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Filinvest Land plans to sell up to P30-B in debt papers

Gotianun-led Filinvest Land, Inc. (FLI) on Friday said it is planning to sell up to P30 billion worth of debt paper.

The property developer told the stock exchange on Friday it filed a shelf registration of a planned issuance of fixed-rate, peso-denominated retail bonds with the Securities and Exchange Commission.

Of the P30-billion shelf registration, FLI intends to initially offer P9-billion in bonds, which will have an oversubscription option of up to P2.25 billion.

FLI management will determine other terms and conditions of the planned issuance such as the interest rate of the offer bonds.

The offer bonds will be comprised of 3-year and 5.5-year bonds, maturing in 2023 and 2026, respectively, for which the allocation will be determined by FLI based on the book building process.

To arrange the offering, the company has tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp. and SB Capital Investment Corp. as joint lead underwriters and bookrunners, and First Metro Investment Corp. as co-lead underwriter. China Banking Corp. – Trust and Asset Management Group will be the trustee.

The offer bonds will be issued in minimum denominations of P50,000 each, and in integral multiples of P10,000 thereafter.

Local debt watcher Philippine Rating Services Corp. has given the bonds a credit rating of PRS Aaa, the highest in its scale, which means the bonds are seen to have minimal credit risk.

FLI did not specify on Friday the purpose of the bonds, but it previously said it was allocating P16 billion for capital expenditures in 2020.

The company’s attributable net income contracted 24% to P2.3 billion in the first half, as revenues slid 30% to P8.81 billion, weighed down by operational disruptions due to the coronavirus pandemic.

Shares in FLI at the stock exchange inched up two centavos or 2.17% to close at 94 centavos apiece on Friday. — Denise A. Valdez

ABS-CBN shuts down studio tours, retail business

ABS-CBN Corp. on Friday announced its studio tour operations and retail businesses will be permanently shuttered on Aug. 31.

In a statement, the Lopez-led media giant said Studio Tours, ABS-CBN Store, Hado Pilipinas, Heroes Burger, and ABS-CBN Studio Experience will stop operations.

“These ventures are part of ABS-CBN’s services to Filipino families affected by the denial of its broadcasting franchise by the House of Representatives last July 10,” it said in a statement.

ABS-CBN has been conducting educational tours inside its Quezon City headquarters since 1997.

ABS-CBN Studio Experience, an indoor theme park located in Ayala TriNoma mall in Quezon City, has only been operating for two years. Its adjacent burger joint Heroes Burger was also closed down.

Hado Pilipinas was an exclusive partnership between ABS-CBN and Japan’s meleap Inc. to introduce the technosport Hado in the country.

ABS-CBN began implementing a company-wide retrenchment program after its congressional franchise was denied.

The media network posted a P3.16-billion loss in the second quarter, as revenues plunged by 55.2% to P4.68 billion.

Shares in ABS-CBN inched up 0.28% to close at P7.25 each on Friday. — AJA

DoE approves work budget for Ayala’s Palawan exploration block

An exploration unit of the Ayala group can proceed with the new phase of its petroleum discovery in Palawan after the Department of Energy (DoE) signed off on its proposed appraisal period activities and budget.

The department approved the $1.70-million budget of Palawan 55 Exploration & Production Corp., a subsidiary of listed ACE Enexor, Inc., for its appraisal work, including a commitment to drill at least one oil well by 2022.

Once the DoE authorizes the company to proceed with the drilling, it expects a budget proposal from the company to follow, the Ayala-led firm told the stock exchange, Friday.

To recall, the deep-water block project led by Palawan55, the operator of DoE’s Service Contract 55, entered the appraisal period on April 26 following its discovery report on the Hawkeye-1 well within the area.

After finding a “significant” volume of movable natural gas from the well, the DoE classified the project as a non-associated gas discovery.

The 9,580-feet well was first drilled in 2015 when Australia-based exploration firm Otto Energy, Ltd. still operated the service contract.

The ACE Enexor unit has raised its stake in SC 55 to 75% after a co-contractor, Singaporean firm Century Red Pte. Ltd., transferred its 37.5% interest share to the company after exiting from the project. Pryce Gases, Inc. owns the remaining interest.

On Friday, shares in ACE Enexor went up 3.70% to close at P5.60 apiece. — Adam J. Ang

DFNN affiliate in talks to acquire casino operator

An affiliate of gaming and technology firm DFNN, Inc. is looking to enter the Australian Stock Exchange through a AUD530,000 (about P18.74 million) deal with an Australia-listed gaming operator.

In a statement to the Philippine Stock Exchange on Friday, DFNN said its affiliate HatchAsia, Inc. is arranging a deal to take control of Silver Heritage Group, Ltd.

Silver Heritage is a gaming operator in Asia with two casinos in Nepal, but is listed at the Australian Stock Exchange. Based on DFNN’s disclosure, Silver Heritage has been asked to execute a deed of company arrangement for the transaction, which will then be approved by HatchAsia.

The DFNN affiliate would need to acquire 92% of Silver Heritage’s issued share capital through the consolidation of existing shareholders, and a new issuance of ordinary shares by a new subsidiary, to be called Hatch Australia Holdings Pty Ltd.

Other details have not been finalized yet, except that the consideration for the transaction is AUD530,000 in cash and 3% of the issued shares in Silver Heritage.

“The successful conclusion would eventually result in the HatchAsia shareholder-controlled entity being listed on the Australian Stock Exchange and DFNN owning part of the ASX Listed Entity,” it said.

DFNN said the transaction would essentially provide it better access to a wider capital base and open new business streams for a larger audience reach.

“As a shareholder, we welcome and look forward to the foray of HatchAsia in the international market… Tapping the Australian capital market for this provides a conducive environment for the nature of our businesses and allows DFNN to fully value its early investments in HatchAsia,” DFNN President and CEO Calvin Lim said in the statement.

DFNN has an 18.98% ownership stake in HatchAsia. The company is engaged in business management outsourcing services, gaming outlet operations, financial technology and office leasing.

In the first six months of 2020, DFNN swung to an P83.49 million attributable net loss due to the shutdown of gaming operations amid the lockdown. Its revenues were cut 48% to P333.2 million during the period.

Shares in DFNN at the stock exchange closed flat on Friday at P3.06 each. — Denise A. Valdez

Del Monte swings to $81-M loss

Del Monte Pacific Ltd. swung to an $81.39-million attributable net loss in its fiscal year ending April 2020 due to one-off expenses from plant closures and retirement of loans.

But excluding the one-off items, Del Monte posted a recurring net profit of $32.2 million in the 12 months, more than double its $15.8 million recurring net profit in the same period last year.

In a regulatory filing on Friday, the listed canned fruits manufacturer said revenues grew 9% to $2.13 billion from operations in the United States, the Philippines, S&W Asia and Europe.

Sales from US subsidiary Del Monte Foods, Inc. went up 8% to $1.5 billion, from the Philippines up 10% to $338.9 million, and from S&W in Asia and the Middle East up 9% to $109.8 million.

“Del Monte’s results had been favorably impacted by the pandemic. As consumers stayed home, prepared more meals and consumed more snacks, they purchased trusted brand names and consumed healthier, shelf-stable culinary products,” it said.

The bottomline loss is a result of the company’s efforts to reduce costs by divesting in four facilities in the US. Del Monte Managing Director and CEO Joselito D Campos, Jr. had said previously that the restructuring was a “necessary step” to remain competitive.

Shares in Del Monte at the stock exchange dipped three centavos or 0.61% to close at P4.86 each on Friday.

Camella celebrates 43rd anniversary, brings favorite home

Brands best integrate themselves into the consumers’ lives by becoming symbols of their ideals. For Camella, this connection with their homeowners is forged by embodying the aspirations of every Filipino family. On its 43rd anniversary, the brand continues to prove its status as the country’s favorite in house-and-lot development by giving more surprises for investors and end-users to look forward to.

New Investor Incentives

From flexed payment timelines to discounts, Camella gives an expanded list of incentives to investors this August. For those who prefer constructed homes, the developer grants up to a 5% down payment discount on its For Immediate Turnover (F.I.T.) homes, making move-in faster for new homebuyers. Offering the most favorable investment at present, Camella also makes its available lot only properties payable within 24 months at zero interest.

Improved Digital Innovations

The brand doubles its effort to go digital and stay connected with digital innovations. Camella has been tirelessly working on its digital upgrades, starting with the AR3D app (AR3D), which makes use of augmented reality to create an interactive mobile showroom.

The onset of the pandemic additionally streamlined Camella’s processes, beginning with the full digitization of its online reservation feature. These efforts are paired with other improvements in areas that are crucial for homebuyers, such as virtual tours to replace site visits and online payment instead of over-the-counter deposits. By partnering with banks and payment platforms like AllBank and AllEasy, Camella completes the seamless adaptation of its entire buying process and bridges the physical gap brought by the pandemic with digital solutions.

The Future of Healthy Homes

Camella considers itself as a pioneer in masterplanned townships that provide a holistic lifestyle experience, and the brand carries this leadership over to its digital innovations. The brand is best known for its premium-spaced houses that are convertible into safe sanctuaries. Camella, however, does not stop there and unlocks more potential directions for healthy homes with technology.

With the addition of its new series of smart homes, the brand ups the meaning of a healthy home to include energy-saving, secure, sensitive, and touchless, giving homeowners more power to control their homes based on their preference. By setting its sights on the future and anchoring on technology to address the dynamic needs of its families, Camella keeps itself ahead.

Camella, the pioneer in masterplanned townships, has undoubtedly risen from its humble beginnings in 1977 and established itself as the country’s favorite housing brand. Now, with projects in 49 provinces and 147 towns and cities, the brand brings nearly 500,000 families home to their favorites. Find your place where you could feel safe and bloom in one of these townships; visit www.camella.com.ph.

 

 

 

PSE index ends lower ahead of long weekend

LOCAL STOCKS extended their decline on Friday as investors bought shares ahead of the long weekend.

The benchmark Philippine Stock Exchange index (PSEi) let go of 37.37 points or 0.63% to close at 5,884.18; while the broader all shares index dropped 9.83 points or 0.27% to end at 3,534.58.

The market has been declining for two consecutive weeks and the lack of a strong catalyst to drive investors in may be the main culprit, Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said.

“Lack of cohesive economic plan for the people and for the business community is what keeps this market not enticing for the bull to enter,” he said in a message.

Looming worries over the coronavirus pandemic still haunt the local market, pushing the PSEi in red territory in seven out of nine trading days during the past two weeks.

Mr. Tan also said the upcoming “ghost month” festival next week may be a factor that’s pushing investors away. The ghost month is believed by some investors as a period of bad luck.

“Weak trading volume and value will be seen in the upcoming trading days,” he said.

The local bourse is closed on Monday in observance of National Heroes’ Day.

Other Asian markets were mixed on Friday. Japan’s Nikkei 225 and Topix indices were down 1.41% and 0.68%, respectively, primarily due to the reported plan of Prime Minister Shinzo Abe to step down due to health reasons.

US markets were also mixed on Thursday. The Dow Jones Industrial Average and S&P 500 indices were up 0.57% and 0.17%, respectively, while the Nasdaq Composite index declined 0.34%.

Back home, nearly all sectoral indices ended Friday’s session lower. Property lost 48.36 points or 1.75% to 2,710.60; mining and oil slid 49.79 points or 0.82% to 6,005.07; holding firms cut 48.40 points or 0.78% to 6,099.90; industrials fell 40.78 points or 0.52% to 7,791.26; and financials shed 2.72 points or 0.24% to 1,129.70.

The sole gaining index was services, which increased 18.21 points or 1.24% to 1,482.93 at the close of market.

Some 3.73 billion issues valued at P8.26 billion issues switched hands, against the previous day’s 5.08 billion issues worth P17.46 billion.

Decliners bested advancers, 102 against 87, while 56 names ended unchanged.

Net foreign selling grew to P1.63 billion on Friday from P1.11 billion the previous day. — Denise A. Valdez

Efforts to prevent child abuse stepped up in light of online learning

By Mariel Alison L. Aguinaldo 

The Department of Education (DepEd), in partnership with the United Nations Children’s Fund (UNICEF), is drafting a supplemental policy to the Child Protection Policy that seeks to protect students from different kinds of online abuse as the start of virtual classes draws closer.

The agencies are consulting stakeholders, including non-governmental organizations (NGOs) and local government units, to address the risks that come with home-based schooling and online learning, said Gil Anthony Aquino, child rights senior officer at DepEd, during a webinar hosted by social media platform TikTok.

DepEd will launch a webinar series this September with the theme, “Isulong! Karapatan ng Bata sa Edukasyon sa Panahon ng COVID-19.” Fourteen sessions have been planned; among the topics to be discussed are positive discipline and education for parents, child rights in education, and risks in online and home-based learning.

TikTok, which organized the event, shared that private messaging is disabled for users under 16 years old; photo- and video-sharing on private messages and comments are also not allowed. The family pairing feature, launched in April, allows parents to sync their accounts to their children’s accounts. This enables them to restrict age-inappropriate content and limit usage of the app.

“This is a very participatory way by which parents could be directly involved in controlling how their family members use TikTok,” said Donny Eryastha, head of public policy for Indonesia, Malaysia, and the Philippines at TikTok.

With President Rodrigo R. Duterte banning face-to-face classes for schools until vaccines are available, DepEd developed the Basic Education Learning Continuity Plan which provides different modes of learning for students. For many children, this means more time spent using digital devices and consequently, a higher chance of being exposed to abusive online activities.

International Justice Mission, an NGO focused on human rights, estimated that in 2017, there were 81,723 Internet protocol addresses used for child sexual exploitation in the Philippines. Of 90 online sexual child abuse cases investigated between 2011 and 2017, 21% of the 381 victims were between 13 to 15 years old while 16% were between 10 to 12 years old.

To make these efforts against online child abuse more effective, UNICEF calls on parents to take protective measures within their means. This includes practical interventions like covering web cameras when not in use and maximizing safe search and privacy settings on web browsers. Moral support and vigilance can also encourage a children to speak up when they experience online abuse.

“If they do report, we need to support them… If a child appears to be upset or secretive with online activities or if they’re experiencing cyberbullying, we need to work with our children to establish rules on how, when, and where devices can be used,” said Maria Margarita P. Ardivilla, child protection specialist at UNICEF.

“Creating a Safe Online Environment for Creative Expression,” a webinar organized by TikTok, was held on August 27.

The hybrid work model is here to stay, study says

By Patricia B. Mirasol

The hybrid work model is here to stay, found a study by digital research and advisory platform Ecosystm. Companies must rethink their digital priorities to ensure effective communication and collaboration can continue amid this reality. 

Below are insights from the study commissioned by Poly, a global communications company:

The hybrid or blended work model is here to stay

Working from home will become the norm for organizations planning to reduce their spending on commercial office space. Forty percent surveyed expected to continue using virtual meetings, and almost half (47%) expect increased use of collaborative tools and platforms, even after COVID-19. 

In Australia, several large organizations have announced that working from home will be common and will continue even after the pandemic. In the Philippines and India, business process outsourcing (BPO) providers are piloting different models by having some employees work from home and others in the office. Organizations are still experimenting to find the right model that caters to their needs. 

Working from home does not suit everyone, said Pierre-Jean Châlon, Poly’s senior vice-president for the Asia Pacific. “Over time there will be a threshold for this. It is hard to tell when.”

Workplaces will be fitted out based on collaboration needs

To facilitate remote work during the lockdown, more than a third (36%) of organizations provided laptops for employees. A higher percentage (41%) deployed collaborative software, whereas 29% provided funding/ equipment for home office environments. 

Basic connectivity is an issue in emerging economies. Unstable network connectivity required immediate investments in devices to improve Internet speed, which may not have been part of the IT budget. The unplanned spending was deemed necessary since a bad Internet connection hampered back-end processing functions as well as the quality of communications.

Videoconferencing will drive workplace engagement 

Organizations invested in conferencing technologies and video became the de-facto standard for meetings. Sixty-three percent in the Asia Pacific increased investments in conferencing devices and headsets to address the COVID-19 collaboration challenges. This trend is expected to continue as video banking, teleconsultations, and online learning become mainstream. It has also facilitated engagement between supervisors and agents in the customer care sector. 

Cloud video adoption is also expected to continue to grow, as 33% of organizations increased their investments in cloud video and collaboration solutions. Demand is expected to continue over the next year, as companies scale their technology capabilities to meet remote workforce needs.

Samir Sayed, Poly’s managing director for ASEAN and Korea, said that solutions for the next normal include experience-driven audio innovations such as Poly’s NoiseBlockAI and Acoustic Fence technologies. The former is designed to keep non-human noises such as keyboard typing and paper shuffling from impacting your meetings. The latter captures only the voices within a defined zone in open spaces; all other noises are canceled out. “Audio solutions are designed for the last mile of experience. If your collaborators can’t hear you, if you can’t hear them, engagement goes down and productivity suffers.” 

Data security protocols remain crucial

Organizations doubled down on cybersecurity as governments have detected persistent and increasing cyber-attacks on businesses. Forty-seven percent re-evaluated cybersecurity risks and measures; the leading measure in the Asia Pacific to enable remote working was implementing Virtual Private Network (VPN) access. Forty-four percent implemented or boosted their VPN infrastructure to allow employees access to internal tools and confidential data. Previously, VPN usage was “insignificant” and deployed only for remote employees. A slightly lesser number (43%) made changes to data protection and compliance policies. 

Ecosystem said data security protocols remain crucial because customers want to know they are accessing a secure system and that their data is safe. 

The data cited is from the ongoing “Ecosystm Digital Priorities in the New Normal” study that evaluates the business and technological impact of COVID-19. It has over 800 responses from technology leaders in the Asia Pacific to date and continues to receive feedback.

Four rules to follow in a family business

By Mariel Alison L. Aguinaldo

Working with family can literally be bad business. Stories of feuds that have led to broken bonds and lawsuits act as cautionary tales for those who even think of going down that path.

But others will say that it is one of the best decisions that they have ever made. AIDE, a mobile platform that allows users to book medical professionals for home visits, is run by three of four Bugayong siblings. Pamela Bugayong-Donatao, the eldest, is the chief operating officer; Paolo Bugayong, the middle child, is the chief executive officer; and Dr. Patrick Bugayong, the youngest, is the chief product officer. Furthermore, their parents and their remaining sibling are shareholders. 

“I really can’t find another better partner than these guys. For me, they are my perfect co-founders,” said Mr. Bugayong during a webinar organized by StartUp Village, a business incubator and accelerator. 

Whether it’s at home or at the office, relationships need to establish a common ground to work. Here are four rules that family entrepreneurs can follow to help ensure peace and collaboration among themselves.

  1. Treat each other like professionals.

    Every group of siblings has its ate and kuya, but the implications of these titles must disappear inside the office. “We all have our positions, and we respect each other when it comes to those positions… That’s the most important rule to me, as the youngest,” said Dr. Bugayong.

    This professionalism must extend to compensation. Rewards should be based on work and not on personal factors.

  2. Communicate with each other.

    When it comes to communication, family members shouldn’t rely on their deep personal understanding of each other and their ability to read one another when it comes to business matters. Having grown up together doesn’t guarantee seeing eye to eye.

    The Bugayongs have what they call “talk time,” where the siblings discuss what’s happening in their respective departments.“Communication is key if you want your business to be successful,” said Mrs. Bugayong-Donato. “Everybody is free to express their own ideas and share their suggestions.”

  3. Talk about work at home if you must, but know when to stop.

    On the other side of the coin, family members should know when to stop talking shop. Rules vary when it comes to bringing work to the dinner table; the Bugayong siblings have accepted that they cannot help it. “We really just tend to divert and go into discussion a little bit about AIDE, then go back again,” said Mr. Bugayong.

    While this may be the general rule, siblings must be sensitive to each other. “If you’re tired, someone just presses a button like, ‘Let’s just talk about it on Monday or when we’re in the office,’ and everyone’s just, ‘Okay, let’s just talk about it next time,’” said Dr. Bugayong.>

  4. Enjoy your family’s company.

    Not everyone has the pleasure of working with their siblings, especially if they have a great relationship. This should be maximized and strengthened whenever possible, whether it’s through hosting regular lunch-outs or goofing around during breaks.

    Sibling support becomes even more important and meaningful during tough times. “If you’re having a bad day, just have a drink with your siblings, and everything becomes okay after a few beers,” said Dr. Bugayong.

Regional Updates (08/27/20)

3 isolation facilities with 120 beds completed in Iligan City

THREE EXISTING multi-purpose buildings in Iligan City, which has the highest number of coronavirus disease 2019 (COVID-19) cases in Northern Mindanao at 186, have been converted into isolation facilities. The completed projects have a total capacity of 120 beds, which will free up hospital beds for moderate, critical or severe COVID-19 patients, said the Department of Public Works and Highways (DPWH) in a statement on Thursday, following the formal opening of the facilities. DPWH implemented the conversion in partnership with the city government. The facilities will be operated by the city health office for the isolation of probable COVID-19 cases and returning residents. Of the total cases in Iligan, 33 are in hospital, 121 in isolation, 24 recoveries, and eight deaths. Cagayan de Oro City, the Northern Mindanao regional center, previously offered the use of some of its isolation units to Iligan City. The entire region had 1,222 cases as of August 26, including 669 recoveries and 20 deaths. Majority of the cases at 855 are returning residents from overseas or other parts of the country.

Toll road operators ordered to go on full cashless system by Nov. 2

ALL TOLL roads will be required to have a full cashless system by November 2 as part of measures to avoid coronavirus transmissions. “Magiging (It will be) cashless, contactless na transaction ang toll ways, no later than November 2, 2020 ayon sa DOTr (according to the Department of Transportation),”

Palace Spokesperson Harry L. Roque said on Thursday. Existing toll roads operated by private firms are all in Luzon, located in surrounding areas north and south of the capital Metro Manila. One of the operators, San Miguel Corp. (SMC), said they support and are ready for this measure to ensure the safety of both motorists and their employees. “We have completed the reconfiguration of these cashless lanes to help ensure a smooth transition and hopefully, minimal delays for motorists. Implementing this measure is a priority for us because it is in line with government health regulations and it will better protect both our motorists and expressway employees,” SMC president Ramon S. Ang said in a statement.— Gillian M. Cortez

Elite police team to be deployed to Jolo

THE PHILIPPINE police chief, Gen. Archie Francisco F. Gamboa, has rejected calls to sack the entire police force of Jolo, Sulu following the deadly twin explosions that killed at least 14 people and wounded at least 75 others on Monday. Instead, Mr. Gamboa ordered the deployment of one Special Action Force (SAF) battalion. The SAF commandos, considered as the the elite police unit, will help local security forces in hunting down members of the Abu Sayyaf, the Islamic State-linked group that has claimed responsibility for the bombings. “Unless there is sufficient evidence establishing criminal involvement or administrative lapses leading to the attack, the PNP (Philippine National Police) maintains full confidence in our ground personnel,” Mr. Gamboa said in a statement on Thursday. The additional 284-man SAF contingent will augment 60 others who were posted in Sulu prior to the bombings. — Emmanuel Tupas/PHILSTAR

‘Hot money’ flees PHL for 5th month

FOREIGN PORTFOLIO investments (FPI) fled the Philippines for the fifth straight month as investor confidence remained weak amid uncertainties brought by the coronavirus disease 2019 (COVID-19) crisis.

FPI — also referred to as “hot money” due to the ease by which these funds enter and leave an economy — yielded a net outflow of $453.17 million in July, data from the Bangko Sentral ng Pilipinas (BSP) on Thursday showed. This is the fifth consecutive month of FPI net outflow since March.

The July figure is a reversal from the $15.02-million net inflow logged a year ago. It is also nearly double the $235.38- million net outflow in June, but slimmer than May’s $1-billion outflow.

For the first seven months of the year, net outflows surged to $3.8 billion, more than five times bigger than the $706-million net outflow in the January to July 2019 period.

Uncertainty over the extent of the COVID-19 pandemic’s impact on the global economy and financial system continued to dampen investor confidence, the central bank said in a statement.

Tensions between the United States and China, as well as “corporate governance issues” involving water concessionaires Manila Water Co., Inc. and Maynilad Water Services, Inc. also weighed on sentiment, the BSP added.

For the month of July, FPI inflows totaled $719.11 million, 57% lower than the $1.68 billion last year and 29% down from June’s $1.019 billion.

Meanwhile, outflows in July amounted to $1.172 billion, a 30% decline from the $1.665 billion seen a year ago, and 6% lower than the $1.254 billion in June.

“Singapore, the United Kingdom, the United States, Bahamas, and Hong Kong were the top five investor countries for the month, with combined share to total at 84.6%,” the BSP said.

The bulk (96.5%) of the investments went into the stock market, specifically utilities companies, holding firms, real estate, banks, and retailers. The rest flowed into government securities.

The central bank projects $2.4 billion in hot money inflows this year, just nearly a third of the previous forecast of $8.2-billion net inflows penciled in November 2019.

The key to improving hot money flows is more than just reopening the economy or easing restriction measures, said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

“A more fundamental improvement in FPI would entail more ‘confidence’ in the government’s efforts at virus containment and how the government responses, through monetary and fiscal policies, are being effectively carried out,” he said in an e-mail.

The Philippines has the most number of COVID-19 cases in Southeast Asia, with 205,581 infections as of Tuesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the passage of timely legislative measures such as the Bayanihan to Recover as One Act (Bayanihan II) and the CREATE (Corporate Recovery and Tax Incentives for Enterprises Act) bill will stimulate economic activity and boost investor sentiment.

The Bayanihan II, a P165-billion stimulus program to respond to the pandemic, is awaiting President Rodrigo R. Duterte’s signature. Meanwhile, the CREATE bill, which will immediately slash corporate income tax to 25% from 30% is still pending in the Senate. — Luz Wendy T. Noble

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