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Congress to expedite AMLA changes

By Charmaine A. Tadalan, Reporter
and Kyle Aristophere T. Atienza

CONGRESS is set to expedite the approval of a bill strengthening the anti-money laundering law, after President Rodrigo R. Duterte certified it as urgent.

This as the Philippines risks being included in the gray list of the Financial Action Task Force (FATF) if it fails to make the necessary changes to Republic Act No. 9160 or Anti-Money Laundering Act (AMLA) of 2001 before February 2021.

“The House will see to it that the measure which aims to curb the cost of doing financial transactions of our overseas Filipino workers and the business sector, will be approved expeditiously once plenary sessions resume next month,” Speaker Lord Allan Q. Velasco said in a statement.

House Bill 6174 was approved by the House Committee on Banks and Financial Intermediaries last March. Quirino Rep. Junie E. Cua, who chairs the panel, said the bill will be up for second reading approval when session resumes on Nov. 16.

“The committee report had been completed long ago, we are waiting for it to be scheduled by the committee on rules once the session resumes,” Mr. Cua told BusinessWorld over the weekend.

“It is in compliance with the standards set by the FATF to improve the effectiveness of anti-money laundering laws all over the world, that’s why our proposed amendments also include tax crime as a predicate crime. It is to improve tax collection. In addition, it includes the violation of Strategic Trade Management Act,” he added. 

Senator Grace S. Poe-Llamanzares, who chairs the Committee on Banks and Financial Intermediaries, said they will “immediately” act on the measure, with “efficiency without sacrificing transparency and quality of the discussions.”

“The Anti-Money Laundering Act amendments will also be heard and sponsored immediately so that it can go to the floor as well,” she said in a phone message on Sunday.

Senate Bill No. 1412, authored by Ms. Poe-Llamanzares, and two other bills amending the AMLA, are still pending at the committee level.

The amendments were among the recommendations of the FATF, which sets the standard for measures against money laundering and terrorist financing.

The Philippines was originally given until October to address deficiencies in the anti-money laundering law, but this was extended by the FATF to February 2021 due to the pandemic.

Mr. Duterte certified the urgency of the proposed anti-money laundering law amendments, and the bill allowing financial institutions to offload bad loans to asset management companies (AMC).

“Such compliance will avoid adverse findings against the country which could lead, among others, to increased costs of doing financial transactions, to the prejudice of the business sector and our overseas Filipino workers,” Mr. Duterte said in letters sent to Senate President Vicente Sotto III and Speaker Velasco on Oct. 16.

Among the proposed changes include allowing the Anti-Money Laundering Council (AMLC) to investigate suspicious transactions, upon its own determination. AMLC may also interview witnesses, conduct surveillance undercover investigations, and court-approved searches and seizures.

The council may also subpoena persons and documents relevant to the investigation as well as implement targeted financial sanctions, such as freezing assets either directly or indirectly owned by individuals identified by the United Nations Security Council.

The AMLC may also preserve, manage and dispose of assets and prohibit any court from issuing a temporary restraining order. Further, it will now include among the covered persons real estate developers and brokers with single transactions involving at least P1 million.

Meanwhile, House Minority Deputy Leader and BayanMuna Rep. Carlos T. Zarate raised concern over the proposed changes to the AMLA, saying this would intensify the attacks against activists and critics as the government is set to publicize the list of designated terrorists.

“This proposed law will be weaponized by the Duterte regime in the coming days and months. The law complements the Anti-Terrorism Law (ATL), especially now that the government is about to release the names of so-called terrorists,” Mr. Zarate said.

PSE’s new listing rules may attract tech firms

By Denise A. Valdez, Senior Reporter

THE Philippine bourse operator’s proposal to ease listing requirements may encourage new technology-based companies to go public despite the coronavirus pandemic.

April Lynn C. Lee-Tan, vice-president and head of research at COL Financial Group, Inc., said the Philippine Stock Exchange, Inc.’s (PSE) efforts to relax listing requirements may attract tech firms that are thriving as consumption habits have become more digital.

“Most likely (to go public are) new companies with disruptive type of businesses that will thrive under the new normal. This includes mobile wallets, food delivery businesses, online shops, etc.,” she said in an Oct. 12 e-mail to BusinessWorld.

The PSE, which lists mostly traditional businesses, said the ongoing quarantine restrictions continue to dampen investor sentiment. The PSE index (PSEi) has fallen to 5,898.47 as of Friday from starting the year at 7,742.53.

“Companies with traditional businesses (banks, property, retail, restaurants) are more vulnerable to the pandemic. Because of this, their earnings will be weak and investors don’t want to buy them,” Ms. Tan said.

“[Y]ou have to look at the performance of the stock market in other countries to appreciate that the strong performers are those that are involved in businesses that continue to grow despite the pandemic,” she added.

Ms. Tan cited the US stock market as an example, noting that online retail giant Amazon.com, Inc. and other tech companies have continued to do well this year. 

“Although the S&P 500 is strong, if you remove the tech issues, the performance of the index is much weaker,” she said.

In a presentation during a virtual forum on Oct. 7, Ms. Tan showed that Asian stocks with higher exposure to the tech sector were more resilient through the pandemic than those with less or none.

Citing data as of Oct. 5, she said China’s SZCOMP (+24.7%), South Korea’s KOSDAQ (+28.2%) and Taiwan’s TWSE (+4.6%) have outperformed the Philippines’ PSEi (-24%), Indonesia’s JCI (-21.3%) and Thailand’s SET (-21.2%). Exposure to tech stocks was greater for those that did better (China 23.2%, South Korea 34.6%, Taiwan, 51.8%) than those that didn’t (Philippines 0%, Indonesia 0.3%, Thailand 1.2%).

But this may change, as the PSE’s proposed amendments to the listing rules may see more initial public offerings (IPO) from the tech sector which has been growing in recent months.

The bourse operator is proposing to remove the P500-million minimum market capitalization requirement (for the main board) and the requirement of a positive EBITDA (earnings before interest, taxes, depreciation and amortization) in at least two of the last three fiscal years before a filing application (for the small and medium enterprises board).

“[I]f Instapay and Pesonet were companies that could list, they would be popular. GCash and PayMaya would also be popular IPOs,” Ms. Tan said.

Globe Fintech Innovations, Inc. (Mynt), the operator of GCash, said it is open to doing an IPO but there is no specific plan at the moment.

“The Mynt management team’s goal is to provide value to its stakeholders including our customers and shareholders. This may be done through value accretion as a private company or through a public offering,” Martha M. Sazon, chief executive officer of Mynt, said in an Oct. 16 e-mail to BusinessWorld.

“[O]ur focus at the moment is to continuously innovate and develop relevant use cases for the consumers… Whether this path leads to an IPO is something we can talk about in the future,” she added.

She noted the tech industry is seeing “exponential growth” during the pandemic, and activity has not dipped despite the relaxation of quarantine rules over the past months.

“[M]ore users now recognize the importance of digital services in their daily lives,” Ms. Sazon said.

Voyager Innovations, Inc., the operator of PayMaya, declined to comment

The PSE is currently evaluating comments from stakeholders on its draft amendment to the listing rules, after which it will finalize the proposal and submit it to the Securities and Exchange Commission for approval.

BusinessWorld Economic Forum goes online

BUSINESSWORLD, the country’s leading business newspaper, will gather over 40 local and international speakers at its annual flagship and award-winning event, the BusinessWorld Economic Forum, to discuss the great economic reset and the future in a post-coronavirus era.

The BusinessWorld Virtual Economic Forum, scheduled on Nov. 25 to 26, 2020, focuses on the theme — “Forecast 2021: ReBoot. ReThink. ReShape.” The two-day online forum will feature keynote speeches, conversation panels, fireside chats, breakout sessions, “ask the expert” talks, virtual exhibits, and business networking opportunities.

Invited keynote speakers are Borge Brende, president of the World Economic Forum, who will talk about the “Great Reset”; Dr. Bernardo Mariano, Jr., chief information officer of the World Health Organization, who will tackle “Accelerating Healthcare Reforms and Innovations”; Ndiame Diop, country director for Brunei Darussalam, Malaysia, the Philippines and Thailand of the World Bank, who will discuss “What Lies Ahead: Economic Growth Prospects”; and Kelly Bird, country director of the Asian Development Bank, who will talk about “Innovation in the Time of COVID.”

Top global leaders and business executives will lend their perspectives in The Conversation Panel – Responding to the Pandemic; and The CEO Panel – Valuable Leadership and the Country’s Road to Recovery.

The forum will also feature fireside chats with prominent experts and corporate leaders, including Jean-Antoine Zinsou, country manager of Sanofi Pasteur Philippines; Cezar P. Consing, president and CEO of Bank of the Philippine Islands; Felino A. Palafox, Jr., principal architect-urban planner of Palafox Associates; Francisco G. Dakila, Jr., deputy governor, Monetary and Economics Sector of the Bangko Sentral ng Pilipinas; James Matti, head of Willis Towers Watson Philippines; and Satish Shankar, regional managing partner of Bain & Company Asia Pacific.

In various breakout sessions, industry leaders will share their outlook on travel and tourism; e-commerce and logistics; marketing; IT and cybersecurity; transportation; agriculture; digital transformation; and digital payments in a post-COVID era.

“Ask the Expert” sessions will feature Kristine Romano, managing partner of McKinsey & Company, Philippines; and Anthony Oundjian, managing director and senior partner of Boston Consulting Group.

Held annually since 2016, the BusinessWorld Economic Forum serves as a platform for industry leaders and key figures in the society to tackle key issues and challenges affecting the country.

BusinessWorld Virtual Economic Forum is presented by BusinessWorld Publishing Corp., with co-presentor LT Group, Inc.; gold sponsors BDO, San Miguel Corp., SM Investments Corp.; silver sponsors Alveo and Meralco; and bronze sponsors Ayala Corp., First Gen Corp., and SGV & Co.

The event is open to BusinessWorld subscribers, readers, and the public. To register and for more information about the program and the access passes available, visit www.bworldonline.com/BWVirtualEcoForum. Attendees can get free or discounted copies of the latest digital issues of BusinessWorld In-Depth.

For inquiries and sponsorship opportunities, call BusinessWorld marketing at 8535-9901 or e-mail to marcom@bworldonline.com.

Airlines expect a boost from tourism reopening

By Arjay L. Balinbin, Senior Reporter

STRUGGLING local airlines are expecting to get a much-needed boost from the reopening of travel agencies and tour operators, as well as the lifting of the ban on non-essential foreign travel by Filipinos.

“We believe this is a step towards our overall objective to return to normal operations. Rest assured we will continue to work with the government so we may have more businesses reopen safely, generate jobs, and eventually enable our country to recover,” Candice A. Iyog, Cebu Pacific vice-president for marketing and customer experience, told BusinessWorld in a phone message over the weekend.

Cebu Pacific is accelerating digitalization efforts and maximizing all available resources to keep operations running in the new normal and improve efficiency of services, Ms. Iyog said.

The government has allowed travel agencies, tour operators, reservation services and related activities to resume operations at 50% capacity for areas placed under general community quarantine (GCQ) and at 100% capacity for areas placed under the modified GCQ (MGCQ).

The ban on non-essential foreign travels by Filipinos will also be lifted starting Oct. 21.

“The reopening of related sectors in travel will of course fuel business activity and stimulate travel. As such the overall effect is positive,” Philippine Airlines (PAL) Spokesperson Cielo C. Villaluna said in a mobile message.

Philippines AirAsia, Inc. said the reopening of travel sectors is a step towards revitalizing the tourism industry as it reels from the impact of the coronavirus pandemic.

“To boost the restart of the local economy, there must be a parallel support in increasing domestic connectivity through air travel, the safest means of public transport in an archipelagic country such as the Philippines,” Philippines AirAsia said in a statement sent to BusinessWorld on Saturday.

The low-cost airline added it would also be more prudent to explore and support the implementation of polymerase chain reaction (PCR) antigen testing “coupled with collaborative efforts from the national government, local governments and airline companies.”

“From our end, we continue to reassure the safety of our flying public from ground handling, in flight and disembarkation at point of destination, observing the highest level of health protocols,” Philippines AirAsia said.

Fitch Ratings has said it does not expect airlines to bounce back to their pre-pandemic passenger volume next year because of the continuing spread of the coronavirus disease 2019 (COVID-19). The forecast is based on the assumption that a COVID-19 vaccine or treatment would not be widely available in 2021.

It said the Philippines will see average revenue passenger kilometers (RPK) levels at 35% of the baseline in 2020 and 60% in 2021.

Philippine Airlines, operated by PAL Holdings, Inc., ferried 16.8 million passengers last year while Cebu Pacific, operated by Cebu Air, Inc., carried 22.5 million passengers. Philippines AirAsia carried 8.55 million passengers in 2019.

The Health department on Sunday reported 2,379 new confirmed coronavirus infections to bring the total tally to 356,618 cases.

Toyota sees ‘earlier’ sales recovery

By Jenina P. Ibañez, Reporter

TOYOTA Motors Philippines Corp. (TMP) is expecting slightly higher overall sales for 2020 than its mid-year projection of a 40% decline, after a recent sales uptick.

The company had earlier expected to sell around 94,000 to 95,000 units compared to last year’s 162,000, but recent trends suggest that 2020 sales could reach around 100,000 units, TMP President Atsuhiro Okamoto said in an online press conference on Saturday.

“Recovery speed is a bit earlier than we assumed at the time,” he said, noting that September sales recovery was higher than the preceding months.

TMP remained the market leader in September with a 43.46% market share as sales declined 20.8% compared with the same month last year, data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) showed.

Sales declined 38.5% in August, and fell 37.4% in July.

Car companies usually experience a sales jump starting in September due to the upcoming holidays.

“In quarter four, after October, we also project, our projection is around 80% versus last year. That means in theory, our sales projection is around 100,000. That is our latest yearly sales target,” Mr. Okamoto said.

Meanwhile, TMP First Vice President and CAMPI President Rommel R. Gutierrez said that the industry had reached out to the government about adjusting the compliance period for an incentive program created to support local car and parts production.

TMP and Mitsubishi Motors Philippines Corp. are participating in the Comprehensive Automotive Resurgence Strategy (CARS) program, which offers fiscal support to car companies that locally produce 200,000 units of high-volume car models for six years.

But Mr. Gutierrez had previously said that the companies want the government to extend the compliance period, noting that they may not be able to meet the production target after a sales slowdown caused by the pandemic and the Taal Volcano eruption earlier this year.

In the press conference on Saturday, Mr. Gutierrez said that they had initiated talks with the government.

“While we don’t have [a] conclusion yet, the result of the meeting was positive in the sense that government also understands the difficulty in complying with the volume requirements of the CARS program. So, we will continue to discuss with government in kind ways in order to comply or even make some adjustments in the terms and conditions of the CARS program,” he said.

The Board of Investments in August said it might consider extending the compliance period, requesting the carmakers to submit proposals.

Sales of locally manufactured cars fell by 23% in September, the slowest pace of decline since the lockdown was imposed in March.

PH Resorts prices follow-on shares; analysts weigh in

By Denise A. Valdez, Senior Reporter

PH RESORTS Group Holdings, Inc. may attract more investors in its follow-on public offering after pricing its shares at P1.68 each, but worries over the tourism industry’s recovery is likely to remain a concern for some.

The gaming and hospitality firm of businessman Dennis A. Uy has priced its shares at the lower end of its P1 to P2.50 per share price range, the Philippine Stock Exchange (PSE) said in a Friday disclosure.

PH Resorts will be doing a follow-on offering of up to 450 million common shares starting Wednesday until Oct. 28. With the final offer price, the company may generate up to P756 million from the offering.

“The price is rather attractive, however with current market conditions, investors will be considering whether the gaming industry will make a swift recovery should they partake,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

PH Resorts is doing an offering to generate funds that will support its resort project in Mactan, Cebu, the Emerald Bay casino and hotel.

“For the tourism & leisure industry, this business continues to suffer with limited operations due to the pandemic. Though restrictions have eased, operations are still [limited],” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

“At P1.68 per share, this is an attractive price for long term prospects, while short term [prospects] will continue to suffer a negative sentiment among investors,” he added.

PH Resorts recorded an attributable net loss of P277.07 million in the first six months of 2020, expanding from P169.15 million last year, as it temporarily closed its Panglao resort amid the coronavirus pandemic.

Emerald Bay, the company’s flagship project for which the proceeds of its follow-on offering will be used, aims to do a soft opening by end-2021. The project will feature 146 gaming tables, 729 electronic gaming machines, 780 hotel room bays and five villas.

“Despite the ongoing COVID-19 (coronavirus disease 2019) pandemic, we are confident that the Philippine tourism and gaming industry will be on the road to recovery when Emerald Bay opens,” Mr. Uy said in a previous statement.

PH Resorts engaged Unicapital, Inc. and Abacus Capital & Investment Corp. as lead underwriters for the follow-on offering. It has set the tentative listing date of the shares on Nov. 5.

All is fair with ArteFino

The popular fair whose theme is “mindfully made, thoroughly chosen” goes online

EVEN craft and fashion fairs have had to give way to a pandemic. Considering the scores of people who once enjoyed the unique finds at ArteFino, the same model might find itself an object of fear. Last week, ArteFino launched its new face: a 24/7 online shopping platform.

The website, shopartefino.com, features ArteFino favorites like Lara, Casa Mercedes, Happy Andrada, Jor-El Espina, and many others. There are sections on Home and Living, Fashion, Jewelry, Bags, Accessories, Footwear, and Kids, and an entire section on Protective Wear which includes inabel masks and a cunning PPE kimono. Basically, it’s having the ArteFino experience on your screen, whenever you want.

In a webinar on Oct. 15, Marimel Francisco, ArteFino cofounder, talked about how they set up the website. “The reimagining behind the scenes didn’t happen overnight, and was oftentimes intense. Given the logistical challenges we all experienced when the lockdown measures were set in place, we’ve all had to pivot.”

The usual three-day shoot for a catalogue became a virtual shoot. “The team [was] guiding the brands on angles, lighting, and styling; all via Zoom. You can imagine what a challenge that was,” said Ms. Francisco.

Cedie Lopez-Vargas, also co-founder of ArteFino, had time to think about what  shopartefino.com should stand for, and in a speech during the same webinar, she listed: the home as sanctuary, a slower, gentler, kinder world; and ‘technology that enables a productive life even while on lockdown.” She also noted that what was important was “the rise of the mindful consumer in support of local and inclusive social enterprise, a minimal carbon footprint, and a preference for sustainably produced, upcycled, or regenerative materials.”

Even prior to the pandemic, it seemed practical to have an online platform for a venture like ArteFino. “This online platform was something that we were mulling over for maybe two years already. We always get really busy with the physical fair, so it kind of took a backseat,” said Ms. Lopez-Vargas in a call to BusinessWorld. “What happened was this lockdown and pandemic; and the downturn in the economy, and everything else that happened together with it. It turned this into an imperative.”

While she said that nothing replaces the energy of the physical fair, she did say, “I don’t have the distractions of the marketplace. You’re able to look at items one by one, at leisure, on demand. You’re able to focus.”

That’s a plus for the shopper, and also for the artisans who supply the fair. She pointed out that before, they had to have huge stocks for a three-day weekend in August. “Now that it’s 24/7; the whole year round, you can produce in limited quantities. Artisanal crafts, by their very nature, take long, and are difficult to produce.”

For the shift online, Ms. Lopez-Vargas, Ms. Francisco, and their co-founders Susie Quiros, Mita Rufino, and Maritess Pineda didn’t only have to think of how to do it but also why it should be done. “When we decided to go online, I started to think about things. Will we still be relevant online? What is the value that we bring with our online presence? What will we look like?,” said Ms. Lopez-Vargas.

“We always have these talks about ArteFino trying to be a relevant platform for showcasing heritage, but at the same time, [that it is a] social enterprise,” she said.

Speaking about how the shopartefino.com website will fit into the new world, Ms. Lopez-Vargas said, “We saw that it is a pared-down sensibility; a pared-down lifestyle for everyone. Quieter, gentler, and [there is] this vibe of trying to create a kinder world all around you.”

Still, the fair’s founders could have just shrugged their shoulders and said, “Sorry, the pandemic canceled the fair.” Why was ArteFino worth doing — and saving? Ms. Lopez-Vargas already discussed ArteFino as a platform for heritage and Filipino craftsmanship, and went on to explain its role for the economy: “We’re quite strong in the push for using social enterprise as a backbone for nation-building. We’re pushing up the economy that’s at a very low point. When they talk about MSMEs, they make up about 90% of the economy. That’s what’s driving it. If there is no push, no stimulus: where will we all be? And then all these crafts will die.”

“As citizens, you have to be able to do something. We are in the position to do something about it. That’s why we decided to move forward.” — Joseph L. Garcia

Megawide signs new contracts with PHirst Park

LISTED Megawide Construction Corp. has bagged three contracts to build more than 4,700 row housing units for a subsidiary of Century Properties Group, Inc.

In a statement over the weekend, the company said it has signed new contracts with PHirst Park Homes, Inc., the affordable housing unit of Century Properties, to construct houses in San Pablo and Calamba, Laguna and Pandi, Bulacan.

The company will use precast technology for the project, which allows it to pre-build parts of the construction before the final put-up.

“Utilizing precast for our partnership with PHirst Park raises the bar on residential development. Megawide Precast delivers higher standardization and stability compared with conventional construction methodology and traditional concrete,” Markus Hennig, executive vice-president for business units at Megawide, said in the statement.

Megawide is using precast technology to adapt to safety protocols demanded by the coronavirus pandemic. By pre-building parts of a construction, it allows projects to proceed with less manpower to maintain physical distancing among workers.

The company had previously been tapped by PHirst Park for its ongoing housing projects in Tanza, Cavite and Lipa, Batangas. Including the new contracts, Megawide’s pipeline of deliverables to PHirst Park has reached more than 9,400 housing units across five locations.

“At PHirst Park, we guarantee quality yet affordable housing to first-time homeowners and families in safe and secured environments. Megawide has been our partner since 2018 and we look forward to more homes engineered with innovation because it adds value to what we both continue to uphold,” PHirst Park President Ricky M. Celis said in the statement.

Revenues from construction contracts contributed the largest chunk to Megawide’s gross revenues during the first six months of 2020, reaching P4.88 billion, albeit 21% lower from last year.

Its gross revenues fell 21% to P6.44 billion, resulting in an attributable net loss of P397.91 million, a turnaround from last year’s P585.86 million profit.

Aside from construction contracts, Megawide gets its revenues from airport, airport merchandising, and terminal operations. Shares in the company at the stock exchange closed at P6.95 apiece on Friday, down nine centavos or 1.28% from the last session. — Denise A. Valdez

Is Kia PHL on the verge of a Stonic boom?

 

Expectations are high for the feature-packed sub-P1-M crossover

LAST THURSDAY, Ayala Group-led Kia Philippines launched what it foresees to be one of its game-changing product offerings — its new, stylish and iconic Kia Stonic. The 2021 Stonic is a subcompact crossover that has won several design awards — such as the Red Dot Award — and promises to be easy to drive and maintain, making it an attractive option for first-time buyers.

“The launch of the Stonic is a key milestone for Kia in the Philippines,” remarked Antonio “Toti” Zara III, the new president of the AC Motors automotive business unit. He also shared how the new challenges brought about by the pandemic have become opportunities for Kia to redefine how things are done in the Philippines, and expressed how they are very excited to move forward.

Kia Philippines’ digital transformation had already begun a few years ago, and the current situation has only further boosted this movement and expedited its measures. As a matter of fact, Kia Philippines already invites customers to come visit its virtual showroom.

Interested customers can already check out the trendy, lifestyle features of the new Kia Stonic. The subcompact crossover is undeniably chic, with its signature tiger nose grille and trendy colors. Its roof rails on top give it the versatility to transport the extra equipment of more adventurous customers; and its 60:40 split rear seats can fold completely flat to accommodate bulky baggage. Customers can enjoy a commodious 325 liters of boot space with the seats fully upright.

Kia Philippines President Manny Aligada said that the Stonic is geared for “millennials and those hitting the road for the first time.”

Inside the cabin is a convenient eight-inch touchscreen infotainment display with Android Auto and Apple Carplay compatibility. Six speakers are ready to bring long road trips to life with the driver’s favorite music.

The Stonic is 4,100-mm long, 1,735-mm wide, and 1,532-mm high; its 2,570-mm wheelbase affords its occupants roomy legroom and comfortable cabin space. But perhaps one of its most favored assets is its 185-mm ground clearance — enough to provide greater confidence on stormy, flooded days.

The 2021 Kia Stonic is powered by a thrifty 1.4-liter dual CVVT engine mated with either a five-speed manual or a six-speed automatic transmission. The manual variant can generate up to 95ps of power, while the automatic variant can afford up to 100ps.

The top-of-the-line variant is the Stonic EX, which already has LED daytime running lights, a rear parking sensor, rearview camera, and some extra safety features such as electronic stability control (ESC) and hill-start assist — all exclusive to the EX.

Until the end of November this year, the Kia Stonic is available at introductory prices of P675,000 for the LX MT, P785,000 for the mid-range automatic (LX AT), and P875,000 for the top-grade EX AT.

Kia Philippines started 2020 with a 30-dealer network and, despite the circumstances, has managed to grow its number of dealerships to a total of 38 facilities operating by the end of the fourth quarter of 2020, in key locations.

Groups want MGen coal plant project’s ECC declared expired

VARIOUS anti-coal groups have asked the government to declare the expiration of the environmental compliance certificate (ECC) of Meralco Powergen Corp.’s (MGen) large coal power plant project in Quezon province as its construction was supposedly delayed for five years.

Petitioners, including sustainability think tank Center for Energy, Environment and Development (CEED), filed a motion with the Department of Environment and Natural Resources (DENR) to declare the power developer’s ECC as expired five years since it was issued.

They claimed their opposition to the power plant, under MGen subsidiary Atimonan One Energy, Inc. (A1E), “effectively delayed the implementation of the project.”

“A delay of more than five years implicate changes [in] the project’s baselines. Are environmental, social, economic considerations five years ago still true? This should prod the revocation of A1E’s ECC,” said Aaron Pedrosa, one of the petitioners’ legal counsel and secretary-general of Sanlakas.

“Given the five-year effectivity period of ECCs, the DENR should now declare the ECC of the power plant expired,” Avril De Torres, another legal counsel and CEED research head, said.

But according to MGen, its unit’s project, was recently certified by the DENR as an ongoing project.

“The company holds a certification dated May 22, 2020 from the DENR that states A1E already commenced project implementation,” the company told BusinessWorld in a message.

The Environment department issued the compliance certificate to A1E on Oct. 13, 2015 for its 1,200-megawatt (MW) coal-fired generator. It was declared an energy project of national significance by the Department of Energy.

Based on the procedural manual of the DENR-Environmental Management Bureau (EMB), an ECC “automatically expires” if a project has not been implemented within five years from its issuance.

It also states that “once a project is implemented, the ECC remains valid and active for the lifetime of the project.”

“A1E assures its compliance (with) all the conditions of its ECC,” MGen, the power generation arm of utility giant Manila Electric Co. (Meralco), said.

“The company completed environmental impact studies for the project and all potential impacts to air, water, land, and people have respective management and mitigation plans to address these impacts to international standards and best practices,” it added.

Coal remains the predominant power source in the country, making up 54.6% of the total 106,041 gigawatt-hours of electricity produced in 2019.

As of August, there are a total of 3,436 MW of new, committed coal projects, based on data from the Energy department.

A1E targets the commercial run of its coal plant by the second quarter of 2024. — Adam J. Ang

Ayala Malls honors 39 ‘changemakers’ 

FROM organizers who raised donations for food, personal protective equipment (PPEs), and gadgets for distance learning, to a nurse who helped a homeless woman give birth on the street, the Ayala Mall’s Extra Miles campaign is honoring everyday individuals as Changemakers — those who have shown exemplary acts of altruism amidst the pandemic.

Inspired by the spirit of bayanihan, Ayala Malls began the Extra Mile campaign — now on its 16th year — as a way to honor its employees and has since gone beyond to honor more Filipinos in broader communities.

“The story of each changemaker is an example of what any person can do for a more optimistic future. No kind act is too small to make a difference. We hope that the Extra Mile campaign and its outstanding honorees will spark a desire for kindness in every Filipino’s life,” said Ayala Malls president Jennylle Tupaz in a statement.

The 39 honorees are recognized for their selfless acts of kindness by initiating many efforts like fundraising and donations for the benefit of vulnerable communities. They are:

• Marco Alejandro “Aldo” Panlilio. Panlilio founded the Your 200 Pesos or Y2P Project, a program dedicated to help frontliners and professionals who lost their jobs during ECQ.

• Enrique Prado: Prado sourced materials for DIY (do-it-yourself) face shields, which were produced and donated to AFP frontliners and 1,500 healthcare workers in local hospitals. He also sent P10,000 worth of food to three struggling families, 150 food packs to a vulnerable community, and 125 bikes to deserving individuals.

• Dr. Tiger Garrido:  A medical professional, Dr. Garrido sourced and distributed PPEs in different health institutions. He reached 3,000 front liners in 63 hospitals in the last three months.

• Carmaela Alcantara:  She provided 4,000 locally made PPEs to public hospitals in her province. Her endeavor also provided livelihood for sewers within her community.

• Ismael Jerusalem: Jerusalem created face shields via 3-D printing for distribution to frontliners in Legazpi City, Albay. He and fellow artists earned nearly P100,000 enough to provide more than 3,000 face shields for free.

• Janice Cuevas: By conducting yoga classes for a cause, she was able to raise funds and provide PPEs to frontliners, as well as distribute sanitary kits and food packs to vulnerable communities and charity organizations.

• Gary Ramirez: He launched “Pakainin ang Buong Barangay,” a Facebook page that encouraged people to help feed residents of poor barangays during the lockdown. This effort reached 11 cities and municipalities, and has provided 45,000 meals to indigent families.

• Paulina Clara Zulueta: She initiated the Arawan: Para Pu Karela (Para Po Sa Kanila), a fundraising and relief distribution project that was able to provide grocery packs worth P500 each to drivers of selected JODA in Angeles City and 600 drivers in Baguio city.

• Carla May Berina-Kim: She organized a fundraising event to provide hot meals for frontliners. Along with her family and friends, they were able to gather P340,000 in cash and P350,000-worth of in-kind donations, which reached 21 hospitals in nine cities within the NCR (National Capital Region).

• Dr. Vincent Paul Olalia: The doctor was instrumental in helping a business establishment recover and restart after the enhanced community quarantine was lifted to allow stores to reopen.

• Dr. Aimee Nunez-Regala: The doctor gathered thousands of PPEs in the form of bunny suits, isolation gowns, n95 masks, goggles, face shields, gloves, head and shoe covers, and ear savers, which she eventually distributed to hospitals in need.

• Malaya Genotiva: She helped those without access to learning resources through The Mitsa Project. She was also able to help print 395 modules and deliver 214 module workbooks to families.

• Maria Gliceria “Ria” Valdez:  Valdez and her friends created The Mitsa Project (TMP) to collect and distribute gadgets for students due to the enforced online classes.

• Nini Andrada Sacro: Sacri, with the help of her team of volunteers and donations from various restaurants and the Philippine Army, did an initiative that fed 12,000 frontliners, homeless and street kids, and locally stranded individuals and OFWs.

• April Joy Cruz: She launched a DSWD-accredited donation drive that gathered P2.5-million worth of donations, which reached 89 hospitals and 25 institutions nationwide.       

• Maxine Andrea Carasig: Carasig, along with fellow volunteers and friends, started an initiative called Sadiwa, which brought surplus produce from local farmers to consumers to support the farmer’s livelihoods. They have since helped 21 farmers and their families.

• Marvin Bagube and Renan Dela Cruz: Bagube and Dela Cruz of Le Sucre Lab continued operations despite less revenue to sustain their feeding drive for various vulnerable communities. Their relief drive supported frontliners and those who lost their livelihood during the ECQ like jeepney and tricycle drivers.

• Tracy Ampil: Ampil started MediDyip, a transport system that provided safe transportation for PUIs, PUMs, and patients safe to healthcare facilities, and supported the livelihood of the jeepney drivers.

• Marvin Caparros: The engineer and his friends raised P8.5 million in donations, which reached more than 1,500 people in the poorest barangays in Quezon City. They also provided hot meals and groceries to thousands of frontliners and distributed 5,000 PPEs to many government hospitals.

• Simon Fernan:  Fernan created modified 3D printed adaptors that can convert reusable respirator masks as a response to the shortage of PPE equipment in hospitals in Cebu.

• Evelyn Nacario-Castro: Her “Usa Ka Gasa para sa Duha ka Pamilya” initiative purchased vegetables from local farmers and provided Family Support Packs, while her other project SAKSI helped in the reproduction and distribution of PPE materials to Bisaya-speaking communities.

• Jumax Morgia: Morgia spearheaded the manufacturing of 10,000 face shields, 300 hazmat suits, and 50 sanitation tents, which were distributed to most hospitals in Cebu City, Lapu-Lapu, and Talisay.

• Karl Arriola: Through their Cebu-based new-generation law firm KaLe Solutions, lawyers Karl Arriola and Leny Ignalaga extended help to small businesses in need by providing cash and goods donated by their clients, including 100 facemasks, 300 pieces of clothing, food packs, two laptops, a cell phone, and cash worth P50,000.

• Michael Arcilla: He provided grocery items to more than 300 families and provided more than 100 face masks and eye glass protectors for the tricycle drivers in his community, as well as two mountain bikes for Makati residents.

• Gian Dela Rama:  With his Knowledge Inspires Responsible Action (KIRA) platform, Dela Rama connected the Department of Health (DoH) with many online users via its official Kontracovid-19 chatbot. KIRA was turned over to the DoH for free, as Dela Rama’s true act of community service.

• Theriza Lanche: She provided 40 PPEs and 82 hot meals for medical staff who took care of kids with critical illnesses at the Philippine Children’s Medical Center.

• Marlon Pia: He launched Ayuda para sa Aeta, an on-line fundraiser to purchase relief food packs for 2,000 mountain Aetas good for two weeks. Through collective efforts, he was able to help 2,000 Aeta families from three barangays situated in 20 mountain communities.

• Manoling Francisco, SJ:  Through the Tanging Yaman Foundation which he founded, he was able to provide 125,075 food packs for 252 communities, PPEs for 208 hospitals and health clinics, and 56,940 hot meals for frontliners in seven Hospitals within the ECQ period.

• Mary Lorraine Pingol: Despite running late for work, nurse Mary Lorraine Pingol stopped to help a homeless woman deliver her baby on a sidewalk in Makati City.

• Mariko David, Marie Sol Bartolome, and Shiela Marie Borongan: They launched The Wagi Project which, through a “Bid for A Cause,” also known as “Sale for A Cause,” was able to earn P113,629.88 from bidding, cash, and kind donations. This benefitted eight beneficiaries from NCR (National Capital Region), Cavite, Laguna, Zambales, and Sarangani.

• Stanley Seludo: He was able to help displaced musicians and roadies earn a living during the pandemic. He also helped businesses with logistical needs.

• Christine Remo:  Remo prepared packed home-cooked meals for at least 3,000 front liners which included hospital staff, security guards, maintenance, and elevator operators.

• Svethllana Patricia De Guzman: She was able to raise P45,635 and distribute relief packs for 206 drivers.

• Joel dela Paz: Through #BayanihanSaMontalban, Dela Paz was able to help jeepney drivers from different Jeepney Operators and Drivers Associations (JODAs) in Montalban and San Mateo, Rizal by providing relief packs as well as monetary and in-kind donations.

• Dale James Ferrer: Focusing on helping musicians, Ferrer raised P50,000 and distributed P1,000 through GCASH for each beneficiary in need of groceries, medicines, and baby milk. He also provided P50,000 cash and a few sacks of rice to 50 musicians and their families.

• Micaela Gavino: Through Salindiwa, Gavino was about to donate pocket WiFi units to students-in-need from Grades 4 to 6.

• Renz Allan Lacorte:  Through TulongSkwela PH, Lacorte seeks to raise donations — particularly connectivity devices and educational materials — for selected public schools in the rural barangays of Davao del Norte.

• Sharra Crizel Elep: Through Reconnect PH, Elep was able to raise P89,621 that would provide distance learning kits for JHS, SHS and colleges.

• Dionicio Castro, Jr.:  With P30,000 worth of funds that Castro’s friend provided, he was able to gather food packs good for 500 families.

Check out the full stories of the 39 Extra Mile Changemakers at ayalamalls.com/pasyal.

Rates of T-bills, bonds to move sideways as market stays liquid

RATES OF government securities on offer this week will likely move sideways as demand remains strong on the back of ample cash in the financial system.

The Bureau of the Treasury (BTr) will offer on Monday P20 billion worth of Treasury bills (T-bills) — P5 billion each in 91-day and 182-day papers and P10 billion in 364-day securities.

The government is also looking to borrow P30 billion via reissued 10-year bonds on Tuesday with a remaining life of four years and 10 months.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the rates of the T-bills on offer this week may inch sideways as investors remain liquid.

“We expect rates for the T-bills and other shorter-dated issues to move sideways given the still copious amount of liquidity moving in the system,” Mr. Mapa said in an e-mail over the weekend.

A trader said the rates of the short-tenored papers may end five basis points (bps) lower or remain flat as the market is still awash with cash.

The government made a full award of the T-bills it offered on Monday as rates inched down across the board amid strong liquidity in the market and expectations of manageable inflation.

The BTr borrowed P20 billion as planned via T-bills last week as the offer was almost four times oversubscribed, with tenders amounting to P79.908 billion.

Broken down, the BTr awarded the programmed P5 billion in 91-day papers as bids reached P20.91 billion. The three-month T-bills fetched an average rate of 1.088%, down by 2.8 bps from the 1.116% seen in the previous auction.

The government also borrowed P5 billion as planned from the 182-day T-bills as tenders reached P24.286 billion. The six-month securities were quoted at an average rate of 1.598%, inching down 0.2 bp from the 1.6% logged in the previous offering.

The Treasury likewise made a full P10-billion award of 364-day debt papers as bids climbed to P34.712 billion. The one-year T-bills fetched an average rate of 1.793%, declining by 0.7 bp from the 1.8% seen in the previous auction.

At the secondary market on Friday, the three-month, six-month and one-year T-bills fetched yields of 1.19%, 1.601% and 1.812%, respectively, based on the PHL Bloomberg Valuation Service (BVAL) Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, Mr. Mapa said the rate of the reissued 10-year T-bonds on offer on Tuesday will likely fall close to the secondary market level for the five-year papers — the tenor closest to the remaining life of the issue.

“We expect it to track prevailing BVAL rates given that even the belly of the curve is moving in tight ranges given liquidity conditions and lack of alternatives,” he said.

“The only movement along the curve we’ve noted of late was a slight steepening of the curve, with inflation expected to pick up in the coming quarters as the economy continues to reopen,” Mr. Mapa added.

The 10-year papers on offer on Tuesday were originally issued on Sept. 9, 2015 with a coupon of 3.625%. They were last offered on June 23 where the BTr awarded P30 billion as planned at an average rate of 3.182% as total bids reached P80.581 billion.

The five-year T-bonds fetched a yield of 2.642% at the secondary market on Friday.

The Treasury is looking to raise P140 billion from the domestic market this month: P80 billion in weekly T-bill auctions and P60 billion in fortnightly T-bond auctions.

The government wants to borrow around P3 trillion this year from local and foreign lenders to help fund its budget deficit expected to hit 9.6% of the country’s gross domestic product. — KKTJ

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