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PECO ordered to explain ‘operational lapses’

THE Energy Regulatory Commission (ERC) has directed Panay Electric Co., Inc. (PECO) to explain the “apparent operational lapses” found by the agency’s inspection team and why the distribution utility should not be imposed an administrative penalty or held criminally liable for its violations.

“Based on the findings of the ERC technical team that conducted the ocular inspection on the electric distribution system of PECO, the latter committed lapses in the operations and maintenance of its distribution system thereby posing danger and risks to the lives and properties of its consumers,” said ERC Chairperson and Chief Executive Officer Agnes VST Devanadera in a statement.

In an order dated Nov. 26, 2019, ERC required PECO’s directors and officers to explain its violations of the pertinent provisions of the following: Philippine Distribution Code (PDC) 2017 Edition; Amended Distribution Services and Open Access Rules (DSOAR); Amended Elevated Metering Center (EMC) Rules; and ERC Resolution No. 12, Series of 2009, or the Guidelines for the Accreditation of Satellite Laboratories of Meter Shops.

“PECO must submit its explanation within fifteen days from receipt of the Commission’s Order pursuant to the relevant provisions of the Electric Power Industry Reform Act (EPIRA). We need to accord PECO the opportunity to explain its side before we evaluate the extent of their liability for the operational lapses that were discovered,” Ms. Devanadera said.

The ERC inspection team found that PECO’s protective devices were not properly rated and designed, and that some poles were found leaning and in unsafe positions. It also discovered that some meters were found to be clustered and installed in an elevated metering center without securing prior ERC approval.

The inspection team also uncovered that the Certificate of Authority for PECO’s meter shop expired on Nov. 18, 2019, and PECO has not filed the application for the renewal of the same. — Victor V. Saulon

Dining Out (12/05/19)

Yellow Cab’s All Star Holidays Bundle

YELLOW CAB is offering its customers the All Star Holidays Bundle featuring its bestselling dishes, from its edge-to-edge pizza to pasta and wings, all for P999. Dine on the 10-inch New York’s Finest pizza, one large serving of Charlie Chan pasta, and 10 original Hot Chix wings in one bundle that is available for dine-in, takeout, delivery, or curbside pick-up. Yellow Cab’s All-Star Holidays Bundle is available until Jan. 15. For more information, visit https://www.facebook.com/YellowCabPizzaOfficial/.

Unlimited fresh seafood

Cebu’s Isla Sugbu Seafood City is now offering Unlimited Seafood — guests choose from its wide array of fresh and live seafood, fish, shrimp, squid, crabs, or oysters, and have them cooked to their liking — fried, steamed, grilled, pan-seared, broiled, poached, or any type of cooking method. Then they can repeat the whole process until they are completely satisfied. (Note that premium items such as lobster, mudcrab, live suahe, sea mantis, and grouper are not included in the Unlimited Seafood package.) Unlimited Seafood must-tries inlude Sinigang na Salmon, Black Pepper Crab, Stir Fry Scallops, Salt and Pepper Calamari, and Salted Egg Shrimps, all these and more for P888 per head (lunch and dinner) at the Venice Grand Canal in McKinley Hills, Taguig, and P797 per head (lunch) and P848 (dinner) at the Cebu branch. Prices are exclusive of 3% service charge. For details visit www.seafoodcity.ph.

Toblerone special holiday packaging

TOBLERONE celebrtes Christmas with its limited edition Toblerone Blank Packs. With the theme “12 Days of Christmas with Toblerone,” the limited edition Toblerone Blank Packs have different personalities for the different people on one’s Christmas list. Every pack design has a specific theme and the giver can add a personal touch by writing messages. Toblerone is also holding a promo with a chance to win prizes like a trip to Japan, a shopping spree, and a new mobile phone. To join the Toblerone Christmas promo, which is ongoing until Dec. 27, buy Toblerone packs worth P100, then redeem and fill up raffle stubs at designated mall hubs nationwide (and get a chance to win a giant 4.5 kg chocolate bar). Follow the #BeMoreImaginative and #TobleroneChristmas hashtags and follow @tobleroneph on Instagram and Toblerone Pilipinas on Facebook to find out how to win the prizes. The Limited Edition Holiday Black Packsare available in 100g (P106), 200g (P206) and 360g (P400) sizes.

Apple fails to end MacBook ‘butterfly’ keyboard class action

A FEDERAL judge on Monday rejected Apple Inc.’s bid to dismiss a proposed class action lawsuit by customers who said it knew and concealed how the “butterfly” keyboards on its MacBook laptop computers were prone to failure.

US District Judge Edward Davila in San Jose, California said Apple must face claims that its troubleshooting program did not provide an “effective fix” for MacBook design defects, or fully compensate customers for their out-of-pocket expenses while seeking repairs.

Customers claimed that their MacBook, MacBook Pro and MacBook Air laptop keyboards suffered from sticky keys, unresponsive keys and keystrokes that failed to register when tiny amounts of dust or debris accumulated under or near keys.

They also said Apple’s service program was inadequate because the Cupertino, California-based company often provided replacement keyboards that had the same problems.

The lawsuit covers purchasers of model year 2015 or later MacBook laptops, and model year 2016 or later MacBook Pros laptops. It seeks a variety of damages for violations of several states’ consumer protection laws.

Apple did not immediately respond to requests for comment. Benjamin Johns, a lawyer for the plaintiffs, said he was pleased with the decision and looked forward to pursuing the case.

Last month, Apple introduced a MacBook Pro with a larger screen and new “Magic” keyboard with the “scissor” mechanism more commonly found in the industry. The hinged butterfly mechanism resembles a butterfly’s wings.

The case is In re: MacBook Keyboard Litigation, US District Court, Northern District of California, No. 18-02813. — Reuters

Australian fund managers are already betting on quantitative easing

AUSTRALIAN asset managers are gearing up for what was once unthinkable: the prospect of quantitative easing (QE) in their own backyard.

They’ve pored over the lessons from overseas and arrived at a different conclusion to central bank chief Philip Lowe, who has sought to damp expectations that QE is likely in Australia.

Some including QIC Ltd. and Nikko Asset Management Ltd. are already buying assets on bets that interest-rate cuts won’t be enough to combat slowing economic growth. They see the impact of asset purchases rippling broadly through debt markets, even if Lowe manages to limit any QE program to government bonds.

“QE could come even before any recession,” said Susan Buckley, QIC’s managing director for global liquid strategies, who is overweight Australian credit. Unorthodox monetary policy “is definitely a scenario we have to prepare for. Everyone’s talking about QE.”

The Reserve Bank of Australia (RBA) has cut interest rates three times since June, to a record low 0.75%, amid a slide in economic growth to the slowest pace in a decade.

Mr. Lowe has said in a speech on Nov. 26 that rates would need to go to 0.25% before he’d consider QE, and that even then, the hurdle to asset purchases would be high. He also signaled that the RBA would have little appetite for buying private-sector assets.

But with unemployment that’s too high to drive up wages and tepid gains in consumer prices, investors expect Mr. Lowe to be pushed outside his comfort zone. Many of them were right in positioning for the recent run of rate cuts. The RBA stood pat on Tuesday.

“Look across the developed world and if you can show me a country that’s averaged 2.5% inflation over the past 10 years then you’re doing a better job than me,” said Chris Rands, portfolio manager at Nikko Asset, who is loading up on semi-government bonds. “Why would Australia be the country that achieves that when no one else has?”

Here’s how some fund managers are preparing for QE:

LONG BONDS
Australian sovereign bond yields are likely to fall across the curve as the RBA steps in as a default purchaser, said Raymond Lee, money manager at Kapstream Capital, a unit of Janus Henderson Investors. That makes government bonds a fairly compelling buy for the A$14-billion ($9.6-billion) fund.

“We’ve increased our duration at the beginning of this year, just because we felt that rates were going to stay lower for longer,” said Sydney-based Mr. Lee. While QE might still be “a while away, RBA comments on unconventional policy only confirms the fact that rates are going to stay low and could rally further.”

The central bank may buy up to A$50 billion of Australian government bonds as part of a QE package as early as next year, according to JPMorgan Chase & Co.

Stuart Dear, deputy head of fixed-income at Schroder Investment Management Australia Ltd., is also positive on Australian sovereign debt. He expects bonds with maturities shorter than five years to outperform if the RBA embarks on QE.

SEMIS BET
Nikko Asset started buying Australian dollar-denominated semi-government debt last year, wagering notes maturing in a decade were priced attractively.

It’s been a profitable trade. Yield spreads of quasi-government debt have narrowed against their sovereign counterparts.

“We can look at the US experience for this, where even though they bought government bonds there, other assets all got supported,” Mr. Rands said. “It’s likely to be the same in Australia, as QE gives semis an extra kick.”

Schroders’ Mr. Dear has also boosted holdings of semi-government securities.

“We have increased our exposures by buying semi-government bonds and residential mortgage-backed securities,” he said. “This buying came ahead of Lowe’s speech, which has broadly affirmed our views.”

CREDIT BOOST
Others including QIC’s Ms. Buckley see Australian corporate bonds gaining, even if the RBA’s initial focus is on government debt.

She sees unconventional stimulus as likely to “float all boats.”

On top of this, the RBA could run out of sovereign bonds to buy. Mr. Lowe has noted that the gross stock of government debt is projected to decline over the years ahead. And the biggest owners of the bonds — domestic banks and foreign central banks — are long-term holders who may not be willing to sell in large quantities.

While rising risks of a recession or economic slowdown would normally see the A$85-billion money manager shed some of its credit exposure, Brisbane-based QIC is taking a new tack.

“We’ve seen this play out in the UK, Europe where spreads have compressed as a result of ECB (European Central Bank) purchases, and it could happen here as investors push out the credit spectrum as risk-free rates fall,” Ms. Buckley said.

SHORT AUSSIE
For those scouting for a more liquid way to trade Aussie QE, shorting the nation’s currency presents the best avenue, said Stephen Miller, adviser at GSFM, a unit of Canada’s CI Financial Group.

“If QE is coming, the Australian dollar will look sick and likely get sicker,” Sydney-based Mr. Miller said. “It’s a good short if you’re looking to war game quantitative easing, and right now, I’d say a target of around 65 US cents is achievable.”

The Aussie has weakened about 3% against the greenback this year and touched a decade-low of 66.71 US cents in October as traders priced in fresh interest-rate cuts.

Australia’s economic growth slowed to 0.4% in the third quarter from the previous three months, slightly less than economists forecast, according to data released Wednesday.

The nation’s biggest pension fund, AustralianSuper Pty., is underweight the Aussie and long sovereign paper on bets the RBA may unleash QE as early as next year.

The central bank is likely to push rates to as close as zero as they think they can without damaging the banking system, according to Carl Astorri, head of asset allocation and research at the A$175-billion fund. “That process would flatten the yield curve and push the currency down,” he said.

TIMING QE
To be sure, no market participant can say for certain when and how QE will finally be deployed.

Recovering real estate prices may spur a housing-related consumption rebound, helping the RBA stay its hand on unconventional policies next year, according to Goldman Sachs Group, Inc.

Citigroup, Inc. reversed its call for stimulus in 2020, forecasting just one more RBA rate cut before the central bank keeps rates on hold. Barclays Bank Plc predicts QE is unlikely as Australia’s economy heads towards a “gentle turning point.”

For some, it’s still better to be safe than sorry.

“There are several steps before the RBA gets to QE, but if they need to act further down the track, they likely will,” said GSFM’s Miller. “I’m not surprised some think now might be the time to start buying assets.” — Bloomberg

How PSEi member stocks performed — December 4, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, December 4, 2019.

 

Lacson proposes more UHC, National ID funding

SENATOR Panfilo M. Lacson said he proposed budget amendments providing for additional funding for the Philippine Identification System (PhilSys) program, Universal Health Care (UHC), and free university tuition.

In documents posted to his website, Mr. Lacson outlined his proposed amendments to the Senate Finance Committee, noting that the key programs have been allocated insufficient funds in the P4.1 trillion 2020 budget. The two chambers’ budget bills are currently being harmonized in bicameral session with a ratification target of next week.

Mr. Lacson proposed to increase the budget of the Philippine Statistics Authority (PSA) to P7.009 billion from P1.364 billion, citing the insufficient allocation for Philsys, or the National ID program, of P2.4 billion.

He said the estimated cost to provide IDs to an initial 14 million Filipinos is P5.7 billion, more than double the budgeted funds.

The National ID is intended to increase financial inclusiveness by giving those without bank accounts access to an ID acceptable to all banks. A more secure ID is also expected to reduce benefits fraud in cash transfers to the poor and possibly ease the implementation of Universal Health Care (UHC).

“The funding gap will significantly hamper our annual implementation targets and fundamentally, our aim to achieve universal coverage,” Mr. Lacson said.

Mr. Lacson also proposed to increase the budget of the Commission on Higher Education (CHEd) by P2 billion to P45.88 billion. The increase will fund the Tertiary Education Subsidy.

He proposed to increase the Department of Health’s (DoH) budget by P3 billion, with P1 billion to support the Health Facilities Enhancement Program, and P2 billion for the Human Resource for Health program.

“One of the key programs under the UHC is the Health Facilities Enhancement Program where appropriations significantly decreased from P15.92 billion under the 2019 GAA (General Appropriations Act) to a mere P5.9 billion under the NEP National Expenditure Plan) 2020.”

To fund the increased program budgets, Mr. Lacson proposed to reduce the funding for the Department of Transportation (DoTr) and Department of Public Works and Highways (DPWH), among others.

The DoTr budget for Right-of-Way Acquisition was reduced by half to P5 billion, while P15 billion was slashed from the DPWH ROW appropriations.

Mr. Lacson said as of Oct. 31, the DoTr has only obligated P1.2 billion of P13.26 billion budget for ROW payments. “Considering that huge unused appropriations will be carried over next year, it is inefficient to provide substantial funding for ROW,” he said.

He said the DPWH’s average unused appropriations from 2011 to 2018 was P82.4 billion.

The chambers of Congress are working to submit the budget to President Rodrigo R. Duterte for signing before the year ends and avoid a repeat of the four-month delay in the 2019 budget, which has been blamed for dampening economic growth in early 2019. — Charmaine A. Tadalan

Dominguez, Pernia due in Tokyo to discuss progress of key Japan-backed infrastructure projects

THE government’s economic team will meet Japanese officials this week in Hakone, southwest of Tokyo, to discuss the progress of big-ticket infrastructure projects supported by Japan.

Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia will represent the Philippines Friday during the ninth high-level meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation.

Meanwhile, the Japanese delegation will be led by Hiroto Izumi, special advisor to the Prime Minister.

Mr. Dominguez said in a statement Wednesday that the two countries regularly meet to ensure a “fast and sure” approach in implementing the Japan-funded projects under the “Build, Build, Build” program.

The two sides met in Clark earlier this year while the very first meeting was held in March 2017 in Tokyo.

In an interview on Wednesday, Mr. Pernia said that the meeting will assess ongoing projects “to see how they are moving, if there is any need for midway adjustments and also to look at the projects in the pipeline that will be ready for implementation.”

Mr. Pernia said that the two countries will ensure that ongoing projects are delivered sooner than later. The pace of implementation will also be discussed to see if there is a need for an “additional push.”

Asked if new agreements will be signed, he told BusinessWorld: “so far, there’s nothing that has been scheduled but it’s possible that need for new loans may just crop up and the Japanese side may just be willing to accommodate.”

Since President Rodrigo R. Duterte assumed office in June 2016, the two sides have signed 10 loan agreements in total, Mr. Dominguez said. He added that these loans were processed and approved in a span of three to four months.

As of December, Japan was the top source of official development assistance (ODA) loans and grants.

Japan accounts for 46% of the country’s total ODA loan portfolio.

Japan was also the country’s second-largest trading partner in 2018 with two-way trade of $21.1 billion. It was the second-largest export market with shipments worth $10.3 billion, and the third-largest source of imports worth $10.82 billion.

Japan was the fourth-largest source of visitors with 631,000 in 2018, up 8.15% from a year earlier.

The country’s 10 loan agreements with Japan fund the second phase of the Maritime Safety Capability Improvement Project for the Philippine Coast Guard; the “Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation” project; the Cavite Industrial Area Flood Risk Management project; the third phase of the Arterial Road Bypass project in Bulacan; the New Bohol Airport Construction and Sustainable Environment Protection project (II); the Metro Rail Transit Line 3 Rehabilitation project and the fourth phase of the Pasig-Marikina River Channel Improvement project.

The three other agreements were the first tranche of the North-South Commuter Railway Extension project loan, the Road Network Development project in conflict-affected areas in Mindanao, as well as the first phase of the Metro Manila Subway project, which is the single biggest venture under the “Build, Build, Build” program according to the statement issued by the Department of Finance. — Beatrice M. Laforga

DTI sets Feb. deadline for Thailand to comply with WTO tobacco ruling

THE Department of Trade and Industry (DTI) said it is giving Thailand until February to comply with the World Trade Organization (WTO) ruling on its customs measures on Philippine cigarette exports before seeking recourse.

Trade Secretary Ramon M. Lopez told reporters after a news conference at New World Makati Hotel Wednesday that he will write a letter to his counterpart in Thailand this month.

“The general tone is for enjoining them to comply with the WTO ruling. We are all supposed to subscribe to the rules. It’s as basic as that. Otherwise, we will look into recourse, into other measures that will be available for us to take,” he said.

The decade-long dispute on Thailand’s fiscal and customs policies on imported cigarettes from the Philippines, where the WTO ruled in favor of the Philippines, is now facing new considerations that could delay Philippine retaliation.

The Thai courts recently fined Philip Morris Thailand $39.7 million after finding the company had undervalued cigarette imports from the Philippines to avoid taxes.

“We are looking closely at the details of that trade court’s decision,” undersecretary Ceferino S. Rodolfo said in the briefing, noting that DTI is now waiting for the official English translation of the decision.

“There was a positive finding with respect to the fines that will be imposed on the Thai importer of Philippine products. In effect, the Thai court decision disregarded [the] WTO case.”

He said that the decision works against the WTO ruling that favors the Philippines. DTI is currently working on communicating with the WTO through the Philippine Mission in Geneva.

The appellate body of the WTO may also not have enough members to function after Dec. 10, following the blocking of appointments from the Trump administration.

“We’re also looking carefully at what will happen to the appellate body of the WTO, because that will also have a material impact on the timelines as to whether Philippines can impose certain actions,” Mr. Rodolfo said.

DTI last month said that it was considering cross-sectoral retaliation against Thailand by the end of December, looking into imposing tariffs or quantitative restrictions on its automotive exports to the Philippines.

Mr. Lopez said Thailand is in the “ASEAN brotherhood of trade partners,” and offered the country a chance to comply with the WTO ruling.

“Tumagal na ‘yung kaso ng 2011 or 2012. (The case has been going on since 2011 or 2012). We’re willing to wait a little more,” he said.

Mr. Rodolfo said that the DTI is looking after the interests of tobacco farmers.

“The Secretary wants to fight for this case — in addition to the Philippine exporters to Thailand, it’s because of the [tobacco] farmers that have been prejudiced by this case.” — Jenina P. Ibañez

PHL among top 5 ‘greenfield’ FDI destinations in Asia

THE Philippines received the fifth-most “greenfield” foreign direct investment (FDI) in the Asia-Pacific, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said in a report.

Greenfield investment refers to new projects, as opposed to the expansion of existing projects.

The Foreign Direct Investment Trends and Outlook in Asia and The Pacific 2019/2020 report found that the Asia Pacific for the first time became the largest source and destination for FDI globally.

In 2018, the region attracted 45% of FDI inflows worldwide, and was the source of 52% of outflows.

Greenfield investment into the Asia Pacific is expected to see sluggish growth in 2019, ESCAP said.

“A decline in investment flows in 2020 is expected if the uncertainty related to international trade continues and companies continue to consolidate their value chains.”

The report said that investment prospects for the region are subdued due to the UK’s possible exit from the European Union, the US-China trade war, protectionism, and civil unrest in Hong Kong.

Global FDI flows dropped 13% to $1.3 trillion in 2018.

FDI into the Philippines fell 26% to $6.5 billion in 2018, the largest decline in Southeast Asia.

Rizal Commercial Banking Corp. economist Michael L. Ricafort in an e-mail said that a decline in 2018 FDI was due to a sharp increase in inflation and interest rates, though he called the Philippines a still-attractive destination for FDI amid improved economic and credit fundamentals in recent years.

“Net FDI inflows into the Philippines could pick up/improve especially if both local economic growth and global economic growth improve amid relatively lower interest rates and inflation recently.”

“Any partial/phase one trade deal between the US and China… could fundamentally lead to higher FDIs worldwide.”

ING Bank N.V. Manila senior economist Nicholas Antonio T. Mapa in an e-mail said that in 2019, companies that had previously set up shop in the Philippines continue to plow back their earnings into the country.

“This shows that corporates who are here realize the growth potential of the PHL and view market conditions to be favorable enough to put in more money as opposed to remitting all their earnings back to their mother companies.”

He said that newer FDI has struggled as investors are anxious about tax reform uncertainty.

“Taxes will be lowered but would-be investors are unsure as to how quickly and by how much… the actual list of fiscal incentives, which could be beneficial to the business investment decisions of these corporates, is also not set in stone just yet,” he said.

“Thus, we see a lot of investors waiting on the sidelines before they can actually do their feasibility studies to determine if they should invest, and if they should, by how much.” — Jenina P. Ibañez

At the moment: Know more about ATM fees

For those who dare to do their Christmas shopping at the eleventh hour, the ordeal of treading through Manila’s urban jungle is not for the faint-hearted. Lest one is not forewarned, it is wise to start Christmas shopping early, steering clear of the horrendous rush that can risk spoiling the holiday spirit.

But what if you run out of cash while shopping and your bank’s Automated Teller Machine (ATM) is far from your location? The tendency is to grab cash from the nearest ATM of any other bank, not minding the additional P10 to P15 ATM transaction fee charged to you. After all, searching for your bank’s ATM may entail more cost and inconvenience than paying the ATM fee. But how much do we understand about this fee? Before you insert your card and hit that withdraw button, let me share with you some information about the charges on transactions done via ATM.

With the use of an ATM/debit card, cardholders can easily withdraw money, check their account balance, and even transfer money to other bank accounts or users in just a few clicks. However, there is a price to pay for banking convenience. While not charged by the issuing bank’s ATM terminal (“on-us” transactions), cardholders pay an ATM fee for withdrawals made with another bank (“off-us” transactions) to cover the operational costs of processing.

In 2013, due to the noted industry-wide adjustment in ATM fees, the Bangko Sentral ng Pilipinas (BSP) released a memorandum instructing all banks to maintain the status quo in terms of both service fees and connectivity arrangements concerning their ATM network. The directive was to allow the BSP to conduct a review, in consultation with the banking industry, of the disclosure practice, competition policy, and consumer protection issues applied by the banks to their ATM transactions.

Six years later, in line with the results of the review and the actions taken by the industry, the BSP issued Memorandum No. M-2019-020 on July 19, lifting the moratorium imposed on the ATM fees, subject to the following guidelines:

1. Each participating BSP-supervised financial institution (BSFI) shall file a letter request with the BSP indicating their proposed ATM fees, as well as the costs currently incurred by the BSFI for its ATM activities;

2. Costs declared should be clear and adequately supported, such that when deemed necessary, the same may be validated by the BSP onsite;

3. Setting of fees, including convenience fees, shall adhere to the pricing principles provided under BSP Circular No. 980 dated Nov. 6, whenever applicable;

4. The Acquirer-Based Charging model should already be adopted. To ensure effective implementation of the model, the imposition of fees arising from agreements among BSFIs to fix the fee or have a fixed share in fees shall not be allowed; and

5. Appropriate disclosures on ATM fees shall be provided to the cardholders. The amount to be charged to a cardholder shall be clearly displayed at the ATM’s location and on the screen of the ATM terminal. This is to consist of the fees charged by the acquiring BSFI and the network switch. The notice must clearly indicate that the amount displayed is on top of the charges that may be imposed by the cardholder’s issuer.

Before the issuance of the memorandum, the industry practice on charging ATM fees was the Issuer-Based Charging Method. Under this method, the ATM fee is set and charged by the issuing bank. The amount charged to the cardholder remains the same regardless of the ATM acquiring bank (i.e., the owner of the ATM terminal where the cardholder transacts). The issuing bank shall then pay an interchange fee from the ATM fee collected. Any difference in the amount of the ATM fee and the interchange fee is considered as revenue to the issuing bank and is commonly referred to as Issuer’s Fee. Accordingly, related costs incurred by the issuing bank, such as in the case of reconciliation and fraud-related losses, are charged against the fee.

On the other hand, under the Acquirer-Based Charging Method, the amount that will be charged to the cardholder will vary depending on the ATM terminal used. The fees are to be set by the acquiring bank while the issuing bank, at its option, may likewise charge a separate fee, provided this is properly disclosed to its cardholders. The cardholder is allowed to cancel the transaction if he does not wish to pay the fees, such as may be the case if he believes that an ATM charging a lower fee may be situated nearby.

Based on the memorandum, the acquirer-based charging method allows the ATM owners to directly compete for business with one another by disclosing fees and offering lower charges than other ATMs in the vicinity. This policy introduces a competitive discipline that can bring about efficiencies in the Philippine ATM system which favors the consumer. In line with this, the BSP issued a reminder that BSFIs should ensure adherence to the principle of reasonable and market-based pricing provided under BSP Circular No. 980.

A few months after the lifting of the moratorium, news came out that some banks had won the approval of the BSP to increase their ATM fees but only up to P3 per transaction on average. While it may seem to be a relatively small amount for some, this is not the case for everyone, especially those earning a lower income.

It seems unwise to pay fees for just taking out your own money; after all, it is the depositor’s money that fuels the banking business. Nonetheless, additional fees can be avoided if you plan where and when to make a cash withdrawal and stick with ‘on-us’ transactions. You may also opt to go cashless since many establishments have long been accepting electronic payment transactions. Better yet, stay within your budget to avoid overspending. It’s your hard-earned money, so spend it on necessities or things that matter the most.

The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Nestine P. Buisan is a Senior Associate at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

nestine.p.buisan@pwc.com

PHL breaches 100-medal mark in SEA Games 2019

By Michael Angelo S. Murillo
Senior Reporter

THE PHILIPPINES continued to roll in the 30th Southeast Asian Games, breaching the 100-medal mark just four days into the competition.

Obstacle course racing, weightlifting and shooting delivered gold medals for the host country with silver and bronze medals coming in from lawn bowls, obstacle course racing, gymnastics and muay thai, as of this writing, to push the country’s total medal to 110 — 54 of which were gold.

The Philippine OCR team made a rousing debut by picking up two golds early on Wednesday in the 400-meter mixed team assist (Kyle Antolin, Kaizen dela Serna, Monolito Divina and Deanna Moncada) and mixed team relay (Diana Buhler, Jeffrey Reginio, Klymille Kim Rodriguez and Nathaniel Sanchez) in competitions held at the Filinvest City in Alabang, Muntinlupa.

The team then followed it up with 1-2 finish in the women’s individual 100m event with Rochelle Suarez (46.70) and Milky Mae Tejares (47.88) annexing the gold and silver medals, respectively.

In the men’s 100m event, Kevin Jeffrey Pascua seized the gold with a time of 29.92 seconds. Teammate Mark Julius Rodelas won the bronze.

In weightlifting, Kristel Macrohon gave the second gold from the sport by ruling the women’s 71-kg division at the Ninoy Aquino Stadium in Manila.

Twenty-three-year-old Macrohon followed up on the gold medal victory of Olympian Hidilyn Diaz on Monday, lifting 216 kg (93 kg in the snatch and 123 kg in the clean and jerk) to edge favorite Thi Van Nguyen, who had a total lift of 214 kg (92 kg in the snatch and 122 kg in the clean and jerk).

Indonesian Tsabitha Ramadan settled for the bronze medal with a total lift of 203 kg.

“I’m so overwhelmed. I didn’t expect this because the Vietnamese lifter is really the No. 1 in the division. I thought I could only win a silver. But Hidilyn inspired me to go for the gold,” a jubilant Ms. Macrohon said after her golden performance.

The country’s shooters, for their part, had a golden double with Marly Martir winning the women’s WA 15 Precision Pistol Course event and joining forces with Franchette Shayne Quiroz and Elvie Baldivino to top the women’s WA 1500 PPC Team event.

CUE ARTISTS OFF TO A GOOD START
Meanwhile, billiards players Rubilen Amit and Efren “Bata” Reyes made it a winning debut in this year’s edition of the SEA Games.

Ms. Amit bucked a slow start to edge Siripaporn Nuanthakhamjan of Thailand, 7-5, on Wednesday in the women’s 10-ball singles at the Manila Hotel Tent.

The multiple 8-ball and 9-ball SEA Games champion crawled out a 4-0 hole by winning the next three racks and sustained her momentum after a 5-all tie to advance to the semifinals.

Also advancing to the semifinals was billiards legend Reyes, who dominated Thailand’s Thongchai Punawee, 100 to 37, in the 1-cushion carom quarterfinals.

In men’s football, the Philippine Under-22 team bowed out of the tournament despite beating Timor Leste, 6-1, in its final game in group play at the Biñan Football Stadium in Laguna.

The win went for naught as Cambodia defeated Malaysia, 3-1, in the other Group A match, sending the former to the next round.

The Young Azkals were hoping to beat Timor Leste and for the Cambodia-Malaysia game to end in a draw to advance to the semifinals.

Stephan Schrock, Amani Aguinaldo (hat trick), Mar Diano and Dylan de Bruycker accounted for the goals of the Philippines against Timor Leste.

PHILIPPINES AS BEST SEA GAMES ORGANIZER
Took a lot of flak in the lead-up and early into the Games over what were deemed to be its shaky handling of its affairs, the Philippine Southeast Asia Games Organizing Committee (PHISGOC) got some form of “redemption” after its efforts were recognized at the recent Sports Industry Awards Asia for “organizing the best SEA Games.”

A sports business conference and awards platform, Sports Industry Awards (SPIA) Asia, held at the Grand Hyatt Hotel in Bonifacio Global City in Taguig from Dec. 2 to 3, recognizes and celebrates Asia’s Top 10 in 25 distinct awards categories including the Asia’s Best Sportsman and Asia’s Best Sports Woman category, with Gold, Silver, and Bronze being awarded to the best performers.

SPIA CEO Eric Gottschalk personally handed the award to the PHISGOC Chairman Alan Peter Cayetano and PHISGOC Chief Operating Officer Ramon Suzara.

Team Sibol bullish of chances as SEAG esports events begin

By Michael Angelo S. Murillo
Senior Reporter

ESPORTS events in the 30th Southeast Asian Games formally open today with the Philippine team — Team Sibol — expressing its readiness to plunge into action and bullish of its chances of doing well.

Happening at the FilOil Flying V Centre in San Juan City, esports, which is making its debut in the biennial sporting meet, will see competing nations battle in six game titles, namely, DOTA 2, Starcraft 2, Hearthstone, Tekken 7, Arena of Valor and Mobile Legends: Bang Bang.

Team Sibol will be competing in all of the games, dead-set on making a sweep of the events.

“We are excited and honored to play for the country,” said Team Sibol manager Alvin Juban in an interview in the lead-up to the esports competition.

“Our players have been performing well in the competitions they joined in heading into the SEA Games and we have been getting a lot of support, so we are bullish of our chances,” he added.

Team Sibol is comprised of veterans in their respective games.

Team members are Marvin Salvador “Boomy” Rushton, John Anthony “Natsumi-” Vargas, Bryle Jacob “cml” Alvizo, Jun “Bok” Kanehara, Mc Nicholson “Mac” Villanueva, James “Erice” Guerra and “Van” Jerico Manalaysay (DOTA 2); Caviar “EnDerr” Acampado and Justin “Nuks” Santos (StarCraft 2); and Jacinta “Jia” Dee and Dustin “WaningMoon” Mangulabnan (Hearthstone).

Also part of the squad are Kevin Kio “Gambit” Dizon, Jeremiah “1717” Camarillo, Miguel Klarenz “Miggie” Banaag, Jevan Lorenzo “Bents” Delos Santos, Lawrence Anthony “Rubixx” Gatmaitan, Bradie Ryan “Yatz” Velasquez, and Kyle Jepherson “Vindiicated” Padlan (Arena of Valor); Angelo Kyle “Pheww” Arcangel, Karl Gabriel “KarlTzy” Nepomuceno, Kenneth Jiane “Kenji” Villa, Carlito “Ribo” Jr., Jason Rafael “Jay” Torculas, Jeniel “Haze” Bata-Anon, and Allan Sancio “Lusty” Castromayor (Mobile Legends: Bang Bang); and Andrei Hosea “Doujin” Albar and Alexandre Gabrielle “AK” Laverez (Tekken 7).

As a team, Sibol is rallying behind the battle cry “Lakad Matatag.”

As part of their preparation, team members, with help from Smart, honed further their skills at the Sibol Training Ground, the de facto headquarters of the team which is fitted with the latest mobile network innovations.

It surely bore fruit as Sibol members all took gold medals in DOTA 2, Tekken 7 and Mobile Legends: Bang Bang in the SEA Games test event in November.

As an added incentive in its campaign, Smart and PLDT launched the “Get Gold!” campaign, a cash incentive program for every gold Team Sibol wins.

Under the program, a P2-million cash prize will be given for team events (DOTA 2, Mobile Legends: Bang Bang and Arena of Valor), and P1-million cash prize for individual events (Tekken 7, Hearthstone and Star Craft 2).

“To have esports in the SEA Games is a huge thing for the gaming community here. When this becomes a national sport through the SEA Games, upcoming players will have a new platform to aspire for, a higher goal of representing the country apart from joining competitions for money and prestige,” said Mr. Juban of the significance of having esports in the SEA Games.

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