Tourist arrivals up 15.24% in 2019, breach target
INTERNATIONAL tourist arrivals reached 8.26 million in 2019, exceeding its 8.2 million full-year target, the Department of Tourism (DoT) reported on Monday. Read the full story.
EO imposes price cap on 133 medicines
PRESIDENT Rodrigo R. Duterte on Monday signed the executive order (EO) placing cap on the retail prices of 133 medicines, including those for hypertension, diabetes, cardiovascular disease and some types of cancer.
EO No. 104 sets a maximum retail price (MRP) and maximum wholesale price (MWP) for certain drugs, particularly those that “address the health priorities of the general public, especially those that account for the leading causes of morbidity and mortality.”
Also included in the list are drugs that have high price differentials compared to international prices; have limited competition in terms of lack of generic counterparts; and where the innovator product is the most expensive, yet most prescribed one in the market.
“(An) MRP and/or MWP were determined and are now imposed on select drugs and medicines totalling to 86 drug molecules or 133 drug formulas,” the EO read.
The EO listed medicines for hypertension, diabetes, major types of cancer, cardiovascular disease, chronic lung diseases, depression, pain relief, psoriasis, among others.
A 160-mg vial of Trastuzumab Emtansine, a drug used for breast cancer treatment, will have a MRP of P146,888.25 and a MWP of P104,908.18.
A film-coated tablet of 850 mg of Metformin and 50 mg of Sitagliptin, which is taken by diabetics, will have a MRP of P32.14 and MWP of P24.68.
Vortioxetine, a medication used to treat depression, will have a MRP of P99.08 and a MWP of P61.83.
Oxycodone, an opiate analgesic used for pain treatment, will have a MRP of P175.39 and a MWP P115.69 for 10 mg controlled-release tablet.
While the Pharmaceutical and Healthcare Association of the Philippines (PHAP) said it will comply with the EO, it urged the government to keep a close eye on its impact on the industry and the public.
PHAP, which has opposed price control, said “global experience had shown that artificial measures result in market inefficiencies and lack of supply.”
“If reasonable profits are not realized, pharmaceutical companies would review the sustainability of its operations in the Philippines, including the possible downsizing in the number of employees. The Philippines would also lose its attractiveness to investments. The billions of taxes they pay would also be lost,” PHAP said.
The EO will take effect once it is published in a newspaper or the Official Gazette.
“With a non-extendable period of 90 days from the effectivity of this order, existing inventory stock shall be allowed to be disposed of at prevailing prices. Thereafter, regardless of the status of existing inventory stock, MRP and MWP under the order shall be strictly implemented,” the EO said.
The list of drugs under the EO will be reviewed by the Department of Health and Department of Trade and Industry every six months.
All public and private retail outlets, including drugstores, hospitals, convenience stores and supermarkets, are required to follow the MRP of the drugs and medicines included in the EO.
Wholesalers, traders, distributors, among others, should follow the MWP of the drugs and medicines. — GMC
ARTA tells government bodies to resolve all pending applications
By Vann Marlo M. Villegas
Reporter
THE country’s anti-red tape agency has ordered all government bodies to approve pending applications before March 7 or face sanctions for inefficiency.
The Anti-Red Tape Authority (ARTA) issued on Feb. 14 a memo directing agencies of the National Government and local units to list all pending transactions and approve them automatically.
The regulator also ordered all agencies to report any actions they would take to comply with the memorandum.
“The Authority shall conduct a random post-audit to verify your compliance with this circular starting March 7, 2020,” according to a copy of the memo announced yesterday.
The regulator also asked all public offices to strictly enforce the processing periods prescribed by their charters.
But processing for simple transactions must not exceed three working days and seven days for complex transactions, according to a 2018 law that guarantees ease of doing business and efficient government service.
Highly technical applications must be processed within 20 days, the law that also created the ARTA says.
ARTA Director General Jeremiah B. Belgica said agency heads and their handling officers face administrative and criminal charges if they fail to act on applications.
“We need to make our government agencies realize that the law is here and there are no more excuses for their slow processes and inefficiencies,” he said in a briefing at the ARTA office in Makati City.
“We have given them time and options and now, we can no longer tolerate sub-par service,” he added.
Mr. Belgica noted that out of 4,667 government agencies, only 1,726 had submitted their charters for review.
The regulator, he added, was also coordinating with the Interior and Local Government department because a number of red tape incidents happen in local units.
The Office of the Solicitor General would represent the ARTA when cases are filed against government officials, he added.
Greco Antonious Beda B. Belgica, spokesman of the Presidential Anti-Corruption Commission and brother of the ARTA chief, said violators would be charged. They may also be sacked from office.
“We are now reinforcing the approach against red tape and corruption,” he said.
Agencies mentioned by President Rodrigo R. Duterte — the Social Security System, Bureau of Internal Revenue, Land Transportation Office, Land Registration Authority and Pag-IBIG Fund — will be prioritized for audit, according to the ARTA’s director general.
SEC issues draft rules for firms converting to one shareholder
By Denise A. Valdez, Reporter
THE Securities and Exchange Commission (SEC) has issued a draft memorandum circular on the guidelines for converting corporations to a one person corporation (OPC) or to an ordinary stock corporation.
The country’s corporate regulator uploaded on its website Monday its draft rules for the conversion process, which will be up for comment before its final approval.
“SEC will wait for the comments, then review the comments, finalize the guidelines, approve the guidelines,” SEC Commission Secretary Armando A. Pan, Jr. said in a text message yesterday.
This follows the introduction of single-stockholder corporations through Republic Act No. 11232 or the Revised Corporation Code of the Philippines, which took effect in February 2019.
The circular breaks down the rules in three parts: those that apply to ordinary stock corporations converting into OPCs, those that apply to OPCs converting into ordinary stock corporations, and those that apply to both.
For ordinary stock corporations converting into OPCs, the rules require that such companies submit to the SEC an affidavit of conversion discussing the sale of shares to a single stockholder, and an amended articles of incorporation, among others, to kickstart the application process for conversion.
Once the new articles of incorporation is approved through the issuance of a certificate by the SEC, the old articles of incorporation and bylaws of the company will be superseded. It may retain the same SEC company registration number, but will have an “OPC” prefix.
The single stockholder of the OPC will then be legally responsible for all outstanding liabilities of the ordinary stock corporation he/she acquired.
For OPCs converting into an ordinary stock corporation, among the documentary requirements are the notice of conversion detailing the transfer of shares to new stockholders, amended articles of incorporation and bylaws, and endorsement clearances from the SEC and other relevant government agencies.
The SEC requires that in such cases, the application for conversion must be filed within 60 days from the “occurrence of the circumstances leading to the conversion,” which it classified as the date when the shares are “actually transferred in the name of the transferees.”
Upon the SEC’s issuance of certificate of filing of amended articles of incorporation and bylaws, the OPC’s old articles of incorporation will be deemed superseded. The company will retain its SEC registration number, but will have a “CS” prefix.
Like in ordinary stock corporations converting into OPCs, OPCs that will convert into ordinary stock corporations will take all outstanding liabilities of the company it acquired.
The SEC previously said the introduction of OPCs will spur the growth of more businesses in the country as it makes the process simple for entrepreneurs to open a limited liability company.
Araneta to expand Gateway mall
By Mark Louis F. Ferrolino
Special Feature Writer
ARANETA CITY (ACI, Inc.) topped off the expansion of its Gateway Mall in Quezon City, which is expected to be operational by the last quarter of the year.
“It is the much-awaited expansion of the multi-awarded Gateway Mall opened in 2004. This is Araneta City’s greatest offering in providing an urban lifestyle destination,” ACI Management Consultant Rowell L. Recinto said during the topping-off ceremony on Feb. 11.
The expansion, called New Gateway, will feature shopping, dining, entertainment, and amenities areas, carefully designed to offer a modern and contemporary experience, Mr. Recinto said.
The 190,000-square-meter (sq.m.) mall will have eight floors that will house over 400 shops, more than 100 food establishments, 18 cinemas and a 3,700-sq.m. supermarket.
“Our shopping fare starts with the essentials and range up to high fashion with casual and activewear in between to suit the different market segments. Dining options will cater to families and friends looking for quick bites, family fare, traditional comfort food, concept restaurants, regional cuisine, and bars and lounges,” Mr. Recinto said.
Located on top of the building is a 500-seat, air-conditioned chapel that will be open to the public. A 700-square meter atrium will be also available for events.
To give guests more leisure activities, the New Gateway will also have a museum, the Gateway Gallery; an open-air Topiary Park; an air-conditioned Oasis floating park; and gardens.
“The New Gateway will offer breadth and depth of choices for fashion, dining, entertainment, night life, leisure and wellness, and gadgets and gaming,” Mr. Recinto said. “It is a mall for people on the rise; essentially, for people on the go; and, basically, just for people.”
Skybridges and footpaths will connect the New Gateway to the other areas of the “super block” Gateway Square, which includes Smart Araneta Coliseum, Novotel Manila, Gateway Tower, Parking Garage South Building, and the soon-to-open Ibis Styles Hotel.
Mr. Recinto said that mall visitors will not find parking to be a problem since a total of 3,000 parking slots will be available at the Gateway Square.
The New Gateway, according to Mr. Recinto, brings a lot of elements to the ongoing development in the Araneta City. More projects are already in the pipeline as redevelopment in the city continues, he added.
The Araneta City is conveniently accessible from Epifanio de los Santos Ave. (EDSA), Aurora Blvd. and P. Tuazon Blvd. in Quezon City, and the Metro Rail Transit Line 3 and Light Rail Transit Line 2. It also serves as a hub for different transport systems such as jeepney, utility vehicles (UV) express, provincial buses, and airport shuttle services.
M&A deal value for PCC review raised to P2.4B starting March
THE Philippine Competition Commission (PCC) has raised anew the threshold asset and transaction values for compulsory notification of mergers and acquisitions.
In a statement on Monday, PCC said that starting March 1, companies whose parent company assets exceed P6 billion and whose merger and acquisition transactions exceed P2.4 billion must notify the commission.
The thresholds were last adjusted to P5.6 billion for parent company assets and P2.2 billion for transactions in 2019.
The threshold for the parent company assets, or “size of person,” refers to the value of either the assets or gross revenues of the parent entity of at least one of the parties concerned. The “size of transaction” refers to the value of assets or revenues of the concerned entities.
The PCC in 2018 set an automatic annual adjustment of merger thresholds based on the nominal gross domestic product (GDP) growth of the previous year. The growth is based on official estimates of the Philippine Statistics Authority.
The commission explained that the adjustment ensures the thresholds maintain their real value over time and relative to the size of the economy.
Philippine nominal GDP growth in 2019 was 6.8%, according to the Philippine Statistics Authority.
PCC Chairperson Arsenio M. Balisacan said that adjusting the threshold ensures that potentially anti-competitive mergers and acquisitions are reviewed, and transactions that are unlikely to pose competition are excluded from the review.
“With the increase in thresholds streamlining the intake of notified cases, this will allow the Commission to efficiently use its resources towards other equally important elements of competition enforcement, including the conduct of cartel investigations, market monitoring and motu proprio merger review,” he said.
PCC explained in a policy statement in 2018 that economic growth and inflation increases the number of businesses that exceed the threshold if it is not adjusted. PCC said the growth in assets are due to real business expansions or increases in price.
The parties included in the deal have 30 days after the signing of agreements to notify the commission.
According to the resolution, the adjusted threshold applies until March 1 of the following year.
The commission said the new thresholds will not apply to mergers and acquisitions that have been pending for review and subject to a decision as well as notifiable transactions consummated before March 1.
The PCC said it had received a total of 200 transactions with a combined value of P3.6 trillion, of which it had approved 192 and blocked one. The most active sectors in 2019 were manufacturing, electricity and gas, finance and insurance, real estate, and transport and storage. — Jenina P. Ibañez
Parasite director Bong Joon-ho gets hero’s welcome in S. Korea
INCHEON — Parasite director Bong Joon-ho was greeted with cheers and applause as he returned to South Korea on Sunday after his historic four-Oscar win.
About 300 reporters and fans were waiting to greet Bong as he arrived at the Incheon International Airport.
“Thank you for the applause, I would like send a round of applause back to you all for coping so well with the coronavirus,” Bong said.
“I will join the effort to overcome the corona by washing my hands diligently. Happy to be home.”
Parasite became the first foreign-language film to win best picture in the 92-year history of the Academy Awards on Feb. 9.
It won a total of four Oscars, including best director and original screenplay for Bong Joon-ho and best international feature film.
The film is a tale of two South Korean families — the wealthy Parks and the poor Kims — that mirrors the deepening disparities in Asia’s fourth-largest economy and has struck a chord with global audiences.
Koreans have been celebrating for the past week.
Local cinemas and TV channels began a rerun of the film, as well as showing Bong’s other films including Snowpiercer and Memories of Murder.
Bong and the cast of Parasite are scheduled to hold a press conference on Wednesday. — Reuters
Townhouse, duplex villas offered in Southwoods City
GLOBAL-ESTATE Resorts, Inc.’s new residential project features two-storey townhouses and duplex villas within the Pahara residential village in Southwoods City.
In a statement, the subsidiary of Megworld Corp. said Upland Villas will have 65 units, composed of townhouses and duplex villas in modern and tropical architecture.
Units will have living and dining areas, kitchen, maid’s room, common bathroom, and a lanai on the ground floor, and bedrooms and bathrooms on the second floor. Each unit gets a two-slot carport.
“Set within the exclusive enclave on the hills of Southwoods City, Upland Villas is a unique residential offering where one can relax and enjoy the beauty of its natural surroundings. More importantly, since we have easily sold out the lots of Pahara, this is an opportunity to own a property within this sought-after village inside Southwoods City,” Rachelle Peñaflorida, vice president for sales and marketing, Megaworld Global-Estate, Inc., said.
Upland Villas unit owners have access to the Pahara Clubhouse and amenities, such as a swimming pool, fitness center, jogging paths, children’s playground, multi-purpose function area, yoga and reflexology garden, meditation and aromatic gardens as well as landscaped open spaces.
Residents can also enjoy the surrounding flower and herb gardens.
Upland Villas is expected to be completed in 2024.
The 561-hectare Southwoods City is located at the boundaries of Biñan, Laguna, and Carmona, Cavite.
Gov’t makes full award of T-bills as investors flock to safe havens
THE GOVERNMENT fully awarded the Treasury bills (T-bills) it offered on Monday as rates declined across-the-board, also opening its tap facility to sell more one-year papers amid strong demand.
The Bureau of the Treasury (BTr) raised P20 billion in T-bills yesterday after its offer was almost four times oversubscribed, with total bids reaching P78.3 billion.
Broken down, the government accepted P6 billion via the 91-day papers as planned from total bids of P21.798 billion. The three-month papers fetched an average rate of 3.072%, down by 4.3 basis points (bps) from the 3.115% quoted in the auction last week.
The Treasury raised another P6 billion as programmed via the 182-day papers from total tenders amounting to P20.792 billion at an average rate of 3.42%, which was 4.1 bps lower than the 3.461% yield last week.
For the 364-day T-bills, the government accepted P8 billion as planned at an average rate of 3.836%, also lower by 7.2 bps from the 3.908% fetched the previous week.
Following the auction, National Treasurer Rosalia V. de Leon said they opened the tap facility to offer another P8 billion in one-year T-bills to accommodate the strong demand for the tenors, which reached a total of P35.755 billion yesterday.
At the secondary market’s close on Monday, the 91-, 182- and 364-day T-bills fetched rates of 3.181%, 3.433% and 3.889%, respectively.
“Going into the auction, it is the result of, first, the lingering concerns on COVID-19 (coronavirus disease 2019), of course, we’ve seen rates going down from the revision of the outlook of Fitch [Ratings] from stable to positive,” Ms. De Leon told reporters after the auction on Monday.
A bond trader said the lower rates fetched for the T-bills at the auction were within expectations as the market continues to have strong demand for the short tenors.
“Also, the market got excited again because of the pronouncement of BSP (Bangko Sentral ng Pilipinas) Governor Benjamin E. Diokno for another rate cut in the second quarter. I think those are the expectations. They see the flight to safe havens, and of course that’s the Treasury bonds. So we are seeing that our liquidity is going back to government securities market.
Mr. Diokno said last week that the central bank may cut rates by another 25 bps as early as the second quarter to shield the economy from the effects of the COVID-19 outbreak and as it continues to dial back the 175 bps worth of hikes done in 2018.
The BSP’s policy-setting Monetary Board will have its second rate-setting meeting for the year on March 19. At its meeting on Feb. 6, it already reduced benchmark interest rates by 25 bps.
The rates on the BSP’s reverse repurchase, overnight lending and deposit facilities now stand at 3.75%, 4.25%, and 3.25%, respectively.
Last year, the central bank eased policy rates by a total of 75 bps amid slowing inflation.
DOMESTIC BORROWINGS
Meanwhile, Ms. De Leon said they are focusing on domestic borrowings right now as they are still monitoring the global bond market amid the virus outbreak.
“Given lingering concerns on the outbreak, I think it is still very tepid for the moment in terms of other issuances. But we’re seeing US Treasuries go down… [we might do other offshore issuances] kapag medyo na-reduce na ’yung concerns sa COVID-19 (when concerns over COVID-19 subside)… We can still tap the onshore peso [market],” Ms. De Leon said.
The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via Treasury bonds. — BML
SM Prime malls, residences drive 18% profit rise
EARNINGS of SM Prime Holdings, Inc. in 2019 rose 18% to P38.1 billion, driven by the sustained growth of its mall and residential network across the country.
In a statement Monday, the Sy-led property developer reported double-digit growth in its consolidated net income amid a 17% increase in its consolidated operating income to P56.7 billion.
The company’s total revenues last year also climbed 14% to P118.3 billion, fueled by the robust growth of its mall operations and residential developments.
By business segment, revenues from SM Prime’s mall business increased 8% to P57.8 billion, coming from a 7% same-mall-sales growth across its network. Same-mall-sales growth is SM Prime’s measure of growth in its existing malls.
Sales from cinema and event tickets also climbed 6% to P5.5 billion last year, while revenues from amusement, merchandise sales and others grew 15% to P3.9 billion.
SM Prime closed the year with 74 malls in the Philippines totaling 8.5 million square meters of gross floor area (GFA), and seven malls in China with 1.3 million square meters of GFA.
The residential business of SM Prime, which is handled by SM Development Corp. (SMDC), saw a 24% jump in revenues to P45.2 billion. This came from a 17% increase in consolidated costs of real estate sales to P20.8 billion and a 39% rise in operating income to P17.1 billion.
The company traced the growth to higher construction accomplishments in its projects last year, further boosted by the fast take-up of its ready-for-occupancy projects in Pasay City and Makati City.
SMDC closed the year with P90 billion in reservation sales, a 24% rise from a year ago. This translates to an 11% increase in unit sales to 23,424 units.
Other business segments had a combined revenue of P9.6 billion last year, up 14% year-on-year. This includes revenues from SM Prime’s Commercial Properties Group and SM Hotels and Convention Centers, which grew due to the full-year contribution of ThreeE-Com Center office building in Pasay City and the opening of NU Mall of Asia and Park Inn by Radisson hotels in Iloilo and Quezon City last year.
By the end of 2019, SM Prime had 12 office buildings with a GFA of 695,000 square meters, eight hotels with more than 1,900 rooms, four convention centers and three trade halls.
“SM Prime’s continuous growth was brought about by our strategic expansion in the country’s developing cities. We look forward to 2020 as we strengthen our presence in more key areas in the Philippines through sustainable integrated property developments that have great potential to further contribute to the growth of the overall economy,” SM Prime President Jeffrey C. Lim was quoted as saying in the statement.
For 2020, SM Prime is scheduled to open three to five new malls in key provincial cities, along with 15,000 to 20,000 residential units varying from high-rise and mid-rise buildings and single detached house and lot projects.
It is also targeting to launch the first tower and podium of FourE-Com Center in Pasay City, translating to 110,000 square meters of additional GFA. It will open a Park Inn by Radisson hotel in Bacolod and expand the Park Inn by Radisson in Clark within the year, along with the opening of SMX Clark and Olongapo City Convention Center.
Shares in SM Prime at the stock exchange were flat at the close of Monday’s trading at P41.70 apiece. — Denise A. Valdez
Embattled R. Kelly accused of sex with teen in 1990s
SINGER R. Kelly, already facing trial in three states on sexual abuse, child pornography, kidnapping, and obstruction of justice charges, has been hit with an updated indictment in Chicago stemming from a newly identified victim, court documents showed on Friday.
The superseding indictment, filed in US District Court in Chicago, identifies the latest accuser only as “Minor 6” and charges Kelly, 53, with engaging in sexual acts with her in the late 1990s, when she was 14 or 15 years old.
The new charges also seek forfeiture of assets from the Grammy-winning R&B performer’s production company and a separate firm owned by his manager Derrel McDavid, a co-defendant in the Chicago case.
A victim previously included in the indictment and known as “Minor 2” was removed from the charging documents for reasons that were not made clear.
“We are aware of the superseding indictment. We continue to fight for him and look forward to the day he is free #notguilty #rkelly,” the entertainer’s criminal defense lawyer, Steve Greenberg, said on Twitter.
“The superseding indictment was expected and does not change our position. We look forward to taking this matter to trial,” McDavid’s attorney, Vadim Glozman said.
Kelly has pleaded not guilty to all criminal charges filed against him in New York, Illinois, and Chicago.
The entertainer, best known for such hits as “I Believe I Can Fly” and “Bump N’ Grind,” has faced sexual abuse allegations dating back more than two decades. Some of those accusations were detailed in a Lifetime documentary, Surviving R. Kelly first broadcast in January 2019.
Federal prosecutors in New York have also charged Kelly with running a criminal scheme in which women and underage girls were recruited to have sexual activity with him.
In that case Kelly is accused of bribing an Illinois official in August 1994 to obtain a fake identification for the singer Aaliyah so they could get married.
Kelly was then 27 and Aaliyah was 15, but according to published reports their marriage license listed Aaliyah’s age as 18. The marriage was annulled in 1995. Aaliyah died at age 22 in a 2001 plane crash in the Bahamas.
Prosecutors in the Chicago case charged Kelly last July with engaging in sex acts with five minors, recording some of the alleged abuse on video, and using threats to keep victims quiet.
Kelly was also charged last February by Illinois state prosecutors with aggravated sexual abuse, and last August by Minnesota state prosecutors with soliciting sex from a minor.
In 2008, Kelly was acquitted at trial on state child pornography charges in Illinois. — Reuters
Megawide, 8990 Holdings break ground for new Cubao condominium
MEGAWIDE Corp. and 8990 Holdings, Inc. last week broke ground for a new condominium project in Cubao, Quezon City.
“We are proud to be working with 8990 Holdings, Inc. on their latest project, Urban Deca Towers Cubao. We are grateful for their continued trust in Megawide and we are committed to providing first-world construction solutions to meet their standards,” Eric Tan, Megawide deputy head of construction, said in a statement.
Urban Deca Towers Cubao is a 45-storey building with 2 basement levels, and will have both commercial and residential units. It is located on EDSA corner Mayor Ignacio Santos Diaz St., within close proximity to the MRT-3 Cubao Station and LRT-2 Araneta Center Cubao Station.
Mr. Tan said Urban Deca Towers Cubao will be built mainly with Megawide’s proprietary precast and formworks technologies.
Megawide and 8990 have also worked together on Urban Deca Homes Ortigas, which marked a milestone as it recently topped off the first building of its 22-tower residential condominium development.
Urban Deca Homes Ortigas is located on a 13-hectare property along Ortigas Avenue Extension, Barangay Rosario, Pasig City.
8990 Chairman Mariano D. Martinez said this is the developer’s largest project so far.
Once completed by 2024, the development will have a total of 19,046 units. The condominiums have two-bedroom and three-bedroom units ranging 35.57 square meters (sq.m.) to 42.07 sq.m.
“We want to make commuting easier for them as this is conveniently located near business establishments and even schools so it’s ideal for young professionals and small families,” Mr. Martinez said.