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Factory output further shrinks in December

MANUFACTURING business conditions in the Philippines deteriorated in December. — REUTERS

By Beatrice M. Laforga, Reporter

FACTORY ACTIVITY in the Philippines further deteriorated in December, falling behind Southeast Asian peers that all saw an improvement, as ongoing lockdown restrictions and bad weather  dampened production, IHS Markit said on Monday.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) fell to 49.2 in December from 49.9 in November, moving further below the 50-neutral mark that separates expansion from contraction.

“Despite some positive signs of the sector moving towards a recovery in November, latest PMI data signalled that operating conditions across the Philippines manufacturing sector worsened in the final month of 2020. Firms registered a modest contraction in output volumes amid ongoing pandemic restrictions, implemented to curb the surge in coronavirus disease 2019 (COVID-19) cases,” IHS Markit said in a statement.

Manufacturing purchasing managers’ index of select ASEAN economies, December (2020)

December saw the third straight month of contraction, with IHS Markit noting “the rate of decline was among the fastest in the series history.”

It attributed the deterioration in factory activity to the continued imposition of lockdown restrictions and bad weather in December. Metro Manila and nearby areas remained under a general community quarantine (GCQ).

In 2020, there were only three months where the PMI rose above the 50-neutral mark — January (52.1), February (52.3), and September (50.1).

Among Southeast Asian economies, the Philippines was the only one that reported deteriorating conditions in December. Vietnam topped the list with a PMI of 51.7, followed by Indonesia with 51.3 and Thailand with 50.8. Malaysia (49.1) ranked the lowest so far. Data for Myanmar was not yet available as of writing.

The PMI is the weighted average of five sub-indices: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (25%) and stocks of purchases (10%). An overall reading above 50 signals expansion, while a reading below 50 denotes contraction.

In the Philippines, IHS Markit said new orders were mostly unchanged in December, with companies saying the quarantine restrictions weighed on domestic demand.

Demand from overseas continued to rise, with exports up for a fourth straight month. Firms surveyed noted a bigger demand for Filipino products in key export markets.

“The downturn in production, and muted demand conditions led firms to cut workforce numbers in the final month of 2020. Job shedding persisted at a strong rate which firms linked to restructuring efforts and voluntary resignations,” IHS Markit said.

As demand remained weak, factories had spare capacity that allowed them to reduce their backlog, the survey showed.

“A combination of material shortages, and COVID-19 restrictions contributed to another monthly deterioration in vendor performance. Supply chain pressures have been registered each month since August 2019, with the latest extension to lead times marked overall,” it added.

While the local manufacturing sector continues to suffer, IHS Markit Economist Shreeya Patel said the latest survey showed some positive signs.

“New orders neared stability and sentiment recovered to levels seen before the start of the pandemic. At the same time, case numbers have moderated with expectations that restrictions will ease over the coming months. Although the latest overall sector contraction was only marginal, domestic demand remains challenging which may stymie progress on the lengthy road to recovery,” she said.

The IHS Markit noted that companies reduced purchasing activity last month due to high costs of raw materials and low new orders, causing the depletion of raw materials and finished goods.

Input prices grew for the eight straight month as issues on supply chains persist due to bad weather conditions and ongoing mobility restrictions enforced by the government to curb the spread of COVID-19.

“Subsequently, selling prices rose as Filipino manufacturers chose to pass on part of the hike in costs to customers,” IHS Markit said.

For businesses, they remained optimistic for 2021, with the level of confidence reaching its highest since February last year, the month before the strict lockdown was imposed.

The level of optimism, however, was still below average given the uncertainties over the pandemic.

Robert Dan J. Roces, Security Bank Corp.’s chief economist, said the latest index meant the average PMI improved to 49.2 in the fourth quarter from the 48.6 average in the previous quarter, which could support further improvement in business conditions of factories in the country this year.

“The average reading suggests that we should expect a gradual growth recovery to have occurred in 4Q20 — albeit less contraction compared with 3Q — and very likely for 1Q21 as well,” Mr. Roces said in an e-mail on Monday.

“We do expect factory activity to pick up for the full year this year primarily from positive ripple effects from the vaccine that could cause some demand recovery. The challenge is to restore confidence in both businesses and consumers to lift the recovery further,” he added.

Manufacturing purchasing managers’ index of select ASEAN economies, December (2020)

FACTORY ACTIVITY in the Philippines further deteriorated in December, falling behind Southeast Asian peers that all saw an improvement, as ongoing lockdown restrictions and bad weather  dampened production, IHS Markit said on Monday. Read the full story.

Manufacturing purchasing managers’ index of select ASEAN economies, December (2020)

BIR, BoC beat lowered collection goals for 2020

The Customs bureau generated P539.66 billion in revenues in 2020. — BUREAU OF CUSTOMS

THE TWO biggest tax collection agencies generated P2.4 trillion in revenues in 2020, exceeding the downscaled targets but still 15% lower than the previous year.

The Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) collected P2.386 trillion, surpassing the P2.148-trillion target by 11%, based on the agencies’ preliminary figures.

However, last year’s revenues were 15% less than the P2.805 trillion posted in 2019. It was also the lowest collection since the P2.23 trillion generated in 2017.

BIR Deputy Commissioner for Operations Arnel S.D. Guballa told BusinessWorld the bureau collected P1.846 trillion in 2020, beating its P1.642-trillion goal by 12.5% but down 15% from the P2.175 trillion recorded in 2019.

“This is not yet the final figure. Some collections are still to be uploaded,” he said in a text message on Monday.

The BoC on Monday said it exceeded the P506.15-billion full-year target by 6.6% after collecting P539.66 billion. The total was 14% lower than 2019’s P630-billion collections, and 26% smaller than the pre-pandemic goal of P730 billion.

Economic managers lowered revenue collection targets several times last year, as tax collections slumped on weak consumption and business closures amid the pandemic.

The BoC attributed its positive revenue collection performance “to the improved valuation and intensified collection efforts of all the ports, gradual improvement of importation volume and the government’s effort in ensuring unhampered movement of goods domestically and internationally considering the pandemic situation.”

Ten out of the 17 collection districts reached their targets last year, namely the ports of Cebu, Tacloban, Surigao, Cagayan De Oro, Zamboanga, Davao, Subic, Clark, Aparri, and Limay.

The BoC collected P47.316 billion in December, 9.1% higher than the P43.368-billion goal. This is the seventh consecutive month the agency reached its lowered monthly goals since June.

Year on year, the December tally was nine percent lower than the P52.195 billion collected in December 2019.

For this year, the BoC is expected to collect P619.5 billion while the BIR is tasked to generate P1.904 trillion. — Beatrice M. Laforga

Singapore firm to take 17.5% of Ayala energy arm

DEAL depends on whether AC Energy is able to infuse its international business into ACEN. — ACENERGY.COM.PH

ARRAN Investment Pte. Ltd., an affiliate of Singapore-based GIC Pte. Ltd., is set to acquire an ownership stake of 17.5% in AC Energy Philippines, Inc. for P20 billion, Ayala Corp. (AC) said on Monday.

In a press release, the listed conglomerate said the Ayala energy arm and the latter’s parent firm AC Energy and Infrastructure Corp. (ACEIC) inked the investment agreement with Arran Investment on Dec. 30.

The infusion was previously approved by the unit’s board of directors on Nov. 11.

“The investment will be implemented through a combination of subscription to four billion primary shares (via a private placement) and purchase of secondary shares from AC Energy,” Ayala Corp. said.

The firm added that Arran Investment’s subscription to the primary shares of AC Energy Philippines, or ACEN, will be completed if certain agreed conditions will take place. These conditions include ACEN’s stock rights offering in the first quarter of 2021, and regulatory approvals.

Ayala Corp. said the GIC affiliate’s purchase of AC Energy’s secondary shares would depend on regulatory approvals; and whether AC Energy is able to infuse its international business into ACEN through a “property for shares swap.”

The swap is projected to take place in the third quarter this year.

This development comes after ACEN President and Chief Executive Officer Eric T. Francia in November announced a corporate transformation and restructuring plan that involves the moving of ownership shares to three stakeholders, including Arran Investment and its parent company GIC.

Two months ago, Mr. Francia said that ACEN would need up to $2 billion to surpass its goal of achieving 5 gigawatts of installed energy capacity, with half coming from renewables.

In a previous briefing, the ACEN chief told reporters that AC Energy’s stake would go down to around 65%, with Singapore-based GIC holding 17.5% and the public owning 18%.

Mr. Francia further discussed in detail the company’s corporate restructuring in five steps, which include: a stock rights offering scheduled in the first quarter this year; GIC’s private placement of 4 billion shares by the end of the second quarter; a follow-on public offering at the stock market; and the infusion of the international energy assets the sale of secondary shares to GIC from ACEIC.

ACEIC was previously known as AC Energy, Inc. until the corporate regulator approved of the name change. This came months after Ayala Corp. consolidated its energy, water, transport and logistic firms, which were collectively placed under AC Energy.

Shares in Ayala Corp. on Monday improved 1.09% to close at P836 apiece. Meanwhile, shares in ACEN climbed 13.33% to finish at P10.20 each. — Angelica Y. Yang

Ayala Corp. to donate P120M worth of  COVID-19 vaccines from AstraZeneca

MORE THAN P120 million worth of vaccines for the coronavirus disease 2019 (COVID-19) will be donated by Ayala Corp. to the government for its mass immunization program, an official of the listed company said on Monday.

Fernando Zobel De Ayala, incoming chief executive of Ayala Corp., said in a press briefing that the vaccines had been ordered by the private sector.

“We have decided to order 450,000 vaccines of AstraZeneca, so the total donation that we will be giving to the government is P120 million. Government in turn has requested 50% be given to individuals government selects and 50% be given to the private sector,” he said.

The vaccines cost $5.50 each, he added.

National Task Force Against COVID-19 (NTF) Chief Implementer Carlito G. Galvez Jr., NTF Deputy Chief Implementer Vivencio B. Dizon, and Presidential Adviser for Entrepreneurship Jose Ma. A. Concepcion III also assisted in the procurement process from UK firm AstraZeneca plc.

Mr. Zobel said the private sector would also help in the distribution of the vaccines from various producers to the public. The Task Force T3 (Test, Trace and Treat) will help in coming up with solutions on how to handle each of the vaccines’ needed conditions for distribution.

“This is a critical component and each of the vaccines… have their own peculiar requirements for distribution,” he said.

More than 24 million Filipinos will be prioritized for the first round of free COVID-19 vaccination by the government, with the indigent population as the top priority followed by healthcare workers, senior citizens, and uniformed personnel.

The government aims to vaccinate 60% to 70% of the total population in the next three years in order to reach “herd immunity” or protect the population against the virus. — Gillian M. Cortez

Suntrust infuses more funds into project management unit

SUNTRUST Home Developers, Inc. has subscribed to 227.46 million new shares of its project management subsidiary as it moves to infuse more funds into the wholly owned unit.

In a regulatory filing on Monday, Suntrust said it subscribed to 227.46 million new shares in SWC Project Management Ltd. at a price of one Hong Kong-dollar per share for a total of HK$227.46 million.

The company said the subscription is in efforts to increase the investment in the account of its subsidiary.

According to Suntrust, SWC is in charge of project management and allied activities consultancy services in the construction of the company’s five-star hotel and casino in Manila Bayshore Integrated City in Parañaque City.

SWC is a Hong Kong-based company that has business interests in the provision of project management services.

Meanwhile, Suntrust announced in two separate disclosures the issuance of P5.6 billion worth of 6% convertible bonds to Summit Ascent Investments Ltd. and P7.3 billion worth of zero-interest coupon convertible bonds to Fortune Noble Ltd.

Both issuances will be applied to development of the hotel and casino project, the company said.

“The Main Hotel Casino shall have approximately 400 hotel rooms, the standard room size of which shall range from 34 square meters to 39 square meters,” the disclosure said.

“The casino establishment will have approximately 400 gaming tables and 1,200 slot machines for both mass and VIP markets,” it added.

According to the disclosure, Fortune Noble is a wholly owned subsidiary of Suncity Group Holdings Ltd., which is engaged in property development in China. Summit Ascent is engaged in the hotel and gaming business in the Russian Federation.

In November, Suntrust awarded a P6.29-billion contract to Megawide Construction Corp. for the construction of its hotel and casino project.

Suntrust, which was in real estate development, started its focus on tourism with the entry of Hong Kong’s Suncity Group Holdings Ltd. as a majority investor in 2019. The company is now 51% owned by Fortune Noble Ltd.

On Monday, shares in Suntrust at the stock exchange rose 1.8% or three centavos to end at P1.70 per piece. — Revin Mikhael D. Ochave

Gov’t hikes award of Treasury bills as rates drop

THE BUREAU of the Treasury upsized its award of short-term securities at its first auction for the year. — BW FILE PHOTO

THE GOVERNMENT on Monday hiked its award of Treasury bills (T-bills) and even opened its tap facility as yields went down across the board on expectations of slower inflation data.

The Bureau of the Treasury (BTr) borrowed P24 billion via T-bills on Monday, higher than its P20-billion program as it accepted more bids from non-competitive investors for the three-month and six-month tenors.

The offering was over four times oversubscribed, with tenders reaching P83.638 billion.

The Treasury also opened its tap facility to offer another P10 billion in one-year securities.

Broken down, the BTr raised P7 billion via the 91-day debt papers, exceeding the P5-billion program as bids reached P19.413 billion. The average rate of the three-month T-bills stood at 0.987%, down by 3.5 basis points (bps) from the 1.022% fetched in the Dec. 14 auction.

The Treasury also accepted P7 billion in 182-day papers, more than the P5-billion plan, as tenders amounted to P21.17 billion. The six-month tenor saw its average rate go down by 3.1 bps to 1.369% from 1.4% previously.

For the 364-day securities, the government raised P10 billion as planned out of bids worth P43.055 billion. The one-year T-bills were quoted at 1.614%, down 7.2 bps from the previous average rate of 1.686%.

National Treasurer Rosalia V. de Leon said the government’s first regular auction of 2021 was met with “strong” reception from investors on expectations that inflation eased last month.

“Rates declined ahead of tomorrow’s (Jan. 5) December CPI (consumer price index) report [amid] expected easing of inflation last month,” Ms. De Leon told reporters via Viber after the auction.

She added that the auction results also reflected a liquid market, with P21 billion worth of T-bills maturing this week.

The Philippine Statistics Authority will report December and full-year 2020 inflation data on Tuesday, Jan. 5.

Headline inflation likely rose by 2.9-3.7% last month on higher prices of oil and agricultural products, the central bank said last week.

Inflation picked up by 3.3% in November, taking the year-to-date print to 2.5%, within the Bangko Sentral ng Pilipinas’ full-year target of 2-4%.

Meanwhile, a trader said yesterday’s auction results showed investors’ preference for shorter tenors amid continued uncertainties due to the coronavirus disease 2019 (COVID-19) pandemic.

“The T-bill offering started the year with a bang as reflected in the total tenders submitted. Pent-up demand was also observed after two weeks or so without primary offerings of short-term papers,” Kevin S. Palma, peso sovereign debt trader at Robinsons Bank Corp., said in a Viber message.

“For as long as the threat of COVID-19 to our economy is still apparent, demand for T-bills will linger as investors would prefer to park their funds on the short end of the curve to see how developments will play out,” Mr. Palma added.

The Treasury will offer P30 billion in reissued 10-year Treasury bonds (T-bonds) today. The papers have a remaining life of four years and eight months and bear a coupon of 3.625%.

The BTr plans to borrow P140 billion from the local debt market this month: P80 billion via weekly auctions of T-bills and P60 billion from fortnightly T-bond offerings.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga

Basic Energy calls for payment on outstanding subscriptions

BASIC ENERGY Corp. has issued a call for payment on unsettled subscriptions to its capital increase and stock option plan shares, the firm told the Philippine Stock Exchange on Monday.

In a regulatory filing, the company said that its board of directors made the decision during a meeting on Dec. 29.

The unpaid subscriptions consist of those from the company’s capital increase in 2007 and its stock option plan shares, which received approval from the corporate regulator in 2011.

“Due date for the payment of the unpaid subscriptions was set on or before April 8, 2021,” Basic Energy said.

Last month, the publicly listed company announced that real estate firm MAP 2000 Development Corp. (M2DC) would acquire around 67% of Basic Energy’s outstanding capital stock.

M2DC will acquire 9.83-billion primary shares to be issued out of the increase of the Basic Energy’s authorized capital stock, which was previously raised to P5 billion from P2.5 billion.

Basic Energy is a holding company with interests in renewable energy, alternative fuels, and oil and gas exploration. Its shares were last traded on Dec. 18, when they closed at P0.47 apiece. — Angelica Y. Yang

The show(s) must go on

Despite COVID, GMA’s slate features new shows and the return of pandemic-interrupted old shows

AFTER a tumultuous year which saw several of GMA’s shows shelved and postponed because of the pandemic, the country’s largest television network is starting 2021 by announcing a slate of new shows and the return of pandemic-interrupted shows.

Kick-starting the line-up for the GMA Afternoon Prime slot is the return of Magkaagaw with recaps and fresh episodes. The afternoon drama is top-billed by Sunshine Dizon, Klea Pineda, Jeric Gonzales, and Sheryl Cruz. Also in the afternoon time slot are two new shows: Babawiin Ko ang Lahat starring John Estrada and Carmina Villaroel, Ang Dalawang Ikaw starring Rita Daniela and Ken Chan, and Nagbabagang Luha, the TV adaptation of the 1988 film of the same name. The TV adaptation will star Glaiza de Castro and Rayver Cruz.

Other shows to launch in the timeslot are legal drama Artikulo 247 and Las Hermanas.

On GMA Telebabad, the rivalry between friends-turned-mortal-enemies continues in the recap and fresh episodes of Anak ni Waray vs. Anak ni Biday, starring Barbie Forteza and Kate Valdez, together with Migo Adecer and seasoned actresses Snooky Serna and Dina Bonnevie.

Romantic comedy series First Yaya will also be dropping in the evening time slot and will star Gabby Concepcion and Sanya Lopez. It follows the story of the Vice-President of the Philippines who will later assume the presidency and his blooming romance with the nanny of his children.

Legal Wives, a cultural drama series focusing on the story of a Maranaw Muslim royal who has three wives, will also be premiering this year. It stars Dennis Trillo, Alice Dixson, Andrea Torres, and Bianca Umali.

Owe My Love narrates the story of a financially illiterate woman and a miserly but successful doctor and financial advisor whose lives intertwine when the former becomes indebted to the latter. The show, produced by GMA Public Affairs and starring Lovi Poe and Benjamin Alves, will air on GMA 7.

GMA Public Affairs also brings its biggest action-adventure series to date in Lolong. Starring Ruru Madrid, the show is inspired by Lolong, the world’s largest crocodile in captivity. Joining Madrid in the series are Arra San Agustin and Shaira Diaz. Lolong will also air on GMA 7.

Meanwhile, romance drama I Left My Heart in Sorsogon, starring Heart Evangelista-Escudero, follows the story of a young woman whose status as a fashion socialite is shaken up after she returns to her hometown, rediscovers her roots, and rekindling her love for family, community, and an ex-flame.

Making a return to the small screen is the drama anthology I Can See You, featuring some of the network’s biggest stars.

“This ground-breaking program pivots on its common visual storytelling mnemonic device which is the use of a camera as a witness to the tales of love and mystery from everyday people,” said a press release.

Other shows in the 2021 GMA slate are To Have and To Hold, where a man searches for answers about his wife’s secret affair but soon realizes he’s falling for the spouse of his wife’s lover; World Between Us, in which a principled man is wronged by the people he considers family; Love. Die. Repeat, where a woman is stuck reliving the day of her boyfriend’s death over and over again; The Witness, in which a man with high-functioning autism becomes a witness and a secret keeper to a crime; My Fantastic Pag-ibig is a collection of rom-com tales set in the present but infused with fantasy elements; Heartful Cafe, which follows the life of an online romance novelist and her journey towards finding her own match; Love You Stranger, about a film designer whose love for her sick mother drives her to look into the existence of a shadow figure from folklore.

Reality and competition shows such as The Clash Season 4, Centerstage, Catch Me Out Philippines, Flex, Game of Gens and Sing for Hearts will also be premiering on the channel soon.

The network’s news channel, GMA News TV, will also be premiering its first locally produced daily primetime show called The Lost Recipe, a fantasy-romance series.

Asian dramas which will be introduced this year include: Fates and Furies, The Romantic Doctor 2,  Backstreet Rookie, Doctor John, Penthouse, and Bad Genius The Series.

The Department of Education’s DepEd TV (its blended learning program) will soon be available on the GMA Affordabox’s Channel 7. Affordabox is the network’s digital TV box, a mobile version of the TV box, GMA Now, which can be used on one’s Android phone.

For more updates on GMA Network’s upcoming programs and offerings, follow its official Facebook, Twitter, Instagram, and YouTube accounts or visit www.gmanetwork.com. — Z.B. Chua

Changi reinvents itself for return of business travel

SINGAPORE’S Changi Airport, routinely voted the world’s best and a key part of the city-state’s psyche, is reinventing itself for the COVID era and beyond.

In a bid to keep people engaged until life returns to normal, it’s offering glamping for families at Jewel, the nature-themed entertainment complex opens to the public, as well as a host of holiday offerings from canopy park tours that involve topiary walks and bouncing on a sky net, to seasonal dining menus.

With an eye further into the future, slices of the nearby Singapore Expo site are being transformed into a giant construction site as 840 guest and meeting rooms are built in short order — part of Connect@Changi, a sprawling facility to house overseas business visitors as part of a bubble initiative.

“There are more people, especially on weekends,” said Jasmine Hoon, a server at Paris Baguette, a coffee shop in Jewel selling upmarket pastries and wraps. “Sales have gone up and the vaccines are also giving people hope.”

Nearby, children start making themselves at home in large white tents erected as part of the airport’s Glampcations in the Clouds initiative. People can stay overnight amid the greenery and wake to the sound of splashing water from the world’s largest indoor waterfall. Prices start from S$320 ($240) and slots have been fully booked for weeks.

The camping and holiday dining deals may be temporary measures but they’re all part of endeavors aimed at spurring activity at Changi, whose importance to the tiny city-state is hard to underestimate. Singapore Prime Minister Lee Hsien Loong was close to tears when he promised Parliament in September that “Changi will thrive again,” citing its opening in 1981 as a moment of immense national pride.

Because international visitors are such an enabler of other economic activity across the island — including food and beverage, retail and healthcare — it’s tough to calculate to what degree the closing of borders has hobbled Singapore’s economy. According to government figures, aviation alone accounts for about 3% of gross domestic product, with tourism contributing another 4%.

As 2021 dawns, Singapore’s success containing COVID is allowing it to open for business travel adapted to virus-era life, including convincing the World Economic Forum to move its annual jet-set meeting from Davos. While a return to pre-virus traffic is still far off, the green shoots are a welcome sign for a place synonymous with global trade and travel.

“If you think about the role of Singapore as a regional hub and the whole idea of connectivity and logistics facilitation, then Changi is quite critical,” said Selena Ling, head of treasury research and strategy at Oversea-Chinese Banking Corp.

GONE QUIET
Changi Airport, typically Asia’s third-busiest hub for international traffic, has like all aviation centers experienced its fair share of pain. Passenger numbers plunged to 24,500 in May, just 0.4% of what they were 12 months prior. They recovered to 111,000 in November, but that’s still down around 98% on 2019 levels.

The 13 square kilometer airport (five square miles) on Singapore’s easternmost point is operating two of its four terminals and has halted construction of a fifth for at least two years. Some retail outlets in the public and transit areas remain closed due to a lack of foot traffic.

There have been other setbacks, too. A highly anticipated air travel bubble with Hong Kong that would have avoided quarantine was delayed after a spike in cases in Hong Kong. Singapore Airlines Ltd. has been hit harder than some regional rivals because it has no domestic market to fall back on. The carrier reported its biggest quarterly loss in September and is cutting around one-quarter of staff in anticipation of still only operating near 20% capacity by the end of this month.

After contracting 5.8% in 2020, the economy could expand between 4% and 6% this year, according to government estimates. However critical industries like aviation may take longer to recover, Ravi Menon, managing director of the Monetary Authority of Singapore, has said.

Some S$100 billion in stimulus has been pledged to shore up consumers and businesses so far, with more promised in the annual budget due later this year. About half is supported by funds from the nation’s usually off-limits reserves — a striking example of how unprecedented the downturn has been.

But with vaccines on the way — Singapore administered its first jab last week — hopes are rising.

BRIGHTER 2021
In December, Singapore announced a new business travel lane that will allow people from anywhere to come without quarantine for short-term stays. They’ll have to reside at Connnect@Changi, which once finished in mid-2021 will boast more than 1,300 guest rooms and about 340 meeting rooms, and be subject to numerous COVID tests, including upon arrival and on days three, five, seven and 11.

“Ideally, you would like to have people free to move around, do what they want to do and spend where they want to,” but this is a “good alternative option” as we try to stamp out the virus, Temasek Holdings Pte Senior Managing Director Alan Thompson said. “This is an attempt to begin to open up and reinvigorate the air travel and hospitality sectors in Singapore.” The state investment firm, along with The Ascott Ltd. and Sheares Healthcare Group, is a backer of the facility.

And although the virus continues to rage in parts of Europe and the US, reopening negotiations continue with other countries. Quarantine-free leisure travel has already opened from New Zealand, Brunei, Australia, Vietnam, Taiwan and China, and there are bilateral agreements with Japan, South Korea and Germany that make it easier for business travelers.

Transport Minister Ong Ye Kung, in a Facebook post last month, likened efforts to a “national resilience project.”

“We’ll make sure Singapore continues to hum along even with COVID-19,” he said. “We are all ready to rise again.” — Bloomberg

RCBC says clients prefer short-term investments

RIZAL COMMERCIAL Banking Corp. said its clients showed preference for short-term investments amid the uncertainties caused by the pandemic. — BW FILE PHOTO

RIZAL COMMERCIAL Banking Corp. (RCBC) has seen stronger demand for short-term investment instruments as the market remains cautious amid continued uncertainty due to the coronavirus pandemic.

The bank’s unit investment trust fund clients have been opting to go for products with less volatility, including money market and short-term funds, RCBC Trust and Investments Group Head Robert B. Ramos said in a statement.

The volume of the lender’s peso and dollar-denominated money market products jumped 51.6% to P9.4 billion as of October from its P6.2-billion level as of December 2019.

“It is very intuitive; investors don’t want to take added risks,” Mr. Ramos said.

The bank’s peso money market fund’s volume, meanwhile, more than doubled (155%) to P5.1 billion as of October from just P2 billion in December 2019. These investments, mostly in short-term securities such as government and corporate bonds, had an annual yield of 4.275% as of October.

Meanwhile, the volume of the bank’s dollar-denominated money market fund surged 118% to P703.9 million as of October from P321.5 million in December 2019.

“The shorter the investment term, the less the impact. When the market expects the interest rates to adjust against their position, they buy the shortest possible fixed-income asset to manage this price risk,” Mr. Ramos said.

RCBC President and Chief Executive Officer Eugene S. Acevedo last month said its customers whose incomes were affected by the pandemic have become more conservative.

The bank’s net earnings dropped 51.78% year on year to P892 million in the third quarter of 2020 on the back of higher loan loss provisions and waived client fees.

This brought the bank’s nine-month net profit down 11.31% to P4 billion.

The Yuchengco-led lender’s shares ended trading at P18.68 apiece on Monday, down by 1.06% or 20 centavos from its previous close. — LWTN

Finland reopens diplomatic mission to the Philippines

THE Republic of Finland recently reopened its diplomatic mission in the Philippines, with an office in Bonifacio Global City (BGC), Taguig.

“Despite challenging times brought about by this pandemic, we pursued our plans to reopen an Embassy in the country as the Philippine economy continues to be one of the region’s most vibrant. I look forward to strengthening Finnish-Philippine relations in the coming years,” Juha Pyykkö, Finland Ambassador and head of Mission to the Philippines, said in a statement.

The Ministry for Foreign Affairs of Finland tapped Pronove Tai & Associates (Phils.), Inc. to find a suitable space for the embassy. The embassy is located at The Finance Centre, along 26th Street corner 9th Avenue in BGC.

“We are grateful for the trust and confidence that the Embassy gave us in leading this project locally. After a thorough search and evaluation, we are pleased to announce that the newly completed and LEED certified The Finance Centre was chosen among numerous options,” Monique Cornelio-Pronove, Pronove Tai chief executive officer, said.