Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7685

San Miguel to hire OFWs for Bulacan airport

San Miguel Corp. seeks to hire displaced locals and returning overseas Filipino workers (OFWs) for the construction of its P734-billion airport project in Bulacan.

Sixty former residents of Taliptip village in Bulacan who were removed from their homes to accommodate the airport will be prioritized, the company said in an e-mailed statement on Wednesday.

San Miguel is coordinating with the government to design courses that would suit the airport’s construction needs.

The airport is expected to generate “hundreds of thousands” of jobs in the next two years when construction work begins, San Miguel President and Chief Operating Officer Ramon S. Ang said in the statement.

Aside from hiring displaced residents, the company would also tap returning migrant Filipinos who lost their jobs amid a global coronavirus pandemic.

“With this world-class airport project, those who will opt to stay home will no longer be separated from families and will have a viable option,” Mr. Ang said.

San Miguel is looking to build an “aerotropolis” on a 2,400-hectare land in Bulacan that will have four parallel runways, eight taxiways and three passenger terminal buildings.

It will be an alternative to the main Manila gateway in Pasay City, the Ninoy Aquino International Airport, which has been running at overcapacity for years.

San Miguel posted a P7.59 billion net loss in the first half after earning P13.23 billion a year earlier, as its fuel unit became unprofitable amid volatile crude prices during the pandemic.

San Miguel shares gained 1.3% or P1.30 to P101.60 each at the close of trading Wednesday. — Denise A. Valdez

How PSEi member stocks performed — September 2, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, September 2, 2020.

Stocks decline further on extended quarantine

LOCAL SHARES continued to drop on Wednesday as investors weighed the repercussions of relaxed quarantine measures for September.

The benchmark Philippine Stock Exchange index (PSEi) gave up 60.85 points or 1.04% to close at 5,738.39, while the broader all shares index erased 27.25 points or 0.77% to end at 3,474.01. Wednesday marked the fifth straight day that the PSEi posted a decline.

“The market ended lower today as market participants continue to digest the government’s decision to put major cities of the country under (general community quarantine) for another month. Investors may be digesting the effects that this may bring to the economy,” Timson Securities, Inc. Trader Darren T. Pangan said in a mobile message on Wednesday.

Luzon was first put under strict lockdown in mid-March when the coronavirus outbreak widened in the country. Since then, major cities and regions have remained under quarantine, making the Philippines’ lockdown one the longest and strictest in the world.

These restriction measures have forced several companies to remain on limited operations. Most consumers are also staying home due to the continued rise in coronavirus infections.

The impact of consumer apprehension is particularly seen by investors in property companies, especially those that operate malls, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said.

“The PSEi ended lower again…as ALI (Ayala Land, Inc.) dragged the whole index lower. Investors were selling heavily all day as the company was seen to take a bigger hit compared to its rival (SM Prime Holdings, Inc.),” he said in an e-mail.

He noted ALI’s mall segment is heavily dependent on rent, whereas SM Prime operates department stores and supermarkets, which are allowed to operate despite the lockdown.

“The PSEi is due for a technical bounce as it approaches its strong support of 5,690. We may see it recover in the coming trading days,” Mr. Mangun said. “The general investor sentiment remains extremely cautious, but with prices being at a 10-15% discount from its June highs, we may see some bargain hunting.”

Nearly all sectoral indices ended trading in red territory on Wednesday. Property dropped 67.53 points or 2.53% to 2,595.36; financials fell 18.57 points or 1.63% to 1,118.56; mining and oil decreased 61.03 points or 0.98% to 6,158.63; holding firms shaved off 35.90 points or 0.6% to 5,933.27; and industrials trimmed 10.96 points or 0.14% to 7,837.73.

The sole gaining index was services, which increased 1.15 point or 0.07% to 1,454.70.

Some 1.51 billion issues valued at P6.38 billion switched hands on Wednesday, lower than the previous day’s 1.87 billion issues worth P6.86 billion.

Decliners outnumbered advancers, 111 against 64, while 55 names ended unchanged.

Net foreign selling ballooned to P1.64 billion on Wednesday from the P261.55 million logged in the last session. — Denise A. Valdez

Peso weakens on positive US data, stimulus talks

THE PESO weakened on Wednesday as the US government resumes talks on a stimulus fund.

The local unit closed at P48.53 versus the greenback on Wednesday, down five centavos from its P48.48-a-dollar finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso opened Wednesday’s session at P48.53 against the greenback, which was also its intraday best. It slid to a low of P48.63 per dollar during the session.

Dollars traded dropped to $701.95 million on Wednesday from Tuesday’s $819.1 million.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the peso weakened versus the dollar as US President Donald Trump looks to enact new stimulus measures.

“The peso was weaker versus the dollar after news of possible revival of talks on new stimulus measures between the Democrat and the Republican lawmakers, which were delayed last month,” Mr. Ricafort said.

President Donald Trump is willing to sign a $1.3-trillion coronavirus relief bill, a top aide said on Friday, Reuters reported. The new figure was put forward by White House Chief of Staff Mark Meadows.

Three weeks after talks on Capitol Hill broke down without a deal on legislation to help Americans suffering from the coronavirus pandemic, Mr. Meadows said the Republican president was “right now willing to sign something at $1.3 trillion.”

Meanwhile, a trader said the dollar rose as US manufacturing activity expanded in August.

US manufacturing activity increased more than expected in August as new orders surged to their highest level in over 16-1/2 years, but employment at factories continued to lag amid safety restrictions intended to slow the spread of COVID-19, Reuters said in a separate report.

The Institute for Supply Management said its index of national factory activity increased to a reading of 56.0 last month from 54.2 in July. That was the highest level since November 2018 and marked three straight months of growth.

A reading above 50 indicates expansion in manufacturing, which accounts for 11% of the US economy.

For today, Mr. Ricafort expects the peso to trade from P48.45 to P48.60 versus the dollar, while the trader sees the local unit moving within P48.45 to P48.65. — K.K.T. Jose with Reuters

Duque liable in PhilHealth mess for negligence, senators say

SENATE President Vicente C. Sotto III on Wednesday asserted that the country’s health chief is liable, at least for abandonment or negligence, in the alleged widespread corruption in state-run Philippine Health Insurance Corp. (PhilHealth).

Health Secretary Francisco T. Duque III serves as chair of the PhilHealth board of directors, which regulates the agency, as provided under the law.

“Kung bakit kailangan kasama si Sec. Duque sapagkat siya ay chair of the board… Talagang di siya nakapirma dahil di naman siya voting pero chair ka ng PhilHealth (On why Sec. Duque should be included, it’s because he is the chair of the board… of course, he didn’t sign, he’s a non-voting member, but he is the PhilHealth chair),” Mr. Sotto said in an online briefing Wednesday.

He added that Mr. Duque should closely look at Article 217 of the Revised Penal Code, which states that public officers through abandonment or negligence shall be guilty of misappropriation or malversation of funds or property.

Earlier in the day, Senator Panfilo M. Lacson acknowledged that evidence is weak for the filing of criminal charges against Mr. Duque.

“Based on the three hearings of the committee of the whole, there may not be enough evidence to recommend criminal charges against Sec. Duque,” said Mr. Lacson, who is among the signatories of the committee report.

This is “for the simple reason that like the other members of the PhilHealth Board, he had no hand in the illegal implementation of the IRM (Interim Reimbursement Mechanism); nor was he involved in the procurement of overpriced IT (information technology) equipment.”

Nonetheless, Mr. Lacson said he is in support of the renewed push of the senators for President Rodrigo R. Duterte to replace Mr. Duque.

The committee of the whole, in its report following a probe, recommended that Mr. Duque and former PhilHealth chief Ricardo C. Morales be held liable for malversation of public funds and anti-graft law violations for the IRM.

The panel alleged that the mechanism illegally released some P14-billion funds, including to health care facilities that are not preferred to handle patients with coronavirus disease 2019 (COVID-19).

Mr. Sotto said he is hopeful the committee report will be adopted by the Senate on Wednesday’s session.

DISAPPOINTED
Meanwhile, Mr. Duque said on Wednesday that he is “disappointed” with the Senate’s recommendation even as he earlier said he will cooperate with any inquiry following the committee report.

“If the findings are designed to remove me, let it be said that I have a constitutional duty to do my job unless the President says otherwise. If my service is no longer needed, I will go but I will clear the name of my father first,” he said. — Charmaine A. Tadalanand Vann Marlo M. Villegas

President to act on PhilHealth based on task force report

PRESIDENT Rodrigo R. Duterte will take further action on Philippine Health Insurance Corp. (PhilHealth) officials based on the findings of the task force he created to look into alleged irregularities at the agency.

His spokesman, Harry L. Roque, said on Wednesday that while the President “respects” the decision of the Senate, he will wait for the recommendation of the inter-agency team led by the Department of Justice.

“Pero pagdating po doon sa pananagutan ng mga indibidwal diyan sa PhilHealth, eh inaantay pa po ni Presidente iyong resulta ng imbestigasyon ng task force na binuo niya (But when it comes to the liability of the individuals in PhilHealth, the President is waiting for the results of the investigation by the task force he formed),” Mr. Roque said in an interview over government station PTV.

Mr. Roque said the formal investigation of the task force is scheduled to end on September 14, and the report could possibly be submitted “within the month.”

Justice Undersecretary Mark L. Perete told reporters via Viber that they conducted a hearing on Tuesday where two PhilHealth board members and one from the legal department testified.

Another hearing is expected within the week, he said. — Vann Marlo M. Villegas

Trials for Japanese anti-flu drug delayed

CLINICAL trials for the Japanese anti-flu drug Avigan as treatment for coronavirus did not start on September 1 as planned, according to Health Undersecretary Maria Rosario S. Vergeire.

“Nagkakaroon tayo ng delays dito sa mga (We have delays in the) ethics review among the different identified hospitals,” Ms. Vergeire said in an online briefing.

The participating hospitals where the reviews have yet to be finalized are Dr. Jose N. Rodriguez Memorial Hospital, Sta. Ana Hospital, and Quirino Memorial and Medical Center.

The memorandum of agreement for Philippine General Hospital, on the other hand, is still under legal review by the University of the Philippines-Manila.

Ms. Vergeire said last month that Avigan will be given to a hundred patients aged 18 to 74.

Participants will have to agree to the use of contraceptives, and should have no kidney and heart problems, among other requirements, she said.

Japan said in April that  it will send the medicine manufactured by Fujifilm Toyama Chemical Co., Ltd. to 38 countries, including the Philippines after clinical trials.

The Department of Health (DoH) reported 2,218 new coronavirus disease 2019 (COVID-19) infections on September 2, raising the country’s total to 226,440.

The death toll rose by 27 to 3,623 while recoveries increased by 609 to 158,610.

Metro Manila still had the highest number of new reported cases with 1,163, followed by Laguna with 112.

Three provinces in the Visayas ranked 3rd to 5th: Cebu with 107; Iloilo, 82; and Negros Occidental, 81.

There were 64,207 active cases nationwide, 91.2% of which were mild, 6.4% did not show symptoms, 1% were severe, and 1.4% were critical.

Of the new deaths, 10 were from Metro Manila, eight from Calabarzon (Cavite-Laguna-Batangas-Rizal-Luzon), four from Western Visayas, and one each from Central and Eastern Visayas, and a repatriate.

Individuals tested for COVID-19 were at around 2.4 million, the Health department said.

The confirmed cases came from tests done by 102 out of the 110 licensed laboratories. — Vann Marlo M. Villegas

Regional Updates (09/02/20)

Wawa bulk water supply proponent improves road in Rizal

A FIVE-kilometer farm-to-market road in the town of Rodriguez, Rizal will be rehabilitated by WawaJVCo Inc., proponent of the Wawa Bulk Water Supply Project–Tayabasan Multi-Basin System. “This project is both relevant and highly symbolic because this will further improve the ability of our food producers to make their commodities readily available to the people,” Rizal Governor Rebecca A. Ynares was quoted in a statement released by the company on Wednesday. WawaJVCo said the project will upgrade the existing dirt road in Barangay San Rafael in Rodriguez, which becomes impassable during the rainy season. Prime Metroline Infrastructure Holdings Corp. (Prime Infra) water sector lead Melvin John Tan said the project is part of the company’s corporate social responsibility program. “Each project includes a specific social and environmental program that ensures we focus our attention to the area requiring the most support and foster the right culture to create a sustainable impact to the communities we serve,” Mr. Tan said. WawaJVCo is a joint venture between Prime Infra and San Lorenzo Ruiz Builders and Developers Group, Inc. The bulk supply project is intended to boost supply in Metro Manila and Rizal. — Revin Mikhael D. Ochave 

19 immigration workers, officials charged for corruption

THE NATIONAL Bureau of Investigation (NBI) has filed a corruption complaint before the Office of the Ombudsman against 19 Bureau of Immigration (BI) employees and officials allegedly involved in the money-making “pastillas” scheme. In a statement, state agents said an owner of a travel agency was also recommended to be charged of corruption for paying the immigration officers for the illegal entry of its Chinese passengers. The NBI also asked the Ombudsman to place under preventive suspension the immigration employees. The case stems from an immigration officer who blew the whistle on the scheme, which he said also involved sexual favors from trafficked women. The NBI said “the allegations of the whistle blower are meritorious” following an “exhaustive investigation,” although further probe will be undertaken for “other personalities. — Vann Marlo M. Villegas

American soldier Pemberton granted release

A LOCAL court has ordered the release of US Marine Lance Corporal Joseph Scott Pemberton, who was convicted of homicide over the killing of Filipino transgender Jennifer S. Laude in 2014, for enough time served. In a ruling dated September 1, an Olongapo City Regional Trial Court (RTC) said the actual time served by Mr. Pemberton during preventive imprisonment and after his conviction along with his time credits under the Good Conduct and Time Allowance is already more than the 10 year maximum penalty imposed by the court and affirmed by the Court of Appeals. The court also said that he has paid the family of Ms. Laude a total of P4.6 million representing award for loss of earning capacity, and actual, civil, moral, and exemplary damages. — Vann Marlo M. Villegas

Senate warned of slow recovery if bad loan relief bill is delayed

ECONOMIC MANAGERS pressed the Senate on the urgency of legislation creating asset management companies (AMCs), saying that delays in enacting such a measure hampered the economy’s recovery from the Asian Financial Crisis of 1997.

AMCs, which are designed to relieve banks of their bad loans to make them healthy enough to lend again to businesses, were authorized under the Special Purpose Vehicle (SPV) Law of 2002.

“The crisis began in 1997, but the law was enacted only five years later, when most distressed enterprises had already recovered and could already meet their financial obligations,” Finance Secretary Carlos G. Dominguez III said in his opening statement, Wednesday.

“Had the SPV been available earlier, banks could have helped businesses recover faster.”

The current legislation is known as the Financial Institutions Strategic Transfer (FIST) bill, which the House has passed. The Senate version is being evaluated by the chamber’s Committee on Banks and Financial Intermediaries.

Among the questions thrown up by the committee were the potential risks to the government of investing in AMCs.

“Why is it that we are considering the government to get involved?” Senator Ralph G. Recto said during the hearing.

“Why not let the private sector undertake the necessary risk? Why subject the government to any of this potential risk?”

AMCs acquire bad loans from banks typically at a deep discount, and hope to realize a gain when they dispose of the loan or the underlying collateral.

Senate Minority Leader Franklin M. Drilon’s concern was that the government is too cash-starved at the moment to fund such a bad-loan rescue scheme.

“The LANDBANK and the DBP (Development Bank of the Philippines) are government banks that are eligible to put up the FIST, but for the government itself to participate in the system… where will you get the capital?” he said. — Charmaine A. Tadalan

DA pitches startup capital program to potential young farmers

THE Agriculture department touted its startup loan and technical assistance programs in a pitch to potential young farmers, who are considered critical to the industry’s modernization.

“We need to harness the potential and strength of the youth in our journey to making Philippine agriculture modern, industrialized and competitive,” Agriculture Secretary William D. Dar said.

In a statement, Mr. Dar cited the Agricultural Credit and Policy Council’s Kapital Access for Young Agripreneurs (KAYA) loan program, which can provide capital to both current and startup businesses.

KAYA is targeted at borrowers who are 18 to 30 years old and provides up to P500,000 at zero interest and no collateral, payable over five years.

“KAYA targets the youth because we acknowledge that they can be key players in ensuring affordability and availability of the food supply,” Mr. Dar said.

He also cited the Business Incubation in Agriculture program, which hopes to guide micro and small enterprises, cooperatives and associations through their wup phase of operations.

“This has now become a competition among nations. We need to increase our efforts in taking care of agriculture and we need the younger generation to take the lead,” Mr. Dar said. — Revin Mikhael D. Ochave

Young, short-tenured workers face more layoff risk — JobStreet

EMPLOYEES that lost their jobs during the pandemic are mostly young and short tenured, according to a job market survey issued by online work portal JobStreet.com.

Among employees that were either permanently retrenched or temporarily not working, 76% were not full-time employees and 79% had worked for their employer for less than six months.

Most of these employees were between 18 to 24 years old and earning less than P20,000 each month.

Employees between 35 to 44 years old were the least affected by permanent and temporary lay offs. Other elements of the profile for comparatively secure jobs included organizations with more than 500 employees. The industries and job functions determined to be safest were information technology, banking, and medical professions.

Jobstreet’s COVID-19 Job Report is based on a survey of 2,569 jobseekers and 314 employers in May.

Over half of job candidates reported being affected by the pandemic, with 17% permanently retrenched and 43% temporarily losing work.

“But we fear that the inevitable will happen and that because of the growing and the extension of this pandemic, the 43% will still be affected by this crisis,” Jobstreet Country Manager Philip Gioca said in an online news conference on Wednesday.

The hardest hit sectors are tourism and travel, food and beverage, hospitality, architecture and construction, and education. Most of those who lost their jobs were working in Central Luzon.

Majority of the organizations that reorganized their workforce have been operating for more than a decade.

Workplace requirements have shifted to digital, with 74% of organizations requiring staff to work from home. Almost half of employees that work from home said that they have been working for longer hours.

More than half or 55% of employers reported that the pandemic had a negative impact on their head count, with 49% freezing hiring, 12% temporarily laying off staff, and 7% permanently firing workers.

Remuneration was also affected, with 30% of employers suspending salary increases, 15% reducing bonuses, and 11% reducing salaries.

A fifth suspended promotions, while 24% asked staff to take unpaid leave.

On the workers’ side, 22% reported reduced salaries. Among them, more than half experienced a more than 30% reduction in salary. A fifth saw reductions of more than half.

In the next six months, the most in-demand jobs will be in accounting, sales, information technology, human resources, and engineering. While a quarter of employers said they are likely to hire those who have lost their jobs due to the pandemic, 70% said they are neither more or less likely to hire them.

Mr. Gioca said there are more than 30,000 jobs advertised on the company’s website.

The unemployment rate surged to a 15-year high of 17.7% in April, according to the Philippine Statistics Authority. This translates to 7.25 million jobless Filipinos, three times more than the 2.27 million recorded in April 2019.

Jobstreet.com and the Civil Service Commission launched an online career fair offering more than 10,000 government jobs from 700 agencies. Almost 30% of available jobs are in the Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon) region. — Jenina P. Ibañez

Economist wants to tie tax cuts to solar investment

THE PROPOSED five percentage point reduction in corporate income tax should be conditional on major firms investing the savings on job-generating projects like green energy, economist and National Scientist Raul V. Fabella said.

The government could require the top 1,500 corporations to install rooftop solar panels before they can avail of the reduced 25% income tax rate, according to Raul V. Fabella, a former professor at the University of the Philippines School of Economics.

Mr. Fabella said the energy generated can be held in storage and account for 20% of the company’s daytime power use.

“This will open up a new investment avenue for large businesses and provide a new growth spark for the recovering Philippine economy. The 5% tax differential will serve as a contingent tax on idle rooftops, which tax liability disappears as soon as the condition of solar PV installation and storage is met,” he said in a note sent to journalists Wednesday.

The Corporate Recovery and Tax Incentives for Enterprises Act bill is currently pending in Congress. It seeks to lower the corporate income tax to 25% from 30% and reform the fiscal incentive system.

The measure forms part of the economic team’s recovery plan and is expected to cost the government P625 billion in foregone revenue over the next five years.

Private companies are unlikely to boost production while demand is weak, Mr. Fabella said, but they might consider investments that will reduce production costs to prepare for when the economy starts to fully recover.

He added businesses will remain risk-averse during an economic downturn and may end up parking their funds in risk-free assets such as government securities and central bank deposits.

“While this can be done in other ways, installing rooftop solar PV (photovoltaic) generation and storage ensures an investment that is socially beneficial, market guided and of short gestation,” he said.

He said similar alternatives can be offered to companies that do not have rooftop space, provided these meet the required market sustainable investment criteria.

Companies can also rent idle rooftops to install solar panels, or establish independent power storage or rooftop rental businesses that will serve the grid.

In a report last month, ING Bank NV Manila Branch said the government’s budget allocation for “green” projects in its stimulus package was zero.

“The private sector has for decades complained but left the government to solve the poor quality and high cost of power in the country. Now is the time to be part of the solution. Resilience will be best served when large corporations twin the solar PV installations with a battery storage facility,” Mr. Fabella said.

He said the bill can also expand its scope and include the condonation of loans of agrarian reform beneficiaries worth P58 billion to make the industry “fairer and more investment-inducing.”

Second-quarter gross domestic product (GDP) contracted by 16.5%. Economic managers are expecting 2020 GDP to settle between -4.5% and -6.6%. — Beatrice M. Laforga

1...7,6847,6857,686...12,801Page 7,685 of 12,801
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube