SHANGHAI — China’s smartphone sales may plunge by as much as 50% in the first quarter, as many retail shops have closed for an extended period and production has yet to fully resume due to the fast spread of a new coronavirus, according to research reports.
The virus outbreak, which has killed more than 900 people and roiled China’s manufacturing industry, comes as top smartphone vendors such as Huawei had hoped China’s 5G rollout plans this year would help the world’s biggest smartphone market rebound after years of falling sales.
“Vendors’ planned product launches will be canceled or delayed, given that large public events are not allowed in China,” research firm Canalys said in a note last week.
“It will take time for vendors to change their product launch roadmaps in China, which is likely to dampen 5G shipments.”
Canalys expects China’s smartphone shipments to halve in the first quarter from a year ago, while IDC, another research firm that tracks the tech sector, forecasts a 30% drop.
Apple Inc. said last week it is extending its retail store closures in China and has yet to finalize opening dates, as Foxconn, which assembles iPhones, struggles to fully resume work.
Foxconn received government approval on Monday to resume production at a plant in the city of Zhenghzou, and reopened a major plant in the southern city of Shenzhen. But many others of its factories have yet to resume operation.
Huawei, China’s biggest smartphone vendor, said its manufacturing capacity is “running normally” without specifying further. But like many other local peers, Huawei relies heavily on third-party manufacturers for production.
If factories cannot resume production to full capacity on time, this could delay brands’ ability to bring their newest products to market, analysts said.
Xiaomi Corp., Huawei, and Oppo, three of China’s top Android brands, are all expected to announce flagship devices in the first half.
Oppo told Reuters that while the impact of the virus will affect operations at some local factories, “manufacturing capacity can be guaranteed effectively” thanks to its plants overseas.
Xiaomi did not respond to requests for comment.
“The delays in reopening factories and the labor return time will not only affect shipments to stores, it will also affect the product launch times in the mid- and long-term,” Will Wong, an IDC analyst, said. — Reuters
CIRTEK Holdings Philippines Corp. said its amended registration of up to P2 billion worth of commercial papers had been approved by the Securities and Exchange Commission on Wednesday.
The debt instruments will be listed at the Philippine Dealing & Exchange Corp. on Feb. 20, 2020.
Cirtek also said that the SEC subsequently issued a certificate of permit to offer securities for sale, authorizing the sale and distribution of the commercial papers (CPs).
“The CPs may be issued in lump-sum or in tranches and shall have an interest rate fixed prior to the issuance,” it said, adding that the succeeding tranches, if any, will be issued within three years from the date of effectivity of the amended registration statement.
LADIES dining at The Peninsula on Valentine’s Day will receive roses.
THE Peninsula Manila helps couples celebrate the perfect Valentine’s Day with an array of romantic dining and gift ideas to choose from. Spoil your date with a under The Lobby’s iconic “Sunburst” sculpture. Choose from a three-course dinner menu (P3,500 per adult inclusive of taxes) or P1,500 minimum consumable for à la carte dining. Vietnamese harpist and singer Heloise LaHarpe will perform live at The Lobby at 8 p.m. All ladies dining at The Lobby on Valentine’s Day will receive a bar of Auro Chocolate and a long-stemmed red rose to take home. All five senses will delight in Old Manila Chef de Cuisine Allan Briones’ sensory four-course Valentine’s Dinner on Feb. 14. The dinner goes for P6,500 with an extravagant wine pairing or simply by itself at P4,500 (inclusive of taxes). The Peninsula Strings will play love songs from the Great Filipino and American Songbook at 7:30 p.m. All ladies dining in Old Manila on Valentine’s Day will receive an Auro Chocolate sampler box and a red Ecuadorean rose to take home. One need look no further than chef Jobellyn Barbasa’s buffet specials in Escolta to find the quickest and most delicious way to your lover’s heart. She suggests celebrating Valentine’s Day with the Seafood Dinner Buffet (priced at P3,800, for adults, and P1,900, for children), and to spoil your date a wee bit more, ply them with Champagne and fine wine. All ladies dining in Escolta on Valentine’s Day will receive a bar of Auro Chocolate and a long-stemmed red rose to take home. Spices will also be sharing the love on Feb. 14 with the exotic flavors of India, Thailand, Malaysia, Indonesia, and Vietnam where lovers can choose from an à la carte menu selection for a minimum consumable of P1,500 (exclusive of taxes). All ladies dining in Spices will receive a long-stemmed red rose to take home with them. For inquiries or further information on The Peninsula Manila Valentine’s Day dining promotions, call 8887-2888, extension 6694 (Restaurant Reservations), e-mail diningpmn@peninsula.com or reservationpmn@peninsula.com or visit the website peninsula.com.
Lemuria Restaurant and Wine Bar
AT LEMURIA, the essence of Valentine’s Day lies in the fine details. A perfect romantic moment is concocted at Lamuria by a mastery of French-Mediterranean gastronomy, a flair for impeccable service, and a dining ambience that excites the heart. Located at Arya Plaza in Bonifacio Global City, Lemuria this Valentine’s Day introduces a classic set menu to befit the occasion. Dinner starts with hors d’œuvre of mini gougeres stuffed with herbed cream cheese, followed by pan seared foie gras that comes with homemade brioche toast, apricot chutney, and apples. This is followed by tomato soup with cheese croutons, fried basil and vanilla cream. For the main course, there is a choice between 10-hour braised short ribs dish served with cauliflower puree, roasted mushrooms, chimichurri, and parsley oil, or a soft shell crab dish with arugula, macerated cherry tomatoes, remoulade, and parmesan shards for those who love seafood. Dinner will end on a sweet note with a lemon vanilla cake with hazelnut chantilly cream, strawberries, berry coulis, and white chocolate pistachio bark. Lemuria’s special Valentine’s set menu is available from Feb. 13 to 15 for P3,200+ per head. On Feb. 14, Lemuria accepts dining reservations for 5:30-7:30 p.m. and 8:30-10:30 p.m. For more details, visit https://www.lemuria.com.ph/bgc/events/valentines-day-menu.
City of Dreams Manila
City of Dreams Manila sets the tone for a romantic month-long celebration of Valentine’s with tasteful offerings at its award-winning signature restaurants, Nobu Manila and Crystal Dragon, and treats to impress loved ones at Café Society, Chocol8 and Hyatt Regency’s The Café. For a lovely lunch or dinner affair, Crystal Dragon lays out a five-course Valentine’s Set Menu (P3,880++ per person), which captures the best of Cantonese cuisine and other regional Chinese specialties. The menu, currently available until Feb. 16, includes Black pepper duck meat swan dumpling and deep-fried prawn swan dumpling, Braised Sea Treasures and scallop dumpling and black truffle in lobster bisque, and Braised pork ribs with red wine vinegar and wolfberry reduction. Diners can also opt to try the restaurant’s new dim sum menu. A destination of choice for a romantic dinner date is Nobu which offers a five-course Valentine’s Omakase (P10,000 nett for two) that comes with a complimentary welcome sake cocktail. Exclusively available on Feb. 14, the Omakase begins with Nobu Sashimi Trio, followed by a seasonal selection of Nobu Sushi. Then comes a Whole Blue Crab, creamy and spicy with shitake, negi, masago and scallop chawan mushi; and Sous vide Australian tenderloin with dark chocolate, saké and mirin reduction demi-glace, broccolini and Nobu-style fries come after. A plate of Fraisier crème mousseline parfait with champagne jelly and strawberries completes the Omakase. Café Society and Chocol8 have a selection of Valentine’s hampers and other sweet gift ideas. Café Society has heart-shaped Linzer cookies, St. Valentine’s cookies, and cakes starting at P150 nett, along with single-stemmed rose and flower arrangements starting at P500 nett. Hampers that come with an assortment of teddy bears, flowers, a bottle of prosecco, and cookies and cakes starting at P1,000 nett also make a fitting gift for the occasion. All are available until Feb. 15. Available all month at Chocol8 are handcrafted chocolates, consisting of 200-gram Valentine White and Milk Chocolate Macadamia bars (P1,000 nett each), and brown and pink bear chocolate sculptures (P2,400 nett each). Chocol8 also offers hampers starting at P1,500 nett filled with pralines and dragées, which come with other gifts including a teddy bear and a bottle of Martini Rosé among others. At The Café at Hyatt Regency, the featured cake of the month is Raspberry Earl Grey Cake, a decadent medley of raspberry coulis on top of a soft, gluten-free sponge cake and coated with Earl Grey tea-infused mousse. For inquiries, call 8800-8080 or e-mail guestservices@cod-manila.com or visit www.cityofdreamsmanila.com</i>.
TWG Tea
TWG Tea’s Valentine’s Day special is a tea-infused set menu with two soups of the day, two main courses, dessert and a choice of two TWG Teas. It is priced at P2,875 for two persons. Available at all TWG Tea Salons & Boutiques in the Philippines until Feb. 29. TWG also has a number of Valentine’s Day gifts including the Mon Amour Tea, Caviar Tin Tea Collection in which black tea is carefully blended with sweet notes of caramel and rose (P1,895); the Firefly tea bowl and saucer in candy pink, crafted from hand-blown glass with natural pigments (P2,495); the Bain de Roses tea-scented candle in which the dusky roses of Grasse are combined with a secret bouquet of black tea, heady notes of white sandalwood, warm vanilla and fresh grapefruit (P3,895); and the TWG Tea Design Orchid Collection Teapot in pink (P6,895).
Richmonde Hotel Iloilo
ON VALENTINE’s Day, Richmonde Hotel Iloilo will serve an Italian-themed buffet at The Granary, with boquerones con olivas, tomato arancini balls, aqua pazza snapper, and risotto ai frutti de mare. The Valentine’s banquet also includes a charcuterie station, a pizza and pasta corner, rib eye, tuna and pork at the grilling station, porchetta at the carving table, and a variety of cakes at the dessert spread. The Black Valentine’s Dinner Buffet is priced at P1,350 nett and comes with a free glass of Italian wine. Bring the kids along and they get 50% discount if they’re six to 12 years old. If they’re five years old or younger, they eat for free. Meanwhile, BizBar is holding the “Friday the 14th Valentine’s Day Party” for the single and brokenhearted. Party goers get 30% off on Heineken draft beer with no cover charge or minimum consumption required. The Black Valentine’s Dinner Buffet is available at The Granary on Feb. 14, from 6 to 10 p.m. The Friday the 14th Valentine’s Day Party will be on Feb. 14 as well at BizBar and starts at 8 p.m. For table reservations, call Richmonde Hotel Iloilo +6333 328-7888.
Cravings
FROM Feb. 13 to 16, Cravings introduces a Valentine’s Day menu by the chefs of CCA Manila, with fairytale themed tables to passion-filled cocktails. The four-course set menu includes a choice between Roasted smoked pork loin with Jambalaya rice and Blackened fish with Jambalaya rice for the main course. There is also a special Love Potion cocktail for Valentine’s Day. Make reservations through 0906-270-5690. For details, visit Cravings’ Instagram @cravingsphils or follow #ValentinesAtCravings and #CelebrateLoveAtCravings.
NINE out of 17 collection districts in ports nationwide hit their revenue targets in 2019, though the three largest ports missed their goals, the Bureau of Customs (BoC) said.
In a statement Wednesday, BoC said the Manila International Container Port (MICP) was the top revenue generator at P164.404 billion, followed by Port of Batangas (P152.222 billion) and Port of Manila (P74.812-billion), though they fell short of their collection goals last year.
The nine collection districts that hit their 2019 revenue targets were Port of Limay with P56.332 billion, Port of Cagayan de Oro P34.540 billion, Port of Subic P32.373 billion, Port of San Fernando P4.237 billion, Port of Iloilo P3.406 billion, Port of Tacloban P1.425 billion, Port of Zamboanga P545 million, Port of Legaspi P510.26 million, and Port of Aparri P146.72 million.
The five other ports that did not reach their revenue targets were the Customs station at Ninoy Aquino International Airport, Port of Cebu, Port of Davao, Port of Clark and Port of Surigao. They collected P43.238 billion, P31.274 billion, P27.986 billion, P1.940 billion, and P19.43 million, respectively.
In total, the Customs bureau, the second-largest tax-collecting agency, generated P630.57 billion in revenue last year, up 6.32% year-on-year but nearly 5% short of its P661-billion target.
Meanwhile, the Bureau of Internal Revenue (BIR), the biggest tax-collecting agency, also missed its P2.33-trillion revenue target after collecting P2.172 trillion in 2019, which is nonetheless 10.67% higher than its revenue in 2018.
The two major revenue-generating agencies collected a total of P2.8 trillion in 2019.
This year, BoC is tasked to collect P731.235 billion while BIR has a collection target of P2.576 trillion, both over 10% higher compared to their respective targets in 2019.
The Development Budget Coordination Committee earlier tasked the two agencies to collect a total of P3.3 trillion this year, 17.85% higher than last year’s combined goal. — Beatrice M. Laforga
THE measure simplifying the tax structure for financial instruments is expected to make smooth progress in the Senate, the head of the chamber’s Ways and Means Committee said Wednesday.
The proposed Passive Income and Financial Intermediary Taxation Act (PIFITA) was broadly supported by stakeholders appearing at the hearings, with some reservations, which the panel hopes to smooth out at technical working group (TWG) level.
“Maybe we need dalawang TWG para lang kausapin ng maayos ang iba-ibang sectors. Ang difference lang naman, although mostly are supportive, ang daming sector ang tinamaan (We could need about two TWG sessions to properly consult the various sectors. While most are supportive, lots of things will be affected),” Senator Juliana Pilar S. Cayetano said in a chance interview Wednesday.
Asked about the prospects for passing the measure, which forms part of the comprehensive tax reform program, within the year, Ms Cayetano said: “I’m very optimistic, even my colleagues are very optimistic. For this year, definitely.”
The 18th Congress is working to pass all the remaining tax reform packages to meet the year-end target of the Department of Finance (DoF).
PIFITA seeks to reduce the various tax rates to 36 the government charges on passive income from the current 80. It seeks to impose a uniform 15% rate on interest income and dividends.
The microfinance industry, chiefly represented by non-government organizations (NGOs), opposed the repeal of the 2% preferential tax, in lieu of all national tax, provided under the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Prior to this, micro-finance NGOs were required to pay 5% or 12% value-added tax and other national taxes.
NGOs in microfinance said in a position paper that a repeal would effectively for the industry to “pass on this tax burden to micro-finance borrowers to ensure sustainability.”
“The higher the taxes, the higher the rates on borrowings paid by the poor,” they said.
Sen. Sherwin T. Gatchalian said the proposed tax regime for microfinance may affect the competitiveness of small entrepreneurs with the costs ultimately passed on to consumers.
“Nakita ko ito on the ground when I was in a local government position, these microfinance NGOs really finance the karinderya, fish vendors… in the market, dyan sila kumukuha ng puhunan araw-araw. (I saw when I was in local government how these NGOs financed eateries and fish vendors, who depended on microfinance for their daily capital needs) If we impose higher taxes, in effect these NGOs will be uncompetitive, and second it will be passed on to consumers,” Mr. Gatchalian told the panel.
“I see the disenfranchisement of 6.5 million micro-entrepreneurs.” — Charmaine A. Tadalan
A MULTI-GENERATIONAL work force presents opportunities for older workers to compensate for the shortcomings of millennials and Generation Z, and vice versa, LinkedIn said, citing the results of its Opportunity Index 2020 study.
LinkedIn reported that while ageism may discourage older workers, various generations in the workforce present an opportunity to fill in generational skills shortcomings.
“The biggest skills gaps that we see today are soft skills among gen Z and millennials, and tech skills among the older generation. We encourage companies to hire for complementary skills and to promote collaboration and bi-directional mentorship among their workforce,” LinkedIn Asia Pacific Managing Director Olivier Legrand said.
The study took in responses from 30,000 participants across 22 markets, with 1,000 from the Philippines. Generations covered under the survey were Baby Boomers (those born between 1946 and 1964), Generation X (1965-1980), Millennials (1981-1996), and Generation Z (1997 and later).
Globally, LinkedIn said that 43% of Baby Boomers said they struggle with age in the workplace while 25% of Generation Z workers said they view the lack of work experience as a problem.
In the Philippines, LinkedIn said the youngest workers, those from Generation Z, are the most uncertain about their work prospects and are concerned with “the environment, education, and health.”
“For the first time, four generations are working together. It’s time for businesses to set aside hiring biases against age, and embrace the multigenerational workforce as an opportunity,” Mr. Legrand said. — Gillian M. Cortez
DAVAO CITY — China is assessing a loan request by the Philippine government for the construction of the Samal-Davao bridge and a decision could be reached within the early part of the year, according to Chinese Consul General Li Lin.
“We are now making assessments of the request by the Philippine side… A concessional loan would be the best for the Philippines because the interest rate is really low (but) the amount of such loans (available) from Chinese side… is very limited. I hope that this can be realized,” Mr. Li told BusinessWorld Tuesday.
“I am not sure of the total amount of the loan. China government will make the assessment on the government budget,” he added.
Based on the project profile approved by the National Economic and Development Authority (NEDA) Board in November, the Samal Island-Davao City Connector (SIDC) Project is estimated to cost P23.04 billion, with official development assistance (ODA) identified as the funding source.
The Department of Public Works and Highways (DPWH) will be the implementing agency for the SIDC, a 2.8-kilometer, four-lane, toll-free bridge.
The project will also involve the construction of interchanges with the existing road network, improvements on existing junctions, viaducts over sections of land, and approach bridges over a marine area.
Mr. Li said that he is hopeful that the ongoing right-of-way dispute over the planned location of the abutments on the Samal end will be resolved soon.
“I have heard that some land owners on the IGaCoS (Island Garden City of Samal) side are not willing to give way and I also heard from the report that the governor of Davao del Norte himself is willing to discuss (the matter) with the owner of the land,” Mr. Li said.
Samal is under the jurisdication of Davao del Norte province.
The NEDA-approved bridge design will span the Agdao area of Davao City and Barangay Caliclic in Samal.
The coastal village of Caliclic hosts several resorts, including those that are among the pioneer developments in Samal.
One of the family landowners has written to DPWH, threatening to file a Writ of Kalikasan, a legal remedy under Philippine law that provides protection of the constitutional right to a healthy environment.
Samal Mayor Al David T. Uy, in response, has issued statements indicating that he is prepared to file counter charges of economic sabotage against those blocking the project.
Mr. Li said he is optimistic that a settlement will be reached by all parties.
“It’s a good project… a bridge obviously will be very convenient and conducive for the future progress and development of the island,” he said.
The project construction period is scheduled for 2021-2024. — Maya M. PadillowithCarmelito Q. Francisco
REVENUE generated by local government units (LGUs) rose 12% in the nine months to September, the Bureau of Local Government Finance (BLGF) reported.
Revenue generated from fees and taxes by all provinces, cities and municipalities rose 12% to P204.09 billion at the end of September, the Department of Finance (DoF) said in a statement Wednesday.
The DoF said LGU tax collections stood at P152.15 billion, up 12% year-on-year, which accounted for 28% of LGU revenue during the period.
Revenue generated from non-tax measures hit P51.94 billion, up 11% year-on-year and made up for nine percent of the LGUs’ total revenue source.
LGU revenue missed the P238.01-billion target, achieving only 84% of the goal for the period.
Of the total tax take, business tax accounted for 47.49% of the total or P95.11 billion, followed by real property tax (P57.03 billion), income from other fees and charges (P30.47 billion) and income from economic enterprises (P17.62 billion), according to the BLGF.
Separately, Finance Secretary Carlos G. Dominguez III approved the appointments of 186 local treasurers last year, representing 21.4% of the 868 vacancies, while the BLGF designated 1,506 others for different assignments.
This year, treasurers of cities, provinces and municipalities have been set a P307.08 billion collection target, up 19% from the 2019 target, “to drive LGUs to optimize their local taxing and revenue-raising powers.”
About 69% of the target is projected to be raised by cities, estimated at P213.71 billion, followed by P54.19 billion worth of collections by provinces and P39.21 billion by municipalities.
The BLGF exercises administrative and technical supervision over the treasury and assessment operations of LGUs. — Beatrice M. Laforga
THE Philippines will retain its preferential trade access after the UK’s exit from the European Union, British Ambassador to the Philippines Daniel Pruce said.
The Philippines currently enjoys duty-free entry of up to 6,274 products to the European Union (EU) under the Generalized Scheme of Preferences plus scheme (GSP+), which is set to expire at the end of 2023.
Mr. Pruce told reporters on Tuesday that the scheme will continue in the UK after it fully transitions from the EU.
“We have guaranteed that when we move out of the current relationship, so at the end of this year, we will maintain on a national level a mirror of the GSP+ scheme,” he said.
“There will be no change in terms of the tariff preferences that the Philippines enjoys in its relationship with the UK.”
The Philippines must comply with 27 international conventions on human and labor rights, environmental protection, and good governance under the EU scheme.
Mr. Pruce did not say whether or not the UK will continue this monitoring, but maintains that the preferences available under the scheme will continue.
“The UK remains a very active and engaged player in the international community and the principles that we stand up for, the values we hold dear, the conventions that we are committed to. Obviously, we will sustain our role in the world.”
He said the Philippines and the UK will have another dialogue on economic relations in April.
“We are masters of our own trade policy. We are no longer bound by the EU’s trade policy, so we have the opportunity to talk to all of our partners with whom we trade and collaborate around the world in terms of what the shape of what the future relationship will look like.”
The UK officially left the EU on Jan. 31, and the transition period continues until Dec. 31, 2020.
Philippine exports to the UK fell 7.9% to $492 million in 2019, accounting for 0.7% of total Philippine exports, according to the Philippine Statistics Authority.
Exports to the EU fell 7.8% to $8.22 billion in 2019, accounting for 11.68% of total Philippine exports. — Jenina P. Ibañez
PHILIPPINE RICE imports are expected to decline this month amid a slowdown in overseas purchases, the US Department of Agriculture (USDA) said.
In its Grain: World Markets and Trade report for February 2020, the USDA said that it expects the Philippines to import 2.5 million metric tons (MT) this month, down from 2.7 million MT in January, due to the continued “slowing pace” of Philippine overseas purchases.
Consumption and residual totals of purchased rice in February is projected at 14.4 million MT, little changed from January. Output of milled rice is also expected to remain unchanged at 12 million MT.
On Monday, the Philippine Statistics Authority (PSA) estimated the rice inventory at 2.675 million MT at the start of the year, up 4.9% year-on-year, largely due to increased holdings by the National Food Authority (NFA).
Rice stocks in NFA warehouses surged 436.1% to 524,940 MT.
The Rice Tariffication Law liberalized, rice imports, with the NFA stripped off of its importing function. The agency was given a mandate for focus on purchasing rice from domestic farmers on favorable terms. Its purchase price of P19 per kilo for palay, or unmilled rice, is significantly higher than prices offered by commercial traders, whose bargaining power has increased because they can opt to sell imported rice.
In a separate USDA report on World Agricultural Production, rice yields in the Philippines are also expected to remain flat at 4.05 MT per hectare. Area planted to rice is also expected to be stable at 4.7 million hectares.
The USDA noted that even with rice considered a staple in the Philippines, demand for wheat-based products is also growing in Southeast Asia region.
“The Philippines purchases nearly all of its wheat for food consumption from the United States as millers have a preference for the high quality that ensures consistency in final products. This has made the country the top importer of US wheat in the region (and second globally),” the report said.
The USDA projected the Philippines to import a total of 7.3 million MT of wheat this month.
Higher corn prices also drove farmers to use wheat in commercial feed production.
“Corn is the preferred feed ingredient with significant domestic production, making it ideal and cost-effective. However, in the last decade, plant disease, weather conditions, price, and policy issues have encouraged the industry to incorporate imported wheat as an important feed ingredient,” the USDA said in its report.
“This is particularly true for the Philippines where imports of feed wheat nearly tripled in the last decade as it is no longer just a feed substitute,” it added.
Philippine corn production is projected to be stable at 8.1 million MT in February. — Revin Mikhael D. OchavewithMarissa Mae M. Ramos
