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BSP sets rates for annual supervisory fees

The Bangko Sentral ng Pilipinas on Friday released the rules on applicable annual supervisory fees for lenders and other financial institutions for this year.

The central bank has postponed the assessment and collection of these fees by BSP-supervised financial institutions in view of the pandemic. Such payments were required to be settled no later than May 31 of each year before the pandemic.

In Memorandums 2020-072 and 2020-071 dated Sept. 24, the central bank laid out the guidelines for the supervisory fees of banks, quasi-banks, non-stock savings and loan associations (NSSLAs), and trust corporations.

For universal, commercial, and thrift lenders, as well as quasi-banks, the applicable assessment rate is at 1/28th of one percent of their average assessable assets of the preceding year. 

Meanwhile, rural and cooperative banks need to pay 1/28th of the equivalent one percent of their average assessable assets.

“In case of a merger or consolidation, the assets of the covered institutions prior to the merger or consolidation as well as the assets of the newly formed institution shall be considered in determining the average assessable assets,” the BSP said.

For NSSLAs, the fee ranges from P10,000 to P500,000 depending on the average assesable assets that fall within P100 million to P1 billion.

Meanwhile, prescribed rates for trust corporations are equivalent to the “0.01% of the average monthly balance of assets under management (AUM) for the first three years of their operations and 0.02% of the average monthly balance of AUM on the 4th year and onwards”. 

The BSP Department of Supervisory Analytics will send a billing statement to BSFIs regarding the computation of the ASF, the due date of payment for NSSLAs and trust corporations, and the date when the fee will be debited from lenders’ demand deposit account kept with the BSP. — Luz Wendy T. Noble 

First Gen gets clearance to build LNG import terminal

First Gen Corp. has received the go-ahead from the Department of Energy (DoE) to build its proposed interim offshore liquefied natural gas (LNG) terminal in Batangas City.

In a statement on Friday, First Gen said its wholly-owned subsidiary FGEN LNG Corp. was given the permit to construct, expand, rehabilitate, and modify its LNG terminal on Sept. 23.

The company filed for the regulatory permit in March, which consists of modifying its existing jetty and building an onshore gas receiving facility at its clean energy complex in Batangas City.

FGEN LNG is targeting to begin construction by the end of the third quarter or early fourth quarter.

“We are thankful to (Energy) Secretary (Alfonso G.) Cusi, and to the Downstream Natural Gas Review and Evaluation Committee of the DoE, for the support and guidance that they have provided during the evaluation process, …and for issuing the (permit),” First Gen Executive Vice-President and Chief Commercial Officer Jonathan C. Russell said in the statement.

With the development, the company targets to introduce LNG to the Philippines by the third quarter of 2022.

FGEN LNG is also inviting providers of Floating Storage and Regasification Units — or the storage ships that allow energy to be transferred from the ocean — to support its LNG terminal project in Batangas. It said three bidders have so far expressed interest in the project.

“FGEN LNG believes the project will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines, particularly as the indigenous Malampaya gas resource is expected to be less reliable…,” it said.

“The entry of LNG will encourage new power plant developments, as well as industrial and transport industries, to consider it as a replacement to more costly and polluting fuels,” it added.

First Gen booked an attributable net income of $132.91 million in the first half of 2020, down from 20% a year ago, due to a decline in electricity sales in the second quarter.

Shares in the listed firm shed 35 centavos or 1.46% to P23.60 each on Friday. — Denise A. Valdez

Puregold eyes bond issuance of up to P12-billion for store expansion

Grocery operator Puregold Price Club, Inc. is looking to offer up to P12-billion in bonds to generate funds for its store expansion.

The company told the stock exchange on Friday that its board of directors has approved issuing corporate notes “as an opportunistic strategy to raise long term money at low interest rates.”

Puregold has not disclosed other details of the planned offering yet, except that it tapped China Bank Capital Corp. as the lead arranger and underwriter and sole bookrunner for the issuance.

The funds to be generated from the offering will be used to open more Puregold and S&R stores across the country. The company currently has 444 stores nationwide, including pizza stores.

In the midst of a coronavirus pandemic that has pulled down the income of most companies across the globe, Puregold posted growth of 20% in earnings to P3.4 billion in the first semester. Its sales jumped 15% to P83.58 billion, as people stock up their pantries when mobility was limited during the strict lockdown.

The existing 444 stores — composed of 385 Puregold stores, 20 S&R membership shopping warehouses, and 39 S&R pizza stores — currently account for around 580,000 square meters of total net selling area. The company said in May that its plan was to open 25 new Puregold stores and two new S&R stores within the year.

Shares in Puregold at the stock exchange shed P1.35 or 2.73% to P48.10 apiece on Friday. — Denise A. Valdez

Lopez firm consolidates stake in Batangas hotel operator

Lopez family-led First Philippine Holdings Corp. (FPH) has consolidated its ownership in a hotel operator in Batangas to raise its stake in the company to 57.7%.

In a disclosure to the exchange on Friday, FPH said it invested P11.47 million to buy 3,956,853 shares in First Batangas Hotel Corp. The shares were bought from Brightnote Assets Corp., which is 10% owned by FPH.

The shares are composed of 1,384,127 common shares and 2,572,726 preferred shares, equivalent to 17.2% of First Batangas Hotel’s total outstanding shares. They were bought by FPH at P2.9 each.

“FPH will be consolidating ownership from a 40.5% current stake to 57.7% after the purchase of shares in First Batangas Hotel Corp.,” it said. 

“(First Batangas Hotel) owns a hotel situated in a subsidiary of FPH, First Philippine Industrial Park,” it added.

The sale was concluded on Sept. 24 and paid in cash by FPH. It does not expect any significant impact to its financials following the acquisition.

FPH’s businesses include power generation through First Gen Corp.; power distribution through Panay Electric Co. and a minority stake in Manila Electric Co.; and property through Rockwell Land Corp. and First Philippine Industrial Park, Inc.

It also owns First Balfour Inc., First Philippines Industrial Corp. and First Philippine Properties Corp.

In the first semester, FPH reduced its attributable net income by 26% to P5.02 billion due to disruptions caused by lockdown measures relating to the coronavirus pandemic.

It is allocating P29 billion for capital expenditures in the near term, mainly to be spent on the expansion of its liquefied natural gas terminal project.

Shares in FPH at the stock exchange climbed P1.95 or 3.26% to close at P61.80 each on Friday. — Denise A. Valdez

Globe wants to eliminate “illegal” repeater sellers

Globe Telecom, Inc. is requesting regulators to address the growing number of sellers of “illegal” repeaters online, or devices that boost internet signals, as these interfere with network signals among communities.

In a statement released on Friday, the telco operator said it wrote a letter to the National Telecommunications Commission (NTC) to amend current rules to allow only type-approved repeaters.

Among its suggestions are requiring subscribers to buy and use repeaters that are type-approved by telcos, and doing a monthly inspection of frequencies to monitor any interference caused by unauthorized radio transmitting devices.

“We are exerting so much effort in making the mobile and internet experience more enjoyable and pleasant for our customers. These expansion and network rollouts, however, will be useless… if illegal repeaters keep on negating our efforts to improve experience,” Globe Chief Legal Counsel Vicente Froilan M. Castelo said in the statement. 

Globe noted illegal repeaters are common on online shopping sites, but these are prohibited by the NTC through Memorandum Order No. 01-02-2013.

“[I]llegal repeaters may boost the weak signal of a user but these unauthorized devices likewise put into risk the lives of other people in the community who need assistance in matters of life and death situations,” Mr. Castelo said.

The company is eyeing to introduce “authorized” repeaters by working with several technology companies. It said it will make sure these will not interfere with Globe’s network signals. — Denise A. Valdez

Security Bank sees PHL economy contracting by 7.7% in 2020, rebounding in 3 years

Security Bank’s Trust Asset Management Group expects the Philippine economy to rebound to pre-pandemic levels in three years after a possible contraction of 7.7% by year-end.

The bank unit said the country’s gross domestic product (GDP) may return to 6% by 2023 as the central bank keeps policy rates low.

“The good liquidity brought by the forceful response of the Bangko Sentral ng Pilipinas (BSP) and low interest rates put the country in a good position for consumption rebound,” Noel Reyes, the bank’s group chief investment officer, said in a statement on Friday.

The overnight reverse repurchase, lending, and deposit rates are at record lows of 2.25%, 2.75%, and 1.75%, respectively.

The central bank has also slashed reserve requirements by 200 bps to 12% for big banks and by 100 bps for thrift and rural banks to 3% and 2%, respectively.

Security bank’s asset managers see growth of 3.5% year on year in 2021 as industries slowly recoup losses from the impact of the coronavirus disease 2019 (COVID-19) pandemic.

For this year, its trust and management group expects GDP to shrink by 7.7% as households cut their budgets and businesses slow their operations.

“This can be attributed to the fact that most Filipinos will continue to stay at home, only spend on essentials, and still refrain from purchasing non-essential items,” the group said.

Their projection is a bigger contraction than the recent rates from the government and some analysts.

The Development Budget Coordination Committee announced a downgraded GDP projection of -5.5%.

ASEAN+3 Macroeconomic Research Office also cut its 2020 GDP projection for the Philippines to -6.6%.

With an P18-trillion economy, the Philippines lost around P1.5 trillion for every month of strict lockdown in the second quarter, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said in an online briefing.

Security Bank President and CEO Sanjiv Vohra said the health sector should be further improved to boost the economy to pre-COVID-19 levels.

“It’s a delicate balancing act for sure, and the key will be to strengthen our public health so that we make sure that our workforce and thereby our economy will remain productive, and business and consumer confidence returns,” Mr. Vohra said in a statement.

Economic managers recently slashed growth projections for 2021 and 2022 to 6.5-7.5%. They earlier forecast 8-9% growth for 2021, and 6-7% growth for 2022. — Kathryn Kristina T. Jose

Gov’t invites train bids for Malolos-Clark railway

The Department of Transportation (DoTr) has started soliciting bids for the provision of trains for the Malolos-Clark segment of the North-South Commuter Railway project.

In an invitation to bid announcement printed in a newspaper on Friday, the DoTr and the Philippine National Railway said they started selling bid documents for the project on Sept. 15, and will be accepting bid submissions until the morning of Dec. 16.

The project involves designing, manufacturing, delivering, installing, and integrating 38 eight-car trains that will traverse the Malolos-Clark railway. The company that wins the bidding must also provide technical support for the trains.

The bid documents are sold at P50,000 per package. Companies that will be submitting their bids must pay a bid security of 1 billion yen (about P459.99 million).

Qualified to bid are companies with experience as prime contractor, subcontractor or management contractor for at least the last 10 years. They must also have a minimum of two similar contracts that have been completed between January 2009 and December 2020.

Interested companies must submit their financial performance for the past five years to prove long-term profitability. They must also have access to a minimum of $70 million.

Earlier this week, a group led by Megawide Construction Corp. won the bid to build a 17-kilometer viaduct structure and elevated station buildings for the Malolos-Clark railway.

The Malolos-Clark railway is part of the 163-kilometer North-South Commuter Railway, which aims to link Calamba in Laguna to Clark in Pampanga through a three-segment railway, the others being the Calamba-Tutuban railway and the Tutuban-Malolos railway.

The project is funded through a loan by the Asian Development Bank and the Japan International Cooperation Agency. – Denise A. Valdez

San Miguel to consider Phivolcs comments on Bulacan airport flooding

Bulacan airport proponent San Miguel Corp. said it will consider the comments of the Philippine Institute of Volcanology and Seismology (Phivolcs) about possible flooding at the proposed air gateway.

In a statement released on Friday, San Miguel Vice-Chairman, President and Chief Operating Officer Ramon S. Ang said the company will use engineering intervention to avoid the risks that come with building an airport in a coastal area.

“We would like to assure all stakeholders, particularly those who expressed concerns or opposition to the project, as well as those who offered inputs and suggestions, that we value your inputs and will seriously take them into consideration,” Mr. Ang said.

“[W]e have actually started implementing sustainable measures to address flooding in Bulacan that has existed for several decades… [T]he public can be assured that San Miguel has studied the project, its feasibility, and all possible risks, and will incorporate these into the final design of the project,” he added.

In a Senate hearing last Wednesday, Phivolcs Director Renato U. Solidum said the P734-billion Bulacan airport project is at risk of flooding and ground shaking because of the site it will stand on. Non-government organizations have also raised concerns about the effects of the project on the environment.

San Miguel said that to address these concerns, it has tapped Groupe ADP (Aeroports de Paris), Meinhardt Group and Jacobs Engineering Group for the construction of the airport. These firms are behind Singapore’s Changi airport, France’s Charles de Gaulle airport, and the United States’ Hartsfield-Jackson Atlanta International airport.

The company wants to build an “aerotropolis” on a 2,400-hectare site in Bulacan, where there will be four parallel runways, eight taxiways, and three passenger terminal buildings. — Denise A. Valdez

ARTA wants to expand powers to investigate, punish

The Anti-Red Tape Authority (ARTA) plans to ask for expanded powers so it can investigate and punish violators of the Ease of Doing Business Law, instead of just issuing warnings.

ARTA said it will make recommendations to Congress, explaining that its enforcement of the law has been limited to monitoring, evaluation, and issuing warnings.

In a press release on Friday, ARTA said that non-compliance with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 – the law against bureaucratic red tape – should be punishable, either administratively or criminally.

“While the directive to comply uses the word ‘shall’ which connotes mandatory action, the absence of administrative or criminal sanction dilutes the complying power of ARTA to enforce its mandate,” it said.

ARTA proposed that it be given subpoena and contempt powers, and be deputized to formally investigate violations.

It also asked that its recommendations to streamline government agency processes be made mandatory.

“Making ARTA’s findings on suggested changes in the different agencies’ processes mandatory for implementation will definitely solve a lot of red tape problems. The real lasting solution is enforced streamlining and not just a mere recommendation,” ARTA Director General Jeremiah B. Belgica said.

ARTA also sought to require government agencies to allocate a percentage of their budgets for an Ease of Doing Business plan.

President Rodrigo R. Duterte last week asked Congress to amend the Ease of Doing Business law. But senators instead proposed additional legislation that will give the president powers to suspend government bureaucratic requirements and shorten required processing times.

“With the news of a possible grant of anti-red tape emergency powers to the President during this state of national emergency, the Council also approved the anti-red tape emergency powers that could be granted to the President during a state of emergency,” ARTA said.

ARTA’s recommendations were approved by the Ease of Doing Business and Anti-Red Tape Advisory Council, which includes Mr. Belgica as well as the Trade, Finance, Information and Communications technology, and Local Government secretaries, along with private sector representatives. —  Jenina P. Ibañez

IPOPHL, PTTC collaborating on intellectual property education for MSMEs

The country’s intellectual property office is working with the trade department to develop training programs for micro-, small-, and medium-sized enterprises (MSMEs).

The Intellectual Property Office of the Philippines (IPOPHL) said in a press release on Friday that it is collaborating with the Philippine Trade Training Center (PTTC) of the trade department to develop intellectual property education programs.

Through a memorandum of agreement signed on Sept. 18, IPOPHL will develop the training programs and course materials. The office will also train the trade department’s resource persons and increase intellectual property (IP) mentoring programs for MSMEs.

The PTTC will then use the intellectual property modules for its training programs.

IPOPHL said that having an intellectual property strategy will help businesses safeguard their rights, and help small businesses increase their attractiveness to investors.

“We see our advocacy in pushing for wider IP as effective in enhancing MSMEs’ competitiveness, scaling up market competition and giving consumers a wider range of options. This in turn is hoped to stimulate their purchasing appetite, and in turn revitalize demand,” IPOPHL Director General Rowel S. Barba said. 

Filing for inventions, trademarks, utility models, and industrial designs are driven largely by MSMEs, IPOPHL said. — Jenina P. Ibañez

PHL stocks extend decline as investors await October lockdown rules

By Denise A. Valdez, Senior Reporter 

The main index continued to its fourth straight day of decline on Friday as investors remained cautious ahead of the release of new quarantine rules in Metro Manila and key regions.

The 30-member Philippine Stock Exchange index (PSEi) slid 7.14 points or 0.12% to close at 5,838.66 on the last day of the trading week. The broader all shares index dipped 1.32 point or 0.04% to end at 3,520.63.

“The local bourse ended on red territory as investors conducted some last minute profit-taking activity ahead of the government’s decision on whether or not Metro Manila shall still be placed under the current lockdown measures in place,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message.

For the month of September, Metro Manila remained under a general community quarantine, the second least restrictive in the government’s four-tier quarantine levels aimed at curbing the rise of coronavirus infections. 

The government is set to make an announcement before Sept. 30.

Investors are closely watching what the next move of the government will be, as local coronavirus cases continue to rise daily. 

The Health Department reported 2,630 new cases on Friday, lifting the total case tally to 299,361, the highest in Southeast Asia.

Foreign investors remained net sellers for the 11th straight day, which Mr. Pangan said is “due to a lack of significant fresh catalysts in the local scene.” Net foreign outflows stood at P627.97 million on Friday, up from the previous day’s P292.84 million.

Weak sentiment due to overseas developments affected the local market too, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message. Among these are the rapid increase in coronavirus cases in Europe and the expectation of bigger fiscal stimulus among regional markets.

The Euro Stoxx 50 and DAX indices trimmed 0.26% and 0.22%, respectively, on Thursday. The FTSE 100 index grew 0.23%.

Back home, sectoral indices were mixed on Friday. Mining and oil rose 60.08 points or 1.03% to 5,874.06; property improved 19.27 points or 0.71% to 2,725.90; and financials climbed 0.55 point or 0.05% to 1,139.08.

Among the losers were services, which cut 7.50 points or 0.52% to 1,449.19; holding firms, which shed 18.36 points or 0.30% to 6,035.96; and industrial, which lost 21.22 points or 0.27% to 7,872.50.

Some 1.41 billion issues valued at P3.66 billion switched hands on Friday, against Thursday’s 1.07 billion issues worth P4.05 billion.

Advancers outnumbered decliners, 110 against 86. Some 44 names ended unchanged.

How to take responsibility for your life

In a chapter from Sh*tty Places & Selfish People: 7 Rules of Engagement, a book on how to actualize your aspirations for happiness and success, author Cliff Eala outlines the steps for taking responsibility for your life.

“Finding a better version of yourself starts with this rule. You’ve got to take the step; no one can ever take it for you,” he said during the online book launch on September 24.

Taking responsibility for your life is guided by two precepts: finding meaning by pursuing your full potential in the context of your values and circumstances; and fostering relationships by making a difference for the good of people you.

Both precepts, noted Mr. Eala, are propelled by the need to go beyond yourself. “We are born into selfishness, but we find completion in others,” he said.

These precepts can be fully realized by following these four steps, as explained by the author.

1. Visualize your better future self.

Start by imagining the potential outcomes that could be part of being a better version of yourself. Factor in your strengths and interests. Identify the market need that will be served to ensure financial stability. Rank them according to your hierarchy of values to pinpoint priorities and trade-offs, if necessary.

List these outcomes and use them as the basis for creating a vision board. Beside it, place a complementary “Status Quo” vision board that paints a picture of yourself 20 years in the future if no improvement takes place. “My hope is that the ‘Status’ board will show what the frustrations will turn out to be, and that will jolt you to realizing that you need to get up and move,” said Mr. Eala.

2. Assess.

Assess the gap between your “Better Future Self” vision board and your current position. This will show you how much work you need to do in order to make that vision board a reality.

3. Plan.

Jumpstart the work by listing down and mapping out specific steps that need to be taken. This includes identifying skills that have to be acquired, habits that must change, and difficult conversations that need to take place.

4. Act.

Walking the path to a brighter future can become scary, tiring, and overwhelming. When these feelings start cropping up, don’t freeze and push on.

Narrow steps down further into specific action plans. Accept that failure will happen somewhere along the way. Take responsibility for these mistakes, and brace oneself for the cycle that will inevitably occur.

“You really have no idea what’s going to come your way at any point in your life. By learning how to cope with uncertainty, you become more confident and resilient. You find ways around the problem rather than becoming paralyzed by it,” said Fernando Zobel de Ayala, president and chief operating officer of Ayala Corporation, who was a guest at Mr. Eala’s book launch. — Mariel Alison L. Aguinaldo

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