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China issues draft rules banning unfair competition in the internet sector

STOCK PHOTO

SHANGHAI – Chinese regulators on Tuesday issued a lengthy set of draft regulations for the internet sector, banning unfair competition and restricting the use of user data, the latest move in a crackdown on the country’s powerful tech companies.

China has been tightening its grip on internet platforms, citing the risk of abusing market power to stifle competition, misuse of consumers’ information and violation of consumer rights.

It has issued hefty fines to companies including e-commerce giant Alibaba Group and social media company Tencent Holdings in recent months.

Shares in Hong Kong-listed internet stocks fell following the rules‘ publication. Video platform Bilibili Inc fell more than 5%, while Tencent, Alibaba, and food-delivery service Meituan dropped 3.5%, 2.6%, and 1.4%, respectively.

Internet operators “must not implement or assist in the implementation of unfair competition on the Internet, disrupt the order of market competition, affect fair transactions in the market,” the State Administration for Market Regulation (SAMR) wrote in the draft, which it published on its website.

Specifically, the regulator stated, business operators should not use data or algorithms to hijack traffic or influence users’ choices. They may also not use technical means to illegally capture or use other business operators’ data.

Companies would also be barred from fabricating or spreading misleading information to damage the reputation of competitors and need to stop marketing practices like fake reviews and coupons or “red envelopes” used to entice positive ratings.

The draft rules also called for a ban on “two-choose-one,” a practice e-commerce companies used to ban merchants from listing on rival platforms.

The rules are currently open to public feedback before a Sept. 15 deadline. SAMR has imposed various restrictions and punishments on tech giants in an effort to restrict anti-competitive or monopolistic behaviour.

In April, following a months-long probe, SAMR fined Alibaba a record $2.5 billion for engaging in unfair competition.

In July, the regulator ordered Tencent to end exclusive licenses for certain songs on its music streaming service, and also blocked a an merger between two game streaming companies Tencent had led. – Reuters

Malala Yousafzai urges world leaders to take urgent action on Afghanistan

Nobel Peace Prize winner Malala Yousafzai said she was deeply concerned about the situation in Afghanistan, particularly the safety of women and girls, and called on Monday for world leaders to take urgent action.

Ms. Yousafzai said U.S. President Joseph R. Biden, Jr. “has a lot to do” and must “take a bold step” to protect the Afghan people, adding she had been trying to reach out to several global leaders.

“This is actually an urgent humanitarian crisis right now that we need to provide our help and support,” Ms. Yousafzai told BBC Newsnight.

Ms. Yousafzai, 23, survived being shot in the head by a Pakistani Taliban gunman in 2012, after she was targeted for her campaign against its efforts to deny women education.

She had become known as an 11-year-old, writing a blog under a pen name for the BBC about living under the rule of the Pakistani Taliban.

“I am deeply concerned about the situation in Afghanistan right now, especially about the safety of women and girls there,” Ms. Yousafzai told Newsnight.

“I had the opportunity to talk to a few activists in Afghanistan, including women’s rights activists, and they are sharing their concern that they are not sure what their life is going to be like.”

Ms. Yousafzai said she had sent a letter to Pakistani Prime Minister Imran Khan asking him to admit Afghan refugees and ensure that all refugee children “have access to education, have access to safety and protection, that their futures are not lost.”

Ms. Yousafzai moved to England after she was shot, where she received medical treatment and last year graduated from Oxford University with a Philosophy, Politics and Economics degree. – Reuters

Sen. Villar sets out a mission to save planet Earth, pushes for more protected areas under E-NIPAS

“We are very happy to come up with this legislation ensuring protection for more areas in our megadiverse country. We have to take action about this protection because any damage or loss will cost too much for a country such as ours.”

A staunch environmentalist, Senator Cynthia A. Villar has been leading the campaign in the conservation of the environment to even hold at bay climate change that could endanger all forms of life on earth.

The senator has embarked on legislation to protect and conserve biodiversity.

Protecting the environment and preserving ecosystems

Sen. Villar, chairperson of the Senate Environment and Natural Resources Committee, noted that under the 1987 Philippine Constitution, it is a declared state policy that the State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature, in line with safeguarding a healthful ecology.

She said the Constitution likewise mandates that Congress shall determine the national parks, which shall be conserved and may not be increased nor diminished except by law.

NIPAS Act builds system of protected areas

The National Integrated Protected Areas System (NIPAS) was established by virtue of Republic Act (RA) No. 7586 on June 1, 1992, as amended by RA No. 11038, known as the Expanded NIPAS Act of 2018.

The NIPAS Act of 2018 provides the state policy “to secure for the Filipino people of present and future generations the perpetual existence of all native plants and animals through the establishment of comprehensive system of integrated Protected Areas (PAs).”

Under Sec.3 of the NIPAS Act, there are at least seven categories of PAs. They are the Strict Nature Reserve, Natural Park, Natural Monument, Wildlife Sanctuary, Protected Landscapes and Seascapes, Resource Reserve and Natural Biotic Areas. Other categories established by law, conventions or international agreements which the Philippine government is a signatory.

Because of this, Sen. Villar cited the need for stricter implementation of environmental laws especially in protected areas that serve as natural habitats for wildlife, including endangered animals that contribute significantly to biodiversity.

Sen. Villar asserted they should not be damaged or destroyed, but protected instead, not only for the animals’ sake but for our sake as well.

13 Protected Areas under Original NIPAS Act

Region Protected Areas Province
2 1.     Bangan Hill National Park N.Vizcaya
2.     Batanes Landscape and Seascape Batanes
3.     Northern Sierra Madre Natural Park Isabela
4A 4.     Mt. Banahaw – San Cristobal Protected Landscape Laguna & Quezon
4B 5.     Tubbataha Reefs Natural Park Palawan
6 6.   Mt. Kanlaon Natural Park Negros Occidental
7.     Sagay Marine Reserve Negros Occidental & Oriental
7 8.     Central Cebu Protected Landscape Cebu City
10 9.     Mt. Malindang Natural Park Misamis Occidental
10. Mt. Kitanglad Range Natural Park Bukidnon
11. Mimbilisan Protected Landscape (protected landscape), Misamis Oriental Misamis Oriental
11 12. Mt. Apo Natural Park Davao del sur
13. Mt. Hamimguitan Range Wildlife Sanctuary Davao Oriental

Warnings vs environmental destruction

Despite the Philippines being biodiversity-rich, the country is also among the world’s biodiversity hot spots or those areas experiencing high rates of habitat loss.

Expanding NIPAS Act

Due to this, Sen. Villar led legislative efforts to amend RA 7586 or the National NIPAS Act of 1992. She was principal sponsor of RA 11038 or the law expanding the National Integrated Protected Areas System (E-NIPAS) that President Rodrigo R. Duterte signed into law last June 22, 2018.

The law provides the legal framework for the establishment and management of protected areas in the country. NIPAS refers to the classification and administration of all designated protected areas to preserve genetic diversity and to maintain their natural conditions to the greatest extent possible. The Expanded NIPAS Act was passed in 2017 to include more areas.

The Expanded NIPAS Law facilitated the legislation of 94 more protected areas through the effort of Sen. Villar:

To date, Sen. Villar said there are 107 protected areas in the country that have been so declared through legislation.

Sen. Villar said at least six of these are internationally recognized: RAMSAR Sites: Las Piñas Parañaque Wetland Park, Olango Island Wildlife Sanctuary, Agusan Marsh Wildlife Sanctuary, and Tubbataha Reefs. Heritage Sites: Mount Timpoong-Hibok-Hibok and Mount Iglit-Baco. Malaysia-Philippines Heritage Parks: Turtle Islands Heritage Protected Area.

However, based on the records and suitability, assessments by the Biodiversity Management Bureau of the DENR, she emphasized there are still numerous sites in the country that have to be given ‘protected area’ status.

94 Protected Areas under Republic Act 11038 or E-NIPAS

Region Name of Protected Area Province
1 1 Kalbario-Patapat Natural Park Ilocos Norte
2 Libunao Protected Landscape Ilocos Norte
3 Bessang Pass Natural Monument/Landmark Ilocos Sur
4 Bigbiga Protected Landscape Ilocos Sur
5 Lidlidda Banayoyo Protected Landscape Ilocos Sur
6 Salcedo Protected Landscape (formerly Sta. Lucia Protected Landscape) Ilocos Sur
7 Agoo Damortis Protected Landscape and Seascape La Union
8 Manleluag Spring Protected Landscape Pangasinan
2 9 Palaui Island Protected Landscape and Seascape Cagayan
10 Peñablanca Protected Landscape and Seascape Cagayan
11 Tumauini Watershed Natural Park Isabela
12 Salinas Natural Monument Nueva Vizcaya
13 Casecnan Protected Landscape Quirino, Nueva Vizacaya, and Aurora
3 14 Amro River Protected Landscape Aurora
15 Dinadiawan River Protected Landscape Aurora
16 Simbahan Talagas Protected Landscape Aurora
17 Talaytay Protected Landscape Aurora
18 Bataan Natural Park Bataan
19 Roosevelt Protected Landscape Bataan
20 Masinloc and Oyon Bay Protected Landscape and Seascape Zambales
NCR 21 Las Piñas-Parañaque Critical Habitat and Ecotourism Area (LPPCHEA), also known as Las Piñas-Parañaque Wetland Park Las Piñas City and Parañaque City
22 Ninoy Aquino Parks and Wildlife Center Quezon City
4A 23 Mts. Palay-Palay-Mataas-na-Gulod Protected Landscape Batangas and Cavite
24 Taal Volcano Protected Landscape Batangas and Cavite
25 Buenavista Protected Landscape Quezon
26 Maulawin Spring Protected Landscape Quezon
27 Quezon Protected Landscape Quezon
28 Hinulugang Taktak Protected Landscape Rizal
29 Pamitinan Protected Landscape Rizal
30 Upper Marikina River Basin Protected Landscape Rizal
4B 31 Marinduque Wildlife Sanctuary Marinduque
32 Apo Reef Natural Park Occidental Mindoro
33 Mt. Calavite Wildlife Sanctuary Occidental Mindoro
34 Mts. Iglit-Baco Natural Park Occidental and Oriental Mindoro
35 Mt. Guiting-Guiting Natural Park Romblon
5 36 Mt. Mayon National Park Albay
37 Ticao Burias Pass Protected Seascape Albay, Masbate and Sorsogon
38 Abasig-Matogdon-Mananap Natural Biotic Area Camarines Norte
39 Bicol Natural Park Camarines Sur
40 Buhi Wildlife Sanctuary Camarines Sur
41 Lagonoy Natural Biotic Area Camarines Sur
42 Malabungot Protected Landscape Camarines Sur
43 Mt. Isarog Natural Park Camarines Sur
44 Catanduanes Natural Park Catanduanes
45 Bongsanglay Natural Park Masbate
46 Bulusan Volcano Natural Park Sorsogon
6 47 North west Panay Peninsula Natural Park Aklan and Antique
48 Sibalom Natural Park Antique
49 Northern Negros Natural Park Negros Occidental
7 50 Albuquerque-Loay-Loboc Protected Landscape and Seascape Bohol
51 Chocolate Hills Natural Monument Bohol
52 Panglao Island Protected Seascape Bohol
53 Rajah Sikatuna Protected Landscape Bohol
54 Talibon Group of Island Protected Landscape and Seascape Bohol
55 Camotes Island Protected Landscape and Seascape Cebu
56 Olango Island Wildlife Sanctuary Cebu
57 Tañon Strait Protected Seascape Cebu, Negros Occidental and Oriental
58 Apo Island Protected Landscape and Seascape Negros Oriental
59 Balisasayao Twin Lakes Natural Park Negros Oriental
8 60 Cuatro Islas Protected Landscape and Seascape Leyte
61 Lake Danao Natural Park Leyte
62 Mahagnao Volcano Natural Park Leyte
63 Guiuan Marine Resource Protected Landscape and Seascape Eastern Samar
64 Biri Larosa Protected Landscape and Seascape Northern Samar
65 Calbayog Pan-as Hayiban Protected Landscape Samar
66 Samar Island Natural Park Samar, Eastern Samar and Northern Samar
9 67 Basilan Natural Biotic Area Basilan
68 Aliguay Island Protected Landscape and Seascape Iablea City
69 Turtle Islands Wildlife Sanctuary Tawi-Tawi
70 Great and Little Sta. Cruz Island Protected Landscape and Seascape Zamboanga City
71 Pasonanca Natural Park Zamboanga City
72 Jose Rizal Memorial Protected Landscape Zamboanga del Norte
73 Murcielagos Protected Landscape and Seascape Zamboanga del Norte
74 Selinog Island Protected Landscape and Seascape Zamboanga del Norte
75 Siocon Resource Reserve Zamboanga del Norte
76 Dumanquillas Bay Protected Landscape and Seascape Zamboanga del Sur
77 Mt. Timolan Protected Landscape Zamboanga del Sur
78 Buug Natural Biotic Area Zamboanga Sibugay
10 79 Mt. Kalatungan Range Natural Park Bukidnon
80 Mt. Timpoong Hibok-Hibok Natural Monument Camiguin
81 Mt. Inayawan Range Natural Park Lanao del Norte
82 Baliangao Protected Landscape and Seascape Misamis Occidental
83 Initao-Libertad Protected Landscape and Seascape Misamis Oriental
84 Mt. Balatukan Range Natural Park Misamis Oriental
11 85 Mabini Protected Landscape and Seascape Compostela Valley
86 Mainit Hot Spring Protected Landscape Compostela Valley
87 Aliwagwag Protected Landscape Davao Oriental and Compostela Valley
88 Mati Protected Landscape Davao Oriental
89 Pujada Bay Protected Landscape and Seascape Davao Oriental
12 90 Saragani Bay Protected Seascape General Santos City and Sarangani
91 Mt. Matutum Protected Landscape South Cotabato and Sarangani
13 92 Agusan Marsh Wildlife Sanctuary Agusan del Sur
93 Siargao Island Protected Landscape and Seascape Surigao del Norte
94 Tinuy-An Falls Protected Landscape Surigao del Sur

 

Sen. Villar said additional six protected areas to be legislated by the Senate Committee on Environment which she chaired during the 18th Congress. These are:

Region Protected Areas Province
CAR/R2 1.     Mount Pulag Benguet, Ifugao and N. Vizcaya
2.     Banao Protected Landscape Kalinga
1 3.     Tirad Pass Protected Landscape Ilocos Sur
3 4.     Mount Arayat Protected Landscape Pampanga
6 5.     Sicogon Island Wildlife Sanctuary Iloilo
9 6.   Naga-Kabansalan Protected Landscape Zamboanga Sibugay

Mount Pulag, Banao, Tirad Pass, Mount Arayat, and Naga-Kabasalan are all protected landscapes while Sicogon is a wildlife sanctuary.

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Tata Consultancy Services: A growth and transformation partner of Filipino enterprises

As Filipino enterprises work towards growth and transformation, they can find a partner in Tata Consultancy Services, Inc. (TCS), a multinational company from India.

TCS has been helping the country since 2008 through its products, models, and expertise involving business and technology. Currently, the company has more than 4,500 employees in its three offices in Bonifacio Global City, Taguig and one in Angeles City, Pampanga.

Worldwide, TCS is known for its consulting-led approach to the enterprise value chain and domain-led organization structure that lets the clients access particular industry solutions in a single window. It also forms teams tailored around the domain and technology needs of the clients.

Ensuring the delivery of services is the company’s significant investment in digital platforms and products. It also partnered with business software providers, niche technology developers, and platform and IT infrastructure vendors.

With such solutions, TCS has been supporting various industries in the Philippines. TCS HOBS, for example, serves as a platform for subscription, data, and device management offered in a SaaS model for its partner telcos and broadband providers. Financial services, meanwhile, benefited through TCS Bancs, a product suite designed for the sector to improve end customer experience and enable them to adopt open and innovative technologies. And as a leader in Worldwide SAP S/4HANA application services, TCS effectively implemented SAP S/4HANA to several large companies in the country.

TCS also assures to continue supporting its clients in their mission-critical operations, and growth and transformation journeys even amid the pandemic by creating Secure Borderless Workspaces™ (SBWS™), its new operating model that also prioritizes the health and well-being of its employees.

The SBWS™ encompasses human functions such as infrastructure; talent management and employee engagement; processes, tools, and governance mechanisms; and collaboration and engagement practices.

Furthermore, as TCS Philippines trains the local talent pool and establishes Center of Excellence servicing global clients, it leverages the multinational company’s over 500,000 professionals, who contain abilities across information technology, infrastructure services, and business processes.

TCS Philippines aims to consistently invest in fostering local competency maximizing the global talent to present value-add services and support clients around the world.

Such expertise of TCS in the said fields does not stop at providing advanced and specially made solutions to clients. It further helps to shape the digital future of the Philippines through its goIT program, an initiative acting out Tata Group’s philosophy of creating sustainable businesses that are deep-seated in the community.

The company launched goIT in the country last year for students, especially those from local communities in remote areas. It aims to enlighten students on computer science, encourage them to take up STEM education, and eventually become technology leaders in the future.

Moreover, in the time ahead, TCS sees the accelerating need for technology investments to strengthen operations and enrich customer experience in digital channels. It also looks forward to the rapidly evolving business landscape. Thus, at present, the company works as a visionary to empower that future.

SLMC Bonifacio Global city MAB Corp. announces schedule of stockholders’ meeting

SLMC Bonifacio Global City MAB Corp.

NOTICE OF ANNUAL MEETING OF THE STOCKHOLDERS

To:                     The Stockholders
From:                 The Corporate Secretary

Please be notified that the Annual Stockholders’ Meeting of SLMC Bonifacio Global City MAB Corp. (the “Corporation”) will be held on September 8, 2021, 12:00 noon through teleconference. The access to the meeting and the relevant Definitive Information Statement, Management Report, Annual Report (SEC Form 17-A) will be distributed prior to the meeting.

CONRADOS.DARSANTOS
Corporate Secretary

 
 
 
 
 

 

ANNUAL MEETING OF THE STOCKHOLDERS
September 8, 2021
12:00 noon
Through teleconference

AGENDA

  1. Call to Order
  2. Certification of Notice and Quorum
  3. Approval of the Minutes of the Annual Stockholders’ Meeting held on September 9, 2020
  4. President’s Report
  5. Financial Report
  6. Election of Directors
  7. Approval of the Audited Financial Statements for Year Ended December 31, 2020
  8. Amendment of the Articles of Incorporation and Bylaws
  9. Ratification of Acts of Management and Board of Directors
  10. Appointment of External Auditor
  11. Other Matters
  12. Adjournment

Register for a spot in Alibaba Cloud’s Global Startup Accelerator Demo Day

Demo Day is a program for startups to gain a spot on Alibaba Cloud’s radar and even join the company’s Global Startup Accelerator.

During its annual summit on June 8, 2021, Alibaba Cloud announced its new Project AsiaForward initiative to bring digital transformation to enterprises in Asia and nurture fresh talent. Alibaba Cloud also shared its plans to invest USD 1 billion across six Southeast Asian markets, Hong Kong, and Taiwan, within the next three years. 

As part of Project AsiaForward, Alibaba Cloud will launch the Global Startup Accelerator. A series of Demo Days will be held, presenting startups the chance to be selected for the program and become part of Alibaba Cloud’s global ecosystem. 

Registration for the inaugural Demo Day is open from August 16 to August 25, 2021. Alibaba Cloud welcomes startups from any country, industry, and operating at any stage.

The Alibaba Cloud Global Startup Accelerator brings together new technologists, venture capitalists, and other ecosystem players across Asia to identify startups that are compatible with Alibaba’s ecosystem. 

Startups that join Demo Day stand to win the following prizes: 

  • USD 60,000 in Alibaba Cloud credit
  • 1-on-1 technical support for setup and migration
  • Connections to top VCs in Southeast Asia and China 
  • Opportunities to work with Fortune 500 companies in Alibaba’s ecosystem
  • Published profiles in English and Chinese by KrASIA and 36Kr Global

Upon successful registration, startups will also receive USD 3,000 in Alibaba Cloud credit.

Here’s what you need to provide for registration: 

  • Your startup’s name
  • Main point of contact’s details: full name, mobile number, business email address
  • PDF of your corporate deck

The selection process begins after you’ve successfully registered. The judges include representatives of Alibaba Cloud, venture capitalists, and research experts from 36Kr Global. They will consider the company’s corporate deck when selecting startups for Demo Day. The full selection criteria is available on the program’s official website. 

Visit https://alibabacloud.kr-asia.com/  to learn more and register for the Alibaba Cloud x KrASIA Global Startup Accelerator Demo Day.

Scan this QR code to join the program’s DingTalk Group and stay updated with all program-related announcements. 

Remittances hit 6-month high in June

REUTERS
Cash remittances rose by 7% to $2.638 billion in June, the central bank said. — REUTERS

MONEY SENT HOME by overseas Filipino workers (OFWs) reached a six-month high in June, as more host countries gradually reopened their economies amid the rollout of coronavirus vaccines.

Cash remittances rose by 7% to $2.638 billion in June from $2.465 billion a year ago, data released by the Bangko Sentral ng Pilipinas (BSP) showed.

This was attributed to a 7.1% increase in money sent by land-based workers to $2.13 billion, and a 6.5% rise in remittances by sea-based workers to $502 million.

June marked the fifth consecutive month of year-on-year growth and the biggest inflows since the $2.89 billion recorded in December.

Month on month, cash remittances increased by 10.7% from $2.382 billion in May.

This brought inflows in the first half to $14.918 billion, up by 6.4% from $14.019 billion in the same period of 2020.

Filipino migrants sent more money as restrictions were gradually eased around the world, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

“Flows continue to improve as the global economy reopens, and most notably the strong recovery in the US where a bulk of the flows come from,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

The central bank said growth in cash remittances in January to June came mostly from the United States, Malaysia and South Korea.

By source country, the US continued to have the biggest share of overall remittances followed by Singapore, Saudi Arabia, the United Kingdom, Japan, the United Arab Emirates, Canada, South Korea, Qatar and Taiwan. Together, these countries accounted for 78.4% of total cash remittances.

Meanwhile, personal remittances, which include inflows in kind, jumped by 7.3% to $2.936 billion in June from $2.737 billion a year earlier.

Personal remittances increased by 6.7% to $16.616 billion in the first half of 2021 from $15.573 billion a year earlier.

While remittances have been resilient during the pandemic, it is uncertain whether these inflows will be enough to provide support for the peso, Mr. Mapa said.

“[Amid] increased corporate demand on improving imports coupled with the financial account now showing more outflows than inflows, we expect the peso to be on the back foot for the rest of the year,” he said.

The peso on Monday closed at P50.645 a dollar, shedding 16.4 centavos from its P50.481 finish on Friday, based on data from the Bankers Association of the Philippines. The local unit has weakened by P2.622 or 5.45% this year from its P48.023 a dollar close on Dec. 29, the last trading day of 2020.

This year, the BSP expects cash remittances to grow by 4%, a turnaround from the 0.8% decline in 2020.

While remittance is likely to grow this year, analysts flagged the uncertainty from emerging coronavirus disease 2019 (COVID-19) variants and the reimposition of lockdowns to contain the pandemic.

“Downside risks in the near to medium term include the Delta variant’s spread globally which could be a dampener not only on remittance flows but also towards consumption,” Mr. Roces said.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said risks from possible restrictions in other countries would not be as drastic as what was seen at the onset of the pandemic.

“I think that the Delta and Lambda variants may affect initially the inflows but it was tougher last year. The lockdowns imposed recently are also more relaxed than what we’ve seen before,” he said in a Viber message.

The Delta variant is driving a surge in infections in countries like the United States and United Kingdom, even as vaccination rates have gone up. — Luz Wendy T. Noble

Overseas Filipinos’ Cash Remittances (June 2021)

BIR beats July collection target

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE BUREAU of Internal Revenue (BIR) exceeded its collection target by 3.64% in July as economic activity picked up, preliminary data showed.

BIR Deputy Commissioner for Operations Arnel SD. Guballa told BusinessWorld the agency collected P171.85 billion in July, surpassing its P165.82-billion revenue target by 3.64%.

The July tax take was also 7.03% higher than the P160.57 billion collected in July 2020, and 7.8% bigger than the P159.364 billion revenues in June.

Tax collections started picking up this year as economic activity increased and lockdowns were eased.

BIR operations generated P165.25 billion in revenues in July, exceeding its goal by 4%. This was also 8.68% higher year on year.

The increase was driven by higher collections from BIR’s regional offices, but was partially offset by the lower tax haul from Large Taxpayers Service (LTS).

Collections from LTS totaled P104.12 billion last month, falling short of the P107.64-billion target by 3.3%. It was also 0.11% lower than its year-ago collection.

Revenues generated by BIR’s regional offices stood at P61.12 billion, exceeding the P51.25-billion goal for the month and also 28% bigger year on year.

Meanwhile, revenues from non-BIR operations missed the P6.92-billion target by 4.6% at P6.61 billion in July. Compared with the same month last year, this was also 22.5% less than P8.52 billion.

The BIR is tasked to collect P2.081 trillion this year.

The Bureau of Customs, the second-largest revenue-generating body of the government, also beat its collection target in July by 8.2% after raking in P58.183 billion in duties and taxes.

This brought Customs’ tax collections in the seven months to July to P359.93 billion, which was 4.15% higher than its goal for the period. It is expected to collect P620 billion this year. — Beatrice M. Laforga

Local shipment delays could stretch into holiday season

REUTERS

LOCAL EXPORTER shipments continue to fall behind as global shipping companies prioritize larger economies amid a container shortage in international trade, the head of an industry group said.

Shipping companies are prioritizing the United States and China given the regular and large volumes of cargo along with the advanced fees paid in those countries, Philippine Exporters Confederation, Inc. (Philexport) President Sergio R. Ortiz-Luis, Jr. said in a phone interview on Saturday.

“It’s beyond us because it’s a market-driven development,” he said.

Local shipment delays could stretch into the Christmas season, Mr. Ortiz-Luis added.

“’Yung mga goods sa Christmas, maraming hindi darating diyan. ’Yung mga exports, maraming hindi ma-ship (The goods for Christmas, a lot of those will not arrive. For exports, many of those will not be shipped). Both coming in and coming out, the boats are limited,” he said.

The global shipping industry has been facing a shortage of vessel space amid the pandemic, pushing freight rates higher and delaying goods shipments.

Philexport last month said 80 out of nearly a hundred member companies that responded to a survey said they failed to ship goods because of the shortage.

Some exporters have already cut jobs because they could not ship their goods, Mr. Ortiz-Luis said.

He said semiconductor trade, which accounts for more than half of Philippine goods exports, is hardly affected because they are delivered through air cargo. Food exports are affected most by the logistics constraints, he added.

Philexport in a meeting with shipping companies last week discussed ports in the US that are facing congestion issues. The industry group is arranging for temporary arrangements for shipping, although Mr. Ortiz-Luis said this “cannot address everybody.” — Jenina P. Ibañez

Funa proposes VULs be covered only by Insurance Code

THE INSURANCE COMMISSION (IC) said variable insurance products should be considered as life insurance products alone, and not as securities covered by collective investment schemes (CIS) to prevent a rise in premiums for consumers.

The insurance and investment components of a variable unit-linked (VUL) product are recognized as “indivisible” and cannot be considered separate components, Insurance Commissioner Dennis B. Funa said in a statement issued by the Department of Finance (DoF).

In his letter to Finance Secretary Carlos G. Dominguez III, who also heads the Capital Market Development Council (CMDC), Mr. Funa said VULs are sold as a single product because “the investment component of the life insurance policy, unlike other investment products, cannot be acquired by itself.”

“Being an indivisible insurance product, it is our position that the insurance and investment components of a VUL product should be regulated and supervised under a single regulatory framework, i.e. the Insurance Code,” he said.

Mr. Funa said including VUL products in the list of CIS would subject them to two regulatory frameworks: the Insurance Code and the proposed single CIS framework that lawmakers are working on.

He warned this would add more operational costs that could lead to an increase in premiums and make VULs less attractive to potential customers.

“[This] would cause a decline in insurance penetration and hamper the efforts of improving financial inclusion in the country as the public would be discouraged from availing themselves of expensive financial products,” said Mr. Funa.

VULs are life insurance policies that have insurance benefits and an investment component. CIS are arrangements like mutual funds where funds are being pooled to be invested, re-invested or traded in securities and other assets.

Mr. Funa said regulatory systems under the Insurance Code are sufficient to protect policyholders of VULs.

In case that VUL products will still be considered as a collective insurance scheme, he said the IC would continue to “administer, supervise, and regulate the VUL in accordance with the Insurance Code,” as recommended by the DoF.

House Bill 310, pending at the committee level of the House of Representatives, aims to harmonize regulatory and tax systems for all types of CIS products as the country officially joins the ASEAN CIS Framework.

Philippine Life Insurance Association, Inc. President Benedicto C. Sison said the industry supports the IC position, noting the investment component of a VUL cannot be detached from the insurance policy since expiration of the contract also terminates the investment portion.

“VULs’ investment funds are not offered to the public, apart from the VUL insurance contract. This alone already makes them fall out of the definition of CIS found in the CIS bill. VULs are sold by licensed insurance agents based on the insurability and needs of the person to be insured… It is not enough that the prospective policyholder has money to invest — he must be insurable to be eligible for a VUL,” Mr. Sison said in an e-mailed response to queries on Monday.

He said VULs also have unique features that make them distinct from CIS, such as insurable interest, guaranteed benefits, ownership and lapsation.

Further, he said agents selling VULs are also required to obtain an additional license on top of their basic license to sell traditional insurance products, which will make a third licensing requirement from the SEC “superfluous” and an additional cost burden.

“The bills create a superfluous operational burden that is detrimental to the insuring public because it results in additional costs and over-regulation. Why fix something that is not broken?” Mr. Sison added. — Beatrice M. Laforga

Sia’s DoubleDragon, other listed firms post gains

THREE listed companies chaired by Edgar “Injap” J. Sia II posted profit and revenue gains in the first semester, according to separate regulatory filings on Monday, ahead of what he called “coming positive cycle” post-pandemic.

“Our whole team will continue to be relentless in our pursuit to make all the business units and brands under MerryMart Consumer Corp. and DoubleDragon Properties Corp. well-loved household brands serving all its stakeholders and for both to become major contributors to our economy in the years to come,” Mr. Sia said in a MerryMart statement.

DoubleDragon saw its core net income for the six-month period surge by 543% year on year to P3.72 billion as consolidated revenues inched up by nearly two percent to P2.69 billion, excluding one-off fair value gains.

The listed real estate developer said its recurring revenues also grew to P1.99 billion for the first semester, up by 5.96% from P1.88 billion. This was due to the almost six percent growth in rental income to P1.71 billion from P1.61 billion in the same period last year.

“We are determined to cause DoubleDragon to soon become an active contributor in the rebuilding of our new economy, and to become a major beneficiary in the next coming positive cycle post this unprecedented global pandemic,” Mr. Sia said in a DoubleDragon statement.

Its 43 commercial centers across the country are said to maintain an 89.58% occupancy rate as most of its leasable space in CityMalls cater to essential services like supermarkets, pharmacies, clinics, and banks.

Meanwhile, the company said rooms in Hotel 101–Manila was 92.93% occupied in the first semester.

Its real estate investment trust (REIT) office portfolio, on the other hand, has maintained a 97.72% occupancy rate. The company said the office sector continues to be stable.

In a separate disclosure, listed DDMP REIT, Inc. said it generated a net income of P1.84 billion in the second quarter, up by nearly four-fold quarter on quarter from P399.65 million. Its rental and CUSA (common use service area) income inched up by 7.69% to P547.70 million from P547.7 million in the previous quarter.

Meanwhile, DoubleDragon will be ending the year with 1.2 million square meters (sq.m.) of leasable space under its portfolio following the completion of CentralHub Tarlac’s Phase 3. The development added 10,646 sq.m. to its portfolio.

DoubleDragon, in tandem with Jollibee Foods Corp., will also be launching the country’s “first and largest” industrial REIT in 2022 through its leasing arm CentralHub Industrial Centers, Inc. The announcement was made in early July.

GROCER KEEPING EYES OPEN FOR M&A
Listed grocery operator MerryMart said its consolidated net income posted a 20.09% growth to P16.4 million in the first half of the year, up from its P13.67-million profit logged in the same period last year.

MerryMart’s consolidated revenues, on the other hand, went up by 12.34% to P1.84 billion from P1.64 billion.

The MerryMart group has 41 operational stores across the country. The consolidation of pharmacy chain Carlos Drugs-Lucena, Inc.’s Carlos SuperDrug 27 branches would bump up MerryMart’s network to 68 stores nationwide.

“MerryMart will continue to keep its eyes open for merger and acquisition (M&A) opportunities in both the grocery and pharmacy space that would accelerate its growth and allow it to capitalize on the continued consolidation from traditional to modern retail in the Philippines,” Mr. Sia said in a MerryMart statement.

It now has a 10,764 sq.m. central distribution center in CentralHub Tarlac, which has the capacity to hold up to 12,000 pallets and serve over 100 MerryMart stores of various formats.

“This will be our template format for all our distribution centers in the pipeline as well as MerryMart Wholesale Club, which we expect will bring in a completely new stream of revenues since it is tapping into a larger market that we have yet to fully capture,” MerryMart Chief Financial Officer Hannah Yulo-Luccini said.

MerryMart has various store formats under its belt, namely: MerryMart Store, MerryMart Market, MerryMart Grocery, MerryMart Wholesale and Dark Groceries. MerryMart wants to have P120 billion in system-wide recurring consumer sales revenues by 2030.

Under “Vision 2030,” MerryMart is also aiming to have 1,200 stores across the Philippines and a 5,000-wide MBOX smart locker network. MBOX Smart Lockers are the first product under its consumer technology portfolio with a new subsidiary, MM Consumer Technologies Corp.

Shares of DoubleDragon Properties went up by 1.39% or 14 centavos on Monday to close at P10.24 each, while shares of DDMP REIT closed unchanged at P1.77 apiece.

Meanwhile, MerryMart stocks were down by 3.40% or 12 centavos to close at P3.41 each. — Keren Concepcion G. Valmonte

ABS-CBN narrows net loss to P1.4B after cutting expenses

PHILIPPINE STAR/ MIGUEL ANTONIO DE GUZMAN

ABS-CBN Corp. managed to trim its second-quarter attributable net loss to P1.4 billion from a loss of P3.2 billion in the same period a year earlier, as the media company continues to cut expenses.

ABS-CBN’s total revenues for the second quarter declined 10.6% to P4.2 billion from P4.7 billion previously, the company’s quarterly report shows.

But its gross profit for the quarter increased 51.9% to P425.8 million from P280.2 million in the same period in 2020 after it cut its production costs, cost of services, and cost of sales.

The company trimmed its second-quarter general and administrative expenses to P1.9 billion, compared with the P3.2-billion expenses previously.

For the first half of the year, ABS-CBN’s revenues dropped 38.3% to P8.2 billion from P13.3 billion in the same period last year.

ABS-CBN’s first-half gross profit decreased 85% to P429.7 million from P2.9 billion a year ago.

Its general and administrative expenses for the period narrowed to P3.8 billion from P6.3 billion in the previous year.

ABS-CBN posted a first-half attributable net loss of P3.4 billion, compared with a loss of P3.9 billion in the same period in 2020.

“Following the events of the franchise denial and the impact of [coronavirus pandemic], the company enforced stringent cost-cutting measures to further manage [its] financial performance,” ABS-CBN noted.

Last year, after being denied a broadcast franchise, ABS-CBN entered into an agreement with its existing lenders “to provide for the creation of a mortgage and security interest over certain assets of the company, the opening and maintenance of debt service reserve account, pre-payment of the P4 billion of its loans, and an amendment of existing loan agreements.”

It said the lenders agreed that “upon satisfaction of the necessary conditions under the Omnibus Security and Intercreditor Agreement and during the effectivity period of the standstill…, it shall not declare an event of default to the extent that it relates to the Franchise Expiration Default.”

“On May 31, 2021, all the conditions specified in the Omnibus Security and Intercreditor Agreement were satisfied and accordingly, the Standstill Effective Date Notice was executed by all parties,” it added. — Arjay L. Balinbin

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