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Vietnam minister asks China to reopen gates at border

REUTERS

HANOI — Vietnam’s trade ministry asked China’s Guangxi authorities to take urgent measures to ease congestion at border crossings after China stepped up its border controls with neighbors to follow zero COVID-19 policies, state media reported.

Pictures and video footage from state-run Vietnam News Agency (VNA) showed thousands of trucks were held up at the border following reports that imported coronavirus disease 2019 (COVID-19) cases had been detected in Guangxi province.

“Anti-virus prevention measures that Guangxi is applying under the ‘zero COVID’ policies, including closing border gates or stopping fruit imports, are over necessary,” VNA reported, citing a trade ministry statement.

“This disruption has caused negative impact on bilateral trade and great losses to businesses and people on both sides.”

Guangxi trade officials in response said they would increase the duration of customs clearance and pass along other proposals to higher authorities, according to the report.

China is Vietnam’s largest trading partner, and the biggest market for its fruit and vegetables.

Trade turnover of agriculture products between the two countries in the first 11 months of 2021 rose 19.5% against the same period last year to $11.3 billion, official data showed. — Reuters

New York shatters daily COVID record with 85,476 new cases

REUTERS

NEW YORK state shattered its record for new coronavirus disease 2019 (COVID-19) infections, reporting 85,476 cases on Saturday as the Omicron variant continues its lightning spread.

That number compares with a daily average of just below 6,700 new cases on Dec. 1, according to data from Johns Hopkins University and Bloomberg. The tally on Saturday was almost 9,000 higher than the day before.

New York City had by far the state’s highest rates of infection, with a seven-day average of 419 cases per 100,000 people.

Hospitalizations also continued to surge on Saturday, up 532 patients to 8,451. The percentage of positive tests declined slightly, to 22.24%. Another 88 people died. — Bloomberg

France reduces COVID-19 isolation period for fully vaccinated people to seven days

REUTERS

PARIS — French Health Minister Olivier Veran said on Sunday the isolation period for fully vaccinated people who test positive for coronavirus disease 2019 (COVID-19) would be cut to seven days from 10 days.

French authorities followed other countries such as the United States, which this week cut the isolation period to prevent disruptions in industries for lack of staff.

“This isolation could be lifted after five days in case of a negative test. Those who are not vaccinated will have to self-isolate for 10 days, with a possibility to come out of isolation after seven days under the same terms,” Mr. Veran told newspaper le Journal du Dimanche published on Sunday.

He also said the new COVID-19 Omicron variant was too contagious to be stopped unless a “strict lockdown” was re-imposed.

In his New Year’s Eve address, French President Emmanuel Macron said the next few weeks would be difficult but he stopped short of imposing new restrictive measures to contain the virus.

“We will remain vigilant throughout January,” Mr. Veran said, adding the current Omicron-fueled spread could be the last one.

France became the sixth country in the world to report more than 10 million COVID-19 infections since the outbreak of the pandemic, according to official data published on Saturday.

French health authorities reported 219,126 new confirmed cases in a 24-hour period, the fourth day in a row that the country has recorded more than 200,000 cases. — Reuters

PAL completes financial restructuring

FACEBOOK.COM/PHILIPPINEAIRLINES

By Revin Mikhael D. Ochave, Reporter 

PHILIPPINE Airlines Inc. (PAL) announced before the new year the completion of its financial restructuring and disclosed plans to add more flights in 2022.

The flag carrier said in a statement late Friday that it exited Chapter 11 proceedings after its voluntary filing, adding that it now has a reorganized fleet and is better capitalized for future growth.

“PAL successfully completed its financial restructuring within four months, in contrast to other airlines that remain in the Chapter 11 process more than a year after filing in 2020,” it said.

To recall, PAL filed for a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York on Sept. 3.

The airline previously said that the bankruptcy protection filing will let it “successfully restructure and reorganize its finances to navigate the coronavirus disease 2019 (COVID-19) crisis and emerge as a leaner and better-capitalized airline.”

PAL said its plan of reorganization, which secured the approval of the US court on Dec. 17, provides for more than $2 billion in permanent balance sheet reductions from existing creditors.

The plan also provides for improvements in its critical operational agreements and additional liquidity, including a $505-million investment in long-term equity and debt financing from PAL’s majority shareholder.

“The airline’s consensual restructuring plan was accepted by 100% of the votes cast by its primary aircraft lessors and lenders, original equipment manufacturers and maintenance, repair, and overhaul service providers, and certain funded debt lenders,” PAL said.

“Under the newly effective recovery plan, PAL has the option to obtain up to $150 million in additional financing from new investors,” it added.

Further, PAL reiterated its commitment to fulfill all refund obligations.

“The company has cleared over 99% of past refunds and is now back to normal processing times for refunds, except for some 2020 cases that require validation procedures mostly involving third party providers,” PAL said.

Following its exit from Chapter 11, PAL said it would restore more routes and increase flight frequencies with the easing of travel restrictions and reopening of borders, including the resumption of flights to cities in mainland China, full regularization of flights to Australia, and commencement of new services to Israel. 

The airline will also expand its cargo business including the conduct of all-cargo flights and will offer “year-round great value fares and competitive promotional offers.”

“PAL stands ready to help grow back the Philippines’ local and international air travel markets in ways that renew the tourism industry, serve the needs of global citizens including overseas Filipinos, and contribute actively to the recovery of the Philippine economy,” PAL Director Lucio C. Tan III said.

Ayala eyes stake in Singapore, Myanmar firms for $237.5M

Ayala Corp. announced on Friday its plan to acquire a 20% share in Singapore-based Yoma Strategic Holdings Inc. (YSH) and a 20% stake in First Myanmar Investment Public Co. Ltd. (FMI).

The total investment amounts to $237.5 million, the listed conglomerate said in a stock exchange disclosure.

“The transaction supports Ayala’s strategy to pursue international expansion opportunistically, particularly in markets and sectors where it can bring its strengths and expertise,” it said.

“Myanmar is an under penetrated frontier market with a promising economic growth story, supported by its government’s broad liberalization initiatives,” it added.

The investment in YSH is $155 million, of which $108.6 million was completed on Dec. 2, 2019 to give it a 14.9% of the foreign firm’s outstanding shares.

The rest of the investment at $46.4 million for 5.1% of the outstanding shares will be completed once approved by the Singapore Exchange.

Meanwhile, the investment in FMI at $82.5 million will be through a convertible loan, which was disbursed on Jan. 23, 2020, “following the completion of the conditions for disbursement, including the approval by the Central Bank of Myanmar.” Ayala said.

Ayala said VIP Infrastructure Holdings Pte. Ltd. will its investing entity in FMI.

It said YSH and FMI “will serve as Ayala’s main platform for strategic investments in Myanmar.” It described the firms as having “overlapping interests in real estate, power, financial services, automotive, and healthcare.”

It said YSH is listed on the main board of the Singapore Securities Exchange Trading Ltd. and deals with real estate, heavy equipment, and financial services, among other businesses in Myanmar.

FMI has over 8,000 shareholders and was the first company to be listed on the Yangon Stock Exchange in 2016, it added.

Ayala said FMI is Myanmar’s largest public companies with “an unbroken track record of profitability since inception in 1992.”

On Friday, shares in Ayala dropped by P40 or 4.59% to P831 per share. —  Luisa Maria Jacinta C. Jocson

Listed firms raise record P234B in 2021

Companies raised a record P234.48 billion at the stock exchange in 2021 to beat the previous high of P228.33 billion set In 2012, the Philippine Stock Exchange (PSE) said on Friday.

“We are pleased that more companies chose to raise funds through the PSE. Their confidence in the stock market made it possible for us to achieve this record capital raising number,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.

The local bourse said the record capital raising is on the strength of the biggest initial public offering (IPO) in its history and real estate investment trust (REIT) listings.

It also highlighted the year’s eight IPOs, 11 follow-on offerings, four stock rights offerings and eight private placements.

The PSE index ended the year in the red, down by 211.93 points or 2.9%, to close at 7,122.63. Year to date, it dipped by 0.2%. Meanwhile, the broader all shares index shed 10.6% year to date, after it ended the year at 3,818.12 points.

For 2021, the daily average value turnover was at P9 billion, higher by 22.5% than last year’s P7.35 billion average.

Foreign investors were net sellers by P2.32 billion, lower than the P128.57-billion net foreign selling recorded the previous year. They were also responsible for 36.1% of the trading value turnover, while the rest were accounted for by their local counterpart, the PSE added.

Participation of retail investors also improved at 31.1% from 18.2% and 26.9% in 2019 and 2020, respectively.

“The active participation of local retail investors will likely continue to next year especially as we expect the upcoming IPOs to attract new investors. While this is a much welcome development, we also hope to see the gradual return of foreign funds to the Philippine stock market,” Mr. Monzon said.

PSE will open 2022 with the back-to-back IPO of Haus Talk, Inc. and Figaro Coffee Group, Inc.

Haus Talk plans to hold its offer period on Jan. 3 to 7, while its listing on the small, medium, and emerging (SME) board of the PSE is tentatively scheduled for Jan. 17.

Meanwhile, Figaro is set to make its stock market debut on Jan. 24, instead of its supposed debut on New Year’s Eve.

The exchange is also hosting its first-ever Investment Expo on Jan. 29 and 30, 2022. — Marielle C. Lucenio

AC Energy, unit forge asset-for-shares swap deal

Ayala-led AC Energy Corp. is swapping some of its assets for shares in its oil and gas exploration unit ACE Enexor, Inc. in a deed of assignment that the two entities signed earlier this week.

In separate disclosures on Friday, the listed companies said that under the property-for-shares swap, ACE Enexor will issue 339,076,058 of its shares to AC Energy at P10 apiece in exchange for the latter’s five assets.

The first asset is composed of 3,064,900 common shares in Palawan55 Exploration & Production Corp. with a par value of P100 apiece or 30.65% of its issued and outstanding shares.

AC Energy will also swap 6,000,000 common shares in Bulacan Power Generation Corp. representing 100% of the latter’s issued and outstanding shares.

The third asset to be swapped for ACE Enexor’s shares is composed of 6,351,000 common shares in CIP II Power Corp. with a par value of P50 each representing 100% of its issued and outstanding shares.

ACE Enexor will also get 3.6 million redeemable preferred shares in Ingrid3 Power Corp., a special purpose vehicle for the development of a new power project, with a par value of P1 each, representing 100% of the issued and outstanding redeemable preferred shares in Ingrid 3.

The last property in the swap transaction is made up of 33,493,366 common shares in One Subic Power Generation Corp. with a par value of P1 apiece representing 17.13% of the issued and outstanding shares.

On Dec. 14, AC Energy disclosed that its board of directors had approved a P150-million short-term loan to ACE Enexor to fund its initial subscription in Batangas Clean Energy Inc. (BCEI).

BCEI is a special vehicle company for the joint venture between ACE Enexor and Red Holdings B.V.

On Friday, shares in AC Energy dropped 18 centavos or 1.61% to close at P11.00 apiece. — M. C. Lucenio

PAL Holdings seeks SEC nod on capital hike to P30B

REUTERS

PAL Holdings, Inc. has filed an application with the Securities and Exchange Commission (SEC) for a capital increase to P30 billion and an amendment to its articles of incorporation.

The holding company of Philippine Airlines said in a stock exchange disclosure on Friday that it filed an application with the SEC on Dec. 29 to amend its seventh article of incorporation and increase its capital stock to P30 billion divided into 30 billion common shares at P1 per share.

The proposed amendment is more than double PAL Holdings’ current capital stock at P13.5 billion divided into 13.5 billion common shares at P1 per share.

“The purpose of the proposed increase of authorized capital of the issuer is to accommodate the fresh infusion of capital into the company by an affiliate company of the Lucio Tan group of companies,” PAL Holdings said in the disclosure.

“The new capital will in turn be invested into issuer’s subsidiary, PAL, pursuant to the court-supervised reorganization of PAL,” it added.

In November, PAL Holdings said in a disclosure that its shareholders had approved the aforementioned capital increase and amendment to its articles of incorporation.

Aside from approving the capital increase, the shareholders also approved the issuance of 10.2 billion shares by private placement to Lucio C. Tan’s Buona Sorte Holdings, Inc. and the waiver of the requirement of the Philippine Stock Exchange to conduct a public offering for the issuance of the said shares. — Revin Mikhael D. Ochave

More hot money enters Philippines

UNSPLASH

By Luz Wendy T. Noble, Reporter 

More foreign portfolio investments entered the Philippines than they left in November, amid improving economic conditions that boosted investor sentiment, according to the central bank. 

So-called hot money posted a net inflow of $109.56 million last month, 52% lower than a year earlier, based on Bangko Sentral ng Pilipinas (BSP) data released on Friday. But it was a turnaround from two straight months of net outflow. 

A relatively better investment climate amid a coronavirus pandemic had spurred the net inflows last month, said John Paolo R. Rivera, an economist at the Asian Institute of Management. 

“November was in a better position for business compared with other months, but threats to the investment climate remains given new coronavirus variants,” he said in a Viber message. 

Businesses were allowed to increase operating capacity in November after lockdowns were eased a month earlier as coronavirus infections fell. 

But investors were worried about the emergence of the highly mutated Omicron coronavirus variant first detected in South Africa. 

Foreign portfolio investments in the 11 months to November yielded a net outflow of $570 million, 85% smaller than the net outflow posted a year earlier. 

In November, inflows dropped by 18% to $1.284 billion from a year earlier, while outflows fell by 12.3% to $1.174 billion. 

The top five investor economies were the United Kingdom, United States, Luxembourg, Hong Kong and Singapore, accounting almost three-quarters of the investments, the BSP said. 

Short-term hot money mainly went to securities (93.1%) of holding firms, information technology, food, beverage and tobacco, banks and property. The remaining 5.9% was invested in government securities. 

Mr. Rivera said the recent uptick in coronavirus infections could again dissuade investors. “Given the recent developments in surge and protocol violations, an impending imposition of higher alert levels that could put the economy at risk could reduce investor confidence.” 

Health officials have cited increasing infections in Metro Manila. 

Earlier this month, the central bank lowered its hot money projection for the year to a net inflow of $1.5 billion from $4.3 billion given in September. 

Duterte vetoes three budget items

President Rodrigo R. Duterte has vetoed three minor items in the 2022 budget without funding, according to the Budget department. 

“The vetoed items were not crucial,” Budget officer-in-charge Tina Rose Marie L. Canda told an online news briefing on Friday in Filipino. 

Among the vetoed items is the application of the Agrarian Reform law to state universities and colleges and a program on gender-aware restrooms under the Transportation department, she said. 

Mr. Duterte on Thursday signed into law the P5.024-trillion national budget for next year, which is 10% higher than this year and is equivalent to 21.8% of the gross domestic product. The government expects economic output to grow by 7-9% in 2022. 

About a fifth or P1.019 trillion of the budget will go to capital outlays, including infrastructure spending, budgetary support for state-owned and companies and capital transfers to local governments. 

Ms. Canda said about P107 billion had been allotted for the government’s anti-coronavirus response, P87 billion of which would only be released once funding becomes available. 

The first quarter is already “safe,” she said, noting that P20.6 billion had been allocated for coronavirus vaccines, testing cartridges, the establishment of a virology laboratory and the allowance of health workers. — Luz Wendy T. Noble 

Crop damage climbs to P9B

PHILIPPINE COAST GUARD FACEBOOK PAGE

Crop damage from Typhoon Rai has reached P9 billion covering 12 regions and more than 350,000 hectares of farmland, the Agriculture department said on Friday. 

Production losses hit 194,671 metric tons (MT), affecting 132,658 farmers and fisherfolk, it said in a statement. 

Fishery damage reached P3 billion or a third of the total, followed by rice at P1.9 billion or 21.2%, coconut at P1.5 billion or 16.6% and sugarcane at P1.2 billion or 12.8%. 

Losses were reported in the Calabarzon region, Mimaropa, Bicol, Western, Central and Eastern Visayas, Zamboanga Peninsula, Northern Mindanao, Davao, Soccsksargen and Caraga region, the agency said. 

Caraga reported damage in fishery facilities and infrastructure worth P142.3 million, it said, citing the Bureau of Fisheries and Aquatic Resources. 

The Agriculture department said it would provide at least P2.9 billion to affected agricultural workers, including P828 million in crop support and P500 million in credit. 

Meanwhile, damage to public infrastructure has reached P3.71 billion, the Department of Public Works and Highways (DPWH) said in a separate statement. 

In a separate statement late Thursday, the agency said there was P2.87 billion worth of damage on roads, followed by P602.48 million on bridges, P349.26 million on flood-control structures and P650,000 on other public buildings. 

Central Visayas had the largest damage at P1.68 billion, followed by Eastern Visayas at P963.64 million, Western Visayas at P549.65 million, the Caraga region at P230 million, Mimaropa at P157.83 million and Northern Mindanao at P134.34 million. 

Public Works and Highways Secretary Roger G. Mercado said 46 national road sections had been cleared and reopened. 

The reopening of roads allowed the National Government and local government units to immediately extend relief efforts especially in areas hit hard by the typhoon, he said in the statement. 

“While most are taking a break this holiday season, the DPWH quick response teams are out in the field working tirelessly to clear roads and help our fellowmen affected by Typhoon Odette,” he added. 

The agency said it was clearing three road sections in the Caraga region due to road slip, damaged detour road and bridge, soil slope collapse, road cut and sinking or collapsed pavement. 

The road sections included Dinagat-Loreto Road in San Jose, Mahayahay in Dinagat Islands; NJR Bayugan-Calaitan-Tandag Road in the village of Lucena, Prosperidad and NRJ Bah-Bah-Talacogon Road in the village of Berseba, Bayugan City both in Agusan del Sur province. 

Interior and Local Government Undersecretary Jonathan E. Malaya on Wednesday said the government was giving P4.8 billion in cash aid to 4.8 million typhoon survivors. — Luisa Maria Jacinta C. Jocson and Revin Mikhael D. Ochave 

Virus alert raised in Philippine capital

PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter 

President Rodrigo R. Duterte on New Year’s Eve raised the alert in Manila, the capital and nearby cities to Level 3 from Jan. 3 to 15 amid rising coronavirus infections. 

The stricter lockdown was imposed after an exponential rise in COVID-19 cases in the past days, Cabinet Secretary Karlo Alexei B. Nograles told a televised news briefing, citing failure to observe health protocols and the likely spread of the highly mutated Omicron coronavirus variant. 

The Philippines posted 2,961 coronavirus infections on Friday, weeks after health experts warned that the country might face a post-holiday surge. 

This brought the total to 2.84 million, the Department of Health (DoH) said in a bulletin. Friday’s tally was almost double the 1,623 cases reported on Dec. 30, the highest in more than a month. 

Meanwhile, the Health department has detected seven imported cases and three local cases of the Omicron variant, it said in a statement. The seven imported cases included six returning migrant Filipinos and a Malaysian, it said. 

Of the three local Omicron cases, two were from the Bicol region while one was from the National Capital Region, DoH said. 

Health authorities were investigating the local cases and tracing all their possible close contacts, it added. “While more definitive data is needed, the epidemiological investigation on the three local cases indicates there is a high possibility of local transmission.” 

DoH said 10.3% of 30,526 samples on Dec. 29 had tested positive for the coronavirus, above the 5% benchmark set by the World Health Organization. 

The country’s death toll from the virus hit 51,504 after 132 more patients died, while recoveries increased by 481 to 2.78 million. 

There were 14,233 active cases, 628 of which did not show symptoms, 8,365 were mild, 3,197 were moderate, 1,701 were severe and 342 were critical. 

The agency said 99% of the cases occurred from Dec. 18 to 31. The top regions with new cases in the past two weeks were Metro Manila with 1,981 infections, Calabarzon with 431 cases and Central Luzon with 179 cases. 

It said 7% of the reported deaths occurred in December, 2% in November, 18% in October and 14% in September. 

The Health department said 20% of intensive care units in the Philippines were occupied, while the rate for Metro Manila was 24%. 

Authorities have traced the recent rise in infections to the fact that people have been moving more freely and have been ignoring health protocols during the holiday season. 

Health experts have been urging the government to increase its testing capacity and boost sequencing amid the threat of the heavily mutated Omicron variant. 

“The beginning of yet another surge is alarming,” said Joshua L. San Pedro, co-convenor of the Coalition for People’s Right to Health. He cited an increase in the country’s virus reproduction rate. 

“We persist in having massive gaps in our pandemic response, such as the lack of free and accessible testing, weak contact racing mechanisms and inequitable vaccine distribution,” he said in a Facebook Messenger chat. 

The Health department said 10 duplicates had been removed from the tally, seven of which were tagged as recoveries and one was reclassified as a death. 

DoH said 232 patients had tested negative and were removed from the tally. It added that 117 recoveries were relisted as deaths. Two laboratories did not operate on Dec. 29, while six laboratories failed to submit data. 

Mr. San Pedro, a medical doctor, urged authorities to address “glaring corruption in quarantine protocols.” 

Local media earlier reported that a returning migrant Filipino worker had skipped quarantine because of her government connections and went to a party in the financial district of Makati City last week. 

“We are at risk of losing any gains and perhaps having yet another overwhelming wave of infections that our health system, already in crisis, may not handle,” Mr. San Pedro said. “We urge for a revamp in the national leadership that will truly take on a proactive, grounded and rights-based pandemic response.” 

The government aims to fully vaccinate at least 54 million Filipinos by year-end, as it faces threats from the highly contagious Omicron variant. 

About 48.6 million people or 63% of the target population have been fully vaccinated against the coronavirus, according to the presidential palace. 

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