AyalaLand Logistics’ profit jumps 117% as of Sept.

November 3, 2021 | 12:01 am

AYALALAND Logistics Holdings Corp.’s (ALLHC) consolidated net income surged by 117% to P402 million in the first nine months of the year on the back of strong domestic demand for industrial lots.

ALLHC’s topline amounted to P2.6 billion at end-September, 12% higher than the P2.3 billion logged in the same period last year. Revenues from the company’s industrial lot sales jumped 126% to P1.1 billion from last year’s P511 million.

Clients taking up the gross leasable area of the warehouses ALLHC completed last year led to a 6% increase in warehouse leasing to P299 million from the P282 million logged in the same period last year.

Meanwhile, ALLHC said revenues from commercial leasing operations continued to decline due to the pandemic restrictions and as the company continued to provide rental assistance to its tenants.

For the nine-month period, rentals from Tutuban Center and South Park Center declined by 16% to P311 million from P369 million. The company said South Park Corporate Center’s office leasing operations, which posted a 100% lease-out rate, is “cushioning the impact.”

Tutuban Center forayed into the digital space via Tutubuy, which serves as an online business platform for the small, medium, and emerging enterprises based in the Divisoria mall.

ALLHC said it also recently reopened the Tutuban Night Market, hosting over 400 stalls from 3 p.m. to 11 p.m.

“We see signs of recovery in our business lines with industrial lot sales driving significant improvement in our overall performance this quarter,” ALLHC President and Chief Executive Officer Maria Rowena M. Tomeldan said in a statement on Tuesday.

“While the current business environment still proves to be challenging, we trust that our growing diversified portfolio of assets will keep ALLHC resilient amidst the ongoing crisis,” Ms. Tomeldan said.

ALLHC, a unit of Ayala Land, Inc., focuses on real estate logistics and industrial estate development.

The company is present in five areas across the country via its businesses in industrial parks, warehouses, cold storage facilities, and commercial leasing.

Shares of ALLHC at the local bourse went up by 1.72% or 10 centavos on Tuesday to finish at P5.90 apiece. — K.C.G. Valmonte

Singapore has grand ambitions to become a global cryptocurrency hub

November 3, 2021 | 12:01 am

Singapore-skyline-720p — A VIEW of the city skyline in Singapore, Dec. 31, 2020 — REUTERS

SINGAPORE is seeking to cement itself as a key player for cryptocurrency-related businesses as financial centers around the world grapple with approaches to handle one of the fastest growing areas of finance.

“We think the best approach is not to clamp down or ban these things,” said Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), which regulates banks and financial firms.

Instead, MAS is putting in place “strong regulation,” so firms that meet its requirements and address the multitude of risks can operate, he said in an interview.

Nations differ vastly when it comes to how they handle crypto: China has cracked down on large amounts of activity in recent months, Japan only recently allowed dedicated crypto investment funds — though El Salvador has embraced Bitcoin as legal tender. In the US, while there are an abundance of options for investing in the burgeoning asset class, regulators are concerned about everything from stablecoins to yield-generating products.

“With crypto-based activities, it is basically an investment in a prospective future, the shape of which is not clear at this point,” said Mr. Menon, who has helmed the MAS for about a decade. “But not to get into this game, I think risks Singapore being left behind. Getting early into that game means we can have a head start, and better understand its potential benefits as well as its risks.”

The stakes are high for the small island nation, which has already earned a reputation as a global wealth hub. Singapore must raise its safeguards to counter risks including illicit flows, Mr. Menon said.

The city state is “interested in developing crypto technology, understanding blockchain, smart contracts and preparing ourselves for a Web 3.0 world,” he said, referring to the third generation of online services.

Singapore isn’t the only place with crypto ambitions. Locations as diverse as Miami, El Salvador, Malta and Zug in Switzerland, are also making efforts. It can be a fine line to tread, given the crypto industry grew up with few regulations, so many players balk at government officials’ attempts to impose guardrails.

BINANCE, GEMINI
Singapore’s approach has attracted crypto firms from Binance Holdings Ltd., which has had a series of run-ins with regulators around the world, to Gemini, a US operator targeting institutional investors, to set up base.

Some 170 companies applied for a MAS license, taking the total number of firms seeking to operate under its Payment Services Act to about 400, after the law came into effect in January 2020.

Since then, only three crypto firms have received the much-coveted licenses, while two were rejected. About 30 withdrew their application after engaging with the regulator. Among those approved is the brokerage arm of DBS Group Holdings Ltd., Singapore’s largest bank, which is also a pioneer in setting up a platform for trading of digital tokens while offering tokenization services.

The regulator is taking time to assess applicants to ensure that they meet its high requirements, Mr. Menon said. The MAS has also boosted resources to cope with high volumes of prospective services operators, he said.

“We don’t need 160 of them to set up shop here. Half of them can do so, but with very high standards, that I think is a better outcome,” he said.

Mr. Menon said the benefits of having a well-regulated local crypto industry could also extend beyond the financial sector.

“If and when a crypto economy takes off in a way, we want to be one of the leading players,” he said. “It could help create jobs, create value-add, and I think more than the financial sector, the other sectors of the economy will potentially gain.” — Bloomberg

How PSEi member stocks performed — November 2, 2021

November 3, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, November 2, 2021.

Manufacturing purchasing managers’ index of select ASEAN economies, October 2021

November 3, 2021 | 12:00 am

PHILIPPINE manufacturing activity inched up to a seven-month high in October as new orders stabilized and business confidence improved with the further easing of lockdown restrictions in the capital, IHS Markit said on Tuesday. Read the full story.

Decline in virus infections slows; risk still low

November 2, 2021 | 9:01 pm

vaccination — PHILIPPINE STAR/ MICHAEL VARCAS

THE DECLINE in coronavirus infections in the Philippines has slowed, according to health authorities, even as the country remained at low risk from the virus.

Infections have declined by 49% nationwide in the past two weeks, Alethea de Guzman, director of the Health department’s Epidemiology bureau, told an online news briefing on Tuesday.

The daily infection tally fell by 14% to 4,183 cases on Oct. 26 to Nov. 1 from a week earlier, compared with a 26% decline in the first few weeks of October and 35% by the end of the month, she said.

“We have seen that the decline in new cases has slowed down,” Ms. De Guzman said in Filipino. “It is still going down but the decline is slower than in the previous weeks.”

The decrease in infections in the capital region, which is also at low risk from the coronavirus, had also slowed, she said.

The daily infection tally in Metro Manila fell by 14% to 770 cases on Oct. 26 to Nov. 1 from a week earlier, compared with a 36% decline on Oct. 19 to 25.

If the trend continues, coronavirus infections might start increasing again, Ms. De Guzman said, adding that local governments should continue their contact-tracing efforts.

The Department of Health (DoH) reported 2,303 coronavirus infections on Tuesday, bringing the total to 2.8 million.

The death toll rose to 43,404 after 128 more patients died, while recoveries increased by 4,677 to 2.7 million, it said in a bulletin. 

There were 40,786 active cases, 71.2% of which were mild, 5.1% did not show symptoms, 7.5% were severe, 12.02% were moderate and 3.2% were critical.

DoH said 22 duplicates had been removed from the tally, 19 of which were reclassified as recoveries, while 106 recoveries were relisted as deaths. Eight laboratories failed to submit data on Oct. 31.

The agency said 46% of intensive care units in the Philippines were occupied, while the rate in Metro Manila was 40%.

Ms. De Guzman said the Cordillera and Cagayan Valley regions were still at moderate risk from the coronavirus.

Infections there have declined in the past two weeks, but their average daily attack rates were still above seven, which is considered high, she added.

Meanwhile, Metro Manila’s average daily attack rate fell to 5.97 for 100,000 people from Oct. 19 to Nov. 1 from 11.9 a week earlier, Ms. De Guzman said.

Business groups have been urging the Philippine government to further relax quarantines in Manila, the capital and nearby cities after a decline in its daily tally. 

Metro Manila is now under Alert Level 3, which allows 50% capacity for outdoor services and 30% capacity for indoor activities.

The government started enforcing granular lockdowns with five alert levels in the capital region after the country struggled to contain a fresh spike in infections triggered by a highly contagious Delta variant.

Meanwhile, the Philippines was set to take delivery of 2.7 million Sputnik V coronavirus vaccines from Russia on Tuesday, according to the presidential palace. 

The government had received more than 100 million vaccines doses as of Oct. 28, presidential spokesman Herminio L. Roque, Jr. told a televised news briefing on Tuesday.

He said 59.3 million doses had been given out as of Nov. 1. More than 27 million people or 35.47% of adult Filipinos have been fully vaccinated against the coronavirus, he added.

Metro Manila had the highest vaccination rate among regions in the country, Health Undersecretary Myrna C. Cabotaje separately told a televised news briefing. 

Calabarzon, Central Luzon, Central Visayas, Western Visayas and Davao also had high vaccination coverage, she added.

Ms. Cabotaje said the half-a-million coronavirus vaccines were given out daily in the past few days. The government seeks to vaccinate at least 50% of its adult population by yearend.

Meanwhile, Mr. Roque said at least 100,000 doses of coronavirus vaccines were damaged in a fire that hit the Department of Health’s regional office in Zamboanga del Sur.

The government could replace the doses destroyed by fire since vaccine supply was no longer a problem, he said. — Kyle Aristophere T. Atienza

DFA says 58 migrant workers arrived from Bahrain last week

November 2, 2021 | 9:00 pm

OFW-airline-passenger — PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINE Embassy in Bahrain sent home 58 migrant Filipino workers last week, including detainees, overstaying and sick Filipinos overseas, the Department of Foreign Affairs (DFA) said in a statement on Tuesday.

Due to travel restrictions, many distressed Filipinos in Bahrain sought the help of the embassy there in booking tickets at a special rate given by Gulf Air, the agency said.

The embassy also worked with DFA and other agencies in exempting the returning Filipinos from quarantine restrictions.

The embassy has helped 287 stranded Filipinos in Bahrain to come home via Gulf Air’s direct flight to Manila since August. The government paid for the airfare of 175 workers, it said.

Meanwhile, DFA has lowered the alert level for Iraq to Alert Level 3 (voluntary repatriation) from Alert Level 4 (mandatory repatriation) due to improved security and upon the request of overseas Filipino workers.

Filipino workers returning to Iraq would be exempted from the deployment ban, subject to conditions, the agency said.

DFA said Filipinos in Iraq should be cautious, restrict movements and keep communication lines with the Philippine Embassy in Baghdad open.

Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI), said it supports a plan to further ease the lockdown in Metro Manila in two weeks, which it said would let more businesses to reopen.

Metro Manila is now under Alert Level 3, which allows 50% capacity for outdoor services and 30% capacity for indoor activities.

“The easing of restriction to Alert level 2, which will allow most businesses to operate and restaurants to increase the capacity of allowed diners is a good move, especially now as we enter the Christmas season,” PCCI President Benedicto V. Yujuico said in a statement.

He urged the government to boot the capacity of public transport vehicles to help revive businesses and the economy.

Under Alert Level 2, businesses may operate indoors at 50% capacity. They will get an additional 10% capacity if they have a so-called safety seal from the government. For outdoor operations, they may operate at 70% capacity.

At least 80% of Metro Manila residents have been fully vaccinated against the coronavirus.

An inter-agency task force last week approved a plan to increase passenger capacity in road- and rail-based public transportation in Metro Manila and nearby provinces from 70% to full capacity starting Nov. 4.

The government started enforcing granular lockdowns with five alert levels in the capital region after the country struggled to contain a fresh spike in infections triggered by a highly contagious Delta variant.

Mr. Yujuico said some countries in Southeast Asia including Thailand and Singapore have reopened their hotel, travel and tourism industries.

He also cited the need to fast-track the government’s vaccine rollout amid a decline in infection rates to help micro, small and medium enterprises in the countryside.

The OCTA Research Group from the University of the Philippines earlier said coronavirus infections nationwide would probably fall to 2,000 by the end of the month.

Daily virus cases in Metro Manila could go down to 500 by mid-November, OCTA fellow Fredegusto P. David said on Sunday. — Alyssa Nicole O. Tan and Angelica Y. Yang

Shares go up on bargain hunting, lower cases

November 2, 2021 | 9:00 pm

PHILIPPINE SHARES snapped their three-day decline on Tuesday on bargain hunting and as market sentiment got a boost from the improving pandemic situation in Metro Manila.

The Philippine Stock Exchange index (PSEi) went up by 51.31 points or 0.72% to close at 7,106.01 on Tuesday, while the broader all shares index gained 15.25 points or 0.34% to 4,402.04.

“Investors took opportunities out of its preceding three-day decline,” Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., said in a Viber message, adding that “positive cues from Wall Street’s record high performance also gave the market a boost.”

Back home, the country’s improved coronavirus disease 2019 (COVID-19) situation in the National Capital Region (NCR) also gave market sentiment a boost.

“The continuous improvement in our COVID-19 situation helped spur optimism since it raises the chances of social restrictions being eased in the government’s next deciding period,” Mr. Tantiangco said.

“Investors continued to count on lower restrictions by the middle of the month after OCTA Research expressed its support for the further easing in NCR amid low risk of coronavirus resurgence,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a text message.

“Market rebound was spearheaded by [Globe Telecom, Inc.] after news that its fintech arm Mynt [Globe Fintech Innovations, Inc.] secured $300 million in funding from different foreign investors led by Warburg Pincus,” Mr. Cruz added.

Globe gained 4.61% or P138 on Tuesday to close at P3,134 per share. Mynt is the operator of e-wallet platform GCash. The additional $300-million funding from the global investment firm brought Mynt’s value to over $2 billion.

“In contrast, [Semirara Mining and Power Corp.] and [DMCI Holdings, Inc.] weakened after coal futures plunged 30%. China’s government stepped up its intervention by boosting coal output in the local market in an effort to calm the economy sparked by an energy crisis,” Mr. Cruz said.

The majority of sectoral indices closed in the green on Tuesday except for mining and oil, which dropped 228.33 points or 2.26% to 9,867.53, and industrials, which lost 180.91 points or 1.67% to finish at 10,650.32.

Meanwhile, holding firms gained 106.84 points or 1.54% to 7,044.24; financials rose 17.10 points or 1.11% to 1,550.19; property went up by 17.43 points or 0.55% to finish at 3,136.32; and services inched up by 6.65 points or 0.35% to 1,895.79.

Value turnover decreased to P7.49 billion with 930.47 million issues traded on Tuesday from the P7.70 billion with 1.12 billion shares that switched hands on Friday.

Decliners beat advancers, 104 against 81, while 46 names closed unchanged.

Net foreign selling declined to P177.79 million on Tuesday, dropping from the P1.24 billion seen on Friday. — Keren Concepcion G. Valmonte

Peso up on manufacturing PMI

November 2, 2021 | 9:00 pm

THE PESO climbed as the Philippine factory activity improved. — BW FILE PHOTO

THE PESO strengthened versus the greenback on Tuesday on the back of strong local manufacturing data.

The local unit closed at P50.39 per dollar on Tuesday, appreciating by 2.5 centavos from its P50.415 finish on Friday, based on data from the Bankers Association of the Philippines.

Financial markets were closed on Monday in view of All Saints’ Day.

The peso opened Tuesday’s session weaker from its previous close at P50.46 per dollar. Its weakest showing was at P50.52, while its intraday best was at P50.36 against the greenback.

Dollars exchanged increased to $1.149 billion on Tuesday from $983.38 million on Friday.

The peso gained versus the greenback on Tuesday as market sentiment improved following the release of strong manufacturing data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Factory activity in October was the strongest in seven months, with the Philippines Purchasing Managers’ Index (PMI) reading at 51, IHS Markit reported on Tuesday. This is higher than the 50.9 in September and above the 50 mark that separates growth from contraction.

IHS Markit noted that growth in factory activity last month was due to the easing of restriction measures and the stabilizing of new orders.

In contrast, the US posted weaker manufacturing data last month, which a trader said also boosted the peso versus the dollar.

The Institute for Supply Management said the index of national factory activity slipped to 60.8 in October from 61.1 in September, Reuters reported Monday.

Based on the report, supply chains in the US were constrained as all industries saw record-long lead times for raw materials.

For Wednesday, Mr. Ricafort gave a forecast range of P50.30 to P50.50 per dollar, while the trader expects the local unit to move within P50.20 to P50.45. — L.W.T. Noble with Reuters

Duterte to join APEC leaders’ meet with pandemic recovery, global outlook up for discussion

November 2, 2021 | 8:59 pm

PRESIDENT Rodrigo R. Duterte will join fellow heads of states in a virtual meeting on Nov. 12 for the annual leaders’ meeting of the 21-member Asia Pacific Economic Cooperation (APEC) forum, his spokesman said on Tuesday.

“The President is expected to attend the APEC on Nov. 12 via video conferencing,” Palace Spokesman Herminio “Harry” L. Roque, Jr. said in mixed English and Filipino.

This year’s APEC Economic Leaders’ Meeting will be hosted by New Zealand, whose exports to the country were valued at NZ$729 million in 2020.

Mr. Duterte will participate in the International Monetary Fund’s presentation of its global economic outlook, the Palace official said. The President will also join discussions related to the pandemic recovery of various countries and witness the handover of the region’s chairmanship to Thailand. — Kyle Aristophere T. Atienza

Comelec: No grounds for cancellation of contract with F2 Logistics

November 2, 2021 | 8:59 pm

voters-reg-boy-santos-banner — PHILIPPINE STAR/ BOY SANTOS

THE COMMISSION on Elections (Comelec) asserted Wednesday that there are no grounds yet to cancel their deal with a logistics provider with ties to a businessmen close to President Rodrigo R. Duterte.

Comelec Spokesperson James B. Jimenez said the poll body did not find any conflict of interest in the contract with F2 Logistics, which is linked to Dennis A. Uy, adding that the company had the lowest bid for the delivery deal.

“There would have to be a violation of terms of conditions of the contract. There would have to be some sort of violation by F2, or a change in circumstances all of a sudden that there is no need in the Comelec for the contract, I suppose a case can be made for rescission then,” he said in an ANC interview.

Poll watchdogs and critics have urged the Comelec to cancel their delivery contract with F2 Logistics to ensure that there is no conflict of interest with the ruling administration.

“Do we really entrust the ballots, vote counting machines, and other election paraphernalia to Duterte’s top billionaire crony? The Filipino people must stop this deal and protect our votes,” said vice presidential candidate Walden F. Bello.

Mr. Uy, who is from the President’s hometown, was one of Mr. Duterte’s top campaign contributors in the 2016 presidential election, donating P30 million.

Mr. Jimenez also said in a tweet that the deal with the logistics provider will not affect election results as procedures are in place to ensure that vote counting machines (VCMs) are checked after delivery.

“After delivery, VCMs undergo final testing and sealing up to three days before election day, so… we know if the VCMs are working properly,” he said.

The poll body and F2 Logistics signed a contract on Oct. 29 for a delivery deal worth P536 million. The company will transport and store election supplies such as ballots and vote-counting machines for the May 2022 polls.

The logistics firm was also contracted for the 2018 Sangguniang Kabataan and barangay polls and the 2019 midterm elections.

“I think the logistics company has experience which is the reason why it qualified. There are standards that they met, which at least gives us an indication that there is a good chance that we have (confidence) that the contract is in very good hands,” Mr. Jimenez said.

DIOKNO
Meanwhile, senatorial aspirant Jose Manuel “Chel” I. Diokno expressed confidence that an “overwhelming” number of votes for the opposition should thwart any attempt to rig the outcome of the May elections as concerns over Duterte-appointed commissioners arise.

Before the elections next year, Mr. Duterte will be appointing the replacement of the Comelec chairman and two commissioners who are due to retire and another who was not confirmed by the Commission on Appointments. The three other remaining commissioners are all Duterte appointees.

Mr. Diokno, however, said, the Comelec leadership could not possibly manipulate the poll outcome. “The more overwhelming the vote is, the harder it will be to cheat,” he said during a recent online town hall meeting with Negros-based multi-sectoral leaders.

“I don’t think they will be able to tinker with the outcome of an election,” he said. — Russell Louis C. Ku and Alyssa Nicole O. Tan

Senators tell PhilHealth to pursue an ‘aggressive catch-up plan’ as private hospitals threaten to sever ties

November 2, 2021 | 8:59 pm

SENATORS on Tuesday called on the Philippine Health Insurance Corp. (PhilHealth) to pursue an “aggressive catch-up plan” after private hospitals expressed intent to make good on their earlier threat to cut off ties after failing to collect billions-worth of claims by end-October.

“PhilHealth must pick up the slack in settling its mounting obligations to hospitals that compromise our healthcare system,” said Senator Mary Grace S. Poe-Llamanzares in a statement Tuesday.

“The complaints of hospitals on these slow reimbursements on spendings of hospitals and patients have long been present,” Senator Juan Edgardo “Sonny” M. Angara, who chairs the Senate Finance committee, said in a mix of English and Filipino in a statement late Monday.

“PhilHealth needs to hurry the processing of hospital claims, otherwise we will have systems failure here in our healthcare system,” he said.

Several private hospitals in Metro Manila, Iloilo, Cagayan Valley, and General Santos City are planning to disengage from the state-owned insurer, according to Private Hospitals Association of the Philippines, Inc. President Jose Rene de Grano.

He noted the company’s failure to come up with concrete solutions for unpaid claims by Oct. 31.

“They (hospitals) already signified that they will no longer renew their accreditation with PhilHealth,” he said, adding that in the next few weeks, more private health facilities may announce the same.

Senator Maria Imelda Josefa “Imee” R. Marcos, who chairs the Senate committee on Economic Affairs, said the withdrawal of private hospitals would compromise the country’s Universal Health Care Act.

“At this time when people have neither jobs nor money, who will pay for their medical expenses if hospitals are no longer registered with PhilHealth?” Ms. Marcos said.

In the Philippines, there are more private-owned hospitals than those operated by government.

“ARTA or the Anti-Red Tape Authority should look into the processes of PhilHealth to figure the reason for the slow payment of the hospitals’ health insurance claims,” Mr. Angara said. — Alyssa Nicole O. Tan

Bill seeks to scrap additional requirements for driver’s license renewal

November 2, 2021 | 8:59 pm

A HOUSE leader filed a bill seeking to scrap additional requirements for driver’s license renewal that the Land Transportation Office (LTO) has started to impose.

House Deputy Speaker Rufus B. Rodriguez filed House Bill 10430 that would repeal a provision in Republic Act 10930 that mandates the LTO to establish guidelines and prerequisites for a driving license.

“The LTO has come up with new, unnecessary, and burdensome requirement for all new drivers in order to get their student permits, get their new driver’s license, or in renewing their driver’s license,” according to the bill.

Mr. Rodriguez said that although driver’s education classes are free of charge through the LTO website, it could provide an additional expense to Filipinos as it could “unduly enrich” driving schools as these classes are offered from P1,000 to P3,000.

The LTO issued a memo on Oct. 25, citing RA 10930, that would allow drivers to get a renewed license valid for 10 years under the condition that there are no prior traffic violations on record and undergo the comprehensive driver’s education (CDE) classes.

The classes are available for free on the LTO site, but accredited driving schools are also allowed to offer these for a fee.

The new policy started on Oct. 28 at LTO’s Central Office and Quezon City Licensing Center. It will take effect in other Metro Manila offices on Nov. 3, while implementation outside the capital has yet to be set.

Mr. Rodriguez said these additional requirements could be a “source of red tape, harassment and corruption.”

The lawmaker also filed House Resolution 2325 urging the LTO to immediately remove the CDE requirement.

“There is no provision in the law which explicitly states that a certification for a CDE is required for renewing a driver’s license,” Mr. Rodriguez said in a statement.

He also urged his fellow congressmen to investigate the matter and called on the LTO to “properly explain the basis for its impositions and to prove that the correct legal processes were complied with.” — Russell Louis C. Ku