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Govt eyes 14 priority bills before elections

The government wants to pass at least 14 priority bills before the election season to help to fast-track economic recovery from a coronavirus pandemic.

The Legislative-Executive Development Advisory Council (LEDAC) met a few days ago to discuss the priority measures, Finance Secretary Carlos G. Dominguez told a Manila Times online forum on Friday.

“We agreed on a menu of measures that need to be passed before the election period begins some time in March next year,” he said.

The bills endorsed by the council would be certified as urgent by President Rodrigo R. Duterte, acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said in a mobile phone message. “We will release a list soon.”

The council is made up of 20 members that include Mr. Duterte, Vice President Maria Leonor G. Robredo, Mr. Chua, Mr. Dominguez, and three other Cabinet members, four senators, four congressmen and three members from local governments, the youth and private sector.

Albay Rep. Jose Maria Clemente S. Salceda said among those endorsed by the council were a bill seeking to help distressed small companies, one that will reform property valuation and assessment and another that will simplify the tax structure for financial instruments.

Also on the priority list are proposed changes to the Public Service Act, Retail Trade Liberalization Act and Foreign Investment Act, as well as amendments to Agri-Agra law, proposed Medical Reserve Corps Act and the creation of a Disease Prevention and Control Authority.

“That’s not an exhaustive list of what we are limited to doing for the next few months,” Mr. Salceda, who heads the House ways and means committee, said in a Viber message.

Economic managers expect the economy to grow by as much as 7.5% this year after a record 9.5% contraction in 2020. Mr. Dominguez said economic reform measures could help the country to recover.

“We cannot recover all that we lost in 2020 in one blow,” he said. “It will take us more years to nurse our economy to where it was before the pandemic struck.” — Luz Wendy T. Noble

BSP fully awards P90B in short-term bills

The Philippine central bank on Friday fully awarded P90 billion worth of 28-day bills at higher rates amid investor preference for retail Treasury bonds (RTBs).

Demand for the short-term securities reached P102.12 billion, more than the P90-billion offer but lower than P154.9 billion a week ago, according to e-mailed auctions results from the Bangko Sentral ng Pilipinas (BSP).

Yields for the central bank’s bills were 1.665% to 1.995%, wider than last week’s auction. This caused the average rate to hit 1.7303%, rising by 6.2 basis points.

“The auction results continue to broadly reflect market participants’ search for yield amid the ongoing offering of RTBs of the Bureau of the Treasury,” central bank Deputy Governor Francisco G. Dakila, Jr. said in a statement.

The government is offering RTBs at a coupon rate of 2.375% from Feb. 9 until Mar. 4, unless ended earlier. The Treasury raised P221.218 billion earlier this month.

Yields in the term deposit facility also picked up on Wednesday.

The central bank uses both its securities and term deposits to mop up excess liquidity in the financial system and to better guide short-term market rates.

“The higher auction yield was also due to a weaker peso exchange rate recently that could lead to high import prices and overall inflation,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. said in a text message.

The peso has been weakening in recent weeks as global oil prices rose due to supply disruptions in the US and with gradually increasing demand.

PHL to negotiate with neighbors for ‘travel bubble’ arrangements

The Philippines is waiting for an appropriate time to negotiate “travel bubble” arrangements with its neighbors in order to restart international tourism, according to the Department of Tourism (DoT).

“Pagdating ng tamang panahon, kapag inalis na nila ang restrictions on international travel, maaaring i-explore na rin natin ang possibility ng mga tourism bubbles with neighboring countries (We may explore travel bubbles with our neighbors when the time comes, such as when restrictions ease on international travel,” Undersecretary Benito C. Bengzon, Jr. said at a televised briefing Friday.

Travel bubbles are so called because they are confined to travelers between two destinations, whose governments trust that their partners have managed COVID-19 adequately, mitigating any risk of importing the coronavirus. Pairs of destinations that have agreed to bubble arrangements include Australia and New Zealand, and Hong Kong and Singapore.

Mr. Bengzon also urged travelers to avail of government-subsidized coronavirus testing. Tests are required for travel to both domestic and international destination.

Under the program, the DoT subsidizes 50% of the cost of a swab test for travelers getting their tests done at the Philippine General Hospital (PGH) or Philippine Children’s Medical Center (PCMC).

The regular price of a swab test at the PGH is P1,800.00. The PCMC price is P1,500.

Mr. Bengzon said about 12,000 travelers have availed of the subsidized tests at the PGH and around 11,000 to 12,000 availing of the discount at the PCMC.

According to a study conducted by the DoT, 81% of more than 7,000 respondents have cited the stringent requirements of local governments for visiting tourist destinations in the Philippines as a deterrent to travel, Mr. Bengzon said.

He said 68% also complained of the high cost of coronavirus testin.

Mr. Bengzon said the DoT supports the streamlining and harmonization of travel requirements. — Kyle Aristophere T. Atienza

MGCQ to swell full-time workforce by ‘at least’ 108,000 – DoLE

AN easing of quarantine to a more relaxed setting is expected to allow more than 100,000 people to return to full-time work, the Department of Labor and Employment (DoLE) said.

Labor Assistant Secretary Dominique R. Tutay said the additions to the full-time workers will consist largely of those who were relegated to flexible working arrangements by the pandemic. An easing to a quarantine setting known as Modified General Community Quarantine (MGCQ) will allow such workers to work five or six days a week.

“Kung luluwagan po natin, 108,000 po ang maaaring tuluyan na rin pong maging five days a week na sila or six days a week, at iyong mga nasa temporary closure po ay maaari na rin pong makabalik (An easing of the quarantine will allow 108,000 to return to a five or six-day work week, while businesses that closed temporarily are likely to resume operations),” she said at a televised briefing Friday.

President Rodrigo R. Duterte rejected a proposal put forward by his economic planners to reset the quarantine to MGCQ, the most relaxed form, with the President citing the detection in the Philippines of a new coronavirus strain.

The National Economic and Development Authority had pushed for the reopening of the economy to curb joblessness and hunger. It estimated the average income loss per worker at about P23,000.

Ms. Tutay said about 25,226 workers were laid off in January due to the impact of the nearly year-long pandemic.

In its January job displacement report, DoLE said 91% or 1,279 establishments have decided to reduce staffing while the remaining 9% or 142 establishments reported that they have permanently closed.

Ms. Tutay said DoLE’s proposal for a three-month wage subsidy has been sent to the Office of the President for approval. The package ia designed to assist businesses retain their workforces.

“Ito pong proposed wage subsidy po, ang gusto po natin dito ay ma–preserve po iyong employment ng ating mga kababayan lalung-lalo na po iyong mga nasa temporarily closed na company, mayroon pong about 2.5 million na mga manggagawa po na affected po diyan (This wage subsidy is designed to preserve jobs especially at businesses that had to temporarily close, a segment which affects about 2.5 million workers),” she said.

Ms. Tutay said DoLE’s unused funds from the 2020 budget and savings under the second stimulus law may be realigned to fund the wage subsidy program. — Kyle Aristophere T. Atienza

Banks need to lend more to support economic recovery – Salceda

A KEY legislator said Friday that banks need to justify their privileged place in receiving government help during a crisis by lending more, noting that lending growth remains weak despite record-low interest rates that were designed by the central bank to make lending easier.

Albay Representative Jose Ma. Clemente S. Salceda, who chairs the House Ways and Means Committee, said the Bangko Sentral ng Pilipinas (BSP) effectively unlocked P1.9 trillion worth of liquidity between March to December 2020.

“You are not hedge funds. Your role in Philippine society is to lend. The reason why we prioritize saving you above most other sectors is that you play that critical role in economic recovery,” Mr. Salceda said at a House committee on banks hearing.

Bank lending during an economic crisis is highly correlated to economic growth, according to studies of the recovery from the 2007 Asian Financial Crisis conducted by the Asian Development Bank

“If you do not play that role… why should we ask the taxpayer and the depositor to make sacrifices on your behalf?” he added.

Bank lending fell for the first time in over 14 years in December, with outstanding loans dropping by 0.7% to P9.18 trillion, the BSP announced on Feb. 4.

Mr. Salceda also said that the central bank’s efforts to prop up the economy “will remain unsuccessful” unless the banks lend more to their customers.

He said that reserve repurchase rate is at 2%, lower than inflation rate of 4.2%.

Mr. Salceda that banks cannot continue to park their funds with the BSP instead of lending, noting that reserve repurchases by banks increased by 1.5% between March and December 2020.

“In simple terms, interest rate cuts simply did not translate into lower rates or more credit for Filipino borrowers. They didn’t work,” he said.

He said the banking sector “still needs to be disrupted,” noting that banks need adopt innovative credit profiling methods used by financial technology companies.

He said fintechs are filling the lending gap left nehind by banks, and added that he intends to support the passage of House Bill No. 7863 which aims to establish a fair and inclusive credit reporting system to increase the access to credit of the most vulnerable sectors. — Vann Marlo M. Villegas

Peak power demand seen in June; to be in line with year-earlier GCQ levels

The Independent Electricity Market Operator of the Philippines (IEMOP) said Friday that the dry-season peak for power demand will remain subdued relative to pre-pandemic levels, with the June forecast more or less in line with the peak recorded in June 2020, when Metro Manila was observing a more relaxed form of quarantine known as General Community Quarantine (GCQ).

In a virtual briefing, IEMOP manager for pricing valuation and analysis John Paul S. Grayda said that projected peak demand between March and June will increase steadily in a “linear manner.”

He said the projections for the four months assume peak demand that is level with demand during the GCQ of 2020. “We also considered the La Nina phenomenon,” Mr. Grayda said, referring to the weather phenomenon that typically produces cooler temperatures.

The projected peak demand levels for March, April, May and June are 11,426 megawatts (MW), 11,821 MW, 12,216 MW and 12,611 MW, respectively.

In June 2019, the system’s peak demand was 13,450 MW.

The peak forecasts apply only to the Luzon and Visayas islands. Mindanao is not yet included in the wholesale electricity spot market’s (WESM) operations.

In January and February, system peak demand was 11,015 MW, and 11,485 MW, respectively.

The average spot price in February declined 15.1% from a month earlier to P2.22 per kioWatt-hour (kWh).

According to Mr. Grayda, the spot price is expected to “remain at P2 per kWh level for the summer months.”

Last month, the IEMOP said that it hopes to launch the WESM in Mindanao by June after the Energy Regulatory Commission (ERC) approved the WESM’s Price Determination methodology, as expressed in a manual of WESM guidelines, principles and pricing mechanisms.

The IEMOP is a non-profit corporation that operates the WESM, a venue for generators to sell excess power not covered by contracts, and where customers can buy additional output on top of these contracts. — Angelica Y. Yang

SM Investments income dips 48% to P23.4 billion

SM Investments Corp. (SMIC) on Friday reported a 48% drop in net income last year to P23.4 billion as its retail and property businesses recorded lower profit and revenues, while its major bank provided for potential delinquencies.

In a statement, SMIC said its banking business accounted for 55% of last year’s net income, while property made up 33%. Its retail segment contributed 12% to the bottomline.

Frederic C. DyBuncio, the holding firm’s president and chief executive officer, said the Sy-led businesses “are cautiously optimistic about the year ahead” as they continue to “innovate and focus on safety.”

“Our businesses continued to build momentum through the end of 2020 as they addressed the changed behaviors and needs of our customers. Our banks, food retailing and residential property all performed well, while our malls and non-food retail operations showed steady improvements as conditions allowed,” he said.

SMIC’s consolidated revenues declined by 30.4% to P349.2 billion in 2020 from the P502 billion recorded in the previous year.

BANKING

BDO Unibank, Inc. ended 2020 with a net income of P28.2 billion, down 36.2% from P44.2 billion in 2019. SMIC said the decline was due to the bank allotting P30.2 billion in “pre-emptive” provisions against potential delinquencies from the health crisis.

Net interest income for BDO grew 12% to P133.7 billion, while loans inched up by 3% to P2.3 trillion because of its consumer and corporate accounts.

Current account savings accounts, or CASA, rose 17% to P2.1 trillion as services continued throughout its digital banking platforms, branches, and ATMs.

China Banking Corp.’s net income jumped 20% to P12.1 billion in 2020, while ending the year with a 30% increase in net interest income to P33.8 billion after a 39% decrease in interest expense.

The bank reported gross loans amounting to P572 billion. Deposits for the year reached P835 billion, growing by 8%.

PROPERTY

SMIC’s property business SM Prime Holdings, Inc. saw its net income fall by 52.76% to P18 billion from P38.1 billion the previous year. Its revenues also slowed by 30.77% to P81.9 billion from P118.3 in 2019.

The company’s residential business SM Development Corp. reported an increase of 6.4% in revenues to P46.5 billion from P43.7 billion despite the pandemic. Reservation sales also went up to P99 billion, 10% higher than the P90 billion recorded in the previous year.

The commercial property business posted a 4.35% increase in revenues to P4.8 billion from P4.6 billion previously.

SMIC’s hotels and convention centers recorded P1.6 billion in revenues, a 68.63% drop from 2019’s P5.1 billion.

Revenues from the mall business also fell by 54.2% to P23.6 billion from P57.8 billion in 2019.

Last year, SM Prime opened to the public Olongapo City Convention Center in Zambales.

RETAIL

SM Retail, Inc., which is made up of non-food and specialty stores, posted a 67% drop in net income to P4.1 billion. Its revenues went down 19% to P296.8 billion from P366.8 billion in 2019.

Despite this, the company continued to expand its businesses all over the country.

The SM Store opened two new shops, one in Butuan and another in Zamboanga under new SM City Malls. The gross selling area of the company’s 66 department stores totaled 816,958 square meters in 2020.

SM Retail’s food business, which includes SM Supermarket, SM Hypermarket, Savemore, Alfamart, and WalterMart, expanded by opening 287 new branches.

A total of 351 new stores were opened by SM Retail in 2020, ending the year with 3,019 outlets. These are 66 The SM Stores, 1,550 specialty retail stores, 59 SM Supermarkets, 52 SM Hypermarkets, 209 Savemore, 71 WalterMart, and 1,012 Alfamart stores.

“The total assets of SM grew 7% to P1.2 trillion. SM maintains a healthy balance sheet with a conservative gearing ratio of 37% net debt to 63% total equity,” the company said.

On Friday, SMIC shares dropped by 2.79% to close at P1,009 apiece. — K. C. G. Valmonte

Philex Mining returns to profitability with P1.23-B income

PHILEX MINING Corp. posted P1.23 billion in net income attributable to parent company equity holders last year on the back of higher revenues and lower expenses.

In a regulatory filing on Friday, the Pangilinan-led mining firm reported a turnaround from its P647.78 million attributable net loss in the previous year.

The company also reported a core net income of P1.16 billion, more than seven times higher than the year’s.

Its revenues for 2020 improved 15.3% to P7.83 billion against P6.79 billion in 2019. Cost and expenses dropped nearly 9% to P6.3 billion from P6.92 billion previously because of cost management and efficient operations.

According to Philex, fourth quarter tonnage fell to 1.88 million tons, lower by 5.5% than 1.99 million tons in the previous quarter as a result of the three-day temporary stoppage of underground operations after a number of its personnel tested positive for the coronavirus disease 2019 (COVID-19).

“The shutdown was necessary to undertake COVID-19 mass testing of miners and contain the local transmission of the virus,” it said.

“Despite the COVID-19 related temporary shutdown, the company produced a total of 56,000 ounces of gold and 26.38 million pounds of copper (in 2020), higher than full year 2019 production of 53,064 ounces of gold and 25.74 million pounds of copper,” it added.

The company said it would focus on optimizing its Pacdal mine in Benguet and would work to sign up a strategic business partner for its Silangan copper and gold project in Surigao del Norte.

Eulalio B. Austin Jr., Philex president and chief executive officer, said the positive trend in prices and long-term outlook for gold and copper have boosted the interest of global investors in the company’s Silangan project despite the pandemic.

“We are closely working with our financial advisor to bring Silangan into operation in the soonest possible time and at the same time optimizing the Padcal Mine,” Mr. Austin said.

Meanwhile, Philex Chairman Manuel V. Pangilinan said businesses that best adapt to change would survive the effects of the health crisis.

“Thankfully enough, Philex as an export-oriented company was permitted to operate by government despite the community quarantine, providing revenues to allow us to concentrate on… the health and financial well-being of our employees; maintaining service excellence to our customers; and assistance to the government in caring for those most affected,” Mr. Pangilinan said.

“Mining shall and always will be a key economic driver towards inclusive national growth. Mining has the potential to provide much-needed revenue for the government’s response against the pandemic, particularly in the purchase of vaccines, if it is allowed to flourish,” he said.

On Friday, Philex Mining shares at the stock exchange rose 1.22% or six centavos to end at P4.96 apiece.

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

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

PXP Energy cuts losses nearly five times to P56 million

Manuel V. Pangilinan-led PXP Energy Corp. reported a consolidated net loss of P56.1 million to its equity holders in 2020, or nearly five times lower than the previous year’s despite a decrease in petroleum revenues.

In a disclosure to the local bourse on Friday, PXP said that it was able to trim its core net loss to P45.7 million from P79.8 million. The firm also reported that its consolidated net loss stood at P76.3 million, or around four times lower than in 2019.

Revenues from petroleum as of December slid 58.3% to P30.3 million, which the company attributed to lower output in Service Contract (SC) 14C-1 Galoc on three completed liftings, as well as a 40% slump in Galoc crude sale price “due to a worldwide collapse in demand in 2020 caused by the coronavirus 2019 pandemic,” PXP said.

The company added that the expenses incurred by end-December were lower by 48.2% at P98.7 million from P190.6 million year on year. This was attributed to lower petroleum production costs and the depletion of the Galoc oil field.

According to PXP’s outlook, the firm and its subsidiary Forum Energy Plc would take guidance from the government in fulfilling their commitments in SC 72 in Recto Bank and SC 75 in the northwest Palawan block.

In October last year, the Department of Energy allowed PXP and Forum to resume work in the SC 75 and SC 72 blocks, respectively, after lifting the force majeure status in both areas.

PXP shares at the local bourse improved 2.65% or 0.24 centavos to close at P9.30 apiece on Friday.

The former Philex Petroleum Corp. is engaged in the exploration and production of crude oil and natural gas. It has interests in petroleum contracts, and holdings in companies with interests in petroleum service contracts. — Angelica Y. Yang

Pfizer COVID-19 vaccine reduces transmission after one dose -UK study

LONDON – A single dose of Pfizer and BioNtech’s COVID-19 vaccine cuts the number of asymptomatic infections and could significantly reduce the risk of transmission of the virus, results of a UK study found on Friday.

Researchers analysed results from thousands of COVID-19 tests carried out each week as part of hospital screenings of healthcare staff in Cambridge, eastern England.

“Our findings show a dramatic reduction in the rate of positive screening tests among asymptomatic healthcare workers after a single dose of the Pfizer-BioNTech vaccine,” said Nick Jones, an infectious diseases specialist at Cambridge University Hospital, who co-led the study.

After separating the test results from unvaccinated and vaccinated staff, Jones’ team found that 0.80% tests from unvaccinated healthcare workers were positive.

This compared with 0.37% of tests from staff less than 12 days post-vaccination – when the vaccine’s protective effect is not yet fully established – and 0.20% of tests from staff at 12 days or more post-vaccination.

The study and its results have yet to be independently peer-reviewed by other scientists, but were published online as a preprint on Friday.

This suggests a four-fold decrease in the risk of asymptomatic COVID-19 infection amongst healthcare workers who have been vaccinated for more than 12 days, and 75% protection, said Mike Weekes, an infectious disease specialist at Cambridge University’s department of medicine, who co-led the study.

The level of asymptomatic infection was also halved in those vaccinated for less than 12 days, he said.

Britain has been rolling out vaccinations with both the Pfizer COVID-19 shot and one from AstraZeneca since late December 2020.

“This is great news – the Pfizer vaccine not only provides protection against becoming ill from SARS-CoV-2, but also helps prevent infection, reducing the potential for the virus to be passed on to others,” Weeks said. “But we have to remember that the vaccine doesn’t give complete protection for everyone.”

Key real-world data published on Wednesday from Israel, which has conducted one of the world’s fastest rollouts of Pfizer’s COVID-19 vaccine, showed that two doses of the Pfizer shot cut symptomatic COVID-19 cases by 94% across all age groups, and severe illnesses by nearly as much. – Reuters

Megaworld’s Township Transport, PITX sign interconnection deal

Megaworld Corp.’s terminals arm Township Transport Terminal, Inc. signed a memorandum of understanding with Parañaque Integrated Terminal Exchange (PITX) for terminal interconnection, a company official said Friday.

Township Transport Terminal is expanding the operations of its Southwoods City Transport Hub through its agreement with PITX.

“Today, we are formalizing the partnership between PITX and Southwoods City Transport Hub,” Megaworld Chief Strategic Officer Mr. Kevin L. Tan said in an e- mailed statement.

The partnership should “improve” the delivery of terminal services to public utility vehicle operators and “thousands” of commuters, the company said.

It should “establish seamless connectivity” between Southwoods City Transport Hub in Biñan, Laguna and PITX in Parañaque City, it added.

Megaworld’s Township Transport Terminal currently operates transport hubs in Southwoods City, Eastwood City, McKinley Hill and Iloilo Business Park.

“More…tansport hubs will be launched in 2021 including Arcovia City, Eastland Heights, Highland City, Capital Town, Clark City Front and Maple Grove,” Megaworld said. — Arjay L. Balinbin

Roxaco sells Nasugbu properties to Sta. Lucia Realty

Roxas and Company, Inc. said on Friday that its unit Roxaco Land Corp. sold two portions of its properties in Nasugbu, Batangas to real estate developer Sta. Lucia Realty and Development, Inc.

The sale was meant to pay Roxaco’s debts and to fund the company’s working capital, the company disclosed to the stock exchange on Friday.

The sold assets are a 202,535-square-meter portion of Roxaco’s property in Brgy. Lumbangan, Nasugbu, Batangas, and a 171,876-square-meter portion of its land in Brgy. Bilaran also in Nasugbu.

The sale took place on Feb. 24, 2021.

“Sta. Lucia’s planned residential and commercial developments for the properties are expected to substantially increase the fair market value of the land bank owned by Roxaco and Roxas and Company in the adjacent areas as well as, enhance the attractiveness of Nasugbu, Batangas as a destination for other major developers and locators,” the listed company said.

Sta. Lucia Realty did not immediately respond to a query regarding its plans for the properties.

On Friday, Roxas and Company shares at the stock exchange rose 1.79% to finish at P1.14 apiece. — K. C. G. Valmonte

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