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Exporters want freeze on cargo-handling rate increase, mandatory container weighing

The Philippine Exporters Confederation, Inc. (Philexport) and Export Development Council (EDC) said Friday that the Philippine Ports Authority (PPA) needs to defer approval of a petition for an increase in cargo handling tariffs and passenger terminal fees at the Manila North Harbor.

In a statement, Philexport and EDC also said the PPA should “suspend the mandatory weighing of export containers for the sake of small exporters and enterprises.”

Philexport said a written request has been sent to PPA General Manager Jay Daniel R. Santiago.

The group said the letter “warned that approving the rate hike now and allowing the mandatory weighing of export containers to continue will further add to the difficulties faced by micro, small and medium enterprises and exporters.”

EDC and Philexport said approval of the rate increase requested by the Manila North Harbor Port, Inc. should be postponed “until the required Regulatory Impact Assessment to determine the regulatory burden of the proposal can be conducted.”

They added that the agency should “waive its share in the cargo handling fee to resolve the ‘conflict of interest’ issue around PPA and enhance the competitiveness of the economy.”

The PPA had yet to respond to a request for comment at deadline time.

Virtual public hearings on the petition of the Manila North Harbor Port have been scheduled, with all concerned parties invited to attend the hearing. – Arjay L. Balinbin

PAGCOR returns to profit in first half

The Philippine Amusement and Gaming Corp. (PAGCOR) booked a net profit of P79.07 million in the first half of the year, turning around from a year-earlier loss following cost cuts. 

PAGCOR reported a P1.596-billion net loss a year earlier, citing the effects of the 2020 lockdown which saw the suspension of gaming operations.  

Gross income from gaming operations dropped 19.89% to P14.775 billion, missing the P16.988-billion target by 13.03%. 

The government-owned and -controlled corporation, which is required by law to remit 50% of its profits to the national government, remitted P6.988 billion to the Treasury in the first half of 2021, down 19.96% from a year earlier. 

In the first half of 2021, PAGCOR also paid a 5% franchise tax amounting to P738.757 billion, down 19.89% from a year earlier.  

It also remitted P30 million to the Dangerous Drug Board as part of its obligations under Republic Act 9165. 

Excluding gaming taxes and its contributions to the National Government, net gaming income slumped 16.51% to P8.125 billion. 

Meanwhile, expenses in the six months to June fell 29.3% to P7.99 billion.  

Expenses fell for maintenance and other operating expenses, which declined 32.72% to P1.729 billion. 

In May, PAGCOR assistant vice-president for offshore gaming and licensing Jose S. Tria, Jr. said the company expects to collect P7 billion in fresh revenue, assuming eight operators relaunch their businesses as scheduled. - Luz Wendy T. Noble 

Lacson sees Senate passing budget before year ends; to flag unvetted ‘insertions’

A SENATOR with a track record of flagging budget bills for insertions of pork said he expects the P5.02 trillion spending plan for 2022 to clear the Senate before Congress takes its yearend break in December. 

“While we are inside the Senate and assuming our duty as senators, we will be legislators first and foremost,” Sen. Panfilo M. Lacson said in a statement, dismissing any potential distractions posed by preparations for the May 2022 national elections. 

Senate President Vicente C. Sotto III said Wednesday that he also expects prompt passage by the chamber if the House transmits the spending plan to the Senate by Oct. 1. 

The Development Budget Coordination Committee has set the expenditure ceiling for the 2022 National Expenditure Program (NEP) at P5.024 trillion, up 11.5% from a year earlier. 

Mr. Sotto has said that given the ever-larger amounts being devoted to the budget, “we truly need to be clear about where the money will be used.” 

Mr. Lacson said if he believes projects are “inserted” into the budget without proper planning preparation, and without assurances that the agencies can implement them properly, he will call for officials to be questioned in executive session if necessary. 

“What is unacceptable is that projects that did not go through planning and vetting are inserted into the budget bill, and there is no way for the implementing agency to determine if the project will not be substandard,” he said. 

Mr. Lacson said he will seek to examine closely spending plans for vaccines, research and development, and local government units. — Alyssa Nicole O. Tan 

Agricultural losses from Fabian, monsoon now at P615.72-M

FARM damage caused by the southwest monsoon, enhanced by Typhoon Fabian (international name: In-Fa) rose to P615.72 million from the prior estimate of P533.54 million, the Department of Agriculture (DA) said.   

In a July 29 bulletin, the DA’s Disaster Risk Reduction and Management Operations Center said those affected totaled 24,596 farmers and 30,916 hectares of farmland in Cordillera Administrative Region (CAR), Ilocos, Central Luzon, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon), Mimaropa (Mindoro, Marinduque, Romblon, and Palawan), Bicol and the Western Visayas.  

“The volume of production loss is at 9,777 metric tons (MT). Affected commodities include rice, corn, high value crops, livestock and poultry, fisheries, and agri-infrastructure. Likewise, other affected regions are also conducting their validation of damage and losses,” the DA said.   

Losses to rice amounted to P502.6 million, with 7,726 MT of lost production volume and 29,052 hectares of affected farmland.   

Damage to corn hit P38.41 million. Some 1,332 MT of production volume was lost while 580 hectares of farmland sustained damage.   

Losses to high-value crops were estimated at P47.85 million, with 719 MT in lost volume lost and 1,288 hectares affected.   

Damage to fisheries amounted to P14.17 million while losses to agricultural facilities totaled P9.50 million, and to livestock and poultry P3.16 million. – Revin Mikhael D. Ochave 

Slide in bank lending softens to 2% drop in June

BW FILE PHOTO

Bank lending continued to decline for a seventh straight month in June, though the rate of decline was arrested somewhat as demand picked up with the further reopening of the economy, the central bank said. 

Outstanding loans issued by big banks fell 2% year-on-year to P9.095 trillion in June, according to preliminary data released by the Bangko Sentral ng Pilipinas (BSP) Friday.    

The decline in lending was 4% a month earlier. 

Including reverse repurchase agreements, outstanding loans declined 0.8% in June, against the 1.8% fall a month prior.  

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the leveling off of the decline was due to the economy’s gradual reopening. 

Metro Manila and nearby provinces were placed under a two-week lockdown between March and April. Restrictions have been gradually eased and Metro Manila was restored to the looser quarantine setting of general community quarantine beginning May 15. 

Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said the continued decline in bank lending indicates weak confidence in the economy’s prospects.  

“(Bank lending) is an offshoot of recession because people remain untrusting of the economy. As the economy resumes normal activity towards the last quarter of the year, we can expect the economy and bank lending to pick up, buoyed by the increased consumer spending which will stimulate investment spending and ultimately borrowing,” Mr. Lopez said in an email. 

Bank lending feeds into the investment component of economic indicators. Capital formation in the first quarter declined 18.3%. 

In June, credit extended by big banks for production loans to industries such as the wholesale and retail trade and the repair of motor vehicles and motorcycles fell 6.2%, while loans to manufacturers continued to decline by 5.8%. 

Credit extended for real estate activities rose 4.8%, as did lending to the information and communication sector (9.1%), electricity, gas, steam, and air conditioning supply (2.2%), and transportation and storage (6.8%). 

Consumer loans fell 8.6%,  continuing their decline, which however was less severe than the 9.2% decline in May. Credit card lending fell 2.5%. Also in the negative were vehicle loans (minus 14.8%), and salary-based loans (minus 5.1%). 

M3 growth accelerates 

Meanwhile, the central bank said money supply, expressed as M3, increased 6.4% from a year earlier in June to P14.391 trillion, stepping up from the 4.7% growth rate in May. 

M3 rose 1% month-on-month. 

Domestic claims rose 5.3% year-on-year in June to P14.224 trillion. This was due mainly to the expansion in net claims on the central government, even as bank lending to the private sector remained weak, the central bank said.  

“Moving forward, the BSP shall continue to provide policy support to complement the National Government’s ongoing initiatives to combat the effects of the COVID-19 pandemic on the economy,” the central bank said. 

BSP Governor Benjamin E. Diokno has said policy interventions have  injected P2.2 trillion worth of liquidity into the financial system, which is equivalent to 12.1% of gross domestic product. 

The central bank in June maintained key policy rates at 2%, with officials saying an accommodative stance will remain necessary as credit activity remains tepid. 

The Monetary Board is scheduled to met on Aug. 12. — Luz Wendy T. Noble 

UnionBank launches payment collection app for MSMEs

UnionBank of the Philippines, Inc. said it launched a payment acceptance hub that will allow small businesses to collect payments online. 

Known as UPAY, the platform allows micro-, small-, and medium-sized enterprises (MSMEs) to send links with the details of the amount to be paid. 

“(UPAY) provides MSMEs with the capability to send payment requests and collect payments. The gateway also provides a checkout facility and accepts all modes of payment from fund transfer, over the counter payments, e-wallets, debit cards to credit cards, enabling them to complete the transaction at the point of sale,” the bank said in a statement. 

Payments may be coursed through various payment channels including UB online, as well as through over the counter transactions with partners like 7-11 stores and ECPay outlets. 

“This allows them to skip the hassle of having to give their bank details, total amount, and manually typing the description of the order and sending it to customers through a messaging app,” the bank said. 

UnionBank President and Chief Executive Officer Edwin R. Bautista said earlier this year that the company’s “moonshot” target was to bring financial services to over a million MSMEs. 

The lender also has an MSME Business Banking App through which small businesses can manage their finances through services like digital account opening, bills paying, check deposit online, and payments to suppliers and the government.  

“MSMEs are the backbone of the Philippine economy and their success is crucial especially amid challenging instances like the current pandemic. We want to make sure that every MSME goes to us for their digital and financial needs because we believe that we always come prepared with the right solution and answer for them when they do,” UnionBank Executive Vice President and Chief Financial Inclusion Executive Manuel G. Santiago, Jr. said. 

 The Department of Trade and Industry estimates that MSMEs accounted for 99% of the roughly one million business establishments in the Philippines in 2018. – Luz Wendy T. Noble 

Peso closes at highs after lockdown announcement

PHILIPPINE STAR/ MIGUEL DE GUZMAN

The peso rebounded against the dollar Friday and strengthened past the P50-to-the-dollar level, with investors viewing the impact of the upcoming lockdown in Metro Manila as depressing demand for dollars. 

The peso closed at P49.97 against its previous close of P50.305, according to the Bankers Association of the Philippines. 

Week-on-week, it gained 37 centavos from its P50.34-a-dollar finish on July 23. 

The peso opened Friday at P50.285. Its low was P50.34 while its high was the closing level. 

Dollar volume was $1.364 billion Friday, against the $993.8 million posted Thursday. 

The peso’s appreciation was due to the announcement of fresh restrictions in Metro Manila due to the spread of the Delta variant and its likely impact on the economic recovery, a trader who asked not to be identified said. 

“(This) has dimmed views of growing local demand for the dollar anchored to the domestic economic recovery,” the trader said in an email. 

The President’s Spokesman Herminio L. Roque, Jr. said Friday that Metro Manila will again enter lockdown between Aug. 6 and 20.  

Socioeconomic Planning Secretary Karl Kendrick T. Chua on Friday told reporters that latest estimates have each week in lockdown costing the economy about P105 billion.  

Infections on Friday rose by 8,562 to bring active cases to 61,920. Health authorities said Thursday said 97 more people were infected with the Delta variant, bringing the total to 216.   

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the dollar also weakened due to lower-than-expected gross domestic product data in the US. 

US GDP rose 6.5% in the second quarter, against the 6.3% posted in the three months to March, Bloomberg reported Thursday, citing the Commerce Department’s preliminary estimates. The second quarter outcome was well below the 8.4% consensus in a Bloomberg poll. — ​Luz Wendy T. Noble 

Cemex profit jumps to P598M as sales rise

Cemex Holdings Philippines, Inc. reported on Friday that its consolidated net income for the second quarter soared to P598.19 million from P45.9 million year on year as sales grew.

The company generated P5.7 billion in net sales, 43% higher than last year’s P3.99 billion, which the company described as “a low comparable base resulting from strict government lockdown” during the same period last year.

“For the second quarter, domestic cement volumes increased by 45% year-over-year, supported by a low base effect,” the company said.

Cemex earned a consolidated net income of P803.67 million for the January-to-June period, nearly six times the P135.02 million it generated year on year due to higher operating earnings.

The company’s operating EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first half grew by 26% to P2.33 billion from P1.85 billion.

Meanwhile, its net sales reached P10.89 billion in the first semester, up by 13% from P9.62 billion year on year.

“Despite the positive developments we have seen during the first six months, we recognize that there will be headwinds during the second half of the year,” said Ignacio Alejandro Mijares Elizondo, president and chief executive of Cemex.

Cemex said it expects the country’s rainy season to affect its performance, as well as competitive market dynamics, and inflationary cost pressures on top of pandemic concerns.

“The government’s public infrastructure spending program should be a key driver of economic activity for the rest of the year,” the company said.

Meanwhile, the company said it expects the construction of its Solid Cement new line to be completed in June 2022. The development of different superstructures of the new line and the installation of new equipment continued throughout the second quarter.

On Friday, Cemex shares at the stock market went down by 0.82% or one centavo, closing at P1.21 apiece. — Keren Concepcion G. Valmonte

PSALM seeks bidders for Paco property

State-led Power Sector Assets and Liabilities Management Corp. (PSALM) is inviting interested parties for the third round of negotiated sale process for its property in Paco, Manila.

PSALM said in a statement on Friday that the property is located in Isla de Provisor and has eight lots and an indicative area of 20,975 square meters. The minimum offer price for the property is P527.09 million.

According to the company, due diligence for the negotiated sale will be from July 30 until two business days before the offer submission deadline on Aug. 31 at 12:00 noon. The pre-negotiation conference for the negotiated sale will be held on Aug. 10 at 1:00 p.m. via video conferencing or webcasting.

It added that a two-envelope system will be implemented. Interested parties are required to post an offer security equivalent to at least 10% of the offer price in the form of manager’s check or cashier’s check, an irrevocable letter of credit issued by any licensed commercial or universal bank, or surety bond callable upon demand issued by a surety or insurance certified by the Insurance Commission.

PSALM said interested parties should have no conflict, dispute, or unsettled issue in connection with Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) or its implementing rules and regulations.

“Those who were previously disqualified from participating in other bidding or negotiated sale activities of PSALM by reason of fraudulent acts, or those who committed fraud or breach in the provisions of any agreement with PSALM are also disqualified to participate in this negotiated sale process,” it said.

Meanwhile, PSALM announced that interested parties can download the negotiation package at its website from July 30 until two business days before the offer submission deadline.

“Alternatively, electronic copies of the negotiation package may be sent by PSALM through electronic mail to the interested parties. The negotiation package shall include the negotiation procedures and property profile,” it said.

Under EPIRA, PSALM is mandated to manage the orderly sale, disposition and privatization of the National Power Corp.’s (Napocor) assets, including real estate.

By doing this, the government entity aims to liquidate all of Napocor’s financial obligations and stranded contract costs in an optimal manner. — Revin Mikhael D. Ochave

Cebu Pacific workers to be fully vaccinated by October

Budget carrier Cebu Pacific said it expects to have all of its employees and third-party workers to be fully vaccinated against the coronavirus disease 2019 (COVID-19) by October.

Cebu Pacific started its vaccination program on July 28, the low-cost carrier said in an e-mailed statement.

“To date, 51% of Cebu Pacific’s total workforce have been inoculated; while 58% of its flying pilots and crew have received their vaccine doses,” it noted.

“Cebu Pacific expects to complete administration of first dose this August and fully vaccinate all employees and third-party workers by October this year.”

Felix Dan S. Lopez, the budget carrier’s vice president for people department, said that even before the pandemic, passengers’ safety and overall flight experience were topmost priorities.

“With the pandemic, now more than ever, health is of primordial concern. Rightfully so, we continue to ensure everyJuan will feel confident to fly with Cebu Pacific thus our championing vaccination efforts not only for organic employees but also for dependents, and our third-party workers,” he added.

The low-cost carrier also announced on Friday that it transported another one million Sinovac doses from China.

“Following yesterday’s shipment of 1.5 million doses, Cebu Pacific has now transported a total of 16.5 million doses from China to the Philippines since April 2021,” it said in a statement. — Arjay L. Balinbin

Shares fall as gov’t imposes stricter lockdown

Philippine Stock Exchange index

Philippine shares closed in the red on Friday following the government’s decision to tighten quarantine restrictions in an attempt to curb the further spread of the coronavirus disease 2019 (COVID-19).

The benchmark Philippine Stock Exchange index (PSEi) dropped 226.3 points or 3.48% to close at 6,270.23 on Friday, while the broader all shares index declined by 107.17 points or 2.65% to finish at 3,934.86.

“The PSEi took a nasty spill today after getting whiff of the news of a renewed tighter lockdown,” COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said in a Viber message. “This forced traders to lighten down positions and review strategies into the interim.”

According to his spokesman, President Rodrigo R. Duterte approved the recommendation of the government’s pandemic task force to put Metro Manila under an enhanced community quarantine beginning Friday next week, Aug. 6, until Aug. 20.

“It may take a few days for the market to fully digest the impact of this news,” Mr. Barredo said.

The announcement came just after Malacañang said on Wednesday that Metro Manila and nearby provinces of Bulacan, Cavite, Laguna and Rizal, or the NCR Plus bubble, will remain under the lighter general community quarantine (GCQ) until mid-August.

The GCQ will now be implemented starting July 31 until Aug. 5. Under the added restrictions, indoor and al fresco dining will be prohibited, and only authorized persons will be allowed to travel to and from the NCR Plus bubble.

“Once again, this would hurt most businesses, particularly the non-essentials as some of them would be prohibited to operate or the capacity would be limited,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a separate Viber message.

“This could weigh on their earnings and would adversely affect their recovery,” she added.

All sectoral indices closed the week in the red. Property shed 153.83 points or 4.98% to 2,934.57; holding firms lost 214.53 points or 3.31% to 6,265.28; financials went down by 41.93 points or 2.98% to 1,361.09; industrials shaved off 212.83 points or 2.31% to end at 8,968.38; services declined by 27.88 points or 1.79% to 1,525.23; and mining and oil dropped 66.81 points or 0.67% to 9,776.26.

Value turnover increased to P6.27 billion with 1.81 billion issues traded on Friday, from the P4.82 billion with 925.21 million shares switched hands on Thursday.

Decliners outperformed advancers, 159 versus 47, while 42 names remained unchanged.

Net foreign selling surged to P1.6 billion on Friday from the P465.76 million seen the previous day.

“[The] next support that we are seeing is at the 6,150 level,” Philstocks Financial’s Ms. Alviar said. — Keren Concepcion G. Valmonte

Robots and disinfection pods: sanitizing solutions for the built environment

Image via Kone

With people slowly returning to public spaces, stakeholders behind our built environment are addressing hygiene concerns brought about by the pandemic with sanitizing solutions such as industrial-grade sanitation robots, elevator air purifiers, and hospital disinfection pods.  

In Laguna, sanitation robots are being deployed inside an automotive manufacturing facility to clean the air and surfaces. The Keno UV-C robot, according to its manufacturer Robotic Activation Inc., uses ultraviolet radiation to kill pathogens. 

The industrial-grade robot was previously used to disinfect Baguio City’s Sto. Niño Hospital in September 2020. 

Meanwhile, KPI Elevators, Inc. (Kone Philippines) offers solutions such as elevator air purifiers and self-disinfecting handrails to keep people safe in buildings. 

“These can play a key role in helping people return to the office, knowing that both the public and private sectors are committed to keeping them safe,” said Markus O. Nisula, managing director of Kone Philippines.  

“Sustainability-focused advances in vertical transportation such as elevators and escalators will help cities like Manila increase resource efficiencies.”  

The Kone Elevator AirPurifier helps improve air quality within elevators and reduce pollutants, germs, and odors; and the Kone Handrail Sanitizer for escalators has a chemical-free cleaning solution that uses ultraviolet rays to reduce pollutants and germs. DX Class Elevators, meanwhile, use non-toxic, anti-stain, and anti-fingerprint materials that decrease the need for maintenance and cleaning.   

In hospitals, disinfection cubicles developed by Filipino researchers at the University of the Philippines Manila’s College of Medicine sanitize frontliners as they exit COVID-19 patient wards. Called SaniPods, these self-containing cubicles are similar to air showers and provide an extra layer of protection to the personal protective equipment already worn by the frontliners. 

The first prototype was deployed at the Philippine General Hospital for evaluation of its effectiveness and utility. — P. B. M. 

SIDEBAR | ELEVATOR ETIQUETTE 

The pandemic highlighted the need to focus on people’s health and well-being, including in aspects of mobility. Harvard T.H. Chan’s School of Public Health gave tips on how individuals can practice elevator etiquette this time of coronavirus disease 2019 (COVID-19): 

  • Wear a mask. 
  • Load the elevator in a checkerboard (or alternate) pattern. 
  • Have the person near the buttons select the floor for everyone, using their knuckles. 
  • No conversations. 

Employers can additionally stagger employees’ arrival and departure times to minimize the risk of exposure.  

“Workers want to know whether they can really be safe in an elevator, and building owners want to know whether they get elevator capacity to more than one person at a time,” said Joseph G. Allen, assistant professor of exposure assessment science at Harvard T.H. Chan School of Public Health. “Fortunately, the answer to both is, ‘Yes.’” — P. B. M. 

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