PHILIPPINE gross domestic product (GDP) growth likely sharply slowed in the first three months of 2020, as the economy faced supply and demand shocks due to the coronavirus disease 2019 (COVID-19) pandemic, a BusinessWorld poll showed. Read the full story.
CONGRESS on Monday resumes session amid the continued lockdown in Metro Manila, with House and Senate leaders saying they will prioritize measures to address the impact of the coronavirus disease 2019 (COVID-19).
Senate President Vicente C. Sotto III said among the measures to be taken up is the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA), which would lower corporate income tax to 20% from the current 30% and streamline incentives.
“Maaaring pag-usapan agad, ‘yung mahahalagang probisyon sa CITIRA, ‘yung hindi naman makakaapekto sa mga tao pero makakatulong sa executive department. Siguradong mapag-uusapan (We can discuss this immediately, the important provisions of CITIRA, the ones that won’t affect people but will help the executive department. We will definitely discuss that),” Mr. Sotto said in an interview with DZBB on Sunday.
The Senators will hold a caucus ahead of the 3 p.m. session to finalize the legislative agenda, which Senator Ralph G. Recto confirmed will focus on measures addressing the COVID-19 impact. The Senate will also amend its rules to allow the senators to convene via teleconference to avoid risk of contracting COVID-19.
Senator Pia S. Cayetano, chairperson of the Ways and Means committee, earlier said she is looking at amending the incentives under the CITIRA bill to benefit industries deemed essential during the coronavirus crisis. She cited job-generating industries or those engaged in providing medical suuplies and equipment.
At the House of Representatives, House Majority Leader and Leyte Rep. Ferdinand Martin G. Romualdez said they will also fast-track priority measures such as the proposed Philippine Economic Recovery Act (PERA) that will help the economy bounce back from the crisis.
“Kailangan talaga ipa-fast-track natin itong priority measures, isa po diyan ang sinasabi nating economic stimulus package or Philippine Economic Recovery Act from the economic stimulus cluster. Isa pang measure diyan sa social amelioration cluster iyong COVID-19 Unemployment Reduction Economic Stimulus (CURES) Act of 2020, which shall fund a nationwide extensive job creation program, particularly infrastructure projects,” he told radio DZRH on Sunday.
Mr. Romualdez said extending the life or validity of the 2020 national budget might also be considered, noting that the COVID-19 pandemic has caused significant delays in implementation of government projects and programs.
He said they will also tackle House Bill 6623 or the proposed New Normal for the Workplace and Public Spaces Act of 2020, which will establish policies and regulations for the so-called “new normal” amid the pandemic.
Like the Senate, the House will also conduct the plenary session and committee hearings using teleconferencing apps and social media platforms.
Quirino Representative and House Committee on Banks and Financial Intermediaries Chair Junie E. Cua said that they will continue deliberations on the amendments to the Anti-Money Laundering Act (AMLA) on Monday.
“‘Pag nagbukas, we will still continue taking it up, fine-tuning it and hopefully we will still be within the timeline of the FATF (Financial Action Task Force),” he told BusinessWorld in a phone interview on Wednesday.
As noted in the recent Mutual Evaluation Report (MER) by the Asia/Pacific Group (APG) on Money Laundering, the AMLA and its implementation require major improvements so the Philippines could avoid being graylisted by the FATF.
Mr. Cua said that he “was hoping” that the committee will be able to submit the bill for plenary debate once Congress resumes but was unable to do so due to COVID-19.
He added that the FATF is “motu proprio or unilaterally” working on an extension on the 12-month observation period set by the APG.
“I was informed also that the FATF, motu proprio or unilaterally is working on an extension on the period given to us to pass and test the implementation of the amended AMLA law. The observation period started last October and we were given a very tight timeline to pass the bill and a period of six months to implement the law. But with this COVID-19, it is impossible. No nation would be able to do that,” he said.
OTHER MEASURES
In addition, Mr. Sotto also said he will be pushing for measures allowing President Rodrigo R. Duterte to delay the opening of the academic year as necessary in light of the COVID-19 outbreak.
“Nag-file na ako ng bill last week pa, ang proposal ko, September or to any month the President so decides, in case of national emergencies,” he said.
The Senate Committee on Labor, Employment and Human Resources Development, meanwhile, will tackle issues surrounding the Philippine Offshore Gaming Operators (POGOs), particularly criminal concerns, tax evasion, and employment of foreign nationals.
“With the layoffs that have happened as a result of of the COVID-19 pandemic, we need to open sectors and industries that provide essential needs and services, and that will generate jobs for our people so they can work and provide for their families,” Senator Emmanuel Joel J. Villanueva said in a phone message, Sunday.
PRIORITIES
University of the Philippines (UP) political science professor Maria Ela L. Atienza said that the pandemic has “exposed the problems of the priorities of government for the last few years.”
“Some legislators are now acknowledging the lack of sufficient budget and support for the health sector, including the salaries and benefits for health workers, as well as the research and development agencies and institutions nationwide. Now is the time for Congress to strengthen policies and budgets for the public health system, research and development institutions, and universities,” she told BusinessWorld in an e-mailed reply to questions on Sunday.
“The lockdown has also shown that food security is important; therefore, policies strengthening agriculture must be put in place. There is a need also to make the economy inclusive, with more labor rights and protection. More inclusive and accessible public services as well as more efficient social welfare policies must also be pursued,” she added.
Ms. Atienza said that priority bills of the administration have also been compromised due to the pandemic, including the shift to federalism, “Build, Build, Build” infrastructure projects, and bills on peace and order.
“Since the 2022 elections are also fast approaching, many legislators who have so far identified themselves as part of the super majority supportive of President Duterte might also start focusing on their own electoral chances and vote on the basis of what they think are popular to the voting public and not necessarily the priority bills of the administration. Perhaps, new coalitions might emerge among possible presidential candidates,” she said. — Charmaine A. Tadalan and Genshen L. Espedido
THE government rolled out an online survey for big companies to assess the impact of the coronavirus disease 2019 (COVID-19) pandemic and the lockdown on their businesses, which will help the state craft programs for the affected sectors.
Via Twitter on Sunday, the Asian Development Bank (ADB), in coordination with the Department of Finance (DoF), posted the online survey titled “Enterprise Survey for the COVID-19 Impact in the Philippines” urging companies to participate with the assessment.
“ADB is conducting a rapid survey on companies in the Philippines to assess the impact of COVID-19 on your business and explore possible assistance to firms devastated by COVID-19,” the survey read.
Finance Secretary Carlos G. Dominguez III said the survey is part of the government’s effort to assess the impact of the nationwide crisis on large companies, which will help them craft a “good program for their industry.”
“To develop an appropriate and targeted program to assist the various sectors of the economy negatively affected by the fallout of the response to the contagion,” Mr. Dominguez said in a Viber message to reporters on Sunday.
ADB said the survey takes around 30 minutes to complete.
The Manila-based multilateral lender also assured that all information that companies will share in the survey will be “strictly confidential and utilized only for aggregate analysis without individual identity.”
Socioeconomic Planning Acting Secretary Karl Kendrick T. Chua earlier said the government was planning another round of surveys this month that will include large enterprises.
“Response is voluntary, but if companies want to help us develop a good program for their industry, they should seriously consider completing [and] submitting the survey,” Mr. Dominguez said.
The National Economic and Development Authority has conducted three surveys with about 44,000 responses. The surveys assessed the impact of the pandemic and enhanced community quarantine on micro, small and medium-sized enterprises; agriculture and fisheries; and consumers.
While official results are not yet available, Mr. Chua earlier said that the surveys showed businesses had suffered some P700 billion in losses because of the quarantine. — Beatrice M. Laforga
THE country’s corporate regulator is warning the public against engaging in groups that employ pyramiding schemes as such a money-making method is not authorized by the government.
The Securities and Exchange Commission (SEC) has issued an advisory on its website telling people to steer clear of scammers that raise profits through recruitment.
“Pyramiding, being fraudulent and unsustainable, is not a registrable security. The (SEC) has not and will never issue a License to Sell Securities to the Public to persons or entities that are engaged in this business,” it said.
It noted that in this investment method, which thrives with the supply of new recruits, money declines the moment recruitment declines.
The SEC identified in separate advisories RaisedHerbs Zion Marketing (RZM), Rising Era Dynasty Inc. (RED), Newmont Philippines, Ielev8 Network and Ielev8 Health and Wellness Co. as unauthorized groups offering investment opportunities through recruitment or referral.
RZM operates through marketing teams on Facebook that recruit people to invest at least P1,500 and earn by direct selling, sponsor bonus, matching bonus or unilevel/override commission.
RED also has presence on Facebook and runs its own website, offering herbal products such as food supplements and anti-mosquito lotion and soap. The public is invited to join to start their own businesses, and then encouraged to engage in recruitment, pairing and matching to earn up to P100,000 for an investment of P8,840 within a week.
Newmont Philippines masks itself as engaging in mining and manufacturing of heavy equipment with operations overseas, which was disproved by the SEC in its own investigation. It invites investors to earn through passive income, referral bonus or overall sales income from downline.
Ielev8 Network and Ielev8 Health and Wellness are operated by the same person and both offer daily income through the reselling of capsules and herbal tea. To earn more, recruited members may engage in referral and matching, and receive incentives and bonuses in exchange.
The SEC said all these groups are unauthorized to solicit investments from the public as they did not secure the secondary license required to operate such activity. Doing so is a violation of the Securities Regulation Code, which spells penalties for the people behind these groups.
Anyone that acted as salesman, broker, dealer or agent in inviting people to invest in these groups may be fined up to P5 million, imprisoned for up to 21 years, or both. Their names will also be submitted to the Bureau of Internal Revenue for appropriate penalties.
“(T)he commission encourages the public to be prudent in making or placing their monies on these entities especially during this pandemic,” it said. — Denise A. Valdez
THE Securities and Exchange Commission (SEC) is directing financing and lending companies to extend the grace period for all loans covering the re-extended enhanced community quarantine (ECQ).
In a notice on its website, the corporate regulator told financing companies, lending companies and microfinance non-government organizations to adjust the 30-day grace period for loan payments until May 15.
It referred to Republic Act No. 11469, or the Bayanihan to Heal As One Act, which requires a mandatory grace period for all loans with principal and/or interest due within the ECQ period.
It also requires that these loans not incur interest on interest, penalties, fees and other charges during the 30-day grace period.
Earlier notices from the SEC covered loan payments landing from March 17 to April 12, then to April 30, to account for the first two periods of the ECQ.
The government extended the ECQ in Metro Manila and selected parts of the country until May 15, pushing for an adjustment on the SEC notice.
Before the SEC mandated the grace period, several lending and financing companies had already announced extended loan payment deadlines due to the ECQ. Some of these are BDO Unibank, Inc.; Metropolitan Bank & Trust Co.; Bank of the Philippine Islands; Rizal Commercial Banking Corp.; Union Bank of the Philippines; East West Banking Corp.; China Banking Corp.; CIMB Bank Philippines; and Philippine Savings Bank. — Denise A. Valdez
LOS ANGELES — Even Tim Gunn, the immaculately dressed fashion mentor from Project Runway and Amazon’s new competition show Making the Cut, is finding it hard to get out of his pajamas these days.
As much of the world shelters at home to prevent the spread of the coronavirus, Gunn said he too has given in to comfort over style when he’s at home in his New York apartment.
Reuters spoke to Gunn by telephone about how the ongoing quarantine has changed fashion and what might come next on Making the Cut.
Q: WHAT DO YOU THINK WILL HAPPEN TO FASHION NOW THAT PEOPLE HAVE GOTTEN USED TO WORKING IN SWEATPANTS OR EVEN THEIR PAJAMAS?
A: I have to confess to you I’m one of those people. And it’s really unusual for me. For years I’ve been saying, “if you want to dress to feel as though you never got out of bed, don’t!”
But there’s a silver lining to this, at least for me. I now have a great deal of empathy for people who do dress for comfort. I’ve not been wearing sweats, but I have been wearing my pajamas, thinking “well I have no place to go.”
When I actually got into regular clothes, and I did because of video conferencing, I felt as though I was wearing a wetsuit. I felt so constrained and confined and tethered. I think the psychological and even physical effect of going back to normal clothes makes you just squirm.
I have a good deal of empathy for people who really subscribe to the comfort trap. It’s easy to get trapped. But I do have a pact with myself. When I’m wearing pajamas and a robe, I won’t even go down the hall of my apartment building to the trash chute. If I’m leaving the apartment, I get dressed. I’m not in a suit, but I’m wearing proper clothes.
Q: SO WHAT IS PROPER CLOTHING FOR YOU RIGHT NOW WHEN YOU DO GO OUT IN THE HALLWAY?
A: I’d wear a turtleneck and a pair of jeans.
Q: DO YOU THINK THAT ONCE WE ARE ALL ALLOWED OUT INTO SOME KIND OF NEW WORLD THAT THERE MIGHT BE A HUGE EMBRACE OF FASHION, THAT MAYBE PEOPLE ARE TIRED OF THEIR SWEATPANTS?
A: I fully believe that. I know people who are dressing up every day. They’re not leaving their apartment, but they’re dressing up because they feel that they have infused their lifestyle with some normalcy.
Q: DO YOU KNOW IF YOU’LL HAVE A SEASON TWO OF MAKING THE CUT AND WHAT IT MIGHT LOOK LIKE?
A: We’re certainly talking about season two. The plan for doing it this summer is, of course, off. And we are carefully, thoughtfully, recalibrating all of our thinking about the show in regard to social distancing and interactions. — Reuters
THE e-commerce delivery of non-essential goods like appliances and clothing is now allowed under the extended enhanced community quarantine (ECQ).
Trade Secretary Ramon M. Lopez in a Laging Handa briefing on Saturday said the government is expanding the list of goods that may be delivered.
“Since nag-extend po ang ECQ we recognize that many of our kababayans would be needing more items beyond the essentials, so we are going to the ‘next essentials,’” he said.
He said hardware products, pet food, veterinary products, clothing, accessories, appliances, and housewares may now be delivered.
“Pati na rin po appliances dahil kung kailangan i-repair o palitan ang kanilang mga appliances ay ina-allow po sa delivery mode (This includes appliances because if people need to repair or replace their appliances, this will be allowed via delivery),” he said.
Mr. Lopez said e-commerce deliveries had been previously limited to food and disinfectants.
The ECQ in areas with a higher risk for coronavirus disease 2019 infection like Metro Manila has been extended up to May 15.
Mr. Lopez said last week that the trade department is studying the pricing of food delivery services after complaints from the public about the unavailability of cheaper services during demand surges. — Jenina P. Ibañez
JOJI Ilagan-Bian, an ASEAN Outstanding Women Entrepreneurs awardee, gets ready for her work-from-home (WFH) day the same way she did when heading to the office before the enhanced community quarantine (ECQ) measures were imposed.
The previous Mindanao Business Council chair said putting on nice clothes — though skipping much of the makeup — helps her maintain a sense of normalcy at a time when businesses need to adjust to the coronavirus disease 2019 (COVID-19) crisis and modify plans for the future.
“Even during these times, I still need to put on and never put off my thinking cap as a business person and to think what is happening today and to anticipate what will happen in a post-COVID-19 era,” she said in an e-mail interview with BusinessWorld.
Ms. Bian’s JIB Group of Schools, which includes both primary and higher education institutions, also has a foundation that provides learning programs for those who have limited financial capacity, with housewives and household helpers among the biggest beneficiaries.
It also has a “mobile” welding school in response to the demand for skilled workers in the construction industry.
One of her biggest immediate concerns is taking care of employees.
“This is really the greatest challenge of the business sector now. We are working with nothing in our hands and yet we need to give out something to our people,” she said.
Her WFH day consists mostly of online meetings for continued marketing programs, planning with teachers, and talking to clients.
She has realized that a WFH arrangement works well for her and does not plan on going back to a five-day office schedule even after the restrictions are lifted.
The interview has been lightly edited.
WHAT IS YOUR PREFERRED MEETING METHOD AND WHY?
We use the Zoom app for our offices alternately with Skype. The platform (Zoom) is easy to use and available to all.
WHERE IS YOUR HOME OFFICE?
I have a small office table set up in our gazebo so that I have a beautiful view of the garden and all the greenery. It’s a welcome respite from the four walls of our home, plus the garden brings a certain joy amidst the environment of fear and uncertainty.
WHAT TIME DO YOU START YOUR WORKDAY NOW COMPARED TO WHEN YOU ACTUALLY WENT TO THE OFFICE?
Compared to what is normal — which is 9 a.m. to 5 p.m. work — my new work schedule starts from 2 p.m. to 5 p.m. This (lockdown) is also the best time to take a rest from all the stress and challenges of the normal work environment. The advantage of working from home is that you are not bound by time nor by the clock. We do not become slaves of time since we have all the time we have.
WHAT DO YOU DO TO TAKE A BREAK FROM WORK?
I use my breaks to play with my grandchildren and to catch up with my reading. I choose to be “away” from FB (Facebook) since I want to draw away from too much technology that dominates our life at this time.
ANY INTERESTING STORIES FROM YOUR EXPERIENCE WORKING AT HOME?
Working from home is also a great joy since it makes you realize that there is always a reason for all the seasons. Now is the time to put our bodies and perhaps mind at rest and savour the moments we have with all our family members. Imagine being with all of them for more than a month now. Getting all the members of my family even for three hours was so difficult during normal days. But now we all eat our meals together, relaxing and laughing. No more running and hurrying to go to work. The only distraction I have is my little grandchildren who would start running around with their voices so high and all the noises created by their toys, plus the goodies that are being baked for afternoon snacks, which makes eating (snacks) more of a habit now.
WHAT IS THE MOST IMPORTANT LESSON YOU HAVE LEARNED FROM WORKING FROM HOME?
Working from home has its blessings too. We need to focus on that rather than the negative thoughts it brings. I think after the pandemic, I will work only three days in the office and start enjoying the joys of working from home, especially [since I am in] my early senior years. This will lead to a better and healthier lifestyle. — Maya M. Padillo
A PARTY-LIST legislator representing farmers said workers in the agricultural sector were not given sufficient priority for food aid and other assistance, while allied businesses were not granted frontliner exemptions, putting the entire sector at risk.
“Medyo hindi yata napaghandaan nang husto itong COVID-19. Kailangan kasing mapag-aralan natin na hindi lang naman ‘yung farmers ang dapat na frontliners dito eh, maraming nakapaligid diyan na mga industries, small businesses (The preparations for COVID-19 were inadequate; the frontliners were not just farmers but also many other allied industries and small businesses) that should continue to operate despite the lockdown,” Magsasaka Party-List Rep. Argel Joseph T. Cabatbat said in a group video chat Tuesday.
Mr. Cabatbat said that farmers from Northern Luzon are having “a hard time” selling their produce because of the quarantine, while others have not received government aid yet.
“During our visits to some markets in Northern Luzon, we were able to receive some reports that our farmers are having a hard time selling their produce. May mga reports tayo, particularly dito sa Nueva Ecija, may mga barangay diyan na isang beses na lang kumain ’yung mga tao (In some barangays in Nueva Ecija people are down to one meal a day). So this should really be addressed. This only shows na hindi pa talaga effective… ang pag distribute ng aid (aid distribution has been ineffective) particularly to our farmers,” he said.
Mr. Cabatbat said that about P230 billion worth of funding for the Department of Agriculture (DA) is needed to rejuvenate the industry.
“Before COVID, I was meeting with (DA Undersecretary Ariel T.) Cayanan and we arrived at a reasonable amount (for) the DA in order for the department to deliver on its promises in rejuvenating agriculture. And nakikita naming budget nasa P230 billion. Maliit pa nga ito pero syempre kailangan naman natin i-consider ang pangangailangan ng ibang departamento (Our estimate came to P230 billion, and this amount is tempered by the need to fund other departments),” he said.
He added that the P31 billion supplemental budget that was approved by the Inter-Agency Task Force (IATF) on Emerging Infectious Disease to increase food sufficiency is “welcome,” but said that the release of such funds should be fast-tracked.
“So this P31 billion supplemental budget… is welcome. We are happy the DA is being given priority in terms of allocation of funds but I am alarmed because only P8.5 billion has been secured so far. Medyo nababagalan tayo sa pag-release ng pondo. Ang agriculture kasi hindi mo naman ’yan nade-delay eh (The funding release has been slow, but agriculture cannot wait),” he said.
Mr. Cabatbat said the goal should be achieving “food sovereignty” instead of food security by supporting domestic farmers.
Mr. Cabatbat said that he will propose amendments to the economic stimulus bill which is still pending in the House of Representatives
“Only P10 billion will be granted to agri-fishery enterprises (compared to the allocation for micro, small and medium enterprises) which is P25 billion. Kung merong classification na ito, ibig sabihin, even if you are engaged in agriculture and you are considered MSME, baka hindi ka maka-access sa P25 billion, du‘n ka lang sa P10 billion. Taliwas ito sa pinaglalaban natin na mas kailangan ng agriculture ngayon ng pera. (It means farm businesses have to share less money even if they are classified as MSMEs… It runs counter to our contention that agriculture needs the funding more) We will be proposing amendments to this bill,” he said.
The latest draft of the economic stimulus bill in the House of Representatives proposes to inject between P1.3 trillion and P1.4 trillion in the first year of the intervention period of 2020–2022 to help workers and businesses deal with the effects of COVID-19. — Genshen L. Espedido
INVESTORS took positions on Security Bank Corp. last week after the release of its first-quarter earnings report.
A total of 2.19 million of the bank’s shares worth P225.73 million exchanged hands on the trading floor from April 27 to 30, according to data from the Philippine Stock Exchange.
Week-on-week, its share price inched up by 1.4% to P103.40 per share on Thursday from its April 24 closing price of P102 apiece. Since the start of the year, the bank’s share price has fallen by 44.6%.
Local financial markets were closed on May 1 in observance of the Labor Day holiday.
Piper Chaucer E. Tan, client engagement officer and research associate at Philstocks Financial, Inc., said market activity towards the stock had suddenly increased because of anticipation on earnings.
“[T]he fact the market has not [been] going below P100 I think it’s a sign that the market has already priced in the negative sentiment towards the stock and this [is] also an indication that bulls are in control since the stock is relatively cheap versus its peers,” he said via e-mail.
He noted that the Security Bank stock is relatively cheap since its price-to-earnings ratio is at its 10-year low and its price-to-book value is below its five-year average.
Mr. Tan said investors are optimistic towards earnings season and based on observation, share prices tend to increase during the reporting season or the announcement of earnings of a particular listed company.
Pia Teresa T. Magalong, equity analyst at Regina Capital Development Corp., said the banking sector, in general, was trading below fair value, partly because of low trading volumes amid the coronavirus disease 2019 pandemic.
“Headwinds to the sector include, weakened asset quality due to deterioration in debt payment capacity of borrowers,” she said in a separate e-mail response to questions.
In a disclosure on Tuesday, Security Bank reported its net profit growing by 21% year-on-year to P2.9 billion for the first three months of the year.
Riding on the back of core business income and securities trading gains, total revenues of the bank jumped 75% to P13.2 billion.
Ms. Magalong pointed out that Security Bank changed its revenue mix in favor of net interest income over trading income.
“The key driver of this shift has been a stark increase in retail loans, which comprise 29% of loans. The business model shift provides higher earnings, which may lead to higher multiples vs. peers,” she said.
The bank’s total net interest income was recorded at P8.1 billion in the first quarter, up 41% from the previous year.
Total non-interest income climbed 184% to P5.1 billion. Securities trading gains reached P3.5 billion, five times higher than P671 million in the previous year.
Mr. Tan said the first-quarter earnings had not taken into account the full extent of the enhanced community quarantine. He said those numbers would reflect on second-quarter results since the lockdown was implemented 15 days before the end of the quarter.
Meanwhile, Ms. Magalong forecast Security Bank’s bottom line finishing the year roughly around P9.95 billion because of the disruptions brought about by the pandemic. If realized, this will be lower by 1.5% from the P10.10-billion net income recorded last year.
For this week’s trading, Mr. Tan pegged the stock’s primary support at P100 and its “psychological” secondary support at its 52-week low of P79.30. He placed the initial and secondary resistance at P112.00 and 120.00, respectively.
Ms. Magalong gave Security Bank’s support and resistance price levels at P101.02 and P107.90, respectively. — J. E. Hernandez
HEALTHY Options, which specializes in “natural” products, has announced that it has reopened select branches around the country. This after it had to limit its services to online delivery via its website due to the enhanced community quarantine which was imposed in Luzon and other parts of the country in March thanks to the COVID-19 pandemic.
Twenty-stores are now open from Monday to Saturday: Capitol Central in Bacolod; Centrio Mall in Cagayan de Oro; Ayala Center Cebu and SM City Cebu; Shangri-La Plaza in Mandaluyong; Festival Mall in Muntinlupa; the branches at Rustan’s Makati, Glorietta 2, Power Plant Mall, and Ayala Greenbelt in Makati; the branches at Eastwood City, UP Town Center, Ayala Vertis North, and Robinsons Magnolia in Quezon City; the Pampanga branches at SM City Pampanga and SM City Clark); SM Mall of Asia in Pasay City; Ayala Malls Feliz in Pasig; Uptown Mall in Taguig; Solenad 3 Nuvali in Sta. Rosa; and the Davao branches at Abreeza Mall and SM City Davao.
While each store is open from Monday to Saturday, operating hours differ. For a complete list of operating hours and contact numbers, visit the store’s website at healthyoptions.com.ph/stores/.
RATES OF Treasury bills (T-bills) on offer this week will likely decline on inflation data and as investors continue to park their funds in short-term safe-haven assets.
The Bureau of the Treasury (BTr) is offering P20 billion in T-bills on Monday, broken down into P5 billion each for the 91- and 182-day papers and P10 billion for 364-day T-bills.
On Tuesday, BTr will auction off P15 billion via 35-day T-bills.
Security Bank First Vice-President and Head of Wholesale Treasury Sales Sales Carlyn Therese X. Dulay expects yields on the short-term papers to decline on the back of strong demand.
“We may continue to see strong support from market participants in the short end in the coming weeks as the market remains awash with liquidity,” Ms. Dulay said via e-mail on Thursday.
The Treasury upsized the volume of T-bills it awarded on April 27 to P24 billion from the P20-billion program after total bids hit P91 billion. It also opened the tap facility to raise another P10 billion via the one-year papers.
Broken down, it raised P7 billion via 91-day papers versus the original P5-billion offer as the average rate dropped 49.6 basis points (bps) to 2.617% from the previous rate of 3.113% on April 20.
It also upsized the volume of 182-day T-bills awarded to P7 billion from its plan to raise P5 billion. The six-month papers fetched an average rate of 2.831%, down 40.8 bps from 3.239% previously.
The BTr also fully awarded P10-billion worth of 364-day papers at an average rate of 3.054%, lower by 24.1 bps from 3.295% previously.
For the 35-day papers, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the tenor could fetch yields 10 bps lower than the previous auction, while Ms. Dulay projects its rate to settle within the 2.3-2.5% range.
The government made a full award of the P15-billion in 35-day T-bills it offered on April 21 from total tenders of P62.2 billion, with the average rate declining to 2.714%. It also raised another P10 billion via the tap facility.
At the secondary market, rates for the three-month, six-month and one-year papers stood at 2.974%, 3.064% and 3.01%, respectively while the one-month T-bills were quoted at 3.02%.
Mr. Ricafort said rates could decline in anticipation of further monetary easing from the Bangko Sentral ng Pilipinas (BSP) on slower inflation driven by plunging global oil prices.
“Major catalysts/leads include expectations of further cut/s in the local policy rates and banks’ RRR (reserve requirement ratio) amid the sharp decline in global oil prices recently, to the lowest levels in nearly 20 years, that could further lower inflation. Inflation is widely expected to ease amid the recent declines in global oil prices to 18-year lows and strongest peso exchange rate in more than 2 years,” he said via Viber on Saturday.
The Philippine Statistics Authority will report April inflation data on May 5.
BSP Governor Benjamin E. Diokno last week said headline inflation in April likely settled between 1.9% and 2.7%, slower compared to 2.5% seen in March which was already down from the 2.6% recorded in February.
The BSP targets 2-4% inflation this year, projecting it to average at two percent.
Security Bank’s Ms. Dulay said they expect “decent to strong” demand for the short-term papers to continue in the medium term and see more successful auctions for these instruments following hints of further policy easing from the central bank in the second half.
“We see risk taking in the belly to the long-end slowing down slightly as it has already moved 200 bps lower from the peak of the sell-off,” she said.
Mr. Diokno said last week monetary easing via policy rate cuts and trimming banks’ RRR are still on the agenda to cushion the economy from the impact of the virus.
The BSP cut interest rates by 50 bps in an off-cycle meeting last April 16 to bring down the rates on the overnight reverse repurchase, deposit and lending facilities to 2.75%, 3.25% and 2.25%, respectively.
It also injected fresh liquidity into the system as it trimmed universal and commercial banks’ reserve requirement ratio by 200 bps to 12%.
For this month, the government is planning to borrow P170 billion from the local market. The Treasury wants to raise P110 billion via its weekly T-bill auctions and the remaining P60 billion via Treasury bonds to be offered fortnightly. — Beatrice M. Laforga
