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Tax court affirms trading firm’s tax refund of around P13 million

THE Court of Tax Appeals (CTA) has affirmed a division ruling on PTT Philippines Trading Corp.’s refund of P13.35 million representing its erroneously paid advance value-added tax (VAT) on its importation of diesel fuel for the period covering Sept. 20, 2013, to Jan. 20, 2014.

In a decision on June 14 and made public on June 16, the CTA full court denied the appeal of the commissioner of internal revenue (CIR) to reverse the ruling, as it agreed with the Third Division granting the company’s refund.

“The Court in Division is correct in granting the refund of the VAT collected by petitioner (CIR) from the respondent (PTT) on the imported fuel in the total amount of P13.3 million since it is an illegal or erroneous tax or one which was levied without statutory authority,” according to the ruling written by CTA Associate Justice Marian Ivy F. Reyes-Fajardo.

PTT is a domestic corporation that engages in the distribution, marketing, and selling of petroleum and petroleum-related products within the Subic Bay Freeport Zone and other special economic and export processing zones in the Philippines.

It had previously imported diesel fuel from the Cayman Islands, British West Indies from Sept. 20, 2013 to Jan. 20, 2014, and paid VAT worth P13.35 to the Bureau of Customs.

Republic Act No. 7227, or the Bases Conversion and Development Act of 1992, grants locators in the former Subic and Clark military bases incentives such as tax and duty-free importation. PTT operates a fuel receiving terminal in the Subic Special Economic Zone.

The tax court noted that the company was duly registered with the Subic Bay Freeport Enterprise, which grants tax and duty-free importation of raw materials and fuel.

Under Republic Act No. 7916, or the Special Economic Zone Act of 1995, no taxes shall be imposed on business establishments within economic zones.

The Bureau of Internal Revenue’s (BIR) Revenue Regulations No. 2-2012, which imposes taxes on Freeport and Economic Zone (FEZ) enterprises, had been declared by the Supreme Court as unconstitutional for illegally imposing taxes on these areas that should enjoy tax exemptions.

PTT had sold the imported diesel fuel to Clark Development Corp., which the CTA said is a tax-exempt entity.

“Adverting to our earlier discussion, the diesel fuel imported by the respondent (PTT) is exempt from VAT,” it said.

The CTA noted the laws previously cited consider FEZs as foreign territories and when resources are brought to these areas, the goods remain in foreign territory and are not subject to Philippine customs and tax laws. — John Victor D. Ordoñez

Rates of Treasury bills, bonds may rise ahead of BSP review

BW FILE PHOTO

RATES of government securities are expected to climb this week ahead of the central bank’s policy review where it is widely expected to raise borrowing costs, which would cause investors to ask for higher yields.

The Bureau of the Treasury (BTr) will offer P15 billion in Treasury bills (T-bills) on Monday, or P5 billion each in 91-, 182-, and 364-day debt papers.

On Tuesday, the BTr will auction off P35 billion in fresh 10-year Treasury bonds (T-bonds).

Two traders in a Viber message said that rates are expected to climb this week ahead of the central bank’s policy meeting on June 23 where it is expected to raise rates by 50 basis points (bps), bigger than the 25-bp hike at its May 19 meeting that kicked off its tightening cycle and despite incoming Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla’s earlier signals of a gradual policy normalization.

“I think it is market consensus that rates will be higher [this] week, [especially] with a growing number of analysts expecting a 50-bp hike from BSP. This [is] despite earlier guidance that they will do a gradual tightening,” the first trader said,

The first trader said the 10-year bonds on offer this week could fetch yields between 7% and 7.5%.

The second trader said T-bill yields could move 5-10 bps higher and the 10-year bond’s rate could be quoted from 7.125% to 7.5%.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise sees rates moving slightly higher this week to track the rise in secondary market yields after the US Federal Reserve’s 75-bp hike last week and signals on the BSP’s path towards normalization from its incoming chief.

Mr. Ricafort said while Mr. Medalla signaled gradual tightening and ruled out hikes bigger than 25 bps ahead of the Fed’s decision last week, this could change following the US central bank’s bigger-than-expected increase.

The Monetary Board is holding a policy meeting on Thursday, June 23. Mr. Medalla last week said a rate increase this week is a “sure thing,” with hikes at subsequent meetings also possible.

Analysts in a BusinessWorld poll were divided on the magnitude of the BSP’s move on Thursday, with nine expecting another 25-bp increase and six betting on a 50-bp hike. 

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills were quoted at 1.5705%, 1.9366%, and 2.2014%, respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the 10-year bond fetched a yield of 6.9816%.

Last week, the BTr raised just P14 billion from its offer of T-bills, even as total bids reached P29.68 billion, nearly double the P15-billion offer.

Broken down, the Treasury raised P5 billion as planned through the 91-day T-bills, with total bids reaching P12.33 billion. The average rate of the tenor went up by 13.2 bps to 1.572% from 1.44% previously.

The government also made a full P5-billion award of its offer of 182-day T-bills as tenders reached P15.02 billion. The average rate of the six-month tenor went up by 10 bps to 1.934% from 1.834%.

Meanwhile, the BTr partially awarded its offer of one-year securities, raising just P3.924 billion out of the P5-billion program even as tenders reached P6.84 billion in bids. The average rate of the one-year papers went up by 2.8 bps to 2.325% from the 2.297% seen at the previous auction, where it made a full award.

The Treasury wants to raise P250 billion from the domestic market in June, or P75 billion through T-bills and P175 billion through T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at 7.6% of gross domestic product this year. — T.J. Tomas

Two more gold for Yulo at the Asian Championships in Qatar

CARLOS Yulo with GAP president Cynthia Carreon. — GYMNASTICS ASSOCIATION OF THE PHILIPPINES

By Joey Villar

IN 2018 in Doha, Qatar, Carlos “Caloy” Yulo stood at the podium and shed tears of joy after delivering the Philippines a historic first Artistic Gymnastics World Championships medal — a bronze.

Four years into the present and the diminutive but big-hearted gem from Leveriza, Manila has harvested gold after gold in the international stage like he’s picking grapes from a vineyard.

And the most recent of this mighty conquests by the 22-year-old, three-time world champion came in the Asian Championships held in the exact, same place in the Arab country where plucked two more glittering gold in vault and parallel bars on Saturday night.

The quintuple Southeast Asian Games gold winner was nothing short of spectacular in vault where he registered an average of 14.884 from his two attempts of 14.967 and 14.800 as well in parallel bars where he tallied 15.167 on a degree of difficulty scale of 6.300 and execution score of 8.867.

Mr. Yulo’s splendor reduced the rest of the field in awe of the spectacle they were left to witness and settled for crumbs — a silver and bronze to South Korea’s Kim Hansol and Japan’s Shiga Tachibana in vault and Japan’s Tsuyoshi Hasegawa and China’s Yin Dehang in parallel bars, respectively.

Gymnastics Association of the Philippines (GAP) president Cynthia Carrion, who was in Doha to accompany Mr. Yulo, said the latter could have dominated the Asian Games in Hangzhou, China had it not been postponed due to the coronavirus disease 2019 (COVID-19) pandemic.

“This Asian Championships is the same as the Asian Games because all of the region’s best are here,” Ms. Carrion told The STAR. It capped a glorious performance for Mr. Yulo, who also struck gold in his pet floor exercise on Friday and snared silver in the individual all-around on Thursday.

It also opened the boundless horizon for Mr. Yulo in this year’s World Championships in October in Liverpool, England where he is a heavy favorite not just in floor exercise and vault where he was world titlist in 2019 in Stuttgart, Germany and last year in Ktakyushu, Japan, but also other apparatuses plus the individual all-around.

While Mr. Yulo was expected to reign supreme in vault, there were some doubts if he would perform better in the parallel bars as he came in sixth in the qualifying round on Friday.

That effort costs Mr. Yulo the individual all-around gold that was snatched by Chinese Shi Cong.

But when Mr. Yulo summoned the same force, power and grace in the finale that made him one of the best, if not the best, male gymnasts in the world, there was little doubt of the outcome where the pocket-sized wunderkind stood on top of everyone, received his glimmering medal and sang the national anthem while the country’s flag is being raised.

Refurbishing old jeans is one way to be sustainable

Levi’s new flagship store offers hand-painting, pins, patches, and embroidery to make the old look new

FANCY a pair of hand-painted jeans? At Levi’s new flagship store at the SM Mall of Asia, one can have any old Levi’s outfits (jackets included) refurbished, either with digital embroidery, painting, pins, and patches.

The tailor station at the store that does this is one of several around the country, but the one in the Mall of Asia flagship is the only one that offers hand-painting and embroidery. Refurbishing old Levi’s is a way for the company, founded in 1873, to prove its sustainability goals, as part of a campaign called Buy Better, Wear Longer.

Marielle M. Ardiente, VP for Marketing and Customer Experience for Signature Lines, Inc. (which distributes Levi’s in all the SM stores in the country) said, “Levi’s has efforts to, as much as possible, keep your clothes as long as you can.” She pointed out that her own jean jacket was about four years old, and has steadily grown its own collection of patches and pins, during the opening earlier this month.

“Foot traffic has already returned to its pre-pandemic levels,” she said, in response to a question about opening a flagship store in the (hopefully) last days of the pandemic.

These are not the only sustainability measures that the company has since adopted, in light of pollution, climate change, and other issues. Ms. Ardiente pointed out that the Fresh line is dyed in pale pastels made with plant-based dyes.

The official Twitter account of the United Nations posted that “10,000 liters of water are needed to make a single pair of jeans.”

“By shopping 2nd-hand, buying eco-friendly clothes & donating what you no longer use, you can reduce the environmental impact of your (jeans emoji) & protect our (planet Earth emoji),” the tweet continued.

Mindful of this, Levi’s has released a line called Waterless (styled as Water<Less). Its website says that the initiative came from people looking for the rugged, beat-up look for jeans, achieved with stonewashing and other techniques. “Sometimes we simply use a thimble of water and a bit of ozone instead of detergent. To get a soft feel typically achieved by using fabric softener, we might tumble jeans with bottle caps and golf balls, taking the water out of the wash altogether. The end result remains the same: the jeans you love made by using less water.”

On another note, Ms. Ardiente points out that Levi’s 501’s use organic cotton. She noted, “The younger generation is very, very particular with the companies that have sustainability as a value.”

Levi’s was founded in 1873 by immigrant Levi Strauss and his business partner, Jacob Davis, who both patented denim work pants with copper rivets, suitable for miners in California — the company is gearing up to celebrate its 150th anniversary. Since then, blue jeans have entered popular culture as a chameleonic piece in anyone’s wardrobe: a good pair can make one look cool, hardworking, casual, or sexy. The late Vogue editor Diana Vreeland pronounced: “Blue jeans are the most beautiful thing since the gondola.”

In those 150 years, the whole world has picked up on jeans, and any clothing company worth their salt has sold at least a pair. How does Levi’s keep its edge still? “Basically, they’re the inventor of denim (jeans),” said Ms. Ardiente. “In terms of the design, construction, durability and the trust in the brand — when you say Levi’s, they know it’s going to last.” — Joseph L. Garcia

Higher capital requirement for rural banks ‘necessary’

BW FILE PHOTO

A HIKE in rural banks’ minimum capital requirements is “necessary” to protect depositors and ensure a healthy financial system, the Bangko Sentral ng Pilipinas’ (BSP) incoming chief said.

Monetary Board member and incoming BSP Governor Felipe M. Medalla said in a virtual roundtable discussion with BusinessWorld editors last week that some rural banks are operating in an unsustainable manner and requiring them to have more capital buffers will benefit the depositing public.

“Every time we close a rural bank, it’s because even without bad loans, they are having difficulty making a profit,” Mr. Medalla said. “For instance, there are rural banks with annual operating costs say P5 million, which is not [good] because you have a lot of expenses and the interest margins are about exactly that or even less. One little mistake and they’re dead… They cannot even have checks and balances.”

“In other words, size is necessary. Clearly, the justification for higher capitalization is you want to protect the depositors. A rural bank that could barely earn interest margins to cover electricity and salaries is always a disaster waiting to happen,” he said.

The BSP plans to increase the minimum capital requirement of rural banks to strengthen and enhance the capacity of these smaller lenders.

A draft circular showed the central bank wants to require rural banks to put up capital of at least P60 million for those with just head offices and less than five branches) and P200 million for those with more than five branches. The office count excludes branch-lite units.

Under the current regulations, rural banks and cooperatives must have a minimum capitalization of P10 million to P200 million depending on the location and number of branches.

Under the draft, rural lenders will have three years to comply with the new rules.

The planned adjustment forms part of initiatives under the Rural Bank Strengthening Program, which was approved by the Monetary Board on March 3.

Industry players have said some rural banks would find it difficult to meet the proposed requirement and would be forced to shut down, adding the increase should not be done across the board as this could stunt financial inclusion gains, as these lenders mostly serve the agricultural sector as well as small businesses in the countryside.

For his part, Mr. Medalla said the BSP would be willing to give rural banks a reprieve on a case-to-case basis.

“My view is if there are rural banks that are below the targets, the regulations, but they have fantastic records, then of course, we can probably say, ‘Oh, you’re the exception, we’ll give you time,’” he said.

“But if you’ve lost money in the past two years, there’s no prospect of you making money because you can barely cover operating costs. We would rather let you voluntarily exit. Either you merge with somebody, get a bigger player that can come in and help you expand, or of course you can voluntarily close,” Mr. Medalla added.

He, however, emphasized the need to implement the new capital requirements “in the most reasonable amount of time as possible,” saying the 10-year compliance period proposed by one rural banker would be “too long” because prices are not constant.

“Of course, the discussions with the rural bankers will continue. And if we can find a tweak…that can help us achieve our objectives, to give them time, we are willing to look at that,” Mr. Medalla said. — Keisha B. Ta-asan

TKC Metals widens net loss to nearly P50M

TKC Metals Corp. incurred P49.68 million in first-quarter net loss attributable to parent equity holders, wider by 41.8% compared with the P35.04 million recorded a year earlier.

The negative bottom line comes despite gross revenues improving by 66.4% to P195.23 million from P117.34 million, driven by higher nominal sales value generated by the operations of its subsidiary,  Zhangzhou Stronghold Steel Works Co. Ltd. (ZZS).

TKC’s two main subsidiaries are Treasure Steelworks Corp. (TSC) and ZZS. TSC manufactures steel billets used as raw materials for downstream steel products such as bars, wire rods, and sections. ZZS makes various types of steel pipes and distributes its products in China and other export markets.

“ZZS is still operating, however, the overall market conditions is still unfavorable coupled with a very volatile steel prices in China due to higher steel supply and the long-term effect of the COVID-19 pandemic,” the firm said in a disclosure.

TKC said that ZZS is in talks for a partnership for the necessary working capital and machinery for the fabrication, coating, and galvanizing facilities that will add more value to its existing facilities. 

The subsidiary will also develop land to build its own port or berth to service the housing requirements of heavy industrial structures.

In 2013, TSC suspended its plant operations in Iligan City and terminated its contract with plant employees due to a shortage in power supply in Mindanao.

“TSC, however, is planning to produce nickel concentrate and nickel pig iron instead to lessen the plant’s power supply requirement. By shifting to nickel concentrate and nickel pig iron, the power supply requirement will drop to 5 megawatts per hour (MWPH) as compared to producing steel billets at 15 to 20 MWPH,” the company said.

The firm has almost completed the refurbishment and upgrade of the billet manufacturing plant and the installation of the iron ore beneficiation plant, the sintering plant, and the first blast furnace plant.

TSC will also be looking into new technology for nickel leaching, which is a chemical process that will take only two hours to extract nickel from laterite ores and will result in a nickel recovery rate of 20-50%.

As of May 31, TKC shares remained unchanged at P0.77. — Luisa Maria Jacinta C. Jocson

‘A Mitsubishi for every lifestage’

PHOTO BY KAP MACEDA AGUILA

“WHAT WE want to do is to showcase the different lifestyles and lifestages of our customers. There’s a Mitsubishi Motors vehicle for each Filipino,” said Mitsubishi Motors Philippines Corp. (MMPC) Assistant Vice-President for Brand Communications Mark Parulan in an interview with “Velocity” at the Glorietta Activity Center of Ayala Malls in Makati.

Over the weekend, the Makati mall was the venue of the initial staging of “Life Kyaraban,” a series of roadshows to serve as way for customers and customers-to-be to not only see the latest Mitsubishi vehicles, including the recently refreshed Xpander, up close, but to also “thoroughly experience the essence of the brand’s local slogan, ‘Life Made Better.’”

In a release, MMPC President and CEO Takeshi Hara said that “Life Kyaraban” is a “fusion of two concepts. ‘Life’ that echoes Mitsubishi Motors’ commitment to add value and further enrich the lives of Filipinos. Then ‘kyaraban,’ which actually means “caravan” in Nihongo, representing (the) commitment to reach customers in all parts of the country.”

Beyond a typical car display, “Life Kyaraban,” also featured several lifestyle, technology and fuel partners which helped “to convey and let everyone discover the holistic and enjoyable ownership experience they can get with Mitsubishi Motors.”

Attendees were given freebies, including a limited-edition Kool Cloud Water Bottle, and discounts of up to P5,000 on reservations. Partner merchants held interactive activities and games with prizes like Caltex SavePlus Cards and 40% off Combi coupons. Realme 8i phone were raffled off throughout the day as well. Meanwhile, accessorized vehicles showcased Black Rhino Wheels Philippines, Concept One Wheels Philippines, and Overland Kings products. Last Saturday, singer Kyla capped off the pre-Father’s Day treat for families dropping by.

“Aside from our grand roadshow, there’s no better way to celebrate ‘Life Made Better’ in the presence of our Filipino customers than by presenting our new service motto to them which is Mitsubishi Motors Cares. After-sales has always been one of the core strengths in MMPC’s 59 years of existence in the local automotive scene. This program is our way of solidifying that legacy and a recommitment to better service quality that forms part of their car life journey as a Mitsubishi owner,” added Mr. Hara.

More information about Mitsubishi Motors Cares can be gleaned from https://www.mitsubishi-motors.com.ph. For more information, subscribe to the official accounts of Mitsubishi Motors Philippines on Facebook, Instagram, and YouTube. — KMA

Abarrientos joins Belangel in Korean Basketball League

FEU rookie and Gilas stalwart RJ Abarrientos — THE UAAP

THE Far Eastern University (FEU) super rookie and Gilas Pilipinas stalwart RJ Abarrientos is joining Ateneo’s SJ Belangel in the Korean Basketball League (KBL) with an impending contract with Ulsan Hyundai Mobis Phoebus.

Barring any hitches, the Tamaraws shooting guard is scheduled to be announced as the newest Filipino player in the KBL under the Asian Player Quota program this week as reported by Korean sports outlet Jumpball.

Mr. Abarrientos’ looming signing came just two weeks after Mr. Belangel forged a deal with Daegu Kogas Pegasus as the first Filipino player in Korea.

If becomes official, Mr. Abarrientos would be foregoing his remaining years with FEU in the University Athletic Association of the Philippines (UAAP) after a one-and-done season. The STAR has sought for a comment from FEU on the possible departure of its prized cager, but has yet to respond as of press time.

Mr. Abarrientos, nephew of Philippine basketball legend, led FEU’s Final Four finish in his lone season behind averages of 13.8 points, 4.4 rebounds, 2.5 assists and 1.3 steals.

The streaky guard was also part of the Gilas team that trooped to South Korea over the weekend as part of its preparation for the International Basketball Federation (FIBA) World Cup Asian Qualifiers and FIBA Asia Cup.

He registered 12.5 points, 2.0 rebounds and 2.0 assists as Gilas fell short in two friendly games, 96-92 and 106-102.

In the KBL starting the 2022-2023 Season, Mr. Abarrientos is expected to carry over his scoring pedigree for Ulsan Hyundai that finished fourth last season with a 30-24 card. — John Bryan Ulanday

At avatar fashion store, Meta to sell virtual clothes for real money

PHOTO FROM TWITTER.COM/METANEWSROOM

FACEBOOK owner Meta Platforms is launching a digital clothing store where users can purchase designer outfits for their avatars, Chief Executive Mark Zuckerberg said on Friday.

Virtual outfits designed by fashion brands Balenciaga, Prada and Thom Browne will be available for purchase to start, said Zuckerberg, speaking in a live video stream with Instagram’s head of fashion.

A Meta spokesperson said they would be priced between $2.99 and $8.99, much less than the real outfits by those designers. Prada’s Matinee ostrich leather bag, for example, sells for $10,700.

Mr. Zuckerberg said he hoped to build the store out into an open marketplace where developers can create and sell a wide array of digital clothes.

Avatars have emerged as one way for Meta to link user identity across Facebook, Instagram and its other services, as it increasingly ties the platforms together and steers toward building an immersive “metaverse” of shared, interconnected digital worlds where users can gather.

Users of the company’s virtual reality headsets set up avatars to play video games, take exercise classes and participate in conference calls, although initially the digital outfits will be available only on Facebook, Instagram, and Messenger, Meta said in a statement.

The company redesigned its virtual reality avatars last year to be more expressive and three-dimensional, then made them available on Facebook, Instagram, and Messenger starting in January. — Reuters

Yields on gov’t debt climb as Fed fires off 75-bp hike

By Lourdes O. Pilar, Researcher

YIELDS on government securities (GS) climbed last week after the US Federal Reserve fired off its biggest rate hike in nearly three decades to contain surging inflation.

GS bond prices dropped as yields edged up by an average of 7.88 basis points (bps) week on week, based on PHP Bloomberg Valuation Service Reference Rates as of June 17 published on the Philippine Dealing System’s website.

“Local bond yields have yet to peak and have continued to drift higher as market remains defensive over supply pressure and anticipated aggressive rate hikes from Fed and BSP (Bangko Sentral ng Pilipinas),” First Metro Asset Management, Inc. (FAMI) said in a Viber message on Friday.

It added that inflation pressures still haunt the market, especially with the recent rebound in oil prices and “drastic” movements in the foreign exchange rate.

“With the Fed doing outsized rate hikes, local bond yields are likely to be strained as spread premium over US Treasury counterparts would narrow,” FAMI said.

It also added GS are prone to selloff from offshore players given the further depreciation of peso against the dollar.

“The local bond market had a full plate this past trading week but mostly due to external developments,” a bond trader said in a Viber message on Friday.

The bond trader said it started with May inflation in the US accelerated to a 40-and-a-half-year high of 8.6% year on year amid soaring fuel and food prices.

“This development had market reassess its US Fed hike projection to 75 bps from 50 bps,” the bond trader said. “Consequently, GS yields soared [last] week as market players scrambled to price in steeper rate hikes by the US Fed in the months to come.”

The US Fed raised last week its interest rates by 75 bps, the largest increase since 1994, to control surging inflation, Reuters reported.

Local GS yields increased across the curve week on week on Friday except those at the long end as the rates of the 20- and 25-year papers declined by 23.27 bps and 25.80 bps, respectively, to 6.5166% and 6.4974%.

The rates at the short end of the curve went up, with the rates of the 91-, 182- and 364-day Treasury bills increasing by 8.42 bps, 5.81 bps, and 9.43 bps, respectively, to 1.5705%, 1.9366%, and 2.2014%.

At the belly, the two-, three-, four-, five-, and seven-year Treasury bonds saw their yields climb by 13.10 bps (to 4.3338%), 17.16 bps (5.0875%), 19.26 bps (5.6754%), 21.11 bps (6.1167%), and 21.11 bps (6.6617%), respectively.

Likewise, the 10-year debt jumped by 20.40 bps week on week to fetch 6.9816%.

GS volume traded narrowed to P4.302 billion on Friday from P6.112 billion on June 10.

“Locally, there’s not much supply on the 20- and 25-year space and consequently helped push their respective benchmark yields lower,” said the bond trader.

The decline seen at the long end of the yield curve is “possibly temporary,” FAMI said, attributing lower movement to “growing recession risks for US and likely slowdown for our local economy as central banks pose to suppress demand with their fight with inflation.”

All eyes will be on the BSP’s Monetary Board meeting on June 23, with the market betting on a more aggressive hike to rein in rising inflation expectations.

The central bank had said it will likely raise the local interest rates at its next two meetings starting June to address soaring inflation.

However, the incoming BSP chief and current Monetary Board member Felipe M. Medalla signaled last week that the pace of the next rate hikes will be gradual, ruling out rate hikes higher than 25 bps. Mr. Medalla made the remarks ahead of the Fed’s decision.

The central bank fired off its first interest rate hike since 2018 in May, raising borrowing costs by 25 bps.

Domestic consumer price increases breached the central bank’s 2-4% inflation target for the second straight month in May at 5.4% amid rising food and fuel costs. The BSP expects inflation to average 4.6% this year.

“We are convinced that the BSP should also raise more aggressively (+50 bps) this June meeting as inflation path could get stickier given the wage increases, higher-for-longer oil prices and sustained peso depreciation,” FAMI said. “The BSP is also faced with Fed’s more advanced hike cycle.”

“Trading volume will remain light and yields will likely be biased to move higher on elevated US Treasuries given aggressive US Fed rate hikes ahead and local supply pressure,” FAMI said.

“Given the current risk backdrop, investors will remain opportunistic with nimble trading positions,” it added.

The bond trader also expects the BSP to hike interest rates by 50 bps this Thursday.

“GS market will continue to be cautious which will cause yields to move higher for the week,” the trader said.

MREIT buildings acquire IMMUNE certification

MREIT, Inc., the real estate investment trust of Megaworld Corp., announced that two buildings in its portfolio received a four-star IMMUNE certification from Healthy by Design Building Institute (HDBI).

Megaworld’s 1800 Eastwood Avenue and 1880 Eastwood Avenue office towers, its first-ever township development in Eastwood City, were awarded for being “healthy buildings of the future.”

“We take great pride in becoming the first-ever recipient of the IMMUNE Building Standard certifications in Asia. We hope to make this a benchmark across all the properties in our portfolio, and we look forward to accrediting all our assets in the future. As you know, we are into township development, and creating safe working environments not only benefits the office population, but also the greater community that surrounds our developments. That’s why it’s a very important step for MREIT to be taking. We are truly honored to be given this recognition,” MREIT President and Chief Executive Kevin L. Tan said in a statement.

The IMMUNE Building Standard was designed in response to the coronavirus disease 2019 (COVID-19) pandemic and aims to help mitigate the effects of pandemics and other bacteriological and toxicological health threats by creating and promoting healthy buildings of the future.

“The first IMMUNE building in Asia is another major step for the standard, and we are happy to contribute with our know-how in creating healthier workplaces for people all around the world. Megaworld has truly become trailblazers within this particular field and a beacon within Asia,” HDBI Director Darren Allen said.

IMMUNE incorporates a network of specialized sensors measuring the indoor environment parameters such as air, humidity, temperature, or CO2 levels, devices and available technologies, specialized equipment, dedicated personnel, and new amenities.

MREIT earlier announced the acquisition of an additional four prime properties worth P5.3 billion.

Once completed, MREIT’s portfolio will cover 18 office properties from four Megaworld premier townships: 1800 Eastwood Avenue, 1880 Eastwood Avenue, and ECommerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, and World Finance Plaza in McKinley Hill; One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B, and Richmonde Tower in Iloilo Business Park; and One West Campus and Five West Campus in McKinley West.

On Friday, MREIT shares ended lower by 2.62% or 42 centavos to finish at P15.60. — Luisa Maria Jacinta C. Jocson

Suzuki Auto Festival goes to Davao

Suzuki S-Presso — PHOTO FROM SUZUKI PHILIPPINES

SUZUKI PHILIPPINES, INC. (SPH), went down south over the weekend to Davao through its Auto Festival Virtual Roadshow. Davaoeños got to experience the brand and its virtues last June 18 to 19 at the Atrium of SM Lanang Premier, Davao.

“The Suzuki team is thrilled to finally, once again, bring its show on the road,” shared Suzuki Automobile General Manager for Automobile Norihide Takei ahead of the staging. “After all, the road is precisely where the Suzuki brand belongs.”

Features lined up for the two-day car festival included a Suzuki Kids Scouts Area, booth games and rewards for Auto Fest attendees — including exclusive promo discounts on the Dzire, Ertiga, XL7 and S-Presso, and more. The event was also streamed on Suzuki’s Facebook page.

For more information on the brand and its products, visit any of the 74 authorized Suzuki Auto dealerships nationwide or http://suzuki.com.ph/auto/. For daily updates, like the Facebook page at https://www.facebook.com/SuzukiAutoPh, follow the company on Twitter at https://twitter.com/SuzukiAutoPh and Instagram (@suzukiautoph).

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