How PSEi member stocks performed — December 20, 2019
Here’s a quick glance at how PSEi stocks fared on Friday, December 20, 2019.
Eligibility for perks latest wrinkle in water suppliers’ contract saga
THE water companies supplying Metro Manila will need to firm up their concession contract extensions before they are eligible for investment incentives, Trade Secretary and Board of Investments chairman Ramon M. Lopez said.
The two concession holders, Manila Water Co., Inc. and Maynilad Water Services, Inc., are currently involved in a contentious contract review process amid government claims that their privatization deals contain “onerous” provisions. The two firms also obtained extensions to their original concession agreements, which were due to expire in 2022, but the extensions are now subject to renegotiation also to remove onerous provisions.
Mr. Lopez told reporters at a media event Friday: “Of course ngayon, may consciousness na, may awareness na may issue ‘yung contract — I’m sure i–re-require ng government in general kailangan nasasaayos ‘yung contract. (Now that there is an awareness of the issues with the contracts, I’m sure government will require them to modify the contract),” he said.
He said the two water firms may be considered for incentives under the assumption that their contracts have been revised.
“We won’t give incentives the way it is right now.”
The President said earlier this month that the water providers enjoy “onerous” provisions in their deals, such as an undertaking that the government not interfere in the rate-setting process, and the ability to pass on the cost of income taxes to consumers.
The water industry’s regulator, the Metropolitan Waterworks and Sewerage System, said Friday said that it gave the two water companies a chance to renegotiate their contracts, and initiated discussion with the firms to remove the criticized provisions.
The Board of Investments had granted additional and extended income tax holidays (ITH) to Maynilad and Manila Water for new investment projects.
Mr. Lopez said it is not the BoI’s function to examine the companies’ contracts while assessing their eligibility for incentives granted in the past.
“Hindi kami involved sa contract. ‘Yung project ang tinitingnan namin. (We’re not involved in the contract. We look at the project),” he said.
Mr. Lopez added that the concerns surrounding the water companies are not likely to impact investor confidence, noting that not all government contracts have provisions similar to those flagged in the water companies’ contracts. — Jenina P. Ibañez
Unemployment, underemployment decline in 2019
THE unemployment rate declined to 5.1% in 2019 from 5.3% a year earlier, while underemployment — an indicator of job quality — also fell to their lowest levels in 14 years, the Philippine Statistics Authority (PSA) said.
The PSA, citing the preliminary results of its 2019 Annual Labor and Employment Estimates — which is based on the average of the four rounds of PSA’s Labor Force Survey (LFS) — defines underemployment as the proportion of those working but looking for more work or longer working hours.
Both the unemployment and underemployment rates in 2019 were the lowest recorded since 2005, the year the government adopted new definitions for the LFS.
In 2019, the size of the labor force was estimated at 44.7 million out of 72.9 million Filipinos at least 15 years old. This is equivalent to a higher labor force participation rate of 61.3% in 2019, compared to 60.9% in 2018.
The employment rate, which is the proportion of the employed to the total labor force, also improved to 94.9% in 2019 from 94.7% last year. This translates to around 42.4 million employed, from 41.2 million previously.
This suggests that around 1.3 million jobs were generated this year, exceeding the government’s annual target of 900,000-1.1 million.
Meanwhile, the 5.1% unemployment rate this year is near the upper end of the 4.3%-5.3% target set in the Philippine Development Plan 2017-2022 for this year.
The services sector accounted for the biggest proportion of the employed population with a 58% share in 2019, up from 56.6% a year earlier. Industry accounted for 19.1%, little changed. The share of those employed in the agriculture sector fell to 22.9% from 24.3%.
Wage and salary workers accounted for 64.2% of the work force in 2019 from 63.8% in 2018. Self-employed individuals without any paid employees consisted of 27.1% (from 26.9%), unpaid family workers 5.8% (from 5.6%), and employers in their own family-operated farm or business 2.9% (from 3.6%).
Meanwhile, working hours averaged 42.1 per week in 2019, unchanged from a year earlier.
Full-time workers — those who worked for at least 40 hours in a week — increased to 68.8% from 68.4%. Part-time workers accounted for 30.3% of employed persons from 30.8%.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion attributed these improvements to the economy’s “growth momentum.”
“Robust economic growth has continued to (have an impact on) the economy’s labor market challenges,” Mr. Asuncion said in a mobile message.
“However, there is so much to be done. This year, the clear challenge was execution on the part of the government. But even though the 2019 budget was delayed, economic growth was still respectable compared to regional economies,” he added.
Gross domestic product (GDP) growth averaged 5.8% as of the third quarter. The economy grew 6.2% in the third quarter, the highest level so far this year following the weaker-than-expected 5.6% and 5.5% growth rates in the first two quarters due mostly to the spillover effects of the budget delay that stymied government spending.
Fourth-quarter and full-year growth data will be reported by the PSA next month.
“With 2020, both unemployment and underemployment are expected to further decline. If execution becomes better in 2020, labor market improvement is definitely expected,” Mr. Asuncion said. — Marissa Mae M. Ramos
Rating upgrade targeted before ODA dries up
ECONOMIC MANAGERS are counting on a credit rating upgrade in the medium term to offset lost access to low-cost loans as the Philippines moves up the ranks of middle-income nations.
Finance Secretary Carlos G. Dominguez III said in a news conference Friday that the road map to an A-level sovereign credit rating is currently being drafted by an interagency body, consisting of the Department of Finance (DoF), the Bangko Sentral ng Pilipinas (BSP), the Bureau of the Treasury (BTr) and the National Economic and Development Authority (NEDA).
The Philippines is expected to become an upper middle-income country next year, which will limit its access to loans which charge lower-than-market rates.
“We mean to address the need for us to improve our credit rating because we’re going to lose our special interest rates since we will be graduating to upper-middle income status so we have to make sure that the differentials in the interest rates will be lessened by the credit upgrade,” Mr. Dominguez told reporters.
Socioeconomic Planning Secretary Ernesto M. Pernia said the faster approval of infrastructure projects will give the country more time to secure concessional loans before it graduates to upper middle-income status.
“Given that we’re going to be an upper middle-income country next year, we really have to fast-track the approval of the projects, especially in terms of funding so we can avail of concessional rates, I think we have only up to 2022-2023 to do that, so that’s one motivation in terms of rushing, getting more ICC (Investment Coordination Comittee) meetings to get projects going,” Mr. Pernia said.
In the latest NEDA ICC Cabinet Committee meeting Friday, 12 big-ticket projects with a total cost of P626.11 billion were approved.
NEDA Undersecretary Rosemarie G. Edillon said last week that the country is hoping to obtain an A-level credit rating by 2022 with the help of the road map the interagency committee is drafting.
Mr. Dominguez said passing the remaining packages under the tax reform program will help in the credit rating upgrade as it will increase the tax revenue as a percentage of gross domestic product (GDP).
So far, the government has passed Republic Act (RA) No. 10963, which reduced personal income tax rates and increased or added levies on several goods and services; RA 11213; the Tax Amnesty Act of 2019, which granted an estate tax amnesty and an amnesty on delinquent accounts; and RA 11346, which will gradually increase the excise tax rate on tobacco products to P60 per pack by 2023 from P35 currently.
Last week, Congress ratified the tax measure that will raise the excise tax on alcohol products, electronic cigarettes and vapor products, which will go up for President Rodrigo R. Duterte’s signature.
Mr. Dominguez said the government needs to ensure that it maintains a healthy debt burden in relation to its growing economy; hence, the debt ratio to GDP is capped at 42%.
The road map for the credit rating upgrade was first announced in May, days after credit rater S&P Global Ratings raised the country’s long-term sovereign credit rating to “BBB+” from “BBB,” one notch away from an “A”-level rating.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said an A-level credit rating promotes a favorable business environment as it allows wider access to financing both for the government and the private sector.
“An A-credit rating for the country would be the first ever of its kind. The country’s bonds would be more attractive in international markets, allowing government to access more financing for economic development. This rating upgrade would also allow the country’s top firms get more access to financing, giving them opportunities to expand business. A higher credit rating almost always means positive for any firm or sovereign country,” Mr. Asuncion said in a phone message Sunday. — Beatrice M. Laforga
LNG storage backers tout Lucio Tan, JG Summit companies as gas users
A CONSORTIUM of potential users of liquefied natural gas (LNG) fronted by Lucio C. Tan’s conglomerate is asking the Department of Energy (DoE) to issue a notice to proceed with their proposed floating LNG storage facility.
“Meron na. Naga-apply sila… nasa level ko na (There is an application. They have applied, it has reached me for approval),” Energy Undersecretary Donato D. Marcos told reporters last week when asked whether other entities had applied to build a facility to receive imported LNG.
In its application, the consortium goes under the name “Batangas Clean Energy” and proposes to distribute LNG to industrial users from Lucio Tan-controlled companies as well as those belonging to JG Summit Holdings, Inc. from a floating storage regasification unit (FSRU).
“Ang captive market (Its captive markets are) JG Summit, Tanduay, Eton, Asia Brewery,” according to Mr. Marcos, the DoE official who recommends LNG-related project proposals for approval by the Energy Secretary.
JG Summit is controlled by the Gokongwei family and operates companies in the food, agro-industry and commodities, real estate and hotel, air transportation, banking, and petrochemicals industries. It also has investments in telecommunications and power generation and distribution.
Tanduay Distillers, Inc. is the parent firm of Absolut Distillers, Inc., which in 2018 laid down its P1.3-billion expansion plan for the next two to three years covering investments in at least 10-megawatts of renewable energy and a capacity increase for bioethanol production.
Asia Brewery, Inc. and Eton Properties Philippines, Inc. are subsidiaries of LT Group, Inc., Mr. Tan’s listed holding company with investments in diversified industries, including beverages, tobacco, property development, and banking businesses.
“It’s an FSRU,” Mr. Marcos said about the proposed facility.
The floating facility will allow backers to receive LNG shipments ahead of the expiration of the Malampaya gas contracts in 2024.
The offshore Palawan gas discovery is the country’s only find so far. The consortium that holds the service contract had applied for a contract extension, which the DoE has yet to act on.
First Gen Corp. has DoE approval to put up an FSRU. The Lopez-led rival project is considering an LNG storage ship with an onboard regasification plant capable of converting the liquefied fuel back into its gaseous state. The gas can then be supplied directly to some or all of the company’s existing power plants.
Mr. Marcos said he was not familiar with the members of the consortium led by Mr. Tan.
“Ang kanilang (Their) business model, or captive market, to assure viability (are) Tanduay, Asia Brewery, Eton, JG Summit and others,” he said.
“Sinasama din nila ‘yung Pilipinas Shell refinery, sabi ko ‘di mo puwede angkinin ‘yan kasi at the moment, naka-contract ‘yan sa banked gas ng Malampaya at PNOC (They were including Pilipinas Shell Petroleum Corp., but I told them they can’t assume that because at the moment, it is under contract to take up the banked gas of Malampaya and Philippine National Oil Co.),” he said.
Mr. Marcos said the DoE has been going over the consortium application for about two months. He did not say when the agency could complete its evaluation nor the expected issue date of the notice to proceed. — Victor V. Saulon
Government borrowing up 58% in Oct.
GOVERNMENT borrowing rose 58% year-on-year in October to P45.79 billion, driven by more domestic borrowing that month, the Bureau of the Treasury (BTr) said.
According to the cash operations report, the government borrowed a net P46.96 billion from domestic creditors in October, up 48.79% from a year earlier.
The P70 billion the BTr raised by issuing fixed-rate Treasury bonds (T-bonds) were offset by the redemption of Treasury bills worth P22.47 billion, as well as net amortizations of P564 million.
Meanwhile, external borrowing amounted to P2.74 billion in October, up 51.38% from a year earlier.
The month’s borrowing was offset by the P3.91 billion loan payments made by the Treasury.
Total borrowing hit P843.48 billion in the 10 months to October.
Of which, 79.69% or P672.22 billion were from domestic lenders while the remaining 20.3% or P171.26 billion were sourced from foreign creditors.
This year, the government set a 73-27% financing mix favoring domestic sources to shield it from currency fluctuations in foreign borrowing.
The government is looking to raise P1.189 trillion this year from domestic and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Beatrice M. Laforga
DA to press for release of P2 billion for quarantine inspection facilities
AGRICULTURE Secretary William D. Dar said that the Department of Agriculture (DA) will be requesting in January the release of P2-billion in funds budgeted to set up border quarantine facilities in selected ports of entry.
“Yung budget, Cabinet has approved. Yung plano ready na. Sinubmit na namin sa DBM (Department of Budget and Management), so by January magre-request na kami ng release ng budget worth P2 billion, P400 million kada facility (The Cabinet has approved the budget. The plan is ready. We submitted it to the DBM, so by January we will request the release of the P2-billion budget, P400 million for each facility),” he said at a news conference held in Quezon City.
These facilities will be located at the ports of Manila, Batangas, Bataan, Cebu, and Davao, and will perform tests on all imported agricultural products, as regulated by the Bureau of Animal Industry (BAI), National Meat Inspection Service (NMIS), Bureau of Plant Industry (BPI), and the Bureau of Fisheries and Aquatic Resources (BFAR).
The secondary purpose of the quarantine facilities is to deter smuggling.
“It’s an integrated facility… it’s a multi-commodity facility where our quarantine people can do their proper work,” he said.
Two cargo containers were flagged at the Port of Manila in October which turned out to contain pork products, among others, from China, an African Swine Fever (ASF)-infected country. These were “misdeclared” as tomato paste and vermicelli.
“We do not have the facilities to store in an area para mabulatlat lahat. Ang problema naka-paloob yung mga karne as per mga nasabat na mga smuggled items. Nasa loob, nakatago (We do not have the facilities to store items where they can be fully inspected. The problem is that smuggled meat is hidden inside shipments of other goods),” he said. — Vincent Mariel P. Galang
PDEx maintains P350-billion bond listing target for 2020
THE Philippine Dealing & Exchange Corp. (PDEx) said it maintained its 2020 bond listing target at P350 billion while digitizing the documentation process for bond issues.
PDEx President and Chief Operating Officer Antonino A. Nakpil, asked about the exchange’s target for next year, told BusinessWorld on the sidelines of the listing ceremony for BPI Family Bank’s maiden bond issue last week: “The same level, at least…. P350 billion again for next year.”
In his speech at the ceremony, Mr. Nakpil said that bond listings in the year to date have hit P363.3 billion, up 41.7% from the P256.4 billion for all of 2018.
“For banks really there’s an economic push for them. With regard to the reserve requirements (for bonds)… the regulation of the Bangko Sentral (ng Pilipinas) is very conducive,” he told BusinessWorld.
The bank’s president Maria Cristina L. Go also told BusinessWorld that the central bank’s decision to decrease the reserve requirement for bonds to 3% has also been factored into the bank’s maiden bond issue.
“We’ve been planning to really go to the capital markets maybe as early as the middle of the year. We got approval from the board to issue bonds, because there was a lowering of the reserve requirements for bonds to 3%. So in October, we got approval,” she told BusinessWorld on the sidelines of the listing ceremony.
The bond tenor is 2.5 years with a 4.3% coupon payable quarterly.
Aside from BPI Family, Asia United Bank also listed its maiden bond issue in November that raised a total of P7 billion, after the initial plan to raise P3 billion was oversubscribed.
In October the BSP decided to slash the reserve requirement for bonds issued by banks and quasi banks (QBs) by 300 basis points from its then level of 6%. The central bank said that the move was expected to reduce bond issuers’ intermediation cost, savings which could then be passed on to holders of such securities.
Mr. Nakpil said the digitization process is under study.
“We’re also exploring means to digitalize issuer transactions with PDEx across the areas of listing, trading and disclosure activities,” he said in his speech.
He noted that major developments this year on the registry front include “fully electronic applications and submissions from the selling agent to the registry” for bank bond issues.
“We look forward to establishing fully paperless transactions as the norm in the primary market activity,” he said. — Luz Wendy T. Noble
SC rejects bid to nullify reclaimed land sale to MBDC
THE SUPREME COURT (SC) has dismissed a petition seeking to nullify the sale of land to Manila Bay Development Corp. (MBDC) in 1988 for P472 million.
The petition for prohibition and mandamus was filed last year by SAGIP Party-list Rep. Rodante D. Marcoleta, covering land in Parañaque City sold by the Philippine Reclamation Authority (PRA) to MBDC.
The 410,467 square-meter site located along Roxas Boulevard, Seaside End is otherwise known as Central Business Park II. Over time, the land was divided into 15 titles: eight belonging to MBDC, three to government-owned corporation Light Railway Transit Authority (LRTA) and four now with PRA.
Mr. Marcoleta wanted the government to recover the properties under MBDC and LRTA, claiming the land sold is “inalienable land of public domain.”
In an eight-page Notice of Resolution dated Dec. 10 released recently, the court said Mr. Marcoleta has no standing to seek the nullification of the land sale.
“Assuming that the sale of the subject land is indeed void for the reasons mentioned by petitioner, the appropriate suit to bring is for the reversion of such land back to the mass of public domain,” the notice read.
“Such suit, however, can only be filed by the State — the original owner of such land — through the Office of the Solicitor General,” it said.
The high court also said that the subject land is “not an inalienable land of the public domain outside the commerce of man.”
“The subject land, it must be pointed out, is land completely reclaimed pursuant to the MCRRP (Manila-Cavite Coastal Road and Reclamation Project) and which has been titled in the name of PRA by special patents issued by then President Corazon C. Aquino under the aegis of PD No. 1085,” according to the resolution.
The court also rejected the petitioner’s claim that the sale transaction between PRA and MBDC is void without a valid contract, in the absence of a technical description of the land sold.
The court ruled that the absence of technical description in the Deed of Sale does not mean that the transaction does not refer to an object certain. It also said that the parties use adequate descriptions such as designating the land “Central Business Park II.”
It ruled it cannot outright cancel the and titles held by MBDC and LRTA.
“Even assuming the fact that the sale of the subject land to the MBDC may be regarded as prima facie unconstitutional, the latter must still be afforded an opportunity to present evidence in defense of its title in an appropriate proceeding,” the court said.
“It must be stressed that MBDC has held title over the subject land, uninterruptedly and without incident, for over three decades until the present action,” it added. — Vann Marlo M. Villegas
On purpose, passion and possibilities
Whenever the calendar year winds down, many among us find it an opportune moment to reflect and reevaluate the last 12 months. We recall the challenges we faced, revisit the dramatic changes in the business landscape, and ponder how we, as individuals and organizations, have grown and evolved. We have seen how companies have shifted their focus to global trends and technologies, how people are taking on new jobs that didn’t even exist a few years ago, and how the challenges of sustainable development have become the top priority for organizations.
At the start of 2019, I wrote about how the SGV team recommitted itself to the firm’s collective purpose to nurture leaders and enable businesses for a better Philippines. I described how purpose motivates people, becoming the primary driver of strategy and transformative development in every aspect of business. Purpose can empower individuals and teams by creating a deep sense of meaning that enhances personal commitment and energizes them with the power of positive action. Purpose is like having an internal compass, one that guides a person’s every action by never compromising values. At the same time, people who believe in and are proud to be part of an organization go the extra mile and tend to be at their creative best.
Becoming a purpose-driven organization is one thing, however. Sustaining that purpose for the long term is another. How, then, can organizations ensure that its people and culture will remain steadfast in its chosen purpose?
ALIGN YOUR PEOPLE TO YOUR PURPOSE
For a purpose to work, it is vital for the organization’s people, culture, work practices and leadership behavior to be aligned with it. Think of your purpose as your road map — those travelling on the road will need to adjust their course if they wish to remain on track. The truth of your purpose needs to permeate every aspect of your business. Purpose has to be a living covenant.
When SGV launched its purpose, we asked our people if they were willing to commit to the purpose and journey together to live it out. Each member wrote his or her commitment and placed it on a visual map as a symbolic reference. They were also encouraged to integrate our purpose with their own personal career journey, and internalize how such a purpose could energize and validate their progress, from initial recruitment to their continuing professional growth to their involvement in our CSR programs. Eventually, we see our people carrying our purpose with them even if they continue their journeys outside SGV as alumni.
Speaking of recruitment, purpose-driven organizations also need to consider adjusting their metrics for hiring people. Most companies hire for talent, skill or potential. Purpose-driven companies also hire for values, taking into consideration whether a candidate’s values align with those of the organization.
STEER YOUR PURPOSE
Simply declaring a purpose is not enough. Organizations need to have leaders who will set the pace for positive change by transforming the organization’s culture and ways of working to become more purpose-led. Purpose should not be the sole responsibility of one leader in the organization, it needs to be supported by the collective will and wisdom of various stakeholders. In SGV, a steering committee (aptly named the Purpose Council) meets regularly to identify areas for improvement and design programs to continually ensure that our practices reflect our purpose.
COMMUNICATE AND DEMONSTRATE PURPOSE-DRIVEN CONDUCT
As with any transformative program, constant communication is key. An organization’s leaders need to actively and constantly communicate the company’s vision and encourage people to embrace the meaning behind the purpose on a personal level. Leaders not only have to “walk the talk” when it comes to purposeful behavior, but they also need to regularly keep the channels of dialogue open. We continue to sustain our purpose through regular, inspirational internal communications from leaders and partners to further strengthen our people’s collective resolve.
HELP YOUR PEOPLE FIND THE PURPOSE ‘SWEET SPOT’
Leadership advisor Peter Fisk references an interesting duality between passion and purpose, which he attributes to Ha Nguyen of Omidyar Networks. Passion, he says, is about finding yourself. It’s about doing what you love and possibly building your life and career around it. Purpose is about losing yourself in something bigger than you. It’s about wanting to make a difference, to leave a lasting and meaningful legacy. Finding one’s passion may not always have purpose and finding one’s purpose may not necessarily fit one’s passion. However, for those individuals who can both do what they love while serving the greater good, that is where true fulfilment lies.
I wish to take this opportunity to share with our readers how fortunate I had been — that in my 38 years of working with SGV — I had personally found deep fulfilment in the unique intersection between my passions and our purpose. As I turn over SGV’s leadership to Wilson P. Tan, the next SGV Country Managing Partner, I am excited about the limitless possibilities of a fresh, new decade with full confidence that SGV’s Purpose will thrive and endure for generations of SGV professionals yet to come.
A Merry Christmas and a purposeful 2020 to all!
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.
J. Carlitos G. Cruz is the Chairman and outgoing Country Managing Partner of SGV & Co.
GMA Network fined almost P1 million for actor Garcia’s death
THE Labor department fined broadcast company GMA Network, Inc. P890,000 for violating work safety standards during the taping of a show where a veteran actor fell and eventually died.
The network was fined P810,000 for failing to report the late actor Eddie Garcia’s accident on time and P80,000 for failing to hire a first-aid personnel and safety officer at the time of the filming, according to the agency’s Dec. 2 order that was made public on Sunday.
GMA was made jointly liable with Alpha Premier Transport Services, Gapo Special Effects Services, Inc., GMA-7 Employees Multi Purpose Coop., Renteqaire Enterprises, CMB Film Services Inc. and Shoot Digital Video Co.
In a statement released on Monday, GMA said it had appealed the ruling to Labor Secretary Silvestre H. Bello III seeking its reversal. “GMA will proceed with the necessary steps as soon as the DoLE resolves its appeal,” it said.
GMA failed to report the actor’s accident within 24 hours as required by law, according to the order. The network also did not have any available first-aid personnel and safety officer during the taping.
A closed circuit TV video showed Mr. Garcia being carried by people, without a stretcher, after he tripped on a cable wire and hit his head on the pavement during a shoot for his TV shot on June 8. He did not get any first-aid treatment, the Labor department said.
He was rushed to a hospital in Tondo, Manila and was transferred to the intensive care unit of a Makati hospital after he remained unconscious.
It was initially announced that the 90-year-old actor suffered a heart attack but his doctor ruled this out. He was later found to have suffered a neck and cervical fracture due to the fall.
In September, GMA Network said in a statement that its set location was not covered by the requirements of a “workplace” described in the Occupational Safety and Health (OSH) Law.
A workplace is considered a location where employees’ services are regularly rendered, as opposed to shooting locations that are temporary, the network said.
The Labor order, however, noted that GMA was “duty-bound to observe and implement occupational safety and health standards in all its workplaces” including all of its shooting locations. — Gillian M. Cortez
Motorcycle operator warns of job losses after cap on bikers
A MOTORCYCLE taxi operator on Sunday warned of job losses after the land transport regulator capped its service bikers to 10,000 from 27,000.
Angkas bikers, commuters and transport advocates came together in Quezon City to protest the government decision.
The Senate may investigate the policy, Senator Maria Imelda Josefa “Imee” R. Marcos, who took part in yesterday’s protest, said in an interview.
“There is no more reason why we should not legitimize Angkas and other ride-hailing bikers,” she said.
In a statement at the weekend, Angkas said it was forced by the Land Transportation Franchising and Regulatory Board (LTFRB) to trim its pool of bikers to 10,000 from 27,000.
The government’s technical working group had extended its pilot run of motorcycle taxi services for six more months, but set an equal cap among three providers: Angkas, JoyRide and Move It.
The three must split the new limit of 39,000 bikers among them, with each being allocated 10,000 bikers for Metro Manila and 3,000 bikers each for Cebu City.
Angkas was the sole service provider during the initial six-month trial run, in which 27,000 of its bikers participated.
“That’s a compromise to the quality of service you can expect, and a direct blow to over 17,000 Filipino families,” Angkas said, referring to bikers that will be excluded from the extended pilot run.
The company will appeal the LTFRB decision, said George I. Royeca, regulatory and public affairs head at Angkas.
He cited “irregularities” in the LTFRB ruling, and both Houses of Congress should investigate this, he said.
“We were kept in the dark,” Mr. Royeca said. “We don’t know what is the rationale behind many of the provisions,” he said in an interview. — Denise A. Valdez and Arjay L. Balinbin