Blinken warns of China’s ‘increasingly aggressive actions’ against Taiwan

April 12, 2021 | 11:48 am

WASHINGTON — US Secretary of State Antony Blinken said on Sunday the United States is concerned about China’s aggressive actions against Taiwan and warned it would be a “serious mistake” for anyone to try to change the status quo in the Western Pacific by force.

“What we’ve seen, and what is of real concern to us, is increasingly aggressive actions by the government in Beijing directed at Taiwan, raising tensions in the Straits,” Mr. Blinken said in an interview with NBC’s “Meet the Press.”

Beijing on Thursday blamed the United States for tensions after a US warship sailed close to Taiwan.

The United States has a longstanding commitment under the Taiwan Relations Act to ensure that Taiwan has the ability to defend itself and to sustain peace and security in the Western Pacific, Blinken said.

Asked if the United States would respond militarily to a Chinese action in Taiwan, Mr. Blinken declined to comment on a hypothetical.

“All I can tell you is we have a serious commitment to Taiwan being able to defend itself. We have a serious commitment to peace and security in the Western Pacific.

“We stand behind those commitments. And in that context, it would be a serious mistake for anyone to try to change that status quo by force.”

Taiwan has complained over the last few months of repeated missions by China’s air force near the island, which China claims as its own.

The White House on Friday said it was keeping a close watch on increased Chinese military activities in the Taiwan Strait, and called Beijing’s actions potentially destabilizing.

Also on Friday, the US State Department issued new guidelines that will enable US officials to meet more freely with officials from Taiwan, a move that deepens relations with Taipei amid stepped-up Chinese military activity around the island.

State Department spokesman Ned Price said the new guidelines had followed a congressionally mandated review and would “provide clarity throughout the Executive Branch on effective implementation of our ‘one China’ policy”—a reference to the longstanding US policy under which Washington officially recognizes Beijing rather than Taipei. — Reuters

[B-SIDE Podcast] REITs 101: Understanding real estate investment trusts

April 12, 2021 | 10:53 am

Follow us on Spotify BusinessWorld B-Side

Real estate investment trusts (REITs) have been called democratizers of wealth, allowing small investors to invest in big real estate projects.

The Philippines has two REIT listings on the market, with the second listing holding the record for the most number of retail investors. Officials from the exchange have expressed hope that more real estate developers will consider offering REITs.

In this B-Side episode, Christopher John J. Mangun, research head of AAA Southeast Equities, Inc., introduces BusinessWorld reporter Keren Concepcion G. Valmonte to REITs and their advantages.

TAKEAWAYS

REIT is a unique financial vehicle that has features of different types of investments.

A REIT can be traded in the stock market, which means investors may earn through price appreciation when share prices go up. However, because it is traded on the public market, REITs are “subject to volatility and price fluctuations.”

Similar to time deposits or investing in government bonds, REIT investments also guarantee cash dividends.

“It gives a guaranteed cash dividend, this is similar to what you would receive in a time deposit or in government bonds or treasury bills. So these are investments that have a fixed dividend yield and although it isn’t fixed for the REITs, they are required to submit or distribute the earnings of the company on a yearly or a quarterly basis so you get the best of both worlds,” Mr. Mangun explained.

These dividends will come from the earnings posted by REITs, 90% of which will be distributed to its shareholders.

“The main difference between REITs and regularly listed property companies is that REIT companies are required to distribute those earnings as a dividend,” Mr. Mangun said.

It is one of the best investments, especially for retail investors.

Retail investors will be given the opportunity to invest in dividend income-earning properties. Mr. Mangun noted that real estate is considered one of the safest assets in the world, but an investor would need capital to develop properties before earning returns.

“But from the REIT, you can just buy the REIT and make money off of the dividends already from these big companies,” Mr. Mangun said.

REIT offerings help companies maximize the value of their properties.

Mr. Mangun pointed out that current REIT offerings include properties that are already assets of listed companies.

Through a REIT listing, these companies were also able to raise more capital.

“They were able to raise more funds which would allow the parent companies to develop more real estate or more landbank so I think this is a win-win for investors and for companies,” Mr. Mangun said.

Investing in a REIT can tell you a lot about how markets work.

REITs are “an easy way to learn about how markets work,” while also allowing investors to earn money.

Before investing in a REIT, investors should take a look at the company’s prospectus to check what the company is doing with the proceeds, if it will acquire new properties through debt or through higher leases. Investors should also see how much these companies earn on a yearly basis.

“It is important that we know how much these companies are making because that translates into the dividend yield, this tells you how much you will be earning on a yearly basis,” Mr. Mangun said.

This B-Side was recorded remotely on March 25, a day after the REIT of DoubleDragon Properties Corp., DDMP REIT Inc., debuted at the Philippine Stock Exchange, making it only the second listing after Ayala Land’s REIT offering in 2020. Produced by Paolo L. Lopez and Sam L. Marcelo.

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Severe slump may amplify risks for Philippine banks – IMF

April 12, 2021 | 12:33 am

Antipolo-skyline — PHILIPPINE STAR/ MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

PHILIPPINE banks may experience “systemic solvency distress” if the economic impact of the coronavirus disease 2019 (COVID-19) turns out to be worse than initially expected, the International Monetary Fund (IMF) said.

“While banks can withstand the exceptionally severe shocks in the baseline, they could experience a systemic solvency impact if additional downside risks materialize,” the IMF said in its Financial System Stability Assessment on the Philippines.

“The economic shock would weigh on corporate earnings and then spill over to banks. Bank stress could limit credit supply, reducing economic growth noticeably even more,” it added, noting the Philippines’ recession last year was worse than what it had experienced during the Asian Financial Crisis.

The IMF report was finalized on March 9 after virtual missions were conducted on Oct. 20 last year. However, the IMF said the Philippines, at that time, was already recovering and that its macroeconomic fundamentals are more solid than its standing in the late 1990s. Gross domestic product (GDP) contracted by a record 9.6% in 2020, and is expected to grow by 6.5% to 7.5% this year.

In its baseline scenario, the IMF said banks’ total capital adequacy ratio (CAR) will drop from 15.6% to 11.7% by 2022, still above the 10% minimum requirement.

“However, CAR falls to 9.3% in the adverse scenario, and 4.9% in the severe adverse scenarios. The second-round effects from such distress might reduce the real GDP level by an additional 4 to 9 percentage points in adverse scenarios. However, CARs start to recover in 2022 as the economy recovers,” the IMF said, adding these should be interpreted cautiously given heightened uncertainty.

Sought for comment, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the IMF stress tests consider a scenario where it would take longer to contain the COVID-19 pandemic.

“This will affect people, the companies they work at, and the financial market. To address possible financial stability complications, we have invested a great deal of effort into mapping the business connections between firms, between industries and between economic activities. This gives us a network view of what we have referred to before as the possibility of ‘slow burn contagion.’ This network is a very important tool for preemptive surveillance,” he said in a Viber message to BusinessWorld.

Mr. Diokno noted servicing of debt is a major focus for now, as many households and companies lost income during the pandemic.

“We have to give those who are temporarily distressed the opportunity to get back on track. Part of that is making sure there is liquidity and that we are flexible enough in handling debts as they fall due. We think of the needs of borrowers, but also be fair to those who lent money. Of course, it is natural for uncertainties to get reflected in the financial market and so calming markets with information and policy direction is as important,” he said.

Separately, BSP Deputy Governor Chuchi G. Fonacier said the central bank has been conducting stress tests in light of how assumed scenarios could impact banks’ capital.

“Based on our assessment, the banking system remains healthy and has maintained solid footing as evidenced by the sustained growth in assets, deposits, and capital, as well as positive net profit, adequate capital and liquidity buffers and ample loan loss reserves,” Ms. Fonacier said in a text message to BusinessWorld.

Despite pressures caused by the pandemic on banks’ performance and asset quality, Ms. Fonacier said the CAR of the industry both on solo and consolidated bases remain well above the minimum threshold of 10% set by the BSP.

The Philippine banking system’s cumulative net income dropped by nearly a third (32.6%) to P155.218 billion in 2020 from P230.671 billion as lenders hiked their loan loss provisions due to the crisis, based on BSP data. Allowance for credit losses in January stood at P371.102 billion, surging by 72% from the P215.204 billion a year earlier.

Central bank data also showed the banking industry’s bad loan ratio stood at 3.7% in January, picking up from the 3.61% in December and the 2.16% a year earlier. This, as gross nonperforming loans (NPL) jumped by 67% to P392.256 billion from a year earlier.

NO DIVIDENDS?
Faced with these significant downside risks, the IMF said authorities should limit Philippine banks from distributing dividends as a precautionary measure.

“If downside risks materialize, banks should recognize NPLs and restructure them promptly with additional capital as needed. This is supported by a counterfactual policy analysis and the experience after the AFC, which suggest that such actions could improve GDP with sustained credit provision,” the IMF said.

The central bank should also allow forbearance measures to lapse as scheduled and avoid introducing new measures.

“Forbearance does not address the underlying issues in weak banks and hampers banks’ ability to continue providing credit and ultimately may even undermine financial stability. Instead, the authorities should continue to use the flexibility of the tools available in the accounting and Basel capital framework, and, looking at the future, further develop and use macroprudential tools and buffers,” the IMF said.

A 60-day mandatory loan moratorium lapsed at the end of 2020.

REGULATORY GAPS
The multilateral lender also identified reforms needed to strengthen the central bank’s supervision to maintain financial stability.

“Material gaps remain on BSP’s legal powers related to conglomerate supervision, and bank secrecy laws are limiting the effectiveness of supervision, but also have wider financial sector implications,” the IMF said.

Mr. Diokno said the Financial Sector Forum which includes the BSP, the Securities and Exchange Commission, the Insurance Commission, and the Philippine Deposit Insurance Corp., are working together with a mandate to “have a better and holistic view of market institutions” while abiding within laws.

“If we believe that the risk decisions of financial institutions, either individually or collectively, pose a threat to the health of the whole financial system, then these matters are discussed at the Financial Stability Coordination Council,” Mr. Diokno said.

Meanwhile, Quirino Representative Junie E. Cua, who also heads the House Committee on Banks and Financial Intermediaries, said IMF’s concern is over the BSP’s lack of supervisory power in terms of looking into how transactions by affiliates of a conglomerate affects banks also within the group.

“We have big banks that are owned by conglomerates and these banks of course will lend to other affiliates of their parent firm,” Mr. Cua said in Filipino over a phone call on Sunday.

“We have tasked the BSP to propose what measures can be done to address possible situations wherein the failure of a conglomerate’s affiliate can affect the soundness of the conglomerate-owned bank,” he added.

Pending at the House of Representatives is House Bill 8991, which seeks to allow the central bank to look into accounts of bank officials provided there is “reasonable ground” that fraud, serious irregularity or unlawful activity has been committed by said officials.

“What it [the bill] can prove is that we are serious in providing sufficient authority to the BSP to regulate the banking industry for the protection of the general depositing public,” Mr. Cua said.

In its assessment, the IMF also said the country is still at risk of being included in the “gray list” of the Financial Action Task Force, or countries that are found to have lax regulations against “dirty money” and terrorism financing.

The Philippines has addressed its deficiencies in terms of technical compliance through the passage of the Republic Act No. 11521 in January which amended the Anti-Money Laundering Act and Republic Act No. 11479 or the controversial Anti-Terror Act of 2020 in July.

Anti-Money Laundering Council Executive Director Mel Georgie B. Racela has told BusinessWorld last week the next step is to prove the country can demonstrate “effective implementation” of its tighter rules against money laundering and terrorism financing.

Inflation seen to remain elevated throughout Q2

April 12, 2021 | 12:32 am

THE 60-DAY price ceiling on select pork and chicken products in Metro Manila ended on April 8. — PHILIPPINE STAR/ MICHAEL VARCAS

DESPITE the slight easing in March, inflation is expected to remain elevated in the second quarter with the lifting of the price caps on some meat products and rising global commodity prices, analysts said.

“We currently forecast Philippines inflation to average 4.0% over the course of 2021 but note inflation will generally remain more elevated in the first half of 2021,” Michael Langham, senior Asia country risk analyst for Fitch Solutions, told BusinessWorld in an e-mail.

“Food prices will continue to apply upward pressures and supply-chain disruptions externally are being aggravated by the disruptions to logistics in the Philippines caused by COVID-19 (coronavirus disease 2019) containment measures,”

The consumer price index (CPI) rose 4.5% in March, breaching the central bank’s 2-4% target for a third straight month but easing from the 4.7% in February, the Philippine Statistics Authority reported on Tuesday. The slight easing was attributed to slower increase in food prices.

The lifting of the price ceiling on selected meat products and the continued African Swine Fever (ASF) outbreak will likely cause an uptick in food prices and put upward pressure on the broader CPI in the next few months, according to Katrina Ell, senior Asia-Pacific economist at Moody’s Analytics.

The 60-day price ceiling on select pork and chicken products in Metro Manila ended on April 8.

“Elevated inflation comes at a particularly unfortunate time for the Philippines economy, which is grappling with localized COVID-19 outbreaks, subsequent restrictions and a sluggish vaccine rollout,” Ms. Ell said in an e-mail to BusinessWorld.

“Higher prices for key consumer goods erode purchasing power and put pressure on households that are already being strained,” she added.

Ms. Ell said policies that could help farmers rebuild pig stocks once ASF is better contained will help curb the price spike.

The central bank expects inflation this year to reach 4.2% before easing to 2.8% in 2022.

“To bring inflation down, authorities could seek to implement tax cuts and supply-side support measures — although the latter will have a lagged effect. However, we maintain the view that policy makers will see these inflationary pressures as temporary and accept that price growth may run hotter than targeted in the near term, focusing policies on supporting an economic rebound,” Mr. Langham said.

The Bangko Sentral ng Pilipinas (BSP) has kept the key policy rate at a record low of 2% in March, citing the need for a continued accommodative stance until the economy’s recovery becomes more solid. The central bank has assured it will act should second-round effects of inflation such as higher wage and transport hikes become more pronounced.

BSP officials have said non-monetary measures will better address inflation induced by low supply in some food commodities. — Luz Wendy T. Noble

Gross borrowings plunge in February

April 12, 2021 | 12:31 am

THE National Government’s gross borrowings stood at P53.912 billion in February, plunging 89% from P479.23 billion a year ago when the Treasury sold retail Treasury bonds (RTB).

Latest data from the Bureau of the Treasury (BTr) showed the borrowings in February were 92.41% lower than the P710.32 billion raised in January when the Treasury renewed its P540-billion loan with the central bank.

However, the two-month gross borrowings remained 30.73% higher at P764.229 billion against the P584.565 billion a year ago.

Broken down, domestic borrowings totaled P37.196 billion in February, 91% lower than the P405.76 billion in 2020 when the Treasury raised P311 billion via the three-year RTBs.

The annual RTB sale was held in March this year, with BTr, raising P463 billion from new funds and swap subscriptions.

Local borrowings consisted of P30 billion of Treasury bonds and P7.196 billion in Treasury bills.

The government did not make any amortization payments of its local debt.

External gross debt went down 77.25% to P16.716 billion in February from P73.484 billion a year ago. This comprised P14.34 billion in program loans from foreign lenders and P2.376 billion in project loans.

The Treasury repaid P2.131 billion of its foreign debt that month, bringing its net foreign borrowings for the month to P14.585 billion.

For the January-February period, total domestic borrowings reached P717.96 billion, up 60.64% year on year.

Gross foreign debt, meanwhile, fell 66.38% from a year ago to P46.272 billion in the two-month period.

Excluding the P125-billion redemptions made of its external obligations, the BTr recorded P639.22 billion in net borrowings in January-February.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit, which is seen to hit 8.9% of gross domestic product.

The government runs on a fiscal deficit as it spends more than the revenues it generates in order to boost economic growth. Since last year, the deficit cap has ballooned to multi-year highs as tax collection slumped due to the recession and state spending increased.

The BTr raised P24 billion via the sale of three-year yen-denominated Samurai bonds on March 30. Proceeds are scheduled to be settled on April 13.

Finance Secretary Carlos G. Dominguez III has said the government will soon tap the US dollar bond market before rates skyrocket.

Mr. Dominguez added the government will start winding down its debt by early next year as part of its fiscal consolidation plan. — Beatrice M. Laforga

Rolex updates the classics

April 12, 2021 | 12:08 am

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FOR the Watches and Wonders 2021 virtual industry in Geneva, Rolex released new iterations of its classics, the Explorer, the Datejust, and the Oyster Perpetual.

The pieces were presented via an online press conference last week. First up was the Explorer and the Explorer II. This year, the Oyster Perpetual Explorer is available in a yellow Rolesor version, which combines Oystersteel and 18-karat gold. Oystersteel is corrosion-resistant and designed for challenging conditions — appropriate, considering that the Explorer was born as a collaboration with mountaineers, facing a trial at Mount Everest itself.

New dials, meanwhile, become the face of the changes with the Oyster Perpetual Datejust 36. A green face is inspired by tropical forests and palm trees, while another face is executed in fluted gold.

The Daytona, meanwhile, gets a new look with 18 carat yellow, white, or Everose gold. Meteorite dials — a unique feature — are made by Rolex with “metallic meteorite according to very strict aesthetic criteria,” according to a press release, making each piece unique (how many meteorites fall to earth every day, anyway?

Even in days like these, diamonds continue to be a girl’s best friend. Two new looks for Day-Date 36 and the Lady-Datejust show them encrusted in diamonds.

The Lady-Datejust is a treat: almost every inch of it, from middle case, bezel, dial to bracelet, is covered in diamonds (1,089, to be exact), and highlight the Roman numerals on the dial, along with the date window, perfectly.

The Day-Date, while already having diamonds on the dial and bezel, does not scrimp on the luxury either. Alligator leather straps in colors that match the hour markers hang from the watch (the choices are coral, turquoise, and burgundy), making for a surprisingly youthful and bold new selection. — JLG

Pandemic lends modern twist to French vintage fashion sales

April 12, 2021 | 12:07 am

LV-3 — GOING under the gavel at the April 13 Louis Vuitton and Others auction by Gros & Delettrez is a 30 cm. 2000 LOUIS VUITTON “Alma” bag in Monogram canvas and natural leather and a 26 cm LOUIS VUITTON “Little Noah” bag in red leather, both with an estimated price of 280 to 320 euros; and a 1992 LOUIS VUITTON “Saint Cloud” bag in blue cob leather, with an estimated price of 200 to 250 euros. — PHOTO FROM GROS-DELETTREZ.COM

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PARIS — In Artcurial’s auction house overlooking the shuttered boutiques of the Champs Elysees avenue in Paris, vintage fashion expert Clara Vivien is overseeing the sale of hundreds of Chanel jackets, shoes and jewelled accessories — all online.

Paris may be the world’s fashion capital, but a third COVID-19 lockdown is once again sending lovers of luxury who have time to spare and money to spend on to their screens in search of the next vintage Chanel dress or Hermes handbag.

Vintage was already enjoying a revival, Ms. Vivien said, driven by a growing discomfort with “fast fashion” among consumers and increasing environmental awareness. But the pandemic shifted more of it online.

“Vintage is exploding on the second-hand market,” Ms. Vivien said. “People can’t walk into boutiques and so shop at online auctions.”

Handbags sell particularly well. “People who bought a Chanel or a Hermes bag today delight in the knowledge that their investment doesn’t stop growing, and with the pandemic increases with no end in sight.”

Fashion and online vintage clothing sales more than quadrupled at online auction in France in 2020 compared with pre-pandemic levels to 6.2 million euros, according to the online auction house aggregator Interencheres.

Antoine Saulnier, an auctioneer at Gros & Delettrez, said vintage fashion sales that before the pandemic might have attracted 100 online buyers were now drawing five or ten times that number.

“Prices are rising on some items as a result,” said Mr. Saulnier as he prepared for the sale of nearly 600 Vuitton artefacts last week.

One collector who should know is Olivier Chatenet, a flamboyant 60-year-old stylist who spent his young adult life scouring the French capital’s flea-markets and auction houses in the Drouot neighborhood with his father. His private collection is a treasure trove of Ungaro dresses, Chloe blouses, and Sonia Rykiel overcoats. Several years ago he sold his entire Yves Saint Laurent collection — all 4,000 items.

“I try to be careful and buy at the right price,” Mr. Chatenet said. But he admits he is not always successful.

“That moment the auction begins, when you have the item before you and you’re overtaken by a frenzied desire to own it, you end up buying for more than you meant.” — Reuters

Kim Kardashian’s Skims brand valued at $1.6 B in latest funding

April 12, 2021 | 12:06 am

KIM KARDASHIAN — INSTAGRAM.COM/KIMKARDASHIAN

REALITY star and businesswoman Kim Kardashian’s Skims raised $154 million in its latest funding round led by venture firm Thrive Capital to reach a $1.6 billion valuation, the shapewear label said on Friday.

The round also included funding from two existing investors, Imaginary Ventures and Alliance Consumer Growth.

The TV personality’s lucrative businesses — makeup brand KKW launched in 2017 and Skims in 2019 — have gained popularity with young shoppers, and have been heavily promoted and sold online with the help of Kardashian’s social media huge following.

Kardashian, who launched her career off the reality TV series Keeping Up with The Kardashians, was included in April for the first time on Forbes magazine’s list of the world’s billionaires.

The latest funds would be used to expand into new categories and explore retail opportunities, including the expansion of its global retail presence, the company said. — Reuters

Grab, Shell step up for Cebu’s delivery people

April 12, 2021 | 12:06 am

Velo_Grab_Shell — *PHOTO FROM PILIPINAS SHELL*

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Giving a leg up to the drivers and riders who serve us

By Angel Rivero

WHILE WE’VE had many practical realizations borne out of this ongoing pandemic, one of the most glaring of them is the sheer importance of mobility. Private individuals need options for personal mobility, while businesses and emergency services likewise need reliable mobility in order to continue rendering their services. And among those who have stepped up their game to ensure uninterrupted mobility among Filipinos is Grab Philippines, one of Southeast Asia’s leading transport network vehicle services (TNVS).

Last Wednesday, Grab Philippines and Pilipinas Shell Petroleum Corp. — the country’s longest-running energy company — came together to make an announcement: They have partnered in order to better help support the province of Cebu in its socioeconomic recovery. They intend to play this supportive role via empowering more safe and reliable transportation and delivery services.

The new Mactan Bridge has opened even greater economic possibilities for Cebuanos, and with Pilipinas Shell enjoying the highest level of brand loyalty in Cebu, the company has in fact, opened four new fuel stations during this pandemic, and employed more than 100 people while doing so. And to up its game further, Shell is now collaborating with Grab Philippines to offer meaningful support to its thousands of drivers and delivery partners in Cebu.

Pilipinas Shell Vice-President for Retail and General Manager for Mobility Randy del Valle shared, “We welcome this opportunity to partner with Grab Philippines to help restore mobility and reinvigorate the economy of Cebu. We recognize the important part that their Grab driver- and delivery-partners play in restarting businesses and bringing essential goods and services to the public in a safe and reliable manner. Pilipinas Shell is committed to this partnership which will help mobilize this city’s progress and economic recovery for years to come.”

Among the benefits that Pilipinas Shell is now extending to Grab drivers in Cebu are exclusive fuel discounts at Shell stations and a special, dedicated bike lane for them at these stations so that they can avoid having to queue up behind cars during peak hours.

Grab drivers who fuel up a monthly average of at least 200 liters for six months in a row and delivery partners who fuel up a monthly average of at least 50 liters for six months in a row may also qualify for special insurance and telemedicine privileges through the Shell Go+ Pro Loyalty Program. Basically, it only calls for the installation of the Shell Go+ App, which was launched in the Philippines just a few months ago.

Grab drivers will also have the option of purchasing budget-friendly rice meals which go for as low as P30 each in Shell Select stores.

Moreover, Pilipinas Shell is also offering special Shell-subsidized scholarships for qualified children of Grab drivers and delivery partners in Cebu. This opportunity aims to help ease the burden on Grab driver parents so that they could make the most out of their earnings on Grab’s TNVS platform.

All these incentives will hopefully encourage more Grab drivers and delivery partners in Cebu to be out on the road, continuously serving both retail customers and local enterprises in their distribution chains. The goal is to help get local businesses back on their feet, to provide uninterrupted mobility options to Cebuanos, and to help more Grab drivers generate income along the way.

Grab Philippines Country Head Grace Vera Cruz reassures the public that “by working together with Pilipinas Shell on a range of meaningful initiatives, we are able to continue helping our driver and delivery partners with their everyday needs, and we hope that they will continue to be on the road to serve the needs of our kababayans in Cebu.”

Grab also expressed its pleasure in being able to partner with Pilipinas Shell, because “at Grab, we realized we cannot do it alone.”

Let’s all take the initiative to be kind to one another and to try to help each other more during these strange, unpredictable times.

Giorgio Armani could consider an Italian partner — magazine

April 12, 2021 | 12:05 am

GIORGIO ARMANI — JAN SCHROEDER/ EN.WIKIPEDIA.ORG

MILAN — Giorgio Armani may consider a joint venture with another Italian company, the founder of the Milanese fashion house told US magazine Vogue, opening the door for the first time to a potential business partner.

In an interview published on the vogue.com website, Armani, 86, said the COVID-19 emergency had “made us open our eyes a bit.”

Armani ruled out going the way of many other Italian luxury goods brands, including Gucci, Fendi, and Bulgari, which have been bought by industry giants LVMH and Kering SA, saying a French buyer was not on the cards.

However, he said his long-held idea that the company should remain independent was no longer “so strictly necessary.”

“One could think of a liaison with an important Italian company,” he said without elaborating, except to add that it did not have to be a fashion company.

Vogue also quoted Armani’s niece Roberta Armani, who works at the family’s company, as saying “it could be great, finally, to have an important Made in Italy joint venture in the fashion industry” though she added she had no insight on her uncle’s plans. — Reuters

Castrol PHL takes delivery of 8 Isuzu D-Max units

April 12, 2021 | 12:05 am

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ISUZU PHILIPPINES CORP. (IPC) recently turned over eight units of the Isuzu D-Max RZ4E to North Trend Marketing Corp. (NTM), the authorized Philippine distributor of the commercial and industrial lubricants of Castrol. Known as the country’s diesel expert, Isuzu sees this as “boosting its share in moving the domestic economy forward through the latest delivery of its products.”

Leading the turnover ceremony were company officials headed by IPC Vice-President for Sales Yasuhiko Oyama, IPC Dealer Sales Department Head Anna Dalida, NTM Marketing Sales and Business Development Manager for NCR Ernesto Sanchez, and NTM Sales and Business Development Manager for South Luzon April Joy Baldosano.

NTM has been an Isuzu client since 2008 and has, over the years, ordered multiple D-Max units which the company utilizes as service and delivery vehicles for nationwide operations.

“This new acquisition will be allocated to our offices in Cebu and Cagayan de Oro,” said Mr. Sanchez. “We’ve always been confident with the Isuzu D-Max due its proven reliability and flexibility. Our operations team has nothing but good words about this pickup as it has been tried and tested by our employees. We are also very satisfied with the after-sales support we receive.”

As the number-one truck brand in the country, IPC promises its business partners utmost after-sales support with its extensive dealer network and nationwide parts availability. “Our relationship with customers does not end after their purchase; we treat that as the beginning of a long-term partnership. NTM has been our customer for 13 years and our dealer has always been by their side assessing their needs so that ultimately we can provide the best vehicle for them,” said Mr. Oyama.

For more information about the new Isuzu D-MAX and its latest promotions, visit the nearest Isuzu dealer or log on to www.isuzuphil.com.

BoI to identify industries for CREATE incentives

April 12, 2021 | 12:05 am

skyline — PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Reporter

THE Board of Investments (BoI) will be releasing a preliminary list of industries eligible for incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, Trade Secretary and BoI Chairman Ramon M. Lopez said.

Albay Representative Jose Ma. Clemente S. Salceda last week said that he wants the BoI to release the initial list to be covered by the law.

“We need to have the list as soon as possible, and this is up for discussion, together with the IRR (implementing rules and regulations), in the first meeting of the FIRB (Fiscal Incentives Review Board),” Mr. Lopez said in a Viber message to reporters on Saturday.

He said that government agencies assured stakeholders like investors and legislators of continuity.

“The Investment Priorities Plan (IPP) will serve as the initial platform in transitioning from EO (Executive Order) 226,” he said. The executive order is the investment code of 1987.

The IPP 2020 was signed by President Rodrigo R. Duterte in December. The plan detailing which industries would receive tax incentives from the government included projects addressing the coronavirus disease 2019 (COVID-19) among its priorities.

The CREATE law cutting corporate income taxes and rationalizing tax incentives took effect on Sunday.

The law will lower corporate income tax to 25% from 30% starting July 2020, and then by one percentage point each year from 2023 until it reaches 20% in 2027. The rate immediately falls to 20% for local small companies.

CREATE streamlines the tax incentives system to make it more time-bound and performance-based.

“With the CREATE Law becoming effective this April 11, the intention is to provide at least the most basic incentive… under CREATE — provided they qualify — to sectors under IPP,” Mr. Lopez said.

“The 2020 IPP will serve as the Transition SIPP (Strategic Investments Priority Plan) until end-December 2021 or when the new SIPP is approved.”

The 2020 IPP covers essential goods and services addressing the pandemic; industrial and agro-processing manufacturing; agriculture, fishery and forestry; strategic services like creative industries and telecommunications; health care; and infrastructure, among others.

Under CREATE, industries identified by the government would be able to enjoy income tax holidays for four to seven years, then special corporate income tax for 10 years.