Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 8758

TCCCI gets Five Star Distributor Award from MG


MG DISTRIBUTOR The Covenant Car Company, Inc. (TCCCI) was recently bestowed the Five Star Distributor award — the highest recognition among all international MG distributors — at the recent 2020 MG Overseas Dealers and Distributors Conference. The online event was attended by various MG distributors from over 80 countries.

Based on criteria such as sales performance, marketing, aftersales services, and dealership network, TCCCI was selected for the distinction from a list of over 50 overseas MG distributors — joining other Five Star Distributor awardees: Taajeer Group MG Saudi Arabia, South Pacific Motor Chile SPA, Brisbane MG, and Mansour MG Automotive. TCCCI is the first overseas MG distributor to achieve this Five Star status on its first full year of operations. Additionally, MG Iloilo took home a Four Star award in the Dealerships category.

“It is our honor at The Covenant Car Company, Inc. to receive the Five Star Distributor recognition from our international principals at MG. We are privileged and proud to represent the MG brand in the Philippines, and to be recognized on our first year of full operations fuels our drive at TCCCI to go further in elevating the MG brand in the country,” said TCCCI President and CEO Atty. Alberto Arcilla in a statement. “This award is a recognition of the collective work of all who have dedicated themselves to the introduction and expansion of MG in the Philippines: our shareholders, our esteemed board, stewards, dealer partners, bank partners, our colleagues in the media, and our valued MG clients. As we are thankful, we acknowledge that this is truly a testament of the Lord’s covenant to our company.”

These yearly awards are presented by SAIC Motor International (SMIL), a subsidiary of SAIC Motor: the largest company on China’s A-share market. It is currently ranked 39th on the Fortune Global 500 list, and seventh among all automakers on said list. SMIL has been recognizing overseas MG distributors and dealers with these awards since 2015. In 2019, over 298,000 MG vehicles were sold worldwide.

Peso to strengthen on RTB flows, weak dollar demand

THE PESO may continue to appreciate this week following the record-high proceeds from the government’s retail Treasury bond (RTB) sale and amid weak demand for dollars.

The local unit finished trading at P49.041 versus the dollar on Friday, appreciating by less than a centavo from its P49.05 close on Thursday, data from the Bankers Association of the Philippines showed.

Still, the peso’s Friday close was its best in more than three years or since Nov. 11, 2016’s P48.95-per-dollar finish.

It also strengthened by 10.90 centavos from its P49.15 finish on July 30.

The peso climbed amid demand for the government’s RTB offer, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“Recent RTB offering attracted some investors, partly supporting the peso,” Mr. Ricafort said in a text message.

The government sold a record P515.3 billion in five-year RTBs, of which P488.5 billion were fresh funds while P27.8 billion were from the switch offer, National Treasurer Rosalia V. De Leon said on Friday.

Proceeds from the transaction will be used to fund the government’s response to the coronavirus pandemic.

The peso also strengthened as the drop in the gross domestic product (GDP) was already expected by the market, said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

The Philippine economy shrank by a record 16.5% in the second quarter amid the impact of the pandemic, data released by the Philippine Statistics Authority on Thursday showed. With first-quarter GDP already contracting by 0.7%, the second quarter figure meant the economy has plunged into a technical recession.

For this week, Mr. Asuncion said low demand for dollars may drive the peso up.

“Bond-related flows concerning the RTB settlement may also contribute to the upward pressure on peso,” Mr. Asuncion said.

Meanwhile, Mr. Ricafort said the fresh economic stimulus measures in the United States may also impact market sentiment.

US President Donald J. Trump on Saturday signed executive orders to partially restore enhanced unemployment payments to jobless Americans amid the ongoing crisis, according to Reuters.

The newly-signed orders will disburse an additional $400 per week in unemployment payments, smaller than the $600 per week provided in the earlier part of the crisis.

Mr. Ricafort expects the peso to move around the P48.90 to P49.20 band versus the dollar this week while Mr. Asuncion gave a forecast range of P48.85 to P49.15. — L.W.T. Noble with Reuters

Which segments of the economy were hardest hit by the recession?

Which segments of the economy were hardest hit by the recession?

How PSEi member stocks performed — August 7, 2020

Here’s a quick glance at how PSEi stocks fared on Friday, August 7, 2020.

Public warned against illegal trade of coronavirus plasma

HEALTH AUTHORITIES on Sunday warned the public against buying and selling convalescent plasma — antibody-rich products collected from eligible donors who have recovered from COVID-19 (coronavirus disease 2019) — because these are “illegal, reckless and dangerous.”

The Philippine Blood Center and Philippine Red Cross-Port Area are the only certified non-hospital collection facilities, while the Philippine General Hospital and St. Luke’s Medical Center are the only hospitals allowed to collect plasma for treatment, the Department of Health (DoH) said in a statement.

“Trading blood and other blood products, including those from recovered COVID-19 patients, is not only illegal but highly dangerous,” Health Secretary Francisco T. Duque III said in the statement.

“Convalescent plasma should not be for sale and should be voluntarily donated for COVID-19 patients in need,” he added.

The statement came after families of critically ill coronavirus patients reportedly bought plasma from recovered patients, hospital staff and fixers.

DoH reported 3,109 new infections on Sunday, bringing the total to 129,913.

The death toll rose to 2,270 after 61 more patients died, while recoveries increased by 654 to 67,673, it said in a bulletin.

DoH said there were 59,970 active cases, 91% of which were mild, 7.5% did not show symptoms, and less than 1% each were severe and critical.

Of the new cases, 1,700 came from Metro Manila, 169 from Laguna province, 114 from Cebu, 98 from Rizal and 93 from Cavite. More than 1.6 million people have been tested for the coronavirus, DoH said.

Meanwhile, DoH said buying and selling plasma could pose health risks to patients who may contract “transfusion-transmissible infections such as HIV, hepatitis and malaria,” the agency said, citing studies.

Blood plasma donation should be done voluntarily and go through an official process to ensure the safety of recipients and donors, it added.

DoH also called on hospital chiefs to ensure their staff are not involved in the illegal practice, and for local governments to investigate the illegal trade outside authorized facilities.

“Likewise, DoH is appealing to relatives of patients to stop dealing with fixers operating inside and outside the hospital,” it said.

Under the law, blood products should only be collected from donors. Paid blood donation is illegal and noncompliant facilities face penalties.

Plasma of a coronavirus survivor’s blood is infused to severe patients, giving them antibodies to reduce their viral load.

President Rodrigo R. Duterte put Metro Manila, Laguna, Bulacan, Cavite and Rizal back under a strict lockdown until Aug. 18 after a fresh surge in COVID-19 infections. He heeded the call of the medical community, which said the country could lose the battle against the pandemic.

A University of the Philippines professor had warned that the number of COVID-19 cases in the country could reach 150,000 by the end of this month if certain steps aren’t taken to contain the steep rise in infections, particularly in Metro Manila. — Vann Marlo M. Villegas

9,000 more OFWs come home amid COVID-19 crisis

ABOUT 9,000 overseas Filipinos came home last week amid a coronavirus pandemic that has sickened 19.8 million and killed nearly 730,000 people worldwide, the Department of Foreign Affairs (DFA) said.

The agency said 8,924 Filipinos were repatriated, including about 3,660 Filipinos from the United Arab Emirates who flew home through 13 special commercial flights and one chartered by DFA.

“The DFA reaffirmed its commitment to bring home our overseas Filipinos from the UAE as the deadline to leave the country for those with expired tourist visas drew near,” it said in a statement on Saturday night.

More than 2,300 Filipino seafarers also returned from Bangladesh, Italy, Spain, Japan, Singapore, Barbados and Trinidad and Tobago. The others were stranded workers in Mongolia, Palau and the island of Diego Garcia in the Indian Ocean.

This brought the number of repatriated workers to 124,717 — 75,062 land-based workers and 49,655 sailors.

The agency is also working on the return of distressed Filipinos in Lebanon and Uzbekistan, it said.

The Philippine Embassy in Beirut said that as of Aug. 8, one more Filipino had been reported missing, bringing the total missing persons to two after an explosion in the Lebanese capital.

Eleven more Filipino workers were said to have been injured, bringing the total to 42, Foreign Affairs Undersecretary Sarah Lou Y. Arriola said in a separate statement.The death toll stood at four.

The number of affected Filipino migrants is expected to increase considering the impact of the explosion at a port warehouse that stored 2,750 tons of ammonium nitrate, a substance used for fertilizers and explosives.

A repatriation flight has been set for Aug. 16 to bring home distressed Filipinos as well as the remains of those who died, DFA said. — Charmaine A. Tadalan

Gov’t allocates P5B more in subsidies for migrant Filipinos

THE government has allotted P5 billion more to help overseas Filipino workers (OFWs) affected by the global coronavirus pandemic, according to the Labor department.

President Rodrigo R. Duterte approved the release of the fund for the repatriation of migrant Filipinos and other aid, Labor Secretary Silvestre H. Bello III said in a statement on Sunday.

“He will give us the additional fund for the repatriation and aid of our OFWs,” he said.

The agency said the P5 billion will be released to the Overseas Workers Welfare Administration (OWWA), which is in charge of facilitating the return of OFWs.

The OWWA also pays for the COVID-19 (coronavirus disease 2019) tests, accommodation of overseas workers under quarantine and their return to their home provinces.

The Labor department earlier said its P2.5-billion emergency fund for OFWs had been depleted. The fund helped about 250,000 OFWs but the agency received half a million applications for aid.

The DoLE has approved the applications of 267,584 OFWs affected by the pandemic. OFWs get a one-time cash subsidy of P10,000 under the program. — Gillian M. Cortez

Regional Updates (08/09/20)

PHIVIDEC steel mill construction to open up to 30,000 jobs

CONSTRUCTION OF the integrated steel mill inside the PHIVIDEC Industrial Estate in Misamis Oriental, expected to start within the third quarter after being delayed by restrictions due to the coronavirus crisis, will generate up to 30,000 jobs. “The integrated steel mill makes a significant contribution to employment generation and economic growth not only in Northern Mindanao but also nationwide. The construction phase is set to generate around 10,000 to 30,000 jobs while regular operations command 3,000 employees,” the Philippine Veterans Investment Development Corporation said in a statement Friday. The mill is a joint project of China’s Huili Fund and CISDI Group Co. with Simple Homes Development, Inc., a subsidiary of listed firm A Brown Co. Inc. (ABCI). Construction cost is estimated at $4.9 billion. “The integrated steel mill is a tremendous contribution to the Build, Build, Build program of the national government, as we cannot build a country without steel,” PHIVIDEC Administrator Franklin M. Quijano said. The plant will produce about five million tons per annum of flat products such as steel plates, and long products such as billets, round bars, and wires. Mr. Quijano said ABCI will have the option to purchase the 400-hectare leased area on which the plant will be built.

Iloilo City orders call centers to operate at 50% capacity after surge in COVID-19 cases among agents

ILOILO CITY Mayor Jerry P. Treñas has ordered call centers in the city to operate at 50% capacity starting Monday, Aug. 10, after half of the 56 new coronavirus cases recorded on Saturday were agents from one business process outsourcing (BPO) firm. “We have 56 total new cases in the city recorded,” Mr. Treñas said on Saturday, “From this number, 28 agents of IQor who are all residents of Iloilo City are infected.” Another BPO, WNS Global Services, has also been placed “on an initial three-day lockdown and only those with negative results will be allowed to work,” the mayor said. On Aug. 6, Mr. Treñas also ordered a two-week ban on all incoming transport carrying returning residents. This comes after the reimposition of curfew hours in the city from 10 p.m. to 4 a.m. until Aug. 18. Several areas have also been placed under localized lockdown for contact tracing. “Cases are going up during this period and I want our personnel to focus on the problem,” he said. As of Aug. 7, the recorded 261 total cases, of which 122 are active, 132 have recovered while seven died.

CAAP launches investigation on ‘sizable’ aircraft debris washed ashore in Eastern Samar towns

CAAP

AN INVESTIGATION is underway on the “sizable” aircraft debris found by locals in two coastal towns in Eastern Samar on Aug. 6. The Civil Aviation Authority of the Philippines (CAAP), in a statement Sunday, said “search of other possible clues about the debris’ origin” has been initiated. There are no recent reports of missing aircraft within the country’s flight information region and neighboring areas, according to the Philippine Aeronautical Rescue Coordination Center. “The sizable debris needed the assistance of several men to transport,” CAAP said. The first debris was found at a resort in Anuron Beach in the town of Mercedes in the morning of Aug. 6. The second one was found three kilometers away in Guian in the afternoon. Both sites face the Pacific Ocean. The “hull-shaped aircraft remains” have been secured by the Philippine Coast Guard and will be turned over to the military.

Nationwide round-up

Task force on PhilHealth probe to build on PACC findings

THE TASK force investigating corruption allegations against the Philippine Health Insurance (PhilHealth) Corp. will coordinate with and build on the findings of the Presidential Anti-Corruption Commission (PACC), Justice Secretary Menardo I. Guevarra said. “The PACC is part of the task force, and the task force will make use of what the PACC has already done or build up on it further as may be necessary,” he told reporters via Viber. Mr. Guevarra said since the creation of the task force on Friday, he had been in contact with PACC Chairperson Dante L. Jimenez and Commissioner Greco B. Belgica. “We have all agreed that while working independently, we shall closely coordinate and collaborate with each other for a focused and targeted approach,” he said.

The PACC has already submitted an initial report to the President, wherein it recommended the filing of charges against several PhilHealth officials and employees. The task force is given 30 days to submit its findings and recommendations to the Office of the President, based on the memo issued by President Rodrigo R. Duterte on Aug. 7. Given the limited period, Mr. Guevarra said they would focus on alleged irregularities “that could reasonably be completed within the given time frame.” Task force members have been directed to identify ongoing investigations on the agency that may be expedited and completed within the 30-day period, such as the case on WellMed ghost dialysis claims. The National Bureau of Investigation in August last year filed graft charges against 21 Philhealth officials and employees over the accreditation of WellMed for 2019 despite findings of fraud in benefit claims.

NO TURNING BACK
The Senate also has an ongoing investigation on the agency. In last week’s hearing, resigned PhilHealth anti-fraud legal officer Thorsson Keith alleged that the state-run insurance company’s executive committee members were involved in defrauding P15 billion from the agency. Two of PhilHealth’s top officials, President Ricardo C. Morales and Executive Vice-President Arnel F. De Jesus, said they will skip this week’s Senate hearing, citing medical reasons. The Palace, meanwhile, said the task force probe will continue despite this development. In a statement on Sunday, Palace Spokesperson Harry L. Roque said there “is no turning back” from the investigation. “As far as the Executive is concerned, the Task Force organized by the Department of Justice, upon the instruction of President Rodrigo Roa Duterte, will proceed in its mandate to investigate on the various allegations of corruption in PhilHealth,” he said. The task force is also ordered to conduct an audit and lifestyle check on PhilHealth’s officials and employees. — Vann Marlo M. Villegas and Gillian M. Cortez

More foreign nationals allowed entry

THE INTER-AGENCY Task Force (IATF) handling the coronavirus response has exempted foreign nationals with Filipino spouses and their dependents from the temporary suspension of visa issuance, the Department of Foreign Affairs (DFA) announced Sunday. The exemption covers children, including those with special needs regardless of age, and foreign parents of Filipino nationals, as provided under IATF resolution No. 60, dated July 30. “The Bureau of Immigration (BI) may allow entry of those covered under the above mentioned exemptions starting today, 09 August, if these foreign nationals hold valid Philippine visas,” the DFA said. This includes those who were previously entitled to visa-free entry and those with existing visas. Qualified foreign nationals who will be entering the Philippines have also been advised to contact the nearest embassy for the submission of documentary proof, issued by concerned Philippine agencies or foreign governments. This will be implemented by the BI and the Civil Aeronautics Board. Aside from the visa requirement, the bureau said arriving foreigners will need a pre-booked accredited quarantine facility and a pre-booked COVID-19 testing provider. Travel restrictions on entering and exiting the country were imposed as part of the lockdown measures to contain the coronavirus outbreak. Among those allowed to exit are foreign nationals, overseas Filipino workers, permanent visa holders and students enrolled abroad, provided their destination has no existing travel restriction. — Charmaine A. Tadalan 

More PCOO staff test positive for coronavirus

MORE PERSONNEL under the Presidential Communications Operations Office (PCOO) have tested positive for coronavirus, prompting suspension of operations in several of its agencies. The National Printing Office is among those temporarily closed with 32 of its staff infected. Work is also suspended at Radio Television Malacañang with five cases. Based on data provided to reporters as of Sunday 10 a.m., the other active cases are in the following: 23 at the PCOO main office; nine under the APO Production Unit; two from the News and Information Bureau; and five from the People’s Television Network. — Gillian M. Cortez 

Bill on SPVs to buy banks’ bad loans filed in Senate

A MEASURE providing for the establishment and regulation of special purpose vehicles (SPVs) that will acquire bad loans from financial institutions has been filed in the Senate.

Senate Bill No. 1652, the “Special Purpose Vehicle Act of 2020,” seeks to provide a legal framework for asset management companies for buying or investing in non-performing assets (NPAs).

The bill was filed in anticipation of the increase in bad loans in light of the Luzon-wide lockdown that led businesses to shut down operations.

“The economic uncertainty brought about by the pandemic may soon take a hit on every balance sheet of businesses and enterprises that may result in their inability to pay bank loans,” Senator Ralph G. Recto said in the explanatory note.

President Rodrigo R. Duterte imposed a lockdown in mid-March to help contain the spread of the coronavirus disease 2019 (COVID-19), suspending work, classes and public transportation.

Mr. Recto noted the bill is similar to the Republic Act No. 9182, the SPV Act, signed in 2002 to address the impact of the 1997 Asian financial crisis.

The measure is also similar to the proposed Financial Institution Strategic Transfer Bill that was among the priorities Mr. Duterte identified his fifth State of the Nation Address. Its counterpart, House Bill No. 6816, obtained final approval from the House of Representatives ahead of the June 5 adjournment.

The two bills allow SPVs, which are private-sector owned AMCs, to invest in or acquire NPAs, or engage third parties for its management, operation, collection and disposal among others.

“This will improve the liquidity condition of the banks and other financial institutions,” Mr. Recto said.

“On the other hand, the SPVs will be afforded an opportunity to reap profits from the subsequent disposition of valuable NPAs which are usually acquired at a discounted price.”

The measure will also provide incentives, such as tax exemptions and fee privileges, to encourage businesses to establish SPVs.

This includes exemption from the documentary stamp tax, capital gains tax, income tax and value-added tax on the transfer of assets. The transfer will also be subject to 50% of applicable registration and transfer fees, filing fees for foreclosure, and land registration fees. — Charmaine A. Tadalan

Green energy auction seen starting next year

THE Department of Energy (DoE) hopes to hold the Philippines’ first renewable energy auction next year once the volume which all power utilities intend to procure is determined.

In July, the department published a circular on the policy governing the conduct of the green energy auction, helping electricity providers comply with the Renewable Portfolio Standards (RPS).

“We are now consolidating requirements ng mga DUs (distribution utilities) and trying to account ano ‘yung (what is the) volume na (that) they’re looking at buying… because that will be the volume that will be covered by the auction,” Energy Assistant Secretary Redentor E. Delola said in a recent DoE virtual briefing.

The requirements review will also determine the types of renewables to be sourced through bidding.

Once this is completed, annual auctions will follow. “The intent is to hold the first auction by next year,” he told BusinessWorld via e-mail.

With both RPS rules for on-grid and off-grid areas in full effect this year, electricity providers are now required to source a portion of their supply from renewable energy developers. They can do this through the green energy auction.

An electronic process, the auction will involve two types of contract: supply-only, where the implementation agreement is awarded to bidders and those whose projects are covered by renewable energy contracts with the government; and integrated OCSP (open and competitive selection process)-supply, where government service contracts are awarded together with the implementation agreement. 

RPS-compliant power providers are all deemed enrolled in the auction, except for those that opt out of the event and those with no legal, technical, and financial capacity to join.

Renewable energy suppliers qualifying for the auction will offer all or some of their capacity. The policy requires that bid prices not exceed the reserve price set by the Energy Regulatory Commission (ERC), which will submit the reserve price confidentially to the DoE before the auction.

The auction rules, including the bidding platform, and implementation deal are yet to be drafted.

Initially, the program intends to pool 2,000 MW of renewable capacity for auction. However, this may change based on the supply requirements of power utilities, according to Mr. Delola.

Also, there may also be changes to the required incremental percentage of contracted clean energy set by the DoE to meet the target 35% share of renewables in the generation mix over the next decade. At present, power providers are required to distribute clean power that is at least 1% of their total yearly demand volume in a decade.

The RPS Composite Team led by Mr. Delola will submit its report on the policy compliance of power providers to the DoE and ERC by Sept. 30. — Adam J. Ang

DoE urges power conservation to save money during recession

THE Department of Energy (DoE) said electricity consumers need to be “mindful” of their power consumption during tough economic times, and reminded them of the need to save money.

The Philippines recorded its first recession in almost three decades with its economy contracting by 16.5% in the second quarter.

With the threat of more job losses during the ongoing public health crisis, regulating power usage can help in household budget management, according to Energy Secretary Alfonso G. Cusi.

“As the nation battles the economic recession, there is a need to be conscious of our expenditures. Napakahalaga ng pagtitipid para sa ating lahat sa mga panahong ito (Saving is really important during this time),” he said in a recent virtual briefing.

Consumers staying at home to prevent contracting the novel coronavirus have registered increased electricity usage, while power demand from the commercial and industrial sectors remains low.

The DoE earlier noted a 40% uptick in power demand from residential consumers in the Luzon grid during the strictest form of lockdown between March and May.

“(I)t doesn’t mean that because we have all the supply, pwede tayo magkaroon ng (we can have the) luxury of not controlling our electricity use,” Mr. Cusi said. — Adam J. Ang

1...8,7578,7588,759...13,780Page 8,758 of 13,780
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube