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AllDay Supermarket innovates grocery stores with self-checkout counters powered by PayMaya

AllDay customer uses the self-checkout counter to pay for her grocery items at AllDay EVIA Lifestyle branch

AllDay Supermarket has tapped PayMaya to power its self-checkout counters with cutting-edge technology to elevate customers’ grocery shopping experience.

A first for the Philippine retail industry, AllDay Supermarket introduced the self-checkout concept early this year at its Evia Lifestyle Center branch and its Libis branch. These branches are equipped with PayMaya ONE terminals, allowing AllDay to accept digital payments via PayMaya QR and any credit, debit, or prepaid card, as well as other e-wallets.

After trying out the new self-checkout counters, local shoppers have expressed excitement and delight over the unique retail experience.

Mas madali ang self-checkout counters. Hindi na kailangang pumila ng mahaba. Hindi na kailangan hintayin matapos yung customer na nasa unahan mo,” said Leony Labos, a regular customer of AllDay who uses the self-checkout service.

(Self-checkout counters are easier. There are no long lines. You don’t need to wait long for the customer in front of you).

Yung first time siyempre nakaka-nerbiyos. Pero once na matutunan mo na yung steps, okay na, magagamay mo na,” said Emman Laanan, another customer who tried out AllDay’s self-checkout counter in Libis.

(I was nervous when I tried it for the first time, but when I learned about the steps, it was easy to navigate).

Beyond keeping up with the times, retail establishments such as AllDay Supermarket have practical reasons to embrace technologies that provide convenience and efficiency to their customers and operations.

Consumers in the New Normal prefer fast, safe, and rewarding digital payment transactions. Retail merchants, meanwhile, need to have the capability to accept different digital payment methods such as card and QR payments via banks and e-wallets – or risk losing a sale. Retailers also have to consider factors such as limited display space for multiple card terminals and QR standees and the security and efficiency of the payment platform.

AllDay has been continuously innovating their stores to provide the best service to customers and to outpace the Philippine landscape of supermarkets. Placing self-checkout counters with PayMaya’s technology is a new feature in their stores that provides convenience and efficiency to their customers as well as safety during the pandemic.

We are proud to power AllDay Supermarket’s self-checkout terminals. Contactless solutions are the way to go for on-ground retail transactions. At PayMaya, we are enabling enterprise customers like AllDay with the tools to power their retail innovations,” said Shailesh Baidwan, President at PayMaya.

AllDay’s trailblazing move underscores the reality that digital transactions have gone beyond measures of modernization and convenience, having taken on greater relevance – if not urgency – amidst COVID-19, with social distancing measures now ingrained as part of the norm.

“I recommend self-checkout lalo ngayong pandemic,” said Laanan. “Magandang ini-implement para less yung hawaan.”

(I recommend the use of self-checkout counters, especially with the pandemic. It will lessen the transmission of the virus).

AllDay aims to roll out more self-checkout counters in different branches nationwide.

Aside from powering AllDay’s pioneering self-checkout counters, PayMaya has brought a safer and more convenient payment experience to the grocery chain’s 33 physical stores and online commerce site, www.allday.com.ph.

PayMaya is the only end-to-end digital payments ecosystem enabler in the Philippines, with platforms and services that cut across consumers, merchants, communities, and government.

It provides more than 38 million Filipinos with access to financial services through its consumer platforms. Customers can conveniently pay, add money, cash out or remit through its over 300,000 digital touchpoints nationwide. It’s Smart Padala by PayMaya network of over 55,000 partner agent touchpoints serves as last-mile digital financial hubs in communities, providing the unbanked and underserved access to digital services. Through its enterprise business, it is the largest digital payments processor for key industries in the country, including “every day” merchants such as the largest retail, food, gas, and eCommerce merchants, as well as government agencies and units.


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Poll: BSP to keep rates untouched

PHILIPPINE STAR/ MICHAEL VARCAS
INFLATION in the first eight months stood at 4.4%, quicker than the central bank’s 4.1% average inflation forecast for 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) is likely to keep its key interest rate steady as the economy gradually reopens despite a continued surge in coronavirus disease 2019 (COVID-19) infections.

A BusinessWorld poll held last week showed 17 out of 18 analysts expect the Monetary Board to hold the key policy rate at 2%, a historic low, on Sept. 23.

Analysts expect the central bank to look past the beyond-target inflation in order to support the economy’s recovery which has been stymied by the persistent rise in COVID-19 cases and lockdown restrictions.

Analysts’ policy rate expectations (Sept. 23)

“I think BSP will still keep its key policy rates at its current level. It might take some time before a significant economic growth can occur due to high infection rate and limited economic activity,” said Mitzie Irene P. Conchada, an economist from the De La Salle University.

The economy exited recession in the second quarter after five consecutive quarters of contraction. Second-quarter gross domestic product (GDP) grew by 11.8% year on year, although it declined by 1.3% quarter on quarter.

This strengthens the case for sustained support from the BSP, Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said.

“The BSP should continue to adopt accommodative policy to branch out appropriate stimulus in order to boost economic recovery by way of consumption and investment expenditures,” Mr. Lopez said.

At its previous policy meeting on Aug. 12, the Monetary Board has cited the need to retain policy support amid risks to recovery due to the virus surge and reimposed restriction measures.

Metro Manila was placed under a two-week strict lockdown in August in a bid to arrest the Delta-induced infection surge. This had prompted economic managers to lower its full-year growth target to 4-5% from 6-7% previously.

Restrictions have since been gradually eased under a new quarantine system. Metro Manila is currently at Alert Level 4 until end-September, but some businesses have been allowed to reopen under limited capacity.

“Authorities need to meticulously navigate an environment of slowing growth and higher prices. Monetary policy action at this point may not have a material and direct impact on the supply of fresh food nor the international price of crude oil,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said. 

Headline inflation quickened to 4.9% in August from 4% in July, mainly due to higher food and utility prices. Analysts blamed this on supply issues caused by lockdown restrictions as well as typhoons that sent food prices soaring.

August inflation was again beyond the BSP’s 2-4% target and was the fastest since the 5.1% in December 2018. Inflation in the first eight months stood at 4.4%, quicker than the 4.1% average inflation forecast of the BSP for 2021.

Despite this, “weak growth” will remain the focus of monetary authorities at its upcoming meeting, Standard Chartered Bank economist Jonathan Koh said.

He noted the BSP now expects inflation to remain elevated this year, before easing to the midpoint of the 2-4% target by 2022 and 2023.

On the other hand, Asian Institute of Management economist John Paolo R. Rivera believes the recent increase in the consumer price index could be a turning point for the BSP to consider hiking rates by 25 basis points (bps) to temper inflation.

Meanwhile, Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. expects the central bank to keep policy rates unchanged, based on recent signals by BSP officials.

However, he pointed out that central banks in Brazil, Turkey, South Korea, Chile, and Peru have already began unwinding their negative real interest rates in a bid to pursue price and financial stability.

A negative interest rate environment occurs when inflation is higher than benchmark policy rates.

“Keeping real interest rates in deep negative territory no longer looks necessary and may in fact lead to a loss of confidence on the independence of the monetary authorities,” Mr. Neri said.

For her part, Mitsubishi UFJ Group Global Research analyst Sophia Ng expects rates will be kept steady, with the BSP also opting for other policy tools to back recovery.

“[This] include the extension of loans to the government and purchases of government bonds from the secondary market,” she said.

Moody’s Analytics Katrina Ell expects the BSP to continue its prudent pause and support the economy’s “laggard” recovery. She said further rate cuts are unlikely for the rest of the year given that there is ample liquidity.

“The Philippines is in the midst of a gradual and fragile recovery that requires a very supportive monetary environment. The Philippines won’t return to pre-pandemic levels of output until late 2022, making it Asia’s laggard,” Ms. Ell said.

BSP Governor Benjamin E. Diokno earlier this month said the economy might take until the fourth quarter of 2022 or the first quarter of 2023 to fully regain its pre-pandemic level.

The central bank chief assured they will strive to keep an accommodative policy stance while ensuring it will not lead to “excessive inflation and trigger financial stability risks.”

The BSP last cut the key policy rate by 25 bps in November. Since then, it has kept rate settings unchanged for seven consecutive reviews.

After Thursday’s meeting, the Monetary Board still has two more policy-setting meetings left this year — Nov. 18 and Dec. 16.

Estranged Duterte allies start political pacts for 2022 elections

PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Rodrigo R. Duterte’s political allies — at least those who are running for the country’s top two positions next year — have started to distance themselves from him and what he stands for.

But Dale Joyce Anding, a 21-year-old first-time voter from Manila, the capital, said she remembers the track record of these candidates and would never support them.

“I will never vote for someone who has defended and enabled Duterte and his policies,” the nursing student said in a Facebook Messenger chat. “I will vote for a candidate who has a clear program for health workers amid the coronavirus pandemic, not someone who abetted the government’s negligence and failed policies.”

Few politicians have announced their political ambitions, less than a month before they file their certificates of candidacy for the 2022 national elections.

“They don’t want to be subjected to political attacks this early,” Ramon C. Casiple, executive director at the Institute for Political and Electoral Reform, said by telephone.

Senator Panfilo M. Lacson was the first to announce his presidential ambition, with Senate President Vicente C. Sotto III as his running mate. Both have criticized the Duterte government’s handling of the pandemic.

“Those who opposed the administration from the very beginning will remember how these two stood behind the President on many issues, especially on peace and order,” said Maria Ela L. Atienza, a political science professor at the University of the Philippines Diliman.

“While they may be challenging the administration now, they have been enablers of the administration for the past five years,” she said. “Before the pandemic, their stand on issues were the same as the administration.”

While the country’s more enlightened voters will probably remember their track record, most Filipino voters have political amnesia and might have already forgotten their alliance with the Duterte government.

“Now that they are positioning themselves as critical of the President, they will be more detrimental to the political opposition,” said Antonio P. Contreras, a political science professor from De La Salle University.

“This is bad news for the likes of Manny Pacquiao, Leni Robredo and Isko Moreno,” he said. “The Lacson-Sotto tandem could erode the opposition’s political base.”

Senator Emmanuel “Manny” D. Pacquiao, a former Duterte ally who has slammed state corruption, accepted on Sunday the nomination by a PDP-Laban faction to run as its presidential candidate.

Vice-President Maria Leonor G. Robredo, who has opposed the administration’s drug war from the start, is also considering running for president next year.

Earlier this month, another PDP-Laban faction supported by Mr. Duterte dropped the boxing champion from its senatorial slate. The faction has endorsed Mr. Duterte’s vice-presidential bid and a potential presidential run by his long-time aide, Senator Christopher Lawrence T. Go.

The Lacson-Sotto team is peculiar because they can potentially get votes from both the administration and opposition camps.

“But they are center in that sense only,” Michael Henry Ll. Yusingco, a senior research fellow at the Ateneo de Manila University Policy Center, said in a Facebook Messenger chat. “In terms of ideology, if we can call it that, the team is certainly closer to ‘Dutertismo’ than to liberal democratic thinking.”

“They are both always in the news, so the awareness level is optimal for them,” he said. “But their track records are spotty at best, so their popularity may not necessarily translate into votes.”

Ms. Robredo has said she might support a tandem between Manila Mayor Francisco “Isko Moreno” Domagoso III and Mr. Pacquiao if only to end the ruling party’s dominance.

“It’s taking her so long to decide because it’s very difficult to run a national campaign without a clear and stable support group, machinery and sufficient funds,” Ms. Atienza said.

She said Ms. Robredo might need the kind of support that the late President Corazon C. Aquino got from civil society in the 1986 snap elections against the late dictator Ferdinand E. Marcos.

She’s also having a hard time finalizing her decision because she’s been lagging behind in opinion polls, political analyst Jean Encinas-Franco said.

Two months before the filing of certificates of candidacy, Mr. Duterte mocked Mr. Domagoso, who he said does not deserve to become president given his past as a sexy actor.

Mr. Domagoso’s narrative could be easily discredited “because it’s personality — rather than platform-oriented,” said Cleve V. Arguelles, a political science lecturer at De La Salle University.

The mayor, whose rags-to-riches story — he used to be a scavenger and pedicab driver in one of the most populated districts in the Philippine capital before he was discovered by a talent scout — has captivated star-struck Filipinos, had done well in opinion polls.

He placed second to presidential daughter Sara Duterte-Carpio in the opinion poll for President, and second to Mr. Duterte in the vice-presidential poll.

MARCOS TIES
On Sept. 9, Ms. Carpio said she would no longer seek the presidency in 2022 after her father accepted his party’s nomination to run for vice-president next year. This is in keeping with their agreement that only one of them will run for a national post.

The President, who had flip-flopped on his 2016 presidential run, earlier said he would drop out of the vice-presidential race if her daughter runs for President.

Ms. Carpio heads Davao-based political party Hugpong ng Pagbabago, which has entered into alliances with various traditional parties.

Mr. Arguelles said Ms. Carpio might just be trying “to create a grassroots demand for her candidacy.”

“If there’s anything Sara learned from 2016, it is that she can always decide to run after all what’s been said,” the political analyst said. “Joining the race late isn’t a disadvantage.”

Mr. Yusingco said young voters would probably support either Ms. Robredo or Mr. Domagoso.

“I highly doubt that the Lacson-Sotto tandem will get any votes from the youth ranks,” he said. “If voter turn-out is high, and given the fact that majority of voters are between 18 and 35 years old, it’s more than likely that the tandem will fare poorly.”

Young Filipino voters now make up 52% of the country’s total registered voters, according to the Commission on Elections.

Mr. Contreras said the Duterte camp would likely consider ex-Senator Ferdinand “Bongbong” R. Marcos, Jr. as either a presidential or vice-presidential candidate.

“They could not afford to lose Bongbong because his loyalists are also their loyalists,” he said. In 2016, Mr. Duterte — the first President from Mindanao — won 16 million votes, and a big part of that was from Marcos supporters, he added.

The son of the late dictator has said he might run for a national position next year.

Mr. Yusingco said an alliance with the Marcoses would be “helpful but not indispensable.” “The Marcoses have a loyal following so they can bring in additional votes for party or coalition candidates, but their loyal following is only limited to the north.”

“Without the Marcoses, a political party or coalition can still perform well provided they secure alliances with the power brokers of the real vote-rich areas of the country like the National Capital Region, Central Luzon, Calabarzon, Cebu and Northern Mindanao,” he added.

DoTr seeks exemption from public works ban

The Balagtas Station of the Philippine National Railway Clark Phase 1 Project is currently under construction. Photo taken on June 14. — PHILIPPINE STAR/ MICHAEL VARCAS
The Balagtas Station of the Philippine National Railway Clark Phase 1 Project is currently under construction. Photo taken on June 14. — PHILIPPINE STAR/ MICHAEL VARCAS

By Arjay L. Balinbin, Senior Reporter

THE DEPARTMENT of Transportation (DoTr) is asking the Commission on Elections (Comelec) to exempt its infrastructure projects, including the long-awaited Mindanao railway, from the public works ban ahead of the election season.

“A request has been made by DoTr  to Comelec for exemption of all DoTr projects,” Transportation Assistant Secretary Eymard D. Eje told BusinessWorld in a phone message on Saturday.

“Comelec said that they cannot process our request as there are no guidelines yet. We will just refile it once guidelines are out,” he added.

The Comelec said public works ban for the May national elections will run from March 25 to May 8, 2022. The public works ban covers disbursement and spending as well as construction activity. This is aimed at preventing politicians from using state resources for their election campaign.

If the Comelec does grant an exemption for DoTr projects, the construction of the first phase of the Mindanao Railway project is expected to start in April 2022, project manager Clipton J. Solamo said.

Funded by China, the Mindanao rail project was initially expected to start partial operations in March 2022 and full operations in June 2023.

In the revised “indicative” timeline provided by Mr. Solamo on Sept. 13, construction work is now expected to begin in April 2022.

The government now hopes to start partial operations in October 2022, and full operations in October 2023.

The railway’s P82.9-billion first phase stretches from the Tagum Station and depot in Davao del Norte to Digos City in Davao del Sur. It will have stations in Carmen, Panabo, Santa Cruz, and three in Davao City, including a sub-depot.   

Mr. Solamo said that “notices of taking” have been issued to 69.90% of affected properties in Tagum, 10.78% in Carmen, 96.69% in Panabo, 90.67% in Davao City, 85.26% in Santa Cruz, and 86.84% in Digos.

The Mindanao rail’s P3.08-billion project management consultancy contract has been awarded to a consortium composed of China Railway Design Corp. and Guangzhou Wanan Construction Supervision Co., Ltd.

The government is awaiting the shortlist of bidders from China for the design-and-build package.

OTHER PROJECTS
Based on the revised list of infrastructure flagship projects, ongoing DoTr projects that are targeted for completion next year include the Taguig Integrated Terminal Exchange, Cebu Bus Rapid Transit, and Davao Public Transport Modernization Project.

The Metro Manila Subway Project is expected to start excavation activities in the first quarter of 2022.

The partial operations segment (San Pablo, Candelaria, Lucena, and Pagbilao) of the PNR Bicol Project is expected to start in the first half of 2022.

The Malolos-Clark segment (PNR Clark Phase 2) of the North South Commuter Railway is likewise expected to be partially operational next year.

New market models seen to lure more listings

ASIAN DEVELOPMENT BANK — ALFONSO EREVE

A SENIOR economist at the Asian Development Bank (ADB) said a local bourse’s program for micro, small, and medium enterprises (MSME) is key to gaining more listings at its board for smaller businesses, as well as to attracting more investors.

“Design is very important to develop more feasible capital markets fit to the demands of the viable MSMEs,” Shigehiro Shinozaki, senior economist at the ADB, said at the Philippine Stock Exchange’s (PSE) forum last week.

“To overcome several challenges to develop MSME capital markets… it is worth considering to review and test, pilot test different market models fit to the financing the demand from MSMEs and investors,” he added.

ADB categorized the MSME capital markets in Southeast Asia into three types. The most common is a sponsor-driven alternative investment market, which can be seen in the Singapore Exchange’s Catalist, the ACE and LEAP markets of Bursa Malaysia, and the Market for Alternative Investment in Thailand.

Some have a dedicated MSME market, such as the Philippines’ SME (small and medium enterprises) board and Indonesia’s Acceleration Board.

Meanwhile, ADB said Vietnam’s UPCoM (Unlisted Public Company Market) is an example of a market board not MSME-focused, but it is offering concessional listing requirements.

The key challenges that affect developing MSME capital markets include low market liquidity, the high costs for listing, which include corporate governance requirements.

MSME owners’ mind-set also affects the development of the capital market, as well as weak capital market literacy among owners.

“The importance of capital markets, especially equity market, will increase further as a growth-capital delivery channel to growth-oriented MSMEs and entrepreneurs,” Mr. Shinozaki said. 

For its part, the PSE has relaxed listing rules for initial public offerings (IPO) to encourage small companies to tap the capital markets for funding. It has also introduced guidelines for companies who wish to list on the SME board via a sponsorship model.

The PSE also held a webinar last week along with the Department of Trade and Industry, and the Securities and Exchange Commission (SEC) to educate and encourage more SMEs to list at the local bourse. The PSE said it saw “keen interest” from province-based businesses.

“It is important for us to impart that capital raising in the PSE is not exclusive for big and established firms or for businesses based in Metro Manila,” said PSE President and CEO Ramon S. Monzon said in an e-mailed statement on Saturday.

“The stock market is open to SME companies who need capital to take the next step in growing their business,” he added. — Keren Concepcion G. Valmonte

Power plant’s second unit faces snag on travel woes

GNPOWER.COM.PH

GNPower Dinginin’s commercial run moved to Q3 2022

By Angelica Y. Yang, Reporter

THE management of GNPower Dinginin Ltd. Co. (GNPD) said the timeline of the second unit of its 1,336-megawatt (MW) supercritical coal-fired power plant in Bataan had been further pushed back due to travel restrictions, with commercial operations now slated to begin in the third quarter of 2022.

“Commercial operations for GNPD unit 2 [are expected to begin in the] 3Q 2022. Challenges [were] experienced due to travel restriction due to the pandemic, affecting the travel authorizations of foreign experts and personnel,” GNPD Vice-President Roberto B. Racelis, Jr. told BusinessWorld in an e-mail over the weekend.

Aboitiz Power Corp., whose subsidiary Therma Power, Inc. is one of the joint venture partners of GNPD, earlier said that unit 2 is targeted to be ready for commissioning by March of next year. GNPD has two units with an identical capacity of 668 MW each.

Meanwhile, the plant’s unit 1, which is currently undergoing testing and commissioning, is scheduled to go online by the fourth quarter this year, Mr. Racelis said.

Two months ago, Senator Sherwin T. Gatchalian pointed out delays in the commercial launches of 27 committed power projects with a total capacity of 2,045 MW since 2016. He mentioned GNPD’s unit 1 as one of the facilities that have been delayed for five times.

Committed plants are facilities that have attained financial closing with investors or bankers.

GNPD achieved financial closing in 2015 and started building its first unit a year later.

On its website, GNPD is referred to as the largest coal-fired power plant to be built in the country and has contracts with 30 distribution utilities and two retail electricity suppliers.

Rates of T-bills, T-bonds to inch up on RDB offer

BW FILE PHOTO

RATES of government securities on offer this week may move sideways or inch up as the dual-tranche offering of onshore retail dollar bonds (RDBs) continues.

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

The BTr will also auction off P35 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 10 months on Tuesday.

Two bond traders interviewed on Friday said T-bill rates will continue to move sideways this week as investors park their excess liquidity in these short-term safe-haven assets.

However, for the reissued seven-year bonds, a first trader expects its yield to be slightly higher than what was quoted during the previous auction due to weaker demand for long-term debt. The trader sees the average rate of the T-bonds ranging from 3.775% to 3.9%.

“Yields are expected to have an upward bias due to weakening demand for long-term government securities, and as investors’ focus is currently on the RDBs,” the trader said in a Viber message.

The BTr on Sept. 15 started offering five-year and 10-year RDBs, which have coupon rates of 1.375% and 2.25%, respectively. It is set to end the offer period on Oct. 1, unless closed earlier.

The Treasury raised an initial $866.2 million during the price-setting auction for the RDBs on Wednesday, more than twice as much as the initial offer of $400 million amid high demand. Broken down, it sold $551.8 million worth of five-year RDBs and another $314.4 million in 10-year dollar-denominated notes.

This marked the first time the government offered onshore RDBs. The papers are available at a minimum investment of $300 (P15,000), with increments of $100 thereafter.

A second trader gave a slightly lower range of 3.75%-3.85% for the reissued seven-year papers, citing the market’s cautious stance ahead of policy meetings of the Monetary Board of the Philippine central bank and the Federal Open Market Committee this week.

“[The market will also price in] renewed inflation concerns brought by rising energy prices, after Meralco (Manila Electric Co.) announced it will hike its power rates anew,” the second trader said.

A BusinessWorld poll conducted last week showed 17 out of 18 analysts expect the Bangko Sentral ng Pilipinas (BSP) to keep benchmark rates at record lows at its policy meeting on Sept. 23, Thursday.

Analysts said the BSP may look past rising inflation as economic recovery remains “fragile.”

Meanwhile, headline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years or since the 5.2% seen in December 2018, amid rising food and utility costs.

This brought the eight-month average to 4.4%, above the central bank’s target of 2-4% and forecast of 4.1% for the year.

The BTr last week made a full award of the P15 billion T-bills it offered as total tenders reached P63.273 billion and rates moved sideways.

Broken down, it raised P5 billion as programmed via the 91-day debt papers at an average rate of 1.079%, a tad higher than the 1.078% seen on Sept. 6.

The Treasury also borrowed P5 billion as planned via the 182-day T-bills, with its average yield slipping to 1.402% from 1.405% a week ago.

Lastly, it made a full P5-billion award of the 364-day securities it offered at an average rate of 1.604%, down from 1.609% previously.

Meanwhile, the last time the BTr offered the reissued seven-year bonds was on Sept. 7 when it made a full P35-billion award from P77.091 billion in tenders.

The notes were quoted at an average rate of 3.789%, slightly higher than the 3.75% coupon fetched for the papers when they were first offered the month prior.

At the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.113%, 1.383% and 1.633%, respectively, while the seven-year tenor fetched 3.611%, according to the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

The Treasury is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — B.M. Laforga

SEC revokes registration of seniors, elderly club

THE Securities and Exchange Commission (SEC) has revoked the registration of Senior Citizens and Elderly Welfare Club of the Philippines, Inc. (SCEW) for selling fraudulent identification (ID) cards similar to senior citizen cards.

The IDs it offered allegedly entitles the card holder to 20% discounts and other benefits under Republic Act (R.A.) No. 9994 or the Expanded Senior Citizens Act of 2010.

Under the law, only Philippine residents aged 60 and above are considered “senior citizens or elderly.”

With SCEW’s scheme, it encourages “junior citizens” aged 40 to 59 years old to purchase its ID cards for a “lifetime membership” fee worth P300 to P600. There were also reports that the entity sold booklets akin to those issued to senior citizens.

SCEW is registered with the SEC as a nonstock corporation, but it does not hold power to issue membership cards that would allow members to avail of privileges for senior citizens under R.A. 9994.

The SEC said it received numerous reports about SCEW and queries regarding the legitimacy of its scheme.

When the SEC held its surveillance operation on Sept. 4, 2019, it met SCEW’s president, Restituto E. Perez, Jr. who explained that “what the SCEW was doing was only to help the Filipino people recover the taxes that they paid.”

The SEC further reported that Mr. Perez said he was merely “helping the people in bridging the gap and inequality in the grant of benefits to the other age group other [than] that [of] the senior citizens.”

According to an SEC advisory issued by the end of September 2019, SCEW’s membership card scheme was already widespread with over 140 satellites across the country distributing the cards. Apparently, these IDs may also be availed of abroad.

“The holders of these IDs would be able to avail of the discounts and privileges of the senior citizens to the detriment of the establishments, which are mandated to honor the senior citizen’s card,” the SEC said in its advisory.

The SEC said it worked with different government agencies for the case, such as the Office of the Standards Bureau of the Department of Social Welfare, the Department of Trade and Industry, and the Development and the Officer of the Senior Citizens’ Affairs of the Quezon City Hall, as SCEW’s office address is within the city.

The regulator said SCEW’s scheme of selling membership cards that also works as a discount card to entitle the holder to the privileges under R.A. 9994 is “considered a serious misrepresentation.”

“The activities of SCEW in selling SCEW ID cards with a promise of entitlement to the 20% discount is considered an ultra vires act and therefore, constitutes serious misrepresentation as to what the corporation can do to the great prejudice or damage to the general public which is a ground for the revocation of a corporation’s primary franchise or certificate of registration/incorporation,” the SEC said. — Keren Concepcion G. Valmonte

Governance standards for payment system operators set

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THE CENTRAL BANK has set governance standards for operators of payment systems (OPS), including qualifications for officials and possible grounds for termination.

Circular 1127 signed by Sept. 17 also imposed stricter rules for OPS that engage in other businesses regulated by the Bangko Sentral ng Pilipinas (BSP).

“The guidelines set governance standards that prescribe the quality of stewardship among OPS given that these entities have critical roles in ensuring the smooth circulation of funds in the economy in a safe, efficient, affordable and convenient manner,” the central bank said in a statement.

The circular is applicable to the BSP as the operator of the real time gross settlement system of PhilPaSS Plus. It likewise covers BSP-supervised financial institutions, including banks, nonbank financial institutions, nonbank electronic-money issuers, cooperatives, and other businesses that are considered OPS under central bank regulations.

All OPS are required to comply with a risk appetite statement which details the types of risks they are willing to accept and avoid in order to keep their business objectives. This should include statements that report measures on systemic, financial, and operation risks that could build up through the course of their business.

A risk government framework that lays out the business strategy that will be adopted by a firm’s board of directors will also be required.

The circular requires an OPS to have a board of directors composed of 5-15 members. One of them or at least 20% of the board should be independent directors.

Foreigners can be part of the board of directors of an OPS except for cooperatives, to the extent provided by existing laws and regulation.

An OPS is also expected to have an audit, risk oversight, and corporate governance committees that will oversee their operational and financial reporting processes and look into concerns of malpractice and resulting investigations, if needed.

Under the circular, directors and officers could be subject to either permanent or temporary disqualification. Persons will be permanently disqualified from assuming officership in an OPS if they were convicted by final judgment for violating the payment systems law, and those found to be blamed behind the closure of an OPS based on findings by the Monetary Board.

Meanwhile, grounds for temporary disqualification include unwillingness to pay financial obligations, being involved in a previous OPS closure whose case is still pending before the Monetary Board, failure to discharge duties that in turn threaten the reliability of a payment system, as well as those already engaged in businesses similar to the OPS.

Persons that were involved in violations that could result in dismissal or termination under the Labor Code of the Philippines and those with pending cases related to financial crimes could also be subject to temporary disqualification.

OPS are given six months to comply with the circular, except for the provisions on temporary disqualification of directors and officers of OPS, which shall take effect immediately.

The issuance will complement the adoption of international standards under the Principles for Financial Market Infrastructures, the BSP said.

The circular is also in line with the phased-in implementation of Republic Act 11127 or the National Payment Systems Act which was enacted in 2018.

There are 160 BSP-registered OPS as of Sept. 10. — Luz Wendy T. Noble

You can look but not buy…yet

Leading to the Q4 opening of Ikea, the store is holding pop-ups and an online  festival

YOU may have missed the Ikea Festival held online on Sept. 17, and the SM Mall of Asia (MOA) pop-up event (ending on Sept. 19) but don’t fret. The highlights are still posted online at ikea.com/festival, while the pop-up will travel for weeks to come, beginning in SM Megamall.

The festival opens the doors of 100 homes across 50 Ikea markets. It features house tours, healthy, planet-friendly, and zero-waste cooking demos, and live performances (at home). It also featured views of the factory floor in Zbąszynek, Poland, to the prototype shop in Älmhult, Sweden. One can also view the history of Ikea in the website.

Ikea also put up a billboard featuring more than 1,000 Filipino families along EDSA. The billboard, seen at the Magallanes section of the major metro Manila highway, is a collage of the many life-at-home stories of Filipinos shared with Ikea last June. “This is a celebration of life at home in the Philippines, in a time when our home has never been so important,” said Deputy Ikea Pasay City store manager Aileen Prodigalidad during a media event last week.

The Ikea store in Pasay is slated to open in the fourth quarter (Q4) of this year, although an exact date had not been disclosed during the media event. Ikea Pasay City store manager Georg Platzer said, “It’s so good that we can finally kick off a fantastic festival today, and also announcing the opening of our first-ever pop-up store in Mall of Asia.”

Unfortunately, the pop-up store is meant only to be seen no buying is involved. As Ms. Prodigalidad clarified, “The pop-up is an inspiration. This is a showcase of life at home. At the moment, we are not selling our products. We’re not going to be selling products at the pop-up.”

The pop-up will go on to other locations, beginning in SM Megamall in the coming weeks, said Ms. Prodigalidad. The locations and dates for the next pop-ups were not discussed.

To access the Ikea Festival and get the full program, visit the festival page ikea.com/festival, with no sign-ups or payments required. — JLG

Shorter quarantine period for all passengers from abroad sought

PHILIPPINE STAR/EDD GUMBAN
JOEY Concepcion says airlines ‘have to be viable’ to protect them from bankruptcy. — PHILIPPINE STAR/EDD GUMBAN

PRESIDENTIAL Adviser for Entrepreneurship Jose Ma. “Joey” A. Concepcion III said on Saturday that embattled Philippine Airlines, Inc. (PAL) has sought to shorten the quarantine period for all arriving passengers from abroad.

Mr. Concepcion said he recently met with representatives from Philippine Airlines, Cebu Pacific, and Philippines AirAsia to discuss their concerns and some ways to help the struggling sector survive the pandemic crisis.

“So nag-usap kami (We talked). We invited Dr. Edsel T. Salvaña, the IATF (Inter-Agency Task Force) medical adviser,” he said at a virtual Palace briefing on Saturday.

“With the idea of PAL which was presented, maybe we can reduce the quarantine of incoming passengers… to the Philippines down from ten days plus four days at home to maybe seven days,” he added, noting that the shortened quarantine period should help tourists with their expenses.

The official said airlines “have to be viable” to protect them from bankruptcy.

“If the airlines do not become viable and they close, masisira iyong ibang sektor natin, ang tourism (other sectors will be affected, including tourism),” Mr. Concepcion said.

PAL has filed for Chapter 11 creditor protection in the United States. Its listed holding company, PAL Holdings, Inc. (not included in the Chapter 11 filing), had been incurring losses even before the global health crisis. Its attributable net loss widened to P71.91 billion in 2020 from P10.31 billion in 2019.

In a summary of the meeting sent by PAL to BusinessWorld on Sunday, the airline said it was represented by its president and chief operating officer, Gilbert F. Santa Maria, and its senior vice-president and chief strategy and planning officer, Dexter C. Lee.

Philippines AirAsia Chief Executive Officer Ricardo P. Isla and Cebu Pacific Vice-President for Cargo Alex B. Reyes were also present at the meeting.

In the meeting summary, Messrs. Santa Maria and Lee were quoted as saying that international travelers find requirements such as testing and quarantine periods to be “very burdensome,” forcing them to put off their travel plans.

They proposed that passengers be tested 72 hours prior to departure, quarantined upon arrival, and required take an RT-PCR (reverse transcription polymerase chain reaction) test on the third day.

Passengers with a negative result should be allowed to leave the quarantine facility on the fifth day so that they can continue their quarantine at home.

PAL said the proposal would enable passengers to save up to P25,000.

It also wants the IATF to include North America on the list of green countries.

Fully vaccinated passengers from green or low-risk countries are allowed to enter the Philippines. They are required to undergo a seven-day facility-based quarantine.

PAL said it earned $1 billion from the North American market prior to the pandemic crisis.

Other groups that attended the meeting with Messrs. Concepcion and Salvaña were Philippine Hotel Owners Association, LT Group, Air Carriers Association of the Philippines, MacroAsia Corp., Victory Liner, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigang Bus sa Pilipinas, Inc., ASEAN Business Advisory Council, and Go Negosyo. — Arjay L. Balinbin

Princess of speed

PHOTO FROM BIANCA BUSTAMANTE

This 16-year-old Pinay racer is quickly amassing achievements, while trailblazing the way for young girls who aspire to motorsports greatness

IT’S BEEN a while since the world started to long for some female representation in Formula 1 racing (and in all other motorsports, for that matter). And for that reason — promoting gender diversity and changing the current paradigm — the FIA (Federation Internationale de l’Automobile), back in 2009, formed the Women in Motorsport Commission (WMC).

Among the goals of the FIA’s WMC is to develop social and educational programs open to women around the globe, in order to highlight and demonstrate that motorsports and all of its aspects are definitely open to women. In 2020 began one of its major projects: the FIA Girls on Track-Rising Stars Scholarship Shoot-out.

Enter our sweet 16-year-old Bianca Bustamante — one of the 14 up-and-coming young talents who were selected by the FIA WMC from a pool of over 70 applicants from around the world to participate in the shoot-out. The young Filipina also happens to be the only Asian driver who was selected this 2021.

Basically, the selected participants compete in a series of elimination challenges, with the first one being a shoot-out to be held at the Paul Ricard Race Circuit in France. The event will be held this coming Oct. 21 to 23, during which time the 14 hopefuls will undergo several race tests in order for the FIA WMC to determine the eight best-performing drivers. Those eight drivers who make the cut shall be sent to attend FIA training camps, and then from there, onto Fiorano, Italy for their final tests in Formula 4 cars. The winner in this final elimination phase shall be the one recruited and awarded full race scholarships — courtesy of Scuderia Ferrari’s world-famous Ferrari Driver Academy.

If you will recall, the Ferrari Driver Academy has produced successful Formula 1 drivers such as this season’s Sergio Perez of Red Bull, Mick Schumacher of Haas, and of course, Charles Leclerc of Ferrari.

With such a priceless opportunity at stake — plus potentially, a huge financial relief, considering the blatantly high cost of starting a career in professional racing — Bianca Bustamante is totally determined and simply thrilled.

She shares: “I fell in love with racing ever since I was a kid, and I haven’t stopped training in preparation for this moment. Now that it’s becoming a reality, I will continue to work hard towards being selected for the Ferrari Driving Academy race scholarship. I am so proud to represent the Philippines in this competition and to be the only Asian driver selected is an added bonus, but (it) also adds a bit of pressure to represent the Asia region against the global field! I will continue to train hard leading up to the event and do my best in France!”

Bianca was first introduced to karting by her dad — who was a former karter — and she immediately felt a connection with the sport as early as age three. By the time she was five, she was already racing, and has since excelled in the field of motorsport, bagging several karting championships across Asia.

Her achievements include the following:

• Four-time winner of the China Grand Prix Kart Scholarship (2018-2019)

• Three-time Macau International Kart GP Champion (2014, 2018, 2019)

• Two-time Junior Asian Karting Open Championship — Overall Champion (2018, 2019)

• Three-time Philippines Driver of the Year-Karting (2018, 2019, 2020)

• Philippines National Junior Karter of the Year (2018)

And when asked what she’d like to share to other young Filipina hopefuls who wish to pursue a career in racing someday, she says: “Racing is very difficult. You need passion, dedication, discipline. It’s like learning a new language — you need to put in the hours to get better! And you find ways to make things work. Gender should never hinder us from achieving our dreams. You need to be brave! It’s only one life.”

Good luck in your shoot-out this October, Bianca! The Philippines is rooting for you and what you represent for female empowerment!