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World should deter China aggression toward Taiwan, says former Aussie PM

By Alyssa Nicole O. Tan

The threat of China invading Taiwan is growing every day, which should push world leaders to work together in ways never done before, former Australian Prime Minister Anthony John Abbott said on Friday.

“The more aggressive it becomes, the more opponents it will have,” he told an online forum organized by the Taiwan-Asia Exchange Foundation.

Mr. Abbott noted that while the world had gained from China’s progress, it has also been harmed by Beijing’s power plays. “It’s been so unreasonable,” he said, enough that countries find the need to unite against it.

Mr. Abbott cited comments by Victor Gao, who was once communist leader Deng Xiaoping’s translator, that Australia would become a target for possible nuclear attacks in the future after it signed a nuclear submarine deal with the United States and Britain.

Mr. Gao said the military pact was a “gross violation of international law” that will have “profound consequences” for “brainless” Aussies.

After secret negotiations with Britain and the US, Prime Minister Scott Morrison last month announced a deal for eight nuclear-powered submarines aimed at dealing with “threats to regional stability.”

With China’s growing belligerence against Taiwan, Beijing may attack soon. “Nothing is more pressing right now than solidarity with Taiwan,” Mr. Abbott said

Taiwan has reported Chinese jets flying nearby for more than a year. Since early October, more than 150 Chinese war planes including military jets and nuclear-capable bombers have entered Taiwan’s air defense identification zone.

Taiwan President Tsai Ing-wen earlier said that it would be catastrophic if the country were to fall to China. Taiwan, although not intending to fight, would “do whatever it takes to defend itself,” she said.

Taiwan sees itself as a sovereign state while China considers it a democratic breakaway province.

Former US Undersecretary of State Keith J. Krach the need for a strategy to combat China’s economic aggression by amplifying democratic values and strengthening international partnerships.

Global support for alliance partners especially Taiwan should be strengthened by building trusted relationships, creating deep economic and technological partnerships and boosting trade ties he told the forum.

Ms. Tsai told the forum Taiwan had been boosting international relationships. She promoted cooperation in the so-called new normal by resetting priorities amid a global coronavirus pandemic.

Duterte critic wins Nobel Peace Prize

PHILSTAR

A journalist critical of President Rodrigo R. Duterte’s government has won the Nobel Peace Prize, organizers of the Oslo-based group tweeted on Friday.

The Norwegian Nobel Committee the prize to Rappler founder Maria A. Ressa along with Russian journalist Dmitry Muratov “for their efforts to safeguard freedom of expression, which is a precondition of democracy and lasting peace.”

“It’s a recognition of the difficulties, but also hopefully of how we’re going to win the battle for truth,” Ms. Ressa told a forum after the announcement.

Mr. Duterte has called Rappler a “fake news outlet.” Ms. Ressa is facing cyber-libel and tax evasion cases that she said were politically motivated. — Russell Louis C. Ku

Quarantine requirements for travelers eased

Passengers wearing protective masks, following confirmed cases of coronavirus in the country, arrive at the departure area of the Ninoy Aquino International Airport. -- REUTERS

An inter-agency task force has cut the quarantine period for inbound travelers from countries with low to medium coronavirus infections.

Fully vaccinated travelers need only to undergo a five-day quarantine at a facility and five more days in their homes, presidential spokesman Herminio L. Roque, Jr. told a televised news briefing on Friday.

The requirements for unvaccinated people are higher at seven days at a facility and seven days at home, he added.

Foreign passengers must pre-book their own accommodations for a quarantine period of at least six days for the fully vaccinated, and at least eight days for unvaccinated ones.

The old requirement was a 10 to 14 days of quarantine inside a quarantine facility.

Tourism Secretary Berna Romulo-Puyat said this was an “encouraging development for the country’s tourism industry.”

It would make travel more appealing to tourists, she said in a statement. “The faster we are able to adjust to this situation, the faster we can bounce back better and regain our position in the global tourism market.” — Bianca Angelica D. Añago

Robredo says Marcos issue nonnegotiable

FORMER PRESIDENT FERDINAND E. MARCOS — BW FILE PHOTO

By Kyle Aristophere T. Atienza, Reporter

Vice-President Maria Leonor “Leni” G. Robredo on Friday said Francisco “Isko” M. Domagoso’s soft stance on the Marcoses had pushed her to run against the Manila mayor in the elections next year.

“The Marcoses are a nonnegotiable [issue] for me,” she told reporters.

Ms. Robredo said communication lines with other candidates outside the ruling party remained open, but she would no longer pursue unity talks with them.

“I was really exerting a lot of effort to unify many different personalities but there’s a limit,” she added.

Mr. Domagoso earlier said the family of the late dictator Ferdinand E. Marcos should be allowed to redeem themselves, more than three decades after he was ousted by a popular street uprising.

The Manila chief, whose rags-to-riches story has captivated many Filipinos, said he had admired Mr. Marcos at some point.

“So that’s the only reason why she’s running?” Mr. Domagoso asked at a party event, a video of which was uploaded on PTV-4’s Facebook page. He added that the lives of Filipinos need not revolve on the quarrel between the Marcos and Aquino families.

Ms. Robredo said she was worried about splitting the votes with other opposition candidates, but she trusts that voters would know that her tandem with Senator Francis “Kiko” N. Pangilinan is the genuine opposition.

Mr. Pangilinan filed his certificate of candidacy for vice-president on Friday.

“I am not too concerned anymore. You can see that we are the true opposition,” said Ms. Robredo, who had opposed the Duterte administration’s war on drugs and ties with China.

“No tandem is similar to us in the sense that we have been fighting from the start,” she added. — with Bianca Angelica D. Añago

Duterte’s ex-police chief eyes presidency

Senator Ronald M. de la Rosa on Friday said he’s running for president next year, which he said was decided by a faction of the ruling PDP-Laban.

“This was a party decision,” he told reporters during the filing of his certificate of candidacy in Pasay City. “This was not my personal decision.”

Mr. de la Rosa’s vice-president is Senator Christopher Lawrence T. Go, who filed his candidacy certificate last week.

He said it was possible to give up his slot for Davao City Mayor and presidential daughter Sara Duterte-Carpio via substitution, but she would have to join the party.

“I don’t know how we will do it if that will happen,” the senator, a former police chief who enforced President Rodrigo R Duterte’s drug war said in mixed English and Filipino.

Ms. Carpio, who filed for reelection as Davao City mayor, is not from PDP-Laban. Substitution is open until Nov. 15, but is exclusive to candidates under the same political party.

Her father last week said she would run for President in tandem with Mr. Go, the president’s former aide. — Alyssa Nicole O. Tan

Several senators seek reelection

BW FILE PHOTO

Several senators on Friday filed for reelection in the elections next year, including Leila M. de Lima, Sherwin T. Gatchalian and Richard J. Gordon.

Ms. de Lima, who is in jail while being tried for drug trafficking, said she would continue her fight against President Rodrigo R. Duterte whom she accused of corruption and mass murders.

“Even as I fight my own battle for my freedom, I cannot but also join the struggle of our people against injustice and oppression,” she said in a statement read by her spokesman, who filed her certificate of candidacy in Pasay City.

Mr. Gatchalian said he would push more laws that would help the country recover from a coronavirus pandemic.

Former Agriculture Secretary Emmanuel F. Piñol also filed his candidacy certificate for senator, as did former Vice-President and broadcast journalist Manuel Leuterio “Noli” de Castro, Jr. and former Senators Antonio F. Trillanes IV and Gregorio B. Honasan II.

Party-list Rep. Rodante D. Marcoleta also joined the senatorial race, as did actor Robinhood Ferdinand C. Padilla.

Chief presidential legal counsel Salvador S. Panelo, Presidential Anti-Corruption Commission Chairman Greco Antonious Beda B. Belgica, former Ifugao Rep. Teodoro B. Baguilat, Jr. and broadcaster Reynante C. Langit also filed their certificates of candidacy for senator.

Meanwhile, Basilan Rep. Mujiv S. Hataman, Manila Rep. Manuel Luis T. Lopez, Camarines Sur Rep. Luis Raymund Villafuerte, Jr. filed for reelection.

Camarines Sur Governor Miguel Luis R. Villafuerte will run for congressman, while lawyer Bel Zamora will seek to replace her father Ronaldo B. Zamora as San Juan’s representative.

More than 200 party-lists have also signed up for next year’s elections as of Friday, the last day of filing.

Substitutions for candidates in the 2022 elections are allowed until Nov. 15. — Alyssa Nicole O. Tan and Russell Louis C. Ku

Central bank sees prices easing in Q4

By Luz Wendy T. Noble, Reporter

The Philippine central bank expects consumer price increases to slow in the coming months as meat prices go down.

Meat prices, which contributed to faster inflation in the past months, have eased, Bangko Sentral ng Pilipinas ng Pilipinas (BSP) Governor Benjamin E. Diokno told a televised news briefing on Friday. Meat inflation slowed to 15.6% in September from 22.1% in May.

“It could still slow down because of our programs that allow higher pork imports and lowering the tariff for these products,” he said in Filipino.

Mr. Diokno said food inflation had remained elevated in the past months because of low fish, vegetables, and meat supply caused by typhoons and an African swine fever outbreak.

Inflation eased to 4.8% in September from 4.9% a month earlier, though still above the central bank’s 2-4% target this year.

BSP expects inflation to hit 4.4% this year before easing to 3.3% and 3.2% in 2022 and 2023. Mr. Diokno said they expect improving supply conditions next year to help them hit their inflation target.

Inflation in 2022 may benefit from favorable base effects this year, Nicholas Antonio T. Mapa, a senior economist at ING Bank-NV Manila said in a note.

“Should cost-side remedies to the supply side shocks finally work their way through, we can expect at least some price pressures to fade in the quarters ahead,” he said. “Nonmonetary measures are most effective against cost side inflation as they directly address the issue of supply.”

BSP eyes more gold from small miners

PHILSTAR

Monetary authorities are trying to encourage small-scale miners to sell more gold to the Philippine central bank after through tax exemptions.

“We’re looking at making our rates more attractive to small scale miners,” Joseph Norbert S. David, director of the central bank’s Mint and Refinery Operations Department told an online lecture on Friday. “We’re also looking at minimizing the processing costs.”

Mr. David said gold sellers get 99% in advanced payment. The remaining 1% “retention money” is settled once they complete the assaying of the gold.

The Bangko Sentral ng Pilipinas is considering increasing the advanced payment further, he added. It might also fast-track processing of payments to attract more small miners.

“We’re trying to fast-track the turnaround time,” Mr. David said “We’re looking at possibilities on how to minimize the turnaround time of the payments and final assaying of golds sold to us.”

Much of the gold output comes from Baguio and Davao, he said.

The initiatives are expected to spur small-scale miners to sell gold to the central bank instead of the black market.

“Unfortunately, we have unverified reports and some studies that there are sellers who still go to the black market” Mr. David said. “Improving our rates, our prices and our operations by reducing our cost is one way of addressing this.”

The central bank’s gold holdings stood at $9.148 billion as of end-August, 0.7% higher than in July but 24% lower year on year.

A 2019 law exempted small-scale miners and traders from paying tax for gold sold to the BSP to strengthen the country’s foreign exchange buffers.

The gross international reserves rose by 0.7% to $107.96 billion as of end-August from a month earlier, according to the latest BSP data.

Last year, the central bank said it would shift to active gold trading amid rising prices of gold, which is considered a safe-haven asset during crises. — Luz Wendy T. Noble

Meralco rates to go up this month

PHILSTAR

Manila Electric Co. (Meralco) on Friday said power rates would increase this month on higher transmission charge.

In a statement, the company said the charge for a typical household would go up by P0.0283 to P9.1374 a kilowatt-hour (kWh) from September. Residential customers consuming 200 kWh will experience a P6 increase in their power bills for October.

The transmission charge for residential customers rose by P0.0282 to P0.7085/kWh because of higher ancillary service charges. These charges accounted for 33% of the National Grid Corp. of the Philippines’ total transmission costs.

The so-called distribution rate true-up refund partly tempered the increase in rates, Meralco said.

“The refund rate for residential customers is at P0.2761/kWh and appears in customer bills as a line item called ‘Dist True-Up’,” it said.

Meralco reported a slight cut of P0.0004/kWh to P5.0435 for this month’s generation charge from P5.0439/kWh a month earlier.

“Lower average capacity on outage and average demand in the Luzon grid during September supply month pulled down charges from the wholesale electricity spot market (WESM) by P1.2061/kWh,” it said. The share of WESM to Meralco’s total requirements was higher at 13.4%, it added.

A P0.0527/kWh cut in charges from independent power producers also helped reduce the generation charge.

“The cost of using alternative liquid fuel during the Malampaya gas supply restriction in September was not yet included in the charges and will be billed in subsequent months,” the company said.

Charges from power supply agreements rose by P0.3156 to P4.9417/kWh, mainly because of higher fuel prices and a weaker peso.

Meralco said independent power producers and power supply agreements accounted for 37.1% and 49.5% of its energy requirements. Taxes and other charges increased by P0.0005/kWh.

Meralco’s controlling stakeholder Beacon Electric Asset Holdings, Inc. is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

SEC gives go-signal to four offerings

https://www.sec.gov.ph/

By Revin Mikhael D. Ochave, Reporter

THE Securities and Exchange Commission (SEC) cleared the offerings of Ayala Land, Inc., Synergy Grid & Development Phils, Inc., Megawide Construction Corp., and The Keepers Holdings, Inc.

The SEC said in a statement on Friday that the offering of listed property developer Ayala Land covers P50 billion worth of fixed-rate, peso-denominated bonds under shelf registration in one or more tranches within three years.

The first tranche will offer up to P2.75 billion fixed-rate bonds due 2031, with an oversubscription option of up to P2.75 billion.

According to the SEC, Ayala Land is expected to earn up to P5.43 billion from the offer if the oversubscription option is fully subscribed. The proceeds will be used to partly refinance the property developer’s short-term loans and for capital expenditures for projects in Batangas, Laguna, and Bulacan.

“The bonds comprising the first tranche will be offered at face value from Oct. 12 to 18, in time for their listing on the Philippine Dealing & Exchange Corp. on Oct. 26, based on the latest timetable submitted to the SEC,” it said.

BDO Capital & Investment Corp. and BPI Capital Corp. are the joint lead underwriters and bookrunners for the offer, while RCBC Capital Corp. is the co-lead underwriter.

Synergy Grid will offer up to 1.05 billion common shares at P15 to P25 apiece, with an overallotment option of up to 101 million common shares that will be offered by shareholders Henry Sy, Jr. and Robert Coyiuto, Jr.

The firm’s shares will be listed and traded on the main board of the Philippine Stock Exchange, Inc. (PSE). Some P25.69 billion is expected to be earned from the offer. It will not receive proceeds from the sale of shares by the selling shareholders.

“Proceeds from the offer will be used for subscription to the non-voting preferred

shares to be issued by the National Grid Corp. of the Philippines, which the latter will use to finance its capital expenditure requirements and related costs and expenses,” the SEC said.

“The follow-on offering is scheduled to run from Oct. 26 to Nov. 2, with the shares to be listed on the PSE on Nov. 10, based on the latest timetable submitted to the SEC,” it added.

The joint global coordinators and joint bookrunners for the transaction are BofA Securities, J.P. Morgan Securities plc, and UBS AG Singapore Branch. BDO Capital will be the lone domestic coordinator, and will be the joint domestic lead underwriter and joint bookrunner together with BPI Capital and PNB Capital and Investment Corp.

The SEC also approved Megawide’s offer consisting of 30 million cumulative, redeemable, non-voting, non-participating, and non-convertible perpetual Series 4 preferred shares at up to P100 apiece, with an oversubscription option of up to 10 million preferred shares.

The offer is expected to earn P3.97 billion assuming that the oversubscription option is fully exercised. It will be used to redeem Megawide’s Series 1 preferred shares.

“Megawide will offer the shares to the public from Oct. 5 to 12, in time for their listing on the PSE on Oct. 22,” the SEC said.

“RCBC Capital will serve as the sole issue manager, lead underwriter, and bookrunner for the offer, while PNB Capital will act as co-lead underwriter,” it added.

Meanwhile, the SEC also approved the offering of The Keepers Holdings, formerly Da Vinci Capital Holdings, Inc., which consists of 3 billion common shares priced at P2 to P2.50 apiece.

The firm expects to net P5.82 billion to P7.29 billion from the offering, which will be allocated for “strategic acquisition opportunities, expansion of product portfolio and distribution channels, investments in distribution and logistics

network, working capital, and for general corporate purposes.”

The SEC said the offering will run from Nov. 8 to 12, adding that the shares will be listed on the PSE on Nov. 22, according to the latest timetable passed to the SEC.

“The company engaged China Bank Capital Corp., PNB Capital, and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters, and joint bookrunners for the offer,” the SEC said.

Manila Water bags new deal in Saudi Arabia

THE CONSORTIUM of Manila Water Co., Inc., French water distributor Saur Group, and Saudi Arabian Miahona Co. sealed another seven-year water contract in the Kingdom of Saudi Arabia.

Manila Water said in a stock exchange disclosure on Friday that Saudi Arabia’s state-operated water agency, National Water Co., awarded the management, operations, and maintenance contract to the consortium for the water and environmental treatment services in the eastern cluster of Saudi Arabia.

The cluster covers the cities of Dammam, Al Hofuf, Al Jubail, Al Khobar, Al Qatif and Hafar Al Bati. It has a population of 5.27 million and a supply demand of about 1,800 million liters of water daily.

J.V. Emmanuel A. de Dios, Manila Water president and chief executive officer, said winning the northwest and east clusters places the water firm and its partners in a strong competitive position once the same contracts are converted into long-term concessions.

In December 2020, Manila Water signed a seven-year water contract to manage and implement improvement initiatives for water and wastewater systems in the northwest cluster covering the provinces of Madinah and Tabuk.

“Manila Water will bring 24 years of experience and knowhow in the water space to provide innovative solutions to the water and wastewater requirements in a region whose population and demand are almost comparable to our existing concession area in eastern Metro Manila and Rizal Province,” Mr. de Dios said.

“Our operations beyond the East Zone as well as our international operations in the Asia Pacific region also provide us the leverage to better understand and address the needs of foreign markets in providing solutions through an appropriate public private partnership framework,” he added.

Manila Water holds a 30% interest in the consortium. The awarding of the water contract is included in Saudi Arabia’s target to drive its water infrastructure sector towards privatization.

Locally, the water firm provides water and wastewater services in the eastern part of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, and portions of Quezon City and Manila, and Rizal province.

It also has international ventures in countries such as Indonesia, Thailand, and Vietnam.

On Friday, shares of Manila Water at the stock exchange rose 3.48% or 80 centavos to close at P23.80 apiece. — Revin Mikhael D. Ochave

Forticare placed under conservatorship

Forticare Health Systems International, Inc. has been placed by the Insurance Commission (IC) under conservatorship as it failed to meet solvency requirement for health management organizations (HMO), the regulator said in a statement on Friday.

These solvency requirements are provided under Circular Letter No. 2016-41 dated July 29, 2016, as later amended by Circular Letter No. 2017-50 dated Oct. 30, 2017.

The commission said Forticare itself had sought to be placed under conservatorship in a letter addressed to the IC on Sept. 9. The HMO cited its inability to cover its net worth deficiency, submit a secretary’s certificate that its stockholders are willing to cover the deficiency, and to submit its 2020 audited financial statements.

In response, the IC issued a cease-and-desist order (CDO) against Forticare on Sept. 10, which immediately prohibited the firm and its agents from transacting HMO business.

“However, Forticare has already ceased marketing operations since May 2021; and its ongoing operations are only limited to processing claims and servicing its existing members’ benefits,” the IC said.

HMOs are regulated and supervised by the IC in accordance with Executive Order No. 192, series of 2015, which transferred that mandate originally performed by the Department of Health. — Luz Wendy T. Noble