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Security Bank records surge in digital transactions

SECURITY BANK Corp. recorded higher digital transactions during the last five months amid restrictions due to the coronavirus disease 2019 (COVID-19).

The bank’s digital transactions soared 170% from March 17 to Aug. 31, it said in a statement on Friday.

Security Bank said the growth was driven by the implementation of the enhanced community quarantine which began in April.

Online fund transfers were among the growth drivers as these climbed 312% this year from the 2019 level. Security Bank said these transactions included remittances sent via eGiveCash and withdrawn from its automated teller machines as well as online interbank fund transfers via InstaPay.

Online transactions for bills payment also grew by 48% from the year-ago level.

“We have seen a surge in the number of people transacting via Security Bank Online with transactions growing steadily month-on-month. We’ve also noticed that a huge chunk of transactions come from online bills payment. This has been one of the main drivers of our electronic channel growth with a 48% increase versus the previous year,” Security Bank Executive Vice President and Head of Transaction Banking Group John Cary L. Ong was quoted as saying.

The bank said it is developing more digital tools to ensure clients can make financial transactions safely amid the COVID-19 pandemic.

“Security Bank will continue to test and roll out new user-friendly features, streamline our digital solutions, and strengthen our technology and platforms to support the changing needs of our customers. Our commitment to continuous innovation allows us to provide BetterBanking services to those we serve,” Mr. Ong added.

Security Bank’s net income increased 8% year on year to P2.8 billion in the second quarter.

The bank’s shares closed at P95.10 apiece on Friday, gaining 10 centavos or 0.11% from its previous finish. — K.K.T. Jose

Philippines probes 57 persons of interest over Wirecard scandal

Philippine authorities are investigating 57 foreign and local “persons of interest” potentially involved in a scandal at German payments firm Wirecard AG, an official at the country’s anti-money laundering agency said on Friday.

The Southeast Asian nation became embroiled in the collapse of Wirecard in June, with the payments firm initially claiming it kept $2.1 billion in two Philippine banks, which the central bank and the lenders denied.

The persons of interest were included in a report sent to the National Bureau of Investigation, Mel Georgie Racela, executive director of the Philippines‘ Anti-Money Laundering Council (AMLC), told a virtual news conference.

The list includes officers at Philippine lenders BDO Unibank Inc and Bank of the Philippine Islands believed to have forged documents to show Wirecard is a depositor, Racela said, adding that the banks were no longer part of the investigation.

In addition, immigration personnel who were said to have created fake entry and exit information on Wirecard’s former chief operating officer are among the persons of interest, according to Mr. Racela. The Bureau of Immigration did not respond to a request for comment.

“After we coordinate, we will now build up the case and file the necessary case,” Mr. Racela said, adding that not all the 57 would face criminal charges.

German lawmakers this month launched a parliamentary inquiry into the implosion of Wirecard, the country’s biggest post-war corporate fraud.

The AMLC is working with German authorities as it pursues a case against foreigners, Mr. Racela said.  — Reuters 

Bank account ‘portability’ for employees pushed

A BILL pushing to let private sector workers choose the bank for their payroll accounts has been filed at the House to give them freedom to weigh each lender’s benefits and to increase competition in the banking industry.

Marikina City (2nd district) Rep. Stella Luz A. Quimbo has filed House Bill 7619, also known as the Bank Account Portability for Workers Act, which gives private sector employees the freedom to choose their own bank accounts so they can transact “based on various factors, such as the attractiveness of their financial products, interest rates offered, and the location of their branches.”

The measure also seeks to strengthen competition among banks, Ms. Quimbo said. She said competition in the banking industry would result in the improvement of financial services and would make banks more responsive to the demands of clients.

“No bank shall secure more clients just because a single client — the employer — made the choice for others. This will force the banks to offer better financial products and more responsive and convenient services in order to attract more clients,” Ms. Quimbo said on Friday.

The lawmaker noted the current setup prevents healthy competition in the industry.

“By leaving it up to employers to decide on behalf of many, these competition dynamics are dampened in our current system,” she said.

Ms. Quimbo also noted that the Constitution prohibits “combinations in restraint of trade and unfair competition,” adding it is the mandate of the government to “protect the rights and welfare of workers.”

“Grant the employees their freedom of choice and we improve employee welfare,” she said.

The measure also seeks to make employees’ financial transactions “hassle-free” as a provision allows them to use their existing bank accounts for withdrawing their salaries, Ms. Quimbo added.

“It will allow them to use their existing personal bank accounts for withdrawing their wages without having to open a new account. Presumably, an employee picked his/her existing bank because s/he desires the services offered by that bank and due to the proximity from the employee’s residence. Hence, withdrawing their wages will now be hassle-free,” she said. — K.A.T. Atienza

AMLC logs 400,000 suspicious transactions so far this year

The Anti-Money Laundering Council (AMLC) on Friday said the number of suspicious transaction reports has already reached 400,000 this year, as in online fraudulent transactions have increased during the pandemic.

“Currently our suspicious transaction reports are approximately 400,000. We reached the same number last year. For the entire year, approximately 400,000.  So yes, it’s been increasing,” AMLC Executive Director Mel Georgie B. Racela said in an online briefing on Friday.

Mr. Racela clarified not all of these reports are dirty money cases. He said only one in six of these suspicious transactions would be related to unlawful activities.

Suspicious transaction reports are filed with the AMLC when institutions see financial transactions that do not appear to be ordinary or could potentially be part of a dirty money scheme.

In its study regarding financial crime trends seen from January to April, the AMLC said suspicious transaction reports reached 104,138 from March 1 to April 24. The Luzon-wide lockdown began in mid-March. 

It noted the value of transactions linked to possible money mule accounts and unauthorized transactions such as phishing and card skimming reached P341 million. The study also noted suspicious transaction reports related to online sexual exploitation of children with an estimated value of P11.93 million were also filed during the period. — L.W.T.Noble

Peso rises as US senators reject fresh stimulus

THE PESO strengthened further on Friday as some US lawmakers rejected a fresh stimulus program meant to stem the impact of the coronavirus disease 2019 (COVID-19) and as the clinical trial for a possible vaccine was halted.

The local unit closed at P48.54 per dollar on Friday, rising three centavos from its P48.57 finish on Thursday, data from the Bankers Association of the Philippines showed.

The peso opened Friday’s session at P48.60 per dollar which was also its weakest showing for the day. Meanwhile, it reached an intraday high of P48.505 against the greenback.

Dollars traded climbed to $903.65 million on Friday from $548.96 million the day prior.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso appreciated after US senators from the Democratic Party rejected the proposed $500-billion funding for COVID-19 relief measures from Republican senators allied with President Donald J. Trump.

Meanwhile, a trader said the suspension of the clinical trial of AstraZeneca Plc for its vaccine against COVID-19 also continued to dampen investor sentiment. — KKTJ

Stocks rebound on economic recovery hopes

THE MAIN INDEX closed higher on Friday as investors gained some optimism before heading into the weekend.

The benchmark Philippine Stock Exchange index (PSEi) picked up 65.57 points or 1.11% to close at 5,967.96, while the broader all shares index added 23.82 points or 0.67% to end at 3,577.38.

The PSEi dropped to a low of 5,888.36 early in the day but quickly entered green territory where it stayed for the rest of the session, reaching a peak of 5,967.96 upon closing.

“Local shares closed higher as investor hopes for a further recovery took precedence over weak labor market data and a lack of progress on another fiscal stimulus bill in Washington,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Economic data released recently point to some recovery: the unemployment rate went down to 10% in July from a record 17.7% in April, foreign portfolio investments rose 42% in May after a three-month decline, and cash remittances grew 7.7% in June after contracting since March.

These data, along with the relative slowdown in local coronavirus cases this week, helped improve investor sentiment.

The PSEi’s movement was also in line with some Asian markets, such as Japan, China and Hong Kong, which were trading in green territory when the local bourse closed.

Meanwhile, US stocks fell on Thursday. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices went down by 1.45%, 1.76% and 1.99%, respectively.

Most sectoral indices at the local bourse ended Friday’s session with gains. Holding firms rose 117.08 points or 1.92% to 6,212.94; services grew 16.50 points or 1.12% to 1,487.51; property climbed 16.68 points or 0.61% to 2,733.67; and industrials improved 41.13 points or 0.51% to 8,071.54.

However, mining and oil shed 18.37 points or 0.30% to 5,991.36 and financials dropped 2.91 points or 0.25% to 1,150.90 at the end of trading.

Some 1.11 billion issues valued at P4.18 billion switched hands on Friday, growing from the previous day’s 770.87 million issues worth P5.96 billion.

Decliners narrowly beat decliners, 92 against 90, while 51 names ended unchanged.

Foreign investors returned to selling on Friday, posting net outflows of P527.02 million versus net purchases worth P420.91 million on Thursday. — Denise A. Valdez

Metro Manila-based manufacturers of critical goods to get tax breaks

Metro Manila-based investment projects involving the manufacture of critical goods such as test kits, personal protective equipment (PPE) and medicine may now avail of tax perks amid the coronavirus pandemic, according to the Board of Investments (BoI).

In Memorandum Circular no. 2020-006 dated Sept. 4, the BoI said it can revise the 2017 Investment Priorities Plan (IPP) that identifies projects that are given income tax holidays.

Based on the memorandum, identified goods and services addressing the pandemic will now be exempt from the “locational restriction policy” or the rule that incentives are not applied to most projects in the National Capital Region.

BoI said these projects will also now be exempt from the modernization requirement, or the policy to improve facilities and processes that will result in a 25% substantial reduction of production cost.

These projects include the production of medicine considered critical by the Health department; medical equipment like thermometers and test kits; PPE such as masks, goggles and face shields; and surgical equipment; laboratory equipment. Also covered are projects involving the manufacturing of medical supplies such as alcohol, sanitizer, hand soap, cleaning materials, and common medicine such as paracetamol, vitamins and mefenamic acid.

Raw and packaging materials used for the production of these goods as well other supplies identified by the Health department will also be included. Support and maintenance services for laboratory and medical equipment are also covered by the circular.

The policy is considered in effect “during the existence of the pandemic” and can be extended in cases of national interest or emergency.

Under the 2017 investment priorities plan, BoI said that it selects projects with substantial benefits to the economy for incentives. The income qualified for the income tax holiday is limited to the income directly attributable to eligible revenue from the registered project. — Jenina P. Ibañez

Phoenix taps Petarmina for petroleum supply, regional opportunities

Phoenix Petroleum Philippines, Inc. has entered into a strategic partnership with a subsidiary of Indonesia’s state-owned PT Pertamina (Persero) for the supply of petroleum products and exploration of regional opportunities.

The company told the exchange on Friday it has signed a new deal with Pertamina International Marketing and Distribution Pte. Ltd.

Pertamina International will be supplying petroleum products to Phoenix in the Philippines and Singapore. The partnership also allows them to “explore and co-develop other international downstream business opportunities in the region.”

Pertamina International, which was formed in 2019, is being used by PT Pertamina for overseas sales and marketing. The Indonesian firm has six refinery units with a total capacity of more than 1 million barrels a day.

“We are proud and happy to work with Pertamina as our supply partner,” Phoenix Petroleum President Henry Albert R. Fadullon said in the statement.

“As both homegrown oil companies, we believe that the synergy between Phoenix and Pertamina will bring mutual and complementing value and opportunities, especially since the Philippines and Indonesia are geographically situated close to each other,” he added.

Phoenix currently operates units in Singapore and Vietnam and has existing partnerships with other firms within the ASEAN.

During the first semester, Phoenix swung to an attributable net loss of P367.8 million, reversing its attributable net profit of P903.94 million in the same period last year.

Shares in the company at the stock exchange closed flat on Friday at P11 each. — Denise A. Valdez

Cavitex to open new entryway next week

The operator of the Manila-Cavite Expressway (CAVITEx) is opening an alternative entrance to the expressway next week to brace for increased traffic with the relaxed quarantine restrictions.

Cavitex Infrastructure Corp. (CIC) said the Pacific Drive, a 300-meter entryway from D. Macapagal Boulevard to CAVITEx, will be open starting Sept. 14 (Monday).

Pacific Drive is intended to help ease traffic coming from Roxas Boulevard and nearby roads, as traffic along CAVITEx has been increasing since quarantine restrictions were relaxed for Metro Manila and Calabarzon, CIC President Roberto V. Bontia said in the statement.

CIC is part of Metro Pacific Tollways Corp. (MPTC), which also operates the Cavite-Laguna Expressway (CALAX), the North Luzon Expressway (NLEx) and the Subic-Clark-Tarlac Expressway (SCTEx).

The group will be implementing a 100% cashless toll starting Nov. 2, requiring all users to buy RFID (radio frequency identification) to pass through its expressways.

In a media briefing on Friday, Mr. Bontia said the whole tollways group expects an additional 500,000 new RFID subscribers in the coming months.

“In May, we had about 30% RFID usage. Latest figure is almost 40% penetration already. I think we will be able to hit the almost 100% RFID by November,” Mr. Bontia said.

“When we started the intensified program, we had about 700,000 subscribers. To reach 100% RFID, we are more or less eyeing close to 1.1 to 1.2 (million subscribers), so roughly additional 500,000 new subscribers (will come in),” he added.

The RFID program is part of the government’s order to toll road operators to use cashless payments to avoid the spread of the coronavirus.

MPTC the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez with inputs from Arjay L. Balinbin

Filinvest concludes $200-million bond issuance

Filinvest Development Corp. (FDC) has re-entered the international bond market with the recent issuance of $200-million fixed rate notes.

In a statement on Friday, the Gotianun family-led conglomerate said it concluded the offer of five-year senior unsecured notes, which will finance its capital expenditures and refinance maturing loans.

The bonds have a fixed coupon of 4.1250% payable semi-annually, and were priced at a re-offer yield of 4.25%.

Proceeds of the issuance will support the company’s plans for digitalization, water, desalination, waste water and renewable energy projects, a joint venture for a district cooling system, and other infrastructure projects.

“We are pleased with the outcome of the successful issuance which confirms the confidence and strength of FDC’s name and track record in the Philippines. This bond issuance will further optimize our capital structure, as well as position us to pursue new investments in infrastructure and sustainable solutions such as solar energy, water and wastewater,” FDC President and CEO Josephine Gotianun Yap said in the statement.

“The issuance allows us to diversify our funding sources, partially refinance existing debt, and gives us flexibility in managing our maturity profile,” FDC Chief Financial Officer Nelson M. Bona added.

The issuance marks FDC’s re-entry into the dollar bond market for the first time since 2013. Its coupon is also its lowest for an international bond issuance.

The company tapped UBS AG Singapore Branch as the offering’s sole global coordinator, and with Standard Chartered Bank, as joint bookrunners.

China Bank Capital Corp., Metropolitan Bank & Trust Co., PNB Capital & Investment Corp. and Union Bank of the Philippines were the domestic lead managers.

During the first half, FDC posted a 24% growth in attributable income to P7.2 billion, as its banking and sugar units remained strong through the coronavirus pandemic.

Shares in FDC at the stock exchange closed flat on Friday at P8.53 apiece. — Denise A. Valdez

Las Pinas COVID lab now open

The COVID-19 testing lab which is expected to serve patients in the South of Metro Manila is now opening its doors and starting operations to help improve the country’s testing capacity and recovery rate for the new coronavirus disease.

Specimen receiving area/specimen processing area pass box

A team of experts went to the COVID testing facility of the Las Pinas General Hospital and Satellite Trauma Center (LPGH-STC) to assess the facility and to conduct a proficiency testing.

Both the GeneXpert and RT- PCR machine passed the assessment. The laboratory personnel also passed the proficiency exam and were found to be competent to handle the testing using the GeneXpert technology.

PCR machine

Next week, the personnel will undergo a proficiency exam in using the real-time reverse transcription polymerase chain reaction (RT-PCR) COVID-19 testing machine.

Sen. Cynthia Villar, whose family donated equipment to capacitate the hospital to operate its own COVID testing center, welcomed the development and expressed hope that similar facilities would be set up and accredited in other areas in the Philippines.

“More hospitals and private laboratories have shown interest in setting up their own testing centers, I hope the Department of Health could fast-track their application

Specimen receiving/ processing area freezer and biological refrigerator

because we really need to improve our testing and tracing capacity and the accuracy of reporting of cases in this fight against COVID-19,” Villar said.

The Las Pinas facility just like the other facilities applying for accreditation, needs to go through a multi-stage process of laboratory assessment.

Pass box going to the PCR and reagent prep rooms

“With this testing center, patients in the South of Metro Manila will no longer have to travel far and wait long for results,” Villar said.

The Villar family has donated a laboratory freezer, biological refrigerator, autoclave sterilizer and passbox to the facility.

They also provided assistance in ensuring that the renovation or retrofitting of the area assigned as a Covid testing laboratory will conform to the standards approved by the DOH and World Health Organization.

Automated RNA extraction machine

The RT-PCR machine was donated by the San Miguel Foundation to LPGH-STC and will start to operate next week. The foundation reached out to Public Works Sec. Mark Villar identified the LPGH-STC as a beneficiary of its program to help the government with COVID-19 testing by donating test kits to local government units and RT-PCR machines to government hospitals.

Reagent Room

Once fully operational, the Las Pinas laboratory will have the capacity to process 50 specimens a day and have results within two to three days.

Four tips on running a business with your spouse

Pandemix, a food and pastry business, was established at the Litang family’s home during the lockdown—by accident.

When husband and wife Jun and Jo-anne Litang ran out of roti for their shawarma, they decided to make their own from scratch instead of buying. The simple act of baking their own bread brought them a lot of joy. Soon, they were baking banana bread and chocolate cakes.

Pandemix was officially up for business on May 1, initially selling to close family and friends. Mrs. Litang was in charge of baking while Mr. Litang took care of the legwork. As months passed and the venture got bigger, the couple faced more challenges in managing it together.

“Men handle things differently from women. Men think, ‘That’s okay already…’ As a woman, you want everything to be organized and documented,” said Mrs. Litang during “Partners in Life: At Home and in Business,” a recent webinar organized by incubator and accelerator StartUp Village.

It’s possible for a couple to run a business together, said the Litangs, who shared tips on how to do it smoothly and effectively.

1. Be professional.

Even if their business is home-based, the couple maintains boundaries for work. The Litang family, for instance, knows not to disturb Mrs. Litang when she is in the kitchen. “Baking is precise… When you’re counting and your child suddenly calls on you, you lose track of how much salt you had put in,” she said.

Mr. Litang also supports how invested Mrs. Litang is in the business, giving her space while she’s researching and taking online classes on baking. “I let her do what she wants to do,” he said. 

2. Listen effectively to your partner.

To avoid being stuck in an echo chamber, keep an open mind to the thoughts of one’s partner. “Sometimes, you feel like everything that you do is correct. If you don’t listen, you won’t know what’s wrong and right,” said Mrs. Litang.

Active listening is a technique wherein one consciously tries to understand the complete message being communicated instead of just hearing the words. Pay full attention while one’s partner is talking and show interest through body language, such as nodding occasionally. Provide feedback only when one’s partner is done talking; make sure that it’s honest and that it acknowledges the points that were raised.

3. Be a pillar of support.

Every business has its highly stressful moments. Mr. Litang recalled how his wife came back home crying one day, not knowing what to do when a cake that she was delivering got ruined on the way.

These situations call for a partner that can be strong and rational amidst the chaos. “That’s what I teach her, that you shouldn’t panic when there’s a problem… I tell her, ‘Relax. You won’t be able to do [your task] if we’re like this. You need to focus,’” said Mr. Litang.

4. Put each other and your family at the center.

Being focused on work doesn’t mean that family becomes less of a priority. As a gesture of love, Mrs. Litang prepares food for her family whenever she can. She also ensures that they all eat together during meals, with no business talk at this time.

This dedication was put to the test when remote classes first began for their ten-year-old son. Thinking that he could manage on his own as he had always done, Mrs. Litang went on with her usual work schedule. But when Mr. Litang brought up how online learning required constant parental supervision, the couple immediately made adjustments.

Now, Mrs. Litang frees herself up during her child’s offline learning hours. “By the afternoon, I should be done with all of my baking. I do it either the night before or early in the morning,” she said. — Mariel Alison L. Aguinaldo