Land values steady in CBDs, says Lobien

March 16, 2021 | 12:01 am

COMMERCIAL PROPERTY values in Metro Manila’s central business districts (CBDs) have remained steady despite a slowdown in office space take-up amid the pandemic, Lobien Realty Group (LRG) said.

In a statement, LRG said it has not seen any significant decline in land values in CBDs, mainly due to the “low and finite supply of land in these locations.”

Selling prices in Makati and Taguig business districts range from P400,000 to P1 million per square meter (sq.m.), while the so-called Bay City area commands selling rates of P300,000 to P500,000.

Selling prices in Pasig CBD range from P280,000 to P350,000 per sq.m., while Alabang CBD rates range from P250,000 to P400,000. Properties in Quezon City can sell from between P170,000 to P230,000 per sq.m.

LRG CEO Sheila G. Lobien said capital values will likely bounce back to pre-pandemic levels once the economy recovers.

While there are some landowners who may need to sell properties at lower prices for debt servicing, she noted these are few and “not yet currently in the radar.”

SEC goes digital with companies’ report submission

March 16, 2021 | 12:01 am

THE Securities and Exchange Commission (SEC) on Monday launched its online submission tool (OST), which it expects to improve its services to corporations.

“Beyond making it easier and more convenient for corporations to comply with their reportorial requirements, the OST should help our stakeholders become more comfortable with digital-based transactions, as we harness the full advantages of new technologies in improving our services,” SEC Chairperson Emilio B. Aquino said in a statement on Monday.

The submission tool can be accessed through https://cifss-ost.sec.gov.ph.

Annual reports of corporations may now be submitted digitally through the OST without having to go to the corporate regulator’s physical offices.

Authorized filers must first enroll on the platform by accomplishing an online form and by submitting a board resolution authorizing a representative to file for the company, and a copy of the submitted list of e-mail addresses and cell phone numbers or an accomplished 2020 General Information Sheet (GIS) form.

Law, consultancy, and firms offering services to corporations and partnerships may enroll as authorized filers.

Annual Financial Statements (AFS), GIS, Sworn Statement for Foundation, General Form for Financial Statements, and Special Form for Financial Statements may be submitted using the online platform.

For the OST’s initial implementation, submissions of Affidavit of Non-Operation may be made with the GIS or the AFS. The Affidavit of Non-Holding of Annual Meeting may also be submitted with the GIS.

“This initiative is a key component of the commission’s ongoing digital transformation, bringing us even closer to the achievement of both our ease-of-doing-business and sustainability goals,” Mr. Aquino said.

All stock corporations including their branch and representative offices, regional headquarters, and the regional operating headquarters of foreign corporations will be required to use the OST beginning this year. Nonstock corporations meanwhile will be allowed to submit reports in person, but will be required to use the online platform by next year.

The corporate regulator will only accept reports over the counter if filers encounter problems with the OST. However, users must present the notice generated by the platform.

The commission will be setting up OST Kiosks in SEC offices and other areas until Dec. 15 to assist users with using the new platform. But subsequent submissions should be done online, it said. — Keren Concepcion G. Valmonte

Overseas Filipinos’ cash remittances (Jan. 2021)

March 16, 2021 | 12:00 am

MONEY SENT HOME by overseas Filipino workers (OFWs) fell for a second straight month in January, as many returned home after losing their jobs amid a coronavirus pandemic. Read the full story.

How PSEi member stocks performed — March 15, 2021

March 16, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, March 15, 2021.

Peso retreats vs dollar on surge in infections

March 15, 2021 | 9:00 pm

THE PESO weakened versus the dollar on Monday on risk-off sentiment caused by the surge in new coronavirus infections in the country as well as the decline in cash remittances.

The local unit closed at P48.54 per dollar yesterday, shedding 8.5 centavos from its Friday close of P48.455, based on data from the Bankers Association of the Philippines.

The peso opened Monday’s session at P48.46 per dollar. Its weakest showing was at P48.555, while its intraday best was at P48.43 against the greenback.

Dollars exchanged went down to $798.55 million on Monday from $913.73 million on Friday.

A trader attributed the peso’s weakness to the virus’ continued spread in the country.

“The peso weakened amid local caution from the rising number of new local COVID-19 cases, prompting more stringent curfews in the National Capital Region,” the trader said in an email.

Coronavirus infections in the country increased by 5,404 to 626,893 on Monday, the Department of Health reported. This is the highest daily rise since August last year.

Granular lockdowns have already been imposed in some barangays where cases have been increasing. A 10 p.m. to 5 a.m. curfew will also be enforced in Metro Manila from March 15 to March 31.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said data showing lower remittance inflows amid continued repatriations and tighter restriction measures in host economies also caused the peso to weaken.

Data from the Bangko Sentral ng Pilipinas released Monday showed cash remittances in January dropped 1.7% to $2.603 billion from $2.648 billion a year ago. It also dropped by a tenth (9.93%) from the $2.89 billion seen in December.

For today, the trader gave a forecast range of P48.45 to P48.65 per dollar while Mr. Ricafort expects the peso to move within P48.50 to P48.60 against the greenback. — LWTN

PSE index plunges on fears of tighter lockdown

March 15, 2021 | 9:00 pm

PHILIPPINE SHARES closed in the red on Monday as parts of the country adopted stricter lockdown measures amid the continued surge in new coronavirus disease 2019 (COVID-19) cases.

The benchmark Philippine Stock Exchange index (PSEi) tumbled by 176.09 points or 2.61% to end at 6,552.46, while the broader all shares index went down by 109.71 points or 2.7% to 3,949.87.

“The market collapsed as the possibility of a hard lockdown gets higher and higher as the days go by. Increased selling pressure coupled with a lack of buying at current levels, caused most blue chips to take substantial losses,” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said via e-mail.

“The surge in cases and the implementation of additional restrictions such as the curfew in Metro Manila has clouded our economic outlook,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The uncertainties on our economic outlook caused by our current COVID-19 situation is expected to continue weighing on investor sentiment,” Mr. Tantiangco added.

The country logged 5,404 new coronavirus disease 2019 cases on Monday, the Health department reported. This brought the country’s infection tally to 626,893, with active cases at 53,479.

COVID-19 infections in the Philippines could hit an all-time daily record of 8,000 by end-March if the government fails to contain the pandemic, according to researchers from the University of the Philippines.

Cases could reach as many as 20,000 by mid-April, Fredegusto Guido P. David, a research fellow at UP’s OCTA Research Group, told ABS-CBN News Teleradyo on Sunday.

All sectoral indices closed in the red on Monday. Mining and oil dropped by 320.67 points or 3.66% to close at 8,440.78; services declined by 43.84 points or 3.01% to 1,412.38; holding firms slumped by 198.59 points or 2.85% to 6,750; property went down by 96.53 points or 2.85% to 3,263.71; financials decreased by 35.98 points or 2.55% to 1,374.30; and industrials fell by 187.37 points or 2.18% to finish at 8,402.59.

Value turnover climbed to P9.23 billion on Monday with 5.56 billion shares switching hands, up from the P6.87 billion with 3.41 billion issues traded on Friday.

Decliners outnumbered advancers, 207 versus 28, while 32 names closed unchanged.

Net foreign selling also surged to P1.12 billion on Monday from the P602.86 million seen on Friday.

“[Monday]’s steep drop gives opportunities for bargain hunting. However, we may not see a significant rebound as selling pressures may remain amid lingering COVID-19 concerns. Thus, we may see sideways movement from the market,” Mr. Tantiangco said.

AAA Southeast Equities’ Mr. Mangun added that the PSEi may stay above 6,500 in the coming sessions unless restrictions on movement are tightened further. — Keren Concepcion G. Valmonte

Pension portability bill expected to help develop capital markets

March 15, 2021 | 8:05 pm

A BILL permitting pension benefits to transfer along with workers as they change jobs is expected to boost retirement packages and help develop the capital markets, economic managers said.

Finance Secretary Carlos G. Dominguez III said at a hearing of the House Committee on Banks and Financial Intermediaries that the pension system is greatly underdeveloped, with pension assets currently equivalent to 16% of gross domestic product. He said a more acceptable ratio would be 100%.

Mr. Dominguez added that the pension system’s deficiencies stem from the passage of the Retirement Pay law, the features of which limit the size of retirement packages.

“The participation of large investors, such as pension funds, will help expand and diversify the investor base of our capital markets. This will mobilize a long-term supply of capital that can fund countless investment opportunities. At the same time, growing the pension fund system through prudent investments in the capital markets will ensure that our workers get to receive adequate benefits for them to live comfortably on once they retire,” Mr. Dominguez said.

The committee began deliberations Monday on House Bill 8938 or the proposed Capital Market Development Act of 2021. The panel’s chairman, Quirino Province Rep. Junie E. Cua, is the bill’s author.

The bill calls for the creation of a private pension system that is “fully-funded, portable, more actuarially fair, and stable.” It also aims to promote savings to develop the capital markets.

The bill’s explanatory note states that pension systems in other countries are “active participants in capital markets” and the Philippines’ current system is underfunded and inadequate to support retirement.

The reforms proposed include the establishment of the Employee Pension and Retirement Income (EPRI) Account which will be mandatory for all employees covered by the Labor Code of the Philippines. The account will be portable regardless of where the employee works, following the worker until retirement.

Both the employer and employee are required to contribute to the EPRI account.

The worker is also empowered to make investment decisions, selecting from among a menu of accredited investment products, including trust funds, mutual funds, annuities, stocks and other securities, and exchange-traded bonds.

Trade Secretary Ramon M. Lopez said at the hearing that reforming the pension system will lead to the development of capital markets and will sustain economic growth.

“There is a positive correlation between higher pension and higher real capital with greater savings and investment, creating more jobs for our people… these long-term savings are the sources of funds for long-term investment and there will be more funds for infrastructure… and education,” he said.

Securities and Exchange Commissioner Kelvin Lester K. Lee said at the hearing that the SEC supports the bill, which it will play a role in implementing.

“The SEC looks forward to the invigoration of the capital market through this bill and through the joint efforts of the government agencies involved… namely the Department of Finance, Bangko Sentral ng Pilipinas (BSP), the Insurance Commission and ourselves the SEC,” he said.

The BSP and the Bureau of the Treasury also expressed support for the measure at the hearing.

Labor Secretary Silvestre H. Bello III said more safeguards are needed to ensure workers receive appropriate pensions upon retirement.

“For workers who have had multiple employers and have rendered only a few years with their final employer, this means receiving a small amount upon retirement instead of the full value that accrued to them for their working lives,” he said at the hearing. — Gillian M. Cortez

More power competition allowed in Negros, Palawan

March 15, 2021 | 8:04 pm

THE Department of Energy (DoE) said 69 areas in Negros Occidental and Palawan are now allowed to source power from qualified third parties (QTPs).

According to a public notice posted on its website Monday, which was signed by Energy Secretary Alfonso G. Cusi on Feb. 24, six of these service areas are in the franchise area of Negros Occidental Electric Cooperative, Inc. (Noceco) while 63 are handled by Palawan Electric Cooperative, Inc. (Paleco).

The areas were described by the DoE as “remote, unserved and underserved” places where eligible QTPs can offer their electricity services.

A QTP is authorized by the Energy Regulatory Commission to be an alternative electric service provider in charge of providing missionary electrification services to QTP Service Areas.

Those interested in applying for QTP status must have the technical and financial capability to provide power services, and must participate in a competitive selection process, according to a department circular issued in November 2019.

A distribution utility or its subsidiary is not allowed to become a QTP for the areas it has waived, the DoE said.

In its circular, the department said that the National Power Corporation – Small Power Utilities Group (NPC-SPUG) will be responsible for providing power generation and delivery in service areas that are not taken by QTPs.

In the public notice, the DoE ordered Noceco and Paleco to prepare the bid documents and terms of reference for the competitive bidding for QTPs. The department also told the two utilities to submit the documents to the National Electrification Administration within 20 working days. — Angelica Y. Yang

House panel approves P20 tax on plastic bags

March 15, 2021 | 8:02 pm

THE House Committee on Ways and Means approved a measure that will impose a P20 tax on plastic carrier bags by weight, with the measure estimated to be capable of generating up to P4 billion in taxes annually if enacted.

In a hearing Monday, the House tax panel approved the unnumbered substitute bill that will levy and collect a P20 excise tax per kilogram of plastic carrier bags removed from the place of production or the customs house.

An earlier version of the bill, House Bill (HB) 178, was approved by the House Committee on Appropriations last week. HB 178 proposed a P10 excise tax on single-use plastic carriers.

The panel’s chairman, Representative Jose Ma. Clemente S. Salceda, said the tax estimate was based on a Global Alliance for Incinerator Alternatives finding that the Philippines disposes of 93 million plastic bags daily.

The substitute bill directs 100% of the revenue collected to solid waste management programs of local government units as authorized by the Ecological Solid Waste Management Act.

Nueva Ecija 1^st District Estrellita B. Suansing, author of HB 178, has said that taxing plastic bags will reduce usage and promote environmentally-friendly alternatives. Improperly disposed plastic carriers are linked to clogged waterways that put cities at risk of flooding. — Gillian M. Cortez

Palace urged to boost pork supply, not impose price controls

March 15, 2021 | 8:01 pm

THE GOVERNMENT should intervene to expand the supply of pork rather than impose price controls, Senator Francis N. Pangilinan said in a television interview Monday.

He said supply remains the major issue because of the African Swine Fever (ASF) outbreak, which has inflicted losses of P60 billion on the hog industry.

He said close to five million hogs have been culled to prevent the spread of ASF.

“Supply is really the problem here… you have to really cull in order to curb the spread,” Mr. Pangilinan said.

On March 8, the Department of Agriculture (DA) announced that the price ceiling on pork and chicken products sold in Metro Manila under Executive Order (EO) No. 124 will remain effective until April 8.

The EO, issued on Feb. 1 but implemented a week later, capped the price of pork shoulder (kasim) at P270 per kilogram, pork belly (liempo) at P300 per kilogram, and whole chicken at P160 per kilogram.

Mr. Pangilinan said the expansion of pork imports to stabilize supply is “fine” as long as it is regulated and based on accurate data on market demand.

The DA has a pending proposal to lower the tariff of pork imports within the minimum access volume (MAV) quota to 5% for six months and to 10% for a subsequent six months.

Tariffs for out-of-quota pork imports were also proposed for lowering to 15% in the first six months and 20% in the next six months. Currently, pork imports within the MAV quota are charged a 30% tariff, while those beyond MAV pay 40%.

The DA also sought to increase the allocated volume of pork importers under the MAV quota to 404,210 metric tons (MT) from the current 54,000 MT.

According to Mr. Pangilinan, he is wary of “a flood of imports which will directly impact the already-struggling hog industry.”

Mr. Pangilinan said the declaration of a state of emergency can also help in addressing ASF outbreaks.

“We have P20 billion allocated for disaster relief in the national budget. Without a state of emergency declaration, the funds cannot be used to support the hog industry,” Mr. Pangilinan said.

“The DA needs P8.6 billion to address ASF. But they only have P2.6 billion. So the remaining P6 billion that needs to be raised can come from the calamity fund. We can address ASF. We are not helpless. But we have to act quickly and address the matter,” he added.

Mr. Pangilinan, along with other senators, recently urged the DA during a Senate committee hearing last week to submit a recommendation to Malacañang for the declaration of a national state of emergency that will allow the release of public funds to curb the spread of ASF.

During a virtual briefing Friday, Agriculture Secretary William D. Dar said the DA is set to submit its recommendation this week.

According to the Philippine Statistics Authority, the national hog inventory as of Jan. 1 was down 24.1% year on year at 9.72 million animals. — Revin Mikhael D. Ochave

Tax breaks touted for companies investing in trade schools

March 15, 2021 | 8:00 pm

A HOUSE committee approved Monday a bill creating state senior high schools specializing in industrial trades, which its proponent said could generate tax incentives for companies that agree to invest in or donate to such institutions.

The House Committee on Ways and Means approved the unnumbered substitute bill creating so-called “Meister schools” which create an apprenticeship track to employment. They are patterned after trade schools set up in Germany and South Korea.

The bill was written by the committee chairman, Representative Jose Ma. Clemente S. Salceda, who said companies will be eligible for tax breaks under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), which is awaiting the President’s signature.

“The registered enterprises can enter into agreements with Meister Schools so they can qualify for the incentive. Meister schools are state schools, so (the Bureau of Internal Revenue’s) verification is much easier,” Mr. Salceda said.

Mr. Salceda said enterprises will be granted “an additional deduction from taxable income of one-half of the value of labor training expenses incurred for skills development of enterprise-based trainees enrolled in public senior high schools, public higher education institutions, or public technical and vocational institutions and duly covered by an apprenticeship agreement under Presidential Decree No. 442, series of 1974, or the Labor Code of the Philippines.”

The bill also aims to strengthen links between the public and private sectors in providing industry-based experience and education, boosting the employability of students in Meister Schools.

The bill will allocate at least P100 million for each Meister School to fund its establishment, maintenance, and operation.

Last month, the measure was approved by the House Committee on Basic Education and Culture. — Gillian M. Cortez

NGCP to test automation of transmission grid

March 15, 2021 | 8:00 pm

THE National Grid Corp. of the Philippines (NGCP) said Monday that it will start testing a central control and monitoring system (CCMS) that will automate parts of the transmission network.

In a statement, the NGCP said that it is staging pilot tests in its Cagayan de Oro and Cebu substations. By 2025, it hopes to equip 21 substations with the CCMS.

The CCMS contains real-time monitoring software which will collect and analyze power data and equipment conditions. Using a CCMS-equipped facility will allow the NGCP to remotely operate unmanned substations and improve the operational performance of transmission facilities.

The company said that the CCMS is part of a planned transition to smart grid technology. Smart grids integrate modern hardware and digital software to automate power systems.

In a circular issued in February 2020, the Department of Energy required the transmission network provider to develop a smart grid deployment plan and road map which includes “transmission system enhancement, wide area monitoring systems, automation and network optimization and long-term interconnection wide transmission expansion plans, among others.”

The smart grid road map will form part of the transmission development plan (TDP), which is updated annually.

Last month, the NGCP said that the latest version of the TDP will cover 2021 to 2040. — Angelica Y. Yang