Government is not possible (-32) and those who do not know if it is possible (-31). Meanwhile, there is high agreement from among respondents who said a RevGov is possible (+19).

Asked whether they think the president “has plans to change the present government into the one he likes,” survey results showed that 63% Filipinos think he has a plan while 18% said they do not think so and 19% said they do not know.

From those who said the president is planning to change the system, 72% came from Mindanao and 69% from Metro Manila. Balance Luzon yielded 59% and the Visayas, 58%.

The percentage is also higher from among respondents with higher educational attainment with 75% than those with low education with 52%.

When asked if they think RevGov is possible under the present Constitution, 48% Filipinos said it is possible, 27% said it is not possible, and 19% do not know.

The 1987 Constitution has no provision which allows the declaration of a Revolutionary Government.

The survey showed that more college graduates think it is possible (54%) than elementary graduates (38%). Likewise, more respondents from older age bracket think RevGov is allowed under the present Constitution than the younger respondents with 40%. — Minde Nyl R. Dela Cruz

Ex-human rights chair files petition seeking to nullify martial law extension

ANOTHER petition seeking to nullify the one-year extension of martial law and suspension of the writ of habeas corpus in Mindanao was lodged before the Supreme Court on Friday, this time by former Commission on Human Rights chair Loretta Ann P. Rosales.

The “express and implied requirements” of the Constitution to declare martial law “have not been complied with by respondents,” Ms. Rosales said in her petition.

Named as respondents were: President Rodrigo R. Duterte, Executive Secretary Salvador C. Medialdea, Department of National Defense (DND) Secretary Delfin N. Lorenzana, Armed Forces of the Philippines (AFP) chief-of-staff Lt. Gen. Rey Leonardo Guerrero, Philippine National Police (PNP) Director General Ronaldo M. Dela Rosa, and the Congress of the Philippines represented by its leaders, Senate President Aquilino Martin L. Pimentel III and House Speaker Pantaleon D. Alvarez.

Explaining the difference between the martial law and military force, Ms. Rosales said: “The President may call the armed forces of the Philippines ‘to prevent or suppress lawless violence, invasion or rebellion’; and he may declare martial law ‘in case of invasion or rebellion, [and] when the public safety requires it.”

She further cited the letter submitted by Mr. Duterte to the Congress which listed the bases for extending martial law, such as the supposed regrouping of remaining members of the Daesh-inspired Da’awatul Islamiyah Waliyatul Masriq (DIWM) and the “intensification of the ‘decades-long rebellion’ by the New People’s Army (NPA).”

“With all due respect, and without diminishing the threat posed by any of the foregoing, none of these constitute actual rebellion or actual invasion. Moreover, it mistakes the distinction between the need for military force which is effected through the use of the calling out powers of the President, on one hand, and the need for imposing martial law on the civilian population, on the other,” the petition read.

Ms. Rosales added: “The President’s grounds do not rise to the level of actual rebellion that would require the State to wield the extraordinary power of martial law against its own citizens, especially when the government’s ability to respond to the threats posed by various groups (DIWM, the Turaifie Group, BIFF [Bangsamoro Islamic Freedom Fighters], Abu Sayyaf, NPA) are appropriately and sufficiently covered by the President’s calling out power.”

Speaking with Ms. Rosales in a press conference after the filing of the petition, Alyansa ng mga Abogado para sa Bayan (ALAB) convenor Florin T. Hilbay said that the purpose of the petition is “to really define what martial law is all about.”

“You cannot simply say you are allowing the President to extend martial law in Mindanao without understanding what martial law is all about. So the fundamental question in Lagman v. Medialdea and in this case is what are we talking about when we say we’re extending martial law, we’re giving the president the power to enforce martial law in mindanao for one year,” said Mr. Hilbay, who was Solicitor General during the previous administration.

This is the third petition filed against the prolonged martial law. On Dec. 13, 2017, the Congress voted 240-27 for its reextension as sought by President Duterte despite the liberation of Marawi City from ISIS-inspired Maute rebels.

Oral arguments for the consolidated version of the first two petitions are set on Jan. 16 and 17. — Minde Nyl R. Dela Cruz

RLC allowed to proceed with stock rights offering

PHILIPPINE Stock Exchange (PSE) has given Robinsons Land Corp. (RLC) the greenlight to proceed with a stock rights offering worth up to P20 billion.

In a disclosure to the stock exchange on Friday, the Gokongwei-led property developer said the issuance was approved by the PSE on Jan. 10. This will allow the company to offer up to 1.1 billion common shares priced within the range of P18 to P21.

The shares will be valued based on the volume weighted average price of RLC’s common shares in the 15 to 45 trading days prior to the pricing date. RLC will disclose the final share price on Jan. 24, with the offering to run from Feb. 2 to 8.

“The proceeds from the offer will be used to finance the acquisition of land located in various parts of the country for all of the company’s business segments,” the company said.

The listed firm will notify the shareholders who may participate in the offer. It noted that existing common shareholders may avail of the stocks provided they are located inside the Philippines, or are in jurisdictions outside the country and the United States where it is legal to participate in the offer.

RLC’s parent, JG Summit Holdings, Inc., plans to avail of any remaining shares that will be unsubscribed by the end of the offer period.

“Thus, if any shareholder fails to subscribe to all the rights shares, JGS, through the underwriter, will take up any remaining unsubscribed rights shares after the mandatory second round of the offer,” RLC said.

BPI Capital Corp. will act as the offer’s sole issue manager, bookrunner, and underwriter.

RLC posted a net income of P4.57 billion in the first nine months of 2017, 1.5% up from the P4.5 billion it realized in the same period in 2016. Revenues meanwhile stood at P16.64 billion, 2.7% lower year-on-year.

Shares in RLC were flat at P21.05 each at the PSE on Friday. — Arra B. Francia

Palace announces PCSO chair resignation, retired general’s BCDA appointment

Malacañang on Friday, Jan. 12, announced the resignation of Jose Jorge E. Corpuz as chairman of Philippine Charity Sweepstakes Office (PCSO).

“This is to announce that Mr. Jose Jorge Elizalde Corpuz has resigned as Chairman and Member, Board of Directors, Philippine Charity Sweepstakes Office due to health reasons,” Presidential Spokesperson Herminio Harry L. Roque, Jr. said in a statement.

The spokesperson clarified as well that Mr. Corpuz “is not the person whom the President said he will fire for corruption.”

Mr. Corpus is a former police director, and he was appointed to PCSO in 2016 by President Rodrigo R. Duterte to take over the position of Erineo S. Maliksi who was charged with graft, breach of ethical conduct, and violation of the government procurement act.

On the same day, the Palace also announced the appointment of retired Lt. Gen. Glorioso V. Miranda to the Bases Conversion and Development Authority (BCDA).

Mr. Miranda, a former vice chief of staff of the Armed Forces of the Philippines (AFP), is another retired military official that Mr. Duterte has appointed to the government.

The President signed Mr. Miranda’s appointment paper on Jan. 9.

He will be serving the unexpired term of office of Serafin U. Salvador, Jr. that began on July 1, 2017 and will end on June 30, 2018. — Arjay L. Balinbin

DTI conducts special price monitoring in Davao groceries

DAVAO CITY — Department of Trade and Industry (DTI) Secretary Ramon M. Lopez conducted a special price monitoring yesterday in two groceries in this city, checking if suggested retail prices (SRPs) of goods have gone up.

Mr. Lopez said he was surprised to find out that no cost movements were reported and that prices in two groceries he visited — Park and Shop in Victoria Plaza and Gaisano Mall of Davao — remain below SRP.

“I was surprised because prices of milk was sold P2.50 below the SRP of P54 and that condensed milk in cans were sold at P14.50 or P13.50 which is a good development,” he said in Filipino during an interview.

Products monitored in two groceries were sardines, processed milk, condensed milk, evaporated milk, coffee, bread, instant noodles, and laundry soap.

However, prices of softdrinks have already moved since specified excise taxes have already been imposed on these products.

On January 15, prices of softdrinks are expected to rise, Mr. Lopez said, citing the newly-implemented TRAIN Law or Tax Reform Acceleration and Inclusion Law, which doesn’t cover convenience or sari-sari stores.

“Department stores, groceries, and supermarkets are committed to follow the SRP,” he said, adding that consumers need not worry about price adjustments.

He also advised the consumers to check the prices in the grocery or supermarkets.

Lopez also assured that the DTI is checking if prices of products are being adjusted simultaneously. — Maya M. Padillo

Investors flocking to equities amid continued strength

INVESTORS are shifting their attention to the equity market from the low-risk bond mart, as the bellwether index is seen breaching the 10,000 level in the next two years, the asset management arm of Bank of the Philippine Islands (BPI) said on Friday.

Carlos A. Jalandoni, BPI Asset Management and Trust Corp. vice president and head of credit and research, said in a media luncheon on Friday that global asset allocation in 2017 has shifted focus to stocks over bonds.

“When you look at the asset allocation, it’s no wonder that investors are saying ‘we don’t want safe returns out of our bonds —we’re going to go in stocks,’” Mr. Jalandoni said.

Data presented by Mr. Jalandoni showed equities had a 60.2% share in global asset holdings from the 39% trough in 2009. Meanwhile, global bond holdings reached a 23.5% allocation last year, from the 34% peak in 2009.

He cited three developments in the global economy which pushed the market players for “massive risk-taking activities” which lead to significant returns in stock markets.

First, Mr, Jalandoni noted the weakness of the US dollar due to longer and weaker-than-expected economic reforms as President Donald J. Trump indicated in his campaign promises.

“Donald Trump was supposed to infuse a lot of growth to the economy because he wants to make America great again, but it took a little longer to fulfill his promises,” he said, adding that his tax reform has only brought the corporate taxes to only 25% from 35%, versus the campaign promise of 15%.

Second in the list of developments were the diffused political risks in the European Union, as Emmanuel Macron won the French presidency over far-right candidate Marine Le Pen and as Angela Merkel notched her fourth term as the German chancellor. The election of the two leaders tempered the political risks posed by the exit of UK in the 28-member bloc.

Lastly, commodity prices also started to recover, led by petroleum.

“[Market players have already accepted that] the global economy is no longer weak or no longer falling through the cracks. We are now prepared to take more risks and it translates to re-rating of growth globally.”

As interest in equities returned, stock markets across many countries grew, including the Philippine Stock Exchange index (PSEi), which rose by 25.1% in 2017.

Looking forward, Mr. Jalandoni said BPI Asset Management’s outlook for the stock market’s growth will for this year be “conservative,” expecting it to land between 8% to 10%, bringing the stock market index to the 9,300 to 9,400 levels.

Despite the expected slower growth, Mr. Jalandoni still sees the PSEi breaching the 10,000 level “within two years.”

Meanwhile, amid continued volatility, Mr. Jalandoni said the Philippine peso’s trajectory will remain mostly downward.

In the latter part of 2017, the local currency dropped to P51.76 versus the dollar, its lowest in more than a decade.

However, BPI Asset Management’s vice president said the weak peso is “totally fine” as this reflects the country’s economic growth.

“Learn to accept a weak currency as a reflection that the economy is actually growing much faster on the back of infrastructure and investments. Unfortunately, we don’t make much machinery; we have to import these stuff [in support of the government’s infrastructure push.],” he said, adding that the depreciating peso is only a “safety mechanism” against overvaluation.

BPI Asset Management and Trust is the biggest index fund manager in the country, with over P54 billion in assets under management for its six index funds. — Karl Angelo N. Vidal

MPIC avails of P8-B loan facility

METRO Pacific Investments Corp. (MPIC) has secured an P8-billion syndicated term loan facility to partially finance the obligations of one of its subsidiaries.

In a disclosure to the stock exchange on Friday, the Manuel V. Pangilinan-led firm said the syndicated term loan facility — set to mature in 10 years and 15 years — will be used partially for the redemption of outstanding debt obligations of Beacon Electric Asset Holdings, Inc.

The infrastructure conglomerate tapped BDO Capital and Investment Corp. to act as arranger and bookrunner for the transaction.

MPIC started acquiring Beacon from PLDT, Inc.’s unit PLDT Communications and Energy Ventures in 2016, in order to increase its interest in Manila Electric Co. Beacon Electric previously owned 35% of Meralco, while 56% is held by Global Business Power.

The company earlier paid P12 billion in cash out of the P21.8-billion purchase price of Beacon, with the remaining P9.8 billion to be paid in the next four years.

The transaction brings MPIC’s effective ownership stake in Meralco to 45.5%, from the previous 41.2%, as well as increases its stake in Global Business Power to 62.4% from 47.8%. MPIC already had a 10.5% direct interest in Meralco prior to the transaction.

This year, MPIC has committed to spend P100 billion in capital expenditures to accelerate the expansion of its tollway, water, energy, rail, and hospital segments. The company specifically allocated P38 billion for Metro Pacific Tollways Corp., P17 billion for the Light Rail Manila Corp., P21 billion for Meralco, P12 billion for Maynilad Water Services, Inc., P6 billion for Metro Pacific Hospital Holdings, Inc., and P6 billion for logistics.

To fund this capex, the company said it is using internally generated income, a combination of equity partners, value crystallization in its portfolio, and banks. It also plans to offer P30 billion worth of bonds in the next three years.

MPIC generated a net income attributable to the parent of P11.3 billion in the first three quarters of 2017, posting a 17% year-on-year increase as revenues likewise climbed 30% to P43 billion during the same period.

MPIC is one of three Philippine units of Hong Kong-based First Pacific, along with PLDT and Philex Mining. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

Shares in MPIC lost six centavos or 0.91% to close at P6.55 apiece at the Philippine Stock Exchange on Friday. — Arra B. Francia

SBITC sees better performance this year

SUBIC BAY International Terminal Corp. (SBITC) sees its performance improving this year, buoyed by both the government and private sector’s interest to invest in the Subic Bay Freeport Zone.

In a statement on Friday, SBITC president Roberto R. Locsin said that with the government prioritizing the development of infrastructure nationwide and the improved intra-regional trade among Southeast Asian nations, a positive year for seaports and maritime routes is likely.

“The Subic Freeport Zone is bustling with activity from various logistics and trading firms and we project growth will continue due to the infrastructure program of the administration,” he added.

The company also manages the two terminals in the New Container Compound in the Subic Free Port Area. A few months ago, the company expanded its services in the southern regions, operating a container barge service between Cebu and Cagayan de Oro, connecting other provinces in between.

The International Container Terminal Services, Inc. subsidiary will also benefit from the refurbishment of piers and wharves in the Subic Bay Freeport Zone, which has been granted a P500 million budget under the General Appropriations Act.

“[V]arious international firms have recognized the potential of Subic Bay as a strategic gateway in the Asian market. With cautious optimism, SBITC will continue to be a progressive partner for economic prosperity through managing our ports,” Mr. Locsin said.

Aside from this, the Subic Bay Metropolitan Authority (SBMA) also signed deals with major ports in the US to further the expansion plans in the Freeport Zone, one of SBMA’s priorities to make the port as one of the heavyweights in global maritime trade.

“Our priority is to make Subic a more open and competitive Freeport in international trade. With additional investment prospects in the works, Subic Bay is moving forward with positive momentum,” SBMA chairperson and administrator Wilma T. Eisma said in the same statement. — A.G.A. Mogato

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