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Tottenham back on top but Liverpool fire warning

LONDON — Tottenham Hotspur reclaimed the Premier League top spot with victory over Arsenal on Sunday but champions Liverpool’s rout of Wolverhampton Wanderers showed Juergen Klopp’s side are starting to hit their stride.

Harry Kane scored his 250th career goal for club and country after laying on Son Heung-min’s 10th league goal of the season as Tottenham beat Arsenal 2-0 to reach 24 points from 11 games.

Shortly afterwards Liverpool, in their first game with fans at Anfield since they won the title, crushed Wolves 4-0 with Mohamed Salah, Georginio Wijnaldum and Joel Matip on target.

A miserable day for Wolves was capped as Nelson Semedo scored an own goal.

Liverpool joined Tottenham on 24 points, although Jose Mourinho’s Spurs have a superior goal difference.

Tottenham also welcomed fans back, 2,000 of them, for the first time in 277 days — thanks to the government’s new Tier 2 COVID-19 restrictions — and they were treated to three points against an Arsenal side languishing in 15th place.

Kane has assisted eight of Son’s goals this season and the duo, who have 18 goals between them, are in irresistible form.

“When I’m passing him through and he’s cutting inside and whipping them into the top bins it is an easy game for me,” Kane, whose goal came from Son’s assist, said.

In their last three games Tottenham have beaten Manchester City, drawn with Chelsea and beaten Arsenal without conceding, but Mourinho is refusing to get carried away.

“We are top of the league for one more week, which is good fun,” the Portuguese said.

Arsenal enjoyed 69% possession against Tottenham but their forward line continues to misfire.

They have managed only 10 goals in 11 games and manager Mikel Arteta says the situation is not sustainable.

“We need to put the ball in the net, urgently,” Arteta, whose team have lost five of their last seven league games, said. “You look at the stats, they’re all in our favour, but we have to put the ball in the back of the net.”

Liverpool boss Klopp said he had “goosebumps” hearing fans singing the club’s anthems on the Kop.

“As long as nobody tells me someone was injured then it’s been a perfect night,” Klopp said after his side’s 31st victory in their last 32 home league games.

Salah was gifted an opener by a mistake from Conor Coady and did not look back after that.

Jamie Vardy scored a last-gasp winner to give Leicester City a 2-1 victory over bottom club Sheffield United and move his side into fourth spot with 21 points, one behind Chelsea who had taken over top spot on Saturday after beating Leeds United.

Sheffield United, so impressive last season on their return to the top flight, have one point from 11 matches.

Crystal Palace scored five goals in an away game in the top flight for the first time as they thrashed struggling West Bromwich Albion 5-1 to move into 11th place.

Wilfried Zaha and Christian Benteke both scored twice although West Brom’s cause was not helped by having Matheus Pereira sent off in the 34th minute when it was 1-1. — Reuters

Biomaterial for plastic waste reduction wins pitch competition

Nanotronics bagged the top prize at the recent Shell LIVEWire PitchFest, winning an equity-free prize of P500,000. The technology company offers nanostructured material products that reduce plastic waste while protecting the environment. 

Only 14% of plastic packaging is recycled, said Nanotronics founder and Chief Executive Officer Jerome Palaganas, who pitched a solution that turns renewable indigenous plants into sustainable nanomaterials called cellulose nanocrystals for use in industrial applications, including three-dimensional (3D) printing resin, lubricant additives, biodegradable packaging, specialty coatings, and water filtration materials. 

Nanotronics has eight intellectual properties, seven business-to-business (B2B) clients with earned revenues, and at least five company pilot projects. A total of US $100,000 in grant funding and US$45,000 in angel investments have been awarded to the tech startup. Its revenue streams come from plant productions, licensing agreements, and client joint venture partnerships. 

“We are committed to making a significant difference in the environment and community, leveraging on our natural resources here in the Philippines. We see a good synergy with our products and the Shell ecosystem,” Mr. Palaganas said. 

Shell’s LiveWIRE program launched this September in collaboration with the Philippine government. It provides innovators with opportunities for mentorship, financial assistance, technical expertise, and a chance to be part of Shell’s supply chain.

Apart from Nanotronics, two other local tech companies were chosen out of 155 candidates to participate in a start-up bootcamp: uHoo, which measures air quality to safeguard and enhance people’s health; and Next Pay, a digital banking platform aimed for small and medium-sized business owners.

Shell LiveWIRE also tapped three community enterprises to join its program, and each took home a cash grant of Php 75,000. These enterprises are MagzWheel Furniture, which transforms used rubber tires into furniture and apparel; Green Factory by Oro Handmade Innovations Inc., which produces handmade paper products; and Revolve Eco. Logical, which recycles used polyethylene terephthalate (PET) bottles to create new products.

“Most entrepreneurs still lack the resources to reach their full potential, especially as they adapt to a digital world. We bridge that gap by connecting them with government and fintech institutions as part of our LiveWIRE program. This is our contribution to nation-building,” said Cesar Romero, president and CEO of Pilipinas Shell, in a statement. — Patricia B. Mirasol

Singapore adds charges against director in Wirecard case

The additional allegations concern 377.5 million euros ($458 million) in total, according to charge sheets seen by Bloomberg News, and bring the total number of charges to 14. Image via Reuters

Singapore authorities added three further fraud charges against the director of a local accounting firm in a case linked to disgraced German payments company Wirecard AG.

R. Shanmugaratnam, a director of Citadelle Corporate Services Pte, was charged with three counts of falsifying letters from Citadelle erroneously representing that the Singapore accounting firm held certain amounts of cash in escrow accounts.

The additional allegations concern 377.5 million euros ($458 million) in total, according to charge sheets seen by Bloomberg News, and bring the total number of charges to 14. Taken together the charges involve about 1.2 billion euros in cash, according to calculations, more than half of the amount missing from the firm, though they cover different time periods.

Shanmugaratnam is the first person to be indicted in the city-state over the spectacular collapse of Wirecard, which has reverberated across the world.

Wirecard filed for bankruptcy in June after acknowledging that 1.9 billion euros it had listed as assets didn’t exist, triggering a global investigation. Singapore is home to Wirecard’s Asia-Pacific headquarters and the company had been expanding aggressively in the region, which accounted for almost 45% of the group’s reported revenue in 2018, second only to Europe. — Bloomberg

Mastercard to investigate allegations against Pornhub

Mastercard told Reuters in a statement that it was investigating the allegations with Pornhub’s parent MindGeek’s bank. “If the claims are substantiated, we will take immediate action,” Mastercard said.

Mastercard Inc. said on Sunday it was investigating allegations against Pornhub.com following a newspaper column which said many videos posted on the adult website depicted child abuse.

The New York Times column, written by Nicholas Kristof, described videos on Pornhub that the author said were recordings of assaults on unconscious women and girls.

“The issue is not pornography but rape. Let’s agree that promoting assaults on children or on anyone without consent is unconscionable,” Mr. Kristof wrote in the column published on Friday. 

Pornhub denied the allegations.

“Any assertion that we allow CSAM (child sexual abuse material) is irresponsible and flagrantly untrue,” it said in a statement e-mailed to Reuters.

Mastercard told Reuters in a statement that it was investigating the allegations with Pornhub’s parent MindGeek’s bank. “If the claims are substantiated, we will take immediate action,” Mastercard said.

Billionaire investor Bill Ackman called on Mastercard and Visa Inc. to temporarily withhold payments to Pornhub following the newspaper column.

Mr. Ackman also asked American Express Co. to take action, though the company’s cards aren’t accepted on the site.

Visa said it is aware of the allegations and is “actively engaging with the relevant financial institutions to investigate,” while also engaging directly with MindGeek.

“If the site is identified as not complying with applicable laws or the financial institutions’ acceptable use policies and underwriting standards they will no longer be able to accept Visa payments,” the company said in a statement.

American Express said it has a longstanding global policy that prohibits acceptance of its cards on digital adult content websites.

Mr. Ackman suggested it should be made illegal for porn sites to post videos before they are reviewed by a monitor, and until the ages and consent of participants have been validated.

In its response, Pornhub said it has a vast team of human moderators who manually review “every single upload,” as well as automated detection technologies. It did not say how many people were part of its review team.

Mr. Kristof’s column also drew reactions from politicians including Canadian Prime Minister Justin Trudeau, who said his government was working with police and security officials to address the issues it raised.

In the United States, Senator Josh Hawley said he will introduce legislation to create a federal right to sue for every person “coerced or trafficked or exploited by sites like Pornhub.” — Reuters

Netflix declines to flag up to viewers that The Crown is fiction, UK media reports

LONDON — US streaming platform Netflix has rejected a call from Britain’s culture minister to add disclaimers at the start of episodes of its hit series The Crown to make clear that it is a work of fiction, several British media reported on Sunday.

Culture Secretary Oliver Dowden is among several prominent figures in Britain who have argued that the scripted series, in which actors play members of the royal family, risked giving viewers a wrong and damaging impression of the royals.

A government source said Mr. Dowden had written to the company saying the series was “a beautifully produced and acted drama but Netflix should be very clear it is a work of fiction.”

Netflix did not immediately respond to an e-mail from Reuters requesting comment.

“We have always presented The Crown as a drama—and we have every confidence our members understand it’s a work of fiction that’s broadly based on historical events,” the company was quoted as saying in the UK media reports.

“As a result we have no plans—and see no need—to add a disclaimer.”

While many British viewers have enjoyed watching The Crown, the most recent season has attracted criticism from some commentators over scenes suggesting that the late Princess Diana was treated coldly, even cruelly, by senior royals.

Columnist Simon Jenkins of the Guardian newspaper accused the fourth season of having “upped the fabrication and the offense.”

Arguing that modern history was “too close to what should be sacred ground—bearing witness to passing events,” he wrote that artistic license could not justify fabrications that showed living or recently dead people in the worst possible light. — Reuters

China’s COVID-free ‘Hawaii’ chases local tourist dollar with a vengeance

SANYA, China — Millions of domestic tourists are descending on China’s southernmost island province of Hainan, presenting a surreal contrast with grim hospital scenes, shuttered restaurants, and stifling home quarantine elsewhere in a virus-ravaged world.

Known at home as the “Hawaii of China,” the island, about the size of Taiwan, has been free of coronavirus for six months, drawing eager shoppers to duty-free malls, couples seeking a sub-tropical backdrop for wedding pictures, and surfers just looking to “breathe freely.”

October arrivals of 9.6 million, according to official data, exceeded the year-earlier figure, before the pandemic struck, by 3.1%, although foreign visitors slumped 87%. That was a far cry from February, when arrivals had dropped almost 90%.

The rapid surge in tourism shows China’s consumer sector may be throwing off its virus-induced slumber as the closure of many international borders pushes travelers to destinations such as Hainan, traditionally costlier than most of Southeast Asia.

Tourism spending has got a leg up since a new duty-free spending cap of 100,000 yuan ($15,186) for travelers took effect in July, up from 30,000 yuan earlier.

Hainan has raked in 12 billion yuan in such sales in the following four months, to stand up 214.1% on the year, or almost on par with 2019 sales of 13.61 billion.

Tourists racing through the Haitang Bay Duty Free Shopping Center in the island’s city of Sanya were astonished at the queues outside the boutiques of luxury brands from Chanel to Gucci, with some likening the scene to a yard sale.

“This is crazy—we did not expect so many people,” said a visitor from the southwestern city of Chengdu, who gave her name only as Mrs. Xie.

But she was willing to queue for more than 30 minutes in the 12 million-square-foot mall just to enter a Gucci store.

“Seriously, is Gucci that cheap? With these many people in line, I would’ve thought it’s free,” said the 32-year-old.

A 53-year-old woman surnamed Liu who used to visit Thailand or Malaysia at this time of year said Sanya had been a good substitute. She paid more than 14,000 yuan for a Gucci handbag.

“Such a steal!” said the native of Chongqing, another southwestern city.

“We already bought cosmetics in Haikou and we’re here for the bags,” she added, referring to the island’s capital.

As the “stay-home” economy grew in China because of the global pandemic, Morgan Stanley estimates “reshored consumption” could reach up to $165 billion this year.

NORMALCY

Although the 46 million visitors Hainan received from January to October were well below the 2019 figure of 83 million domestic and foreign tourists, Chinese travelers are set to extend the tourism boom into the winter.

Reflecting demand, the average daily rate of bookings in Sanya soared 43% in November from a year earlier to $151, and jumped 51% to $190 for December, says analytics firm AirDNA, which tracks bookings on Airbnb and Vrbo.

While the number of properties with at least one night booked rose 7% in November, the figure for December had already reached 85% of the year-earlier level.

Hainan is also the travel destination for the Lunar New Year coming up in February, says analytics firm ForwardKeys.

On a beach stretch studded with five-star hotels along Yalong Bay, dozens of newly-weds prepared for elaborate wedding shoots.

The pandemic thwarted the plans of Xia Weini, 30, and her 28-year old husband Wang Yu, natives of far-western Xinjiang, to visit the Thai resort island of Phuket to pose for their photos.

“Xinjiang is probably the most landlocked place in China, so we’ve always wanted to get married near the sea,” said Xia.

They ended up spending more than 10,000 yuan in Sanya for the pictures instead.

Apart from the glitz, Hainan offers a sense of normalcy that is a powerful draw.

Business is proving so good in Houhai village, a surf spot about a 40-minute drive from the center of Sanya, that many are turning homes into surf clubs, said Che Linxin, brand manager at Jile Surf Inn.

As surfing catches on among young people stuck at home during the pandemic, the six-year-old club has drawn surfers, musicians, and painters among its customers, who tripled from last year.

“There’s no off-season in Sanya this year. Every day is peak season ever since we first reopened in March,” Che added.

Yanzi, a 25-year-old tour guide from Beijing, is a regular.

“I had bad headaches when I was in Beijing. Maybe it’s the air or the fact my company is not even paying me my base salary,” she said.

“But here, I can just walk around in public in my bikini, bathe in the sunshine, and breathe freely.” — Stella Qiu and Ryan Woo/Reuters

PANAta Awards 2020 is all set to stream live

It is going to a big night as showbiz celebrities share limelight with industry luminaries in the PANAta Awards for the presentation of the best and most effective brand campaigns in the country.

With nearly 200 entries vying for recognition in categories that include best brand positioning, best endorser and best medium (TV, Radio and Print), PANAta Awards is inclusive of most facets in marketing communications. It is for this reason why brand builders, advertising agencies and media suppliers look forward to this occasion. One of the most sought-after categories is the GAWAD PANDAYON, the brands’ response to this year’s adversity.  A unique and timely recognition, brands which have responded in an effective and creative way that uplifted lives of those who were displaced by the pandemic and inspired the nation to kindness will be honored. It has 3 categories namely Courage, Creative Effectiveness and Authenticity. 

Not to overlook as well are the well-chosen artists who will provide entertainment. The event will be hosted by Derrick Monasterio, a young and promising actor/host of GMA 7. Other performances will be given by Ebe Dansel, Kyline Alcantara and Bamboo whose numbers were meticulously handpicked in keeping with the “Together, We Rise” theme. 

It is with honor and pride that PANA (Philippine Association of Advertisers) in cooperation with its agency partner, Intersections Communications Inc. present this distinctive event. Those interested may witness the online virtual awarding of winners on December 8, 7pm (Philippine time) via PANA FB, PANA YouTube Channel and selected media partners’ pages …Adobo Magazine, DZRH News, Love Radio Manila, Yes The Best Manila, Easy Rock Manila, Radyo Natin, Wish 107.5, Manila Standard, Manila Times, The Philippine Star and INQ Subscription.

Globe’s aggressive builds and expansion drive service improvements

Through the support of the Bayanihan to Recover as One Act, and the Joint Memorandum Circular 01 of the ARTA, DILG and other concerned agencies, Globe was able to secure 1,857 permits for 2020. These permits allowed Globe to build 1,050 new sites to date and complete 10,876 upgrades to 4G/LTE. Globe expects to complete the build of 1,300 new cell sites by the end of 2020.

The new sites were built in areas that needed connectivity the most, including Lanao del Sur, Sultan Kudarat, Antique, Iloilo, Leyte, Palawan, Aklan, Maguindanao, Cotabato, Misamis Oriental, and Davao del Oro.

On top of improving mobile services, Globe will build 600K broadband lines by the end of 2020, 55% more vs FY 2019, in recognition of the increased internet usage at home for learning, business, and work due to the pandemic. By making FTTH more pervasive, this will enable the country to catch up with its neighbors in terms of speed and total quality of connectivity.

The rollout of 5G is also on track. To date, Globe has 708 sites making 5G available in 17 key cities in Metro Manila, Visayas and Mindanao. The telco expects to cover 80% of Metro Manila with 5G technology by the end of 2020.

Improved data experience with advanced technology

The network upgrades of existing sites to 4G LTE resulted in positive customer feedback from over 1,098 cities, municipalities and 80 provinces which are now experiencing significant improvements in calls, texts and data services. Customers in areas including Lucban, Quezon; Lobo, Batangas; Jolo, Sulu; Guinobatan, Albay; Limay, Bataan; Antipolo and Cainta in Rizal; Lapu-Lapu, Cebu; Legazpi City, Albay; Angeles City, Pampanga; Malolos City, Bulacan; Pontevedra, Capiz, Sta. Rosa City, Laguna; Quezon City, Valenzuela City, Paranaque City, Las Pinas City, Manila in Metro Manila; Ormoc City, Leyte; and San Francisco, Agusan Del Sur were able to experience service improvements.

Several LGUs have likewise expressed the importance of connectivity in their areas. Some of these partner LGUs including those in remote areas, like Liloan in Cebu and Oriental Mindoro. Globe was the first to answer the call for connectivity in Liloan.

“It’s high time we bring development to the high mountainous parts of Liloan, which is one of the most beautiful and very rich in resources here in our town. Let’s bring equal opportunity to them, the same opportunities our lowland barangays enjoy,” Liloan Mayor Christina Frasco said.

Oriental Mindoro Governor Humerlito “Bonz” Dolor also extolled the cellsite erected in his area. “Because of the COVID19 pandemic, kinailangan ng probinsiya ngayon na mag adjust sa bagong normal, karamihan sa mga transaction ngayon ay ginagamitan ng online. Karamihan ng mga ginagawa natin ngayon ay through internet. Nung wala pa internet na ganun kaayos, putul-putol kailangan nakaganun sa bintana, kailangan naghahanap ka ng signal sa kabi-kabila. Pero ngayon with the very good signal that we are now starting to experience, kailangan natin ito,” Dolor explained.

Improvements certified by International analytics firms

Globe has been consistent in performance improvements year on year in providing fast and reliable data services in the most critical areas of the country. Independent global analytics firms including UK-based Opensignal 1 and Ookla 2 have likewise reported these service improvements.

Globe has been awarded by Opensignal with the Global Rising Star Award for Most Improved Video Experience 3 , based on user data covering the first half of 2019 vs. the first half of 2020. Globe’s improvement score of 32.7% signifies impressive gains with the worldwide average at 14%. Opensignal’s metrics for “mobile video experience measures the average video experience of Opensignal users on 3G and 4G network with methodology that involves measuring real-world video streams and uses an ITU-based approach for determining video quality.” Other awards received by Globe include Best Voice App Experience 4 , and Joint Winner in Games Experience 5 .

Ookla® also verified that Globe has the most consistent 4G  network in 13 out of 17 regions based on Q3 2020 data.  These regions include Bicol, Cagayan Valley, Calabarzon, Caraga, Central Luzon, Central Visayas, Cordillera Administrative Region (CAR), Eastern Visayas, Ilocos Region, MIMAROPA, Northern Mindanao, Region 12 (SOCCSKSARGEN), and the Zamboanga Peninsula.

These service improvements were spurred by Globe’s increased investments for capex to upgrade the network. This was reported in the IMD World Digital Competitiveness Ranking 2020 6 where the Philippines ranked top 10 globally in terms of telco investments. Over the last 6 years, Globe has invested P255.70 billion in capex.

Affordable Internet for All

In terms of internet pricing and affordability, relative to other countries in Asia, the cost of mobile prepaid internet access in the Philippines remains to be among the most affordable at Php11.25 per GB versus Thailand (with a comparable cost of Php190.59), Singapore (Php35.60) and Indonesia (Php32.76) 7 . More importantly, Globe’s Prepaid promos have bigger data allocations that can be used in all websites and apps. Similarly, the price of Globe Prepaid Broadband is now at Php 9 per gigabyte. With the reduced price of mobile broadband, it is expected that the country’s cost of internet as a percent of GNI per capita will be much lower than the global average. This benefits the Philippine market even more which is about 97% prepaid. Altogether, access to the internet by Filipinos has never been more affordable and pervasive as it is now.

“With the country’s improving state of overall internet service in terms of speed, affordability, and access to a more advanced 4G and 5G technology, coupled with the strengthened support from the government, we are optimistic that the country’s state of connectivity is well on its way to be at par with our Asian neighbors,” said Ernest Cu, Globe President and CEO.

Supporting Students and Teachers for Online Learning

Globe, being a strong advocate of quality education, is doing its part to help the government implement online learning easier through multiple partnerships with both the public and private education institutions:

  • Partnership with the Department of Education for the Global Filipino Teachers program, a series of teacher training workshops to equip teachers on tech literacy, blended learning, 21st century learning approaches, early childhood literacy, and mental wellness
  • Globe eLibrary which is readily accessible with no data charges for K-12 students with materials provided by the DepEd and other sources
  • Supported DepEd’s blended learning program with a donation of 1,000 Globe At Home Prepaid WiFi modems under the WiFi2Teach Program to equip selected public school teachers with connectivity.
  • Aid for DepEd’s Sulong Edukalidad program by supporting 6,000 teachers from 146 public schools nationwide with connectivity assistance from Globe and Ayala Foundation.
  • Globe Business provided 11,000 LTE pocket mobile WiFi devices to the City of Manila for its public school teachers, as well as free connectivity solutions via BatangMaynilaSurf Plans
  • The Quezon City government also granted Globe’s bid to provide students from 160 QC public schools with strong connectivity.
  • Provision of pre-owned laptops to various public schools in the provinces to help disadvantaged teachers and students who have no access to a computer.
  • Globe assisted schools and universities with prepaid WiFi kits, with affordable packages tailor-fit for students and instructors, and a customizable suite of apps to aid the learning process.

#FirstWorldNetwork by 2021

By 2021, Globe’s ambition is to provide customers with 4G/LTE services everywhere and 5G where it matters. By making 4G/LTE the new mobile standard for the Philippines, more customers will experience better data and faster internet speed anywhere they are. Globe is ramping up investments, targeting more than 2.5x the number of fiber to homes in 2020. For mobile, the telco will build 2,000 sites including in-building solutions (IBS), partnerships with independent tower companies and new cell sites.

Also, as more 5G-capable devices enter the market, Globe will continue to aggressively roll out 5G to more cities and municipalities to serve the early adopters. With a better data network in place, voice services will likewise improve by providing VoLTE (Voice Over LTE) and VoWiFi (Voice Over WiFi), to deliver clearer voice calls, faster call setup and near zero dropped calls. VoLTE and VoWiFi are initially being rolled out in NCR and in other parts of Luzon, and will be implemented in Visayas and Mindanao by 2021.

Bicameral panel approves FIST bill

By Charmaine A. Tadalan, Reporter

THE MEASURE allowing financial institutions to offload bad loans to asset management companies had hurdled the Bicameral Conference Committee, a key legislator said.

The reconciled version of the Financial Institutions Strategic Transfer (FIST) bill has been “approved at the bicam level,” Quirino Rep. Junie E. Cua, chair of the House Committee on Banks and Financial Intermediaries, said over telephone, Saturday.

He said the bill will likely be ratified by Congress ahead of the Christmas break which starts on Dec. 19, and sent to President Rodrigo R. Duterte for his signature.

“By the end of the year, if the president signs it, the banks can already move,” he said, noting that regulatory agencies will be given 30 days to draft the implementing rules and regulations.

Under FIST, there will be a mechanism that will allow banks or lending companies to monetize bad loans.

As companies and consumers struggle amid the economic slowdown, the Bangko Sentral ng Pilipinas (BSP) anticipates the banking industry’s nonperforming loan (NPL) ratio to reach 4.6% by yearend. It reached 17.6% in the aftermath of the Asian Financial Crisis in 2002.

As of end-September, bad loans stood at P364.672 billion, bringing the gross NPL ratio to 3.4% — the highest level in over seven years.

“We are now saddled with nonperforming loans and assets. Because of this, without a mechanism such as the FIST, the banks will not be able to quickly monetize the nonperforming loans,” Mr. Cua said.

House Bill No. 6816 and Senate Bill No. 1849 provided for the creation of FIST corporations, which will be authorized to invest or acquire nonperforming assets (NPA), or engage third parties for its management, operation, collection and disposal.

“They will be able to sell or dispose of those nonperforming loans or assets to these companies, so that they can be monetized again so they can lend again,” he said.

To encourage industry participation, Mr. Cua said the measure incentivizes transactions related to the transfer of assets to FIST corporations.

“Merong mga konting incentives ’yan… Pwedeng mag-tayo na ng FIST companies, the transactions by the stakeholders of participants are entitled to some incentives,” he said.

If enacted, the measure will exempt stakeholders from paying documentary stamp tax and value-added tax on the transfer of NPAs as well as capital gains tax and creditable withholding income tax on transfer of land among other assets.

Further, they will be subject to 50% of applicable registration and transfer fees for real estate mortgage and security interest, 50% of filing fees for foreclosure, and 50% of land registration fees, in lieu of other applicable fees. The tax exemptions and fee privileges were present in both the House and Senate versions.

The bill is among the priority measures President Duterte mentioned in his last State of the Nation Address. He also issued a notice certifying it as an urgent measure to allow Congress to fast-track its approval.

The House approved the FIST bill on June 2, while the Senate passed its version on Nov. 12.

The measure is an improved version of the Special Purpose Vehicle Act of 2002, under Republic Act No. 9182, enacted in the wake of the Asian Financial Crisis.

It is also among the coronavirus response measures being pushed by the Bangko Sentral ng Pilipinas, along with the proposed Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery Act (GUIDE).

A version of the GUIDE bill is now awaiting plenary action in the House of Representatives, while its counterpart remains pending at the Senate committee level.

CREATE to cost P250B in foregone revenues

Many businesses, both big and small, have been badly affected by the coronavirus pandemic. — PHILIPPINE STAR/MICHAEL VARCAS

By Beatrice M. Laforga, Reporter

THE CORPORATE Recovery and Tax Incentives for Enterprises Act (CREATE), once enacted into law, will cost the government as much as P250 billion in foregone revenues in the next two years, after the corporate income tax cut was accelerated for local small businesses.

Finance Assistant Secretary Maria Teresa S. Habitan told BusinessWorld the CREATE bill approved by the Senate will cost the government P133.2 billion in foregone revenues next year and P117.6 billion in 2022.

She said the latest estimates from the Department of Finance (DoF) assume CREATE will be signed into law by end-2020 and the provisions applied retroactively to July 2020.

“Cash flow impact is zero in 2020, adjustment to 2020 tax liabilities will be reflected in April 2021,” she said via Viber on Friday.

The DoF’s latest estimated revenue impact of the CREATE bill is 72% higher than previous estimates of P145.4 billion in combined foregone revenues in 2021 and 2022.

This is mainly due to the Senate version’s provision for an outright reduction of corporate income tax for local small businesses to 20% starting July 2020, from the current 30%. Small businesses are those with total assets less than P100 million and total net income not exceeding P5 million.

The corporate income tax for all other companies will be reduced to 25% starting July 2020, and gradually trimmed by one percentage point each year from 2023 to 2027.

Finance Secretary Carlos G. Dominguez III earlier said CREATE is one of the “largest economic stimulus measures in the country’s history” that would help businesses recover from the coronavirus pandemic.

Despite CREATE’s impact, the government still expects its overall revenues to inch up by one percent to P2.88 trillion in 2021, from the P2.85-trillion target this year.

Ms. Habitan said the slight increment was due to the expected pickup in tax collections next year coming from a low base this year.

Tax revenues fell 8.41% from a year ago to P2.372 trillion in the 10 months to October as economic activity remained sluggish. However, the country’s two biggest tax-collecting agencies, Bureau of Customs and the Bureau of Internal Revenue, have exceeded their revised monthly collection goals since July.

Under CREATE, taxpayers whose gross sales or receipts do not exceed the value-added tax-exempt threshold of P3 million and are subject to the 3% percentage tax will only pay one percent instead from July 1, 2020 to June 30, 2023. The rate will go back to two percent after three years.

The bill also reduces the preferential tax rates of proprietary and nonstock educational institutions and hospitals to one percent from 10%, from July 1, 2020 to June 30, 2023.

CREATE also aims to reform the country’s tax incentive system to make it time-bound and performance-based. It strengthened the capacity of the Fiscal Incentives Review Board (FIRB) to review and approve incentives given to the corporations.

The FIRB will assess perks provided to companies with investments worth at least P1 billion.

The House of Representatives may adopt the Senate version of the bill, according to Albay Rep. Jose M. Clemente S. Salceda, who chairs the House Ways and Means Committee. House Bill No. 4157 was approved in September 2019.

San Miguel tops list of PHL corporations by revenue

A PRELIMINARY RANKING of the Philippines’ Top 200 corporations showed an aggregate gross revenue of P11.25 trillion in 2019 on a consolidated basis, with conglomerate San Miguel Corp. (SMC) topping the list.

The aggregate gross revenue of these firms were 7.5% higher compared with their performance in 2018, based on available consolidated financial statements collected by BusinessWorld as of November.

SMC topped the list with P1.07 trillion in gross revenue last year, higher by 0.8% from the year before. Top Frontier Investment Holdings, Inc., which is San Miguel’s top shareholder, and fuel business Petron Corp. occupied the second and third spots with consolidated gross revenues of P1.07 trillion (up 0.9% year on year) and P520.61 billion (down 7.7%), respectively.

Some of Top Frontier/San Miguel subsidiaries also made it to the list. These firms include San Miguel Food and Beverage, Inc. (No. 7), San Miguel Brewery, Inc. (No. 23), SMC Global Power Holdings Corp. (No. 24), and Ginebra San Miguel, Inc. (No. 67).

Fourth on the list is Sy-led SM Investments Corp. with gross earnings of P506.3 billion, up 11.5% from the previous year. Among SM’s subsidiaries in the Top 200 include BDO Unibank, Inc. (No. 10), SM Prime Holdings, Inc. (No. 31), China Banking Corp. (No. 46), and BDO Leasing and Finance, Inc. (No. 150).

Some companies in which SM has equity investments were also in the list. These are 2GO Group, Inc. (No. 76), Atlas Consolidated Mining & Development Corp. (No. 85), Belle Corp. (No. 114), and Premium Leisure Corp. (No. 146).

Ayala Corp. and its subsidiaries grabbed fifth spot with P330.91 billion last year, 9.8% more than their consolidated earnings in 2018. Ayala subsidiaries that made the cut include Globe Telecom, Inc. (No. 16), Ayala Land, Inc. (No. 17), Bank of the Philippine Islands (No. 29), AC Energy Philippines, Inc. (No. 87), AyalaLand Logistics Holdings Corp. (No. 130), and affiliate iPeople, Inc. (No. 151).

Other top market players are also represented in the Top 200 list. With a consolidated gross revenue of P157.35 billion, Metro Pacific Investments Corp. (MPI) placed 20th, while its subsidiaries Manila Electric Co. (No. 6), Maynilad Water Services, Inc. (No. 58), and NLEX Corp. (No. 71) are also on the list.

Gokongwei-led JG Summit Holdings, Inc. is eighth in the ranking along with subsidiaries Robinsons Retail Holdings, Inc. (No. 18), Universal Robina Corp. (No. 28), Cebu Air, Inc. (No. 38), Robinsons Land Corp. (No. 66), and Robinsons Bank Corp. (No. 110).

Among other conglomerates included in the Top 200 are the following:

• Ty family’s GT Capital Holdings (No. 9), Metropolitan Bank & Trust Co. (No. 22), and First Metro Investment Corp. (No. 148)

• Aboitiz Equity Ventures, Inc. (No. 11), Aboitiz Power Corp. (No. 27), and UnionBank of the Philippines, Inc. (No. 48)

• Andrew L. Tan’s Alliance Global Group, Inc. (No. 13), Megaworld Corp. (No. 42), and Emperador, Inc. (No. 49)

• Lopez family’s First Philippine Holdings Corp. (No. 25), Lopez Holdings Corp. (No. 26), First Gen Corp. (No. 34); ABS-CBN Corp. (No. 56), Energy Development Corp. (No. 54), and Rockwell Land Corp. (No. 86)

• Lucio C. Tan’s PAL Holdings, Inc. (No. 21), LT Group, Inc. (No. 33), and Philippine National Bank (No. 45)

• Dennis A. Uy’s Udenna Corp. (No. 30) and Phoenix Petroleum Philippines, Inc. (No. 35)

• Gotianun family’s Filinvest Development Corp. (No. 40), East West Banking Corp. (No. 59), and Filinvest Land, Inc. (No. 68).

The rankings do not yet reflect the impact of the economic and health crisis brought by the coronavirus disease 2019 (COVID-19) as these were based on the firms’ financial performance in the fiscal year 2019.

Nevertheless, the rankings of these companies may change as more financial statements become available in the months ahead. These changes will be reflected in BusinessWorld’s Top 1000 Corporations in the Philippines, which is scheduled to be released within the first quarter of 2021.

To know more about the financials of the Top 200, you may purchase a digital copy of the special edition Top 200 Consolidated Corporations in the Philippines through the link https://bit.ly/33xTzM9 or contact 8535-9901 local 217 and 250. — Jobo E. Hernandez

Ban on sale, issuance of bearer shares proposed

By Angelica Y. Yang

THE SECURITIES and Exchange Commission (SEC) is drafting new rules that aim to increase the transparency of beneficial ownership of corporations, in a bid to prevent them from being used as vehicles for money laundering and terrorist financing.

“It is well established that the risk of misuse of corporate vehicles for purposes contrary to law such as money laundering and terrorist financing arises from the lack of transparency of beneficial ownership of such corporate vehicles,” the SEC said in a draft circular posted on its website on Dec. 4.

One of the measures proposed by the SEC is to ban the issuance, sale or public offering of bearer shares and bearer share warrants in the country.

“The issuance of bearer shares and bearer share warrants similarly hides the identity of such beneficial owners and thereby increase the risk of misuse of the corporation,” the SEC said in the draft circular, noting the issuance of bearer shares and bearer share warrants are not allowed under the Revised Corporation Code of the Philippines.

The regulator defined bearer shares as “equity securities owned by the person or entity that holds the physical certificate which allows the transfer of ownership of shares of stock.” Meanwhile, bearer share warrants are documents that certify the bearer’s entitlement to a certain amount of the fully paid shares.

The SEC also proposed the mandatory disclosure and recording of alienation, sales and transfers of stock shares in the Stock and Transfer Book within 30 days of the transaction. Unless these are disclosed, these “would not be binding on the issuer,” it said.

Under the draft rules, payment of dividends will not be allowed to persons or entities unless their names appear in the corporation’s records as the “owner of the shares of stock.”

The SEC is also seeking to require the disclosure of beneficial owners, nominators, principals, and nominee arrangements. The filing must be made in a “sworn declaration to the Anti-Money Laundering Division of the Enforcement and Investor Protection Department (AMLD-EIPD) within 10 days from the issuance of the company’s certificate of registration.”

The same disclosure would also be required for those on whose behalf one acts as a director, trustee or shareholder.

Also, the regulator is proposing to require all SEC-registered corporations to keep timely and accurate information relating to its beneficial owner or owners at their principal offices.

For violations of the guidelines, the SEC recommended fines ranging from P5,000 to P2 million, and not more than P1,000 for each day of continuing violation but not exceeding P2 million.

Other sanctions include a permanent cease and desist order, suspension or revocation of the certificate of incorporation, or the dissolution of the company and forfeiture of assets.

Interested parties may submit their comments to the SEC Enforcement and Investor Protection Department on or before Dec. 20, 2020.

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