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No grace period for loans falling due this month — SEC

FINANCING and lending companies will no longer be required to offer a grace period for loans that fall due this month as strict lockdown measures eased around the country, the Securities and Exchange Commission (SEC) said.

“Please be advised that the mandatory grace period shall no longer be applied to loans falling due during the general community quarantine (GCQ) or modified general community quarantine (MGCQ) throughout the Philippines beginning June 1,” the corporate regulator said in a notice on its website.

The SEC cited the central bank memo that requires the mandatory grace period to be applied only in areas under an enhanced community quarantine or modified enhanced community quarantine.

Since June 1, Metro Manila, Central Luzon, Cagayan Valley, Calabarzon, Central Visayas, Pangasinan, Zamboanga City, and Davao City are now under GCQ, while the rest of the country is under MGCQ.

To recall, the SEC ordered financing companies, lending companies and microfinance nongovernment organizations (NGOs) since mid-March to offer a minimum 30-day grace period for loans that fall due during the strict quarantine period, in order to help borrowers affected by the coronavirus crisis.

This was in line with 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.

But the SEC noted the mandatory grace period will once again be applied in any area that will be placed under an enhanced community quarantine or modified ECQ.

Aside from the extended period for loan payment, the SEC also ordered lenders not to impose interest on interest, fees and other charges to future payments or amortizations. Interest accrued during the grace period may also be paid on a staggered basis over the remaining life of the loan.

Violators may be punished with two months of imprisonment, a fine of between P10,000 and P1 million, or both. — Denise A. Valdez

Diokno: ‘A’ rating campaign to resume once recovery is on track

BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno said the government’s campaign to secure a long-coveted “A” credit rating will resume only if a recovery is seen next year.

“Assuming that we get a U-shaped recovery as predicted by many institutions, we can grow by 7-9% next year, then the ‘A’ rating campaign is still on the table, and we hope that would be enough,” Mr. Diokno told reporters in an online briefing yesterday.

For now, Mr. Diokno said the government’s priorities will be on “saving jobs and saving lives” during the coronavirus crisis.

Economic managers project the economy will shrink by 2-3.4% this year before bouncing back with 7.1-8.1% growth in 2021. The country’s gross domestic product unexpectedly contracted by 0.2% in the first quarter, where business activity was affected by the Taal Volcano eruption, the coronavirus outbreak and the subsequent lockdown in mid-March.

Mr. Diokno’s remarks came after S&P Global Ratings last week affirmed the country’s rating at “BBB+”, just a notch away from an “A” rating which the government was targeting before the outbreak. S&P said the ratings reflect the expectation for a strong recovery by next year and the country’s strong macroeconomic fundamentals.

The debt watcher also maintained the rating outlook at “stable,” signifying that the rating is likely to remain for the next six months to two years.

S&P’s credit rating for the Philippines compares to the “BBB” and “Baa2” ratings both with “stable” outlooks given by Fitch Ratings and Moody’s Investors Service, respectively.

Mr. Diokno said that the path to recovery with the gradual reopening of the economy is still uncertain given that a coronavirus vaccine has not been found.

“We don’t know how the consumers will behave and how the financial market will do. So there’s a lot of uncertainty. Fear factor — that’s the main question here,” he said.

Mr. Diokno said the government needs to do more to clinch the “A” rating. These include the passage of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), a revised version of the earlier Corporate Income Tax and Incentives Rationalization Act. CREATE eyes to speed up a 5% reduction on corporate income tax to 25% from 30%, and also offers flexible tax and nontax incentives for investors.

Mr. Diokno said they were hoping that President Rodrigo R. Duterte would call a special session to have the bill passed before July. He said it “will send a signal to potential investors that we are improving the policy environment of the Philippines.” — Luz Wendy T. Noble

Weak demand drags Asia CEOs’ rise from pandemic

MORE than half of surveyed business leaders in Asia identified lower demand for products and services as the greatest obstacle for business viability as a result of the pandemic, a new report showed on Thursday.

The latest update to the Chief Executive COVID-19 Global Survey by YPO, an international group of more than 29,000 business leaders, said 53% of CEOs in North and Southeast Asia cited diminished demand as their biggest problem. Their proportion is slightly higher than the 50% of CEOs globally.

Globally, changes in consumer behavior were the second biggest threat as identified by 44% of CEOs, followed by 32% who pointed to operating restrictions from the government.

More CEOs in North and Southeast Asia said that the needed government support for their business was not available, with 31% noting this compared with 28% globally.

The third YPO survey during the coronavirus disease 2019 (COVID-19) pandemic was done on May 27-30 and drew 2,718 respondents. The first survey was in March.

Some business leaders have become more optimistic since the first survey, with 23% of global leaders saying that they are at least slightly more positive about business since March.

Among business leaders in North and Southeast Asia, 35% have taken a more negative outlook, more than their counterparts in the United States and Australia/New Zealand, with 31% and 23%, respectively. But this is less than their counterparts in South Asia and Africa, with at least half of their business leaders reporting a more negative outlook.

While business leaders in Africa are on the earliest response stage or the “immediate response stage” to the pandemic in YPO’s business disruption cycle, Asia is furthest ahead in the business continuity phase. But Asia experienced the smallest month-on-month movement along the cycle since March. No country or region is in the business revival and business recovery phases.

Up to 44% of business leaders in North and Southeast Asia said the resurgence of COVID-19 is a large or severe threat, just slightly more than the 42% of global business leaders.

North and Southeast Asian CEOs are less optimistic about sales and fixed investment than the global response, with 33% expecting sales to be down more than 20% in a year, compared to 29% globally. More than a quarter or 29% of North and Southeast Asian chiefs expect total fixed investment to be down by more than 20% a year from now, while 23% of CEOs surveyed globally said the same.

However, fewer North and Southeast Asian CEOs or 15% expect employee numbers to be down by more than 20% a year from now, compared to the 18% of CEOs globally.

Responses are similar to those of CEOs in Europe and the United States as 14% of them expect a 20% decrease. Meanwhile, more chief executives in South Asia (40%), Latin America (27%), and Africa (24%) expect a decrease in 12 months. — Jenina P. Ibañez

Coca-Cola strengthens digital platforms to drive demand

By Denise A. Valdez, Reporter

COCA-COLA Beverages Philippines, Inc. is boosting its digital platforms to cope with changing consumer behavior due to the coronavirus disease 2019 (COVID-19) pandemic.

Winn Everhart, president and general manager of the local unit of Coca-Cola, said in an e-mail to BusinessWorld the company is now focusing efforts to improve its e-commerce presence to lift consumer demand.

“With the ongoing shift in consumer behavior, we have… observed that a lot are moving into the online world rapidly and we are therefore strengthening our digital and e-commerce platforms,” he said.

The company currently operates a delivery service that sends Coca-Cola products straight to homes. Among these products are carbonated drinks, flavored juice and bottled water.

“Coca-Cola has always been a staple in Filipino households, and we will continue to build on this strength as more drinking occasions emerge at the comforts of their home,” Mr. Everhart added.

In an online forum by BusinessWorld on May 27, Mr. Everhart said Coca-Cola Philippines was being challenged by the lockdown as its beverages used to be commonly consumed in restaurants and sporting events. These venues have shut or limited operations since March to observe quarantine protocols.

“The pandemic’s impact to our business was felt more in the latter part of quarter 1 and this quarter 2 as a result of the lockdowns. However, we are seeing an improvement especially as the lockdowns are lifted and away from home channels like restaurants are also re-opening,” Mr. Everhart said in his e-mail Wednesday.

In a regulatory filing by The Coca-Cola Co., the Atlanta-based parent company of Coca-Cola Philippines, it said unit case volume in the Philippines recorded a 4% growth in the first quarter. Unit case volume is its measure of beverage products directly and indirectly sold to consumers.

The performance in the Philippines is against the drop in unit case volume observed in nearly all countries where Bottling Investments Group (BIG) operates. BIG is the subsidiary of The Coca-Cola Co. that handles bottling operations in most Southeast Asian countries, including the Philippines.

“Unit case volume for Bottling Investments declined 5%. Declines in nearly all of our consolidated bottling operations as a result of COVID-19 were partially offset by 4% growth in the Philippines bottling operation,” the company said in the regulatory filing.

“[T]he outbreak and preventive measures taken to contain COVID-19 negatively impacted our unit case volume and our price, product and geographic mix in all of our operating segments, primarily due to unfavorable channel and product mix as consumer demand has shifted to more at-home consumption versus away from home,” it added.

The Philippines is Coca-Cola’s fourth-largest market in terms of unit case volume in Asia-Pacific in 2019, making up 8% of total volume for the region. The three markets above it are China (38%), India (15%) and Japan (13%).

Despite the challenges brought by the COVID-19 pandemic, Mr. Everhart said Coca-Cola Philippines is positive it will start seeing an improvement in the coming months.

“In our 108 years here in the Philippines, we have always emerged stronger through every crisis and we are optimistic that by supporting our employees, customers, partners and communities, our business will thrive in this next normal,” he said.

CLLEx Tarlac-Cabanatuan partially open by December

THE Department of Public Works and Highways (DPWH) on Thursday said about 83% of the 30-kilometer Tarlac-Cabanatuan segment of the P14.94-billion first phase of the Central Luzon Link Expressway (CLLEx) is expected to open by December.

The four-lane expressway is expected to ease traffic on the Pan-Philippine Highway (Daang Maharlika) by about 48% and support the economic development of Tarlac and Cabanatuan.

In a statement on Thursday, the DPWH said the construction of the 30-kilometer expressway from the connection of Subic-Clark-Tarlac Expressway (SCTEx) and Tarlac-Pangasinan-La Union Expressway (TPLEx) in Balingcanaway, Tarlac City to Daang Maharlika in Caalibangbangan, Cabanatuan City is “82% completed and is being fast-tracked with about 25 kilometer stretch targeted to open by December 2020.”

The DPWH serves as the implementing agency of the flagship project that is funded by both the Philippine government and the Japanese government’s official development assistance (ODA).

The CLLEx Phase 1, targeted to be fully operational by the first half of 2021, is expected to cut travel time between Tarlac City and Cabanatuan from 70 minutes to 20 minutes.

The first phase includes the construction of 4.1-kilometer Tarlac Section (Package 1), 6.4-kilometer Rio Chico River Bridge Section (Package 2), 9.2-kilometer Aliaga Section (Package 3), 10.3-kilometer Cabanatuan Section (Package 4), and Zaragosa Interchange (bridge type) and access road of about 4.88 l.m. (Package 5).

Meanwhile, the P12.61-billion second phase of CLLEx is a 35.7-kilometer extension of the Phase 1, connecting Nueva Ecija’s Cabanatuan City and San Jose City.

The extension aims to provide a “free-flowing alternative route and decongest traffic along the Pan Philippine Highway between said cities of Nueva Ecija and the town of Plaridel in Bulacan Province,” the DPWH said. — Arjay L. Balinbin

Pandemic prompts delay in some ATI projects

LISTED port operator Asian Terminals, Inc. (ATI) said the execution of some of its expansion programs, with a budget of about $90 million, is being delayed due to the coronavirus pandemic.

“Due to the COVID-19 situation, we have reviewed our capex (capital expenditure) plan, and we are being responsible with our proposed expansion programs. Some of our programs have been delayed for a few months. Some of our major programs are continuing,” ATI Executive Vice-President William Khoury said during the company’s annual stockholders’ meeting on Thursday.

“In terms of the total value of capex delayed, it’s about $90 million delayed until next year, 2021,” he added.

Mr. Khoury did not mention ATI’s capex guidance for 2020.

In 2019, the listed company increased its capex to around $300 million from the previous year’s approximately $152 million, as it intended to expand its ports in Manila and Batangas.

On the impact of the coronavirus pandemic on the company’s financial performance this year, Mr. Khoury said: “For the first four months of 2020, ATI’s international container volume dropped by 26% compared to the previous year. In Manila, the volume went down 26%, while in Batangas it dropped by 28%.”

He also said that ATI “does not expect a significant recovery” in cargo throughput “for until at least August or September.”

ATI expects the full-year container volume to be around “20% to 30% below last year’s levels,” Mr. Khoury said, adding that the company’s financial performance this year “is not expected to be at par with last year’s.”

“We have incurred significant expenses related to addressing the COVID-19 situation in our workplace, as well as providing support to our nearby communities and our employees,” he said.

Still, the company’s cash flow “remains healthy,” he noted, adding that the company does not expect to borrow during this year.

“We expect our collection to remain strong for the remainder of the year,” he said.

ATI halved its profits in the first quarter as its ports saw lower container volumes when lockdown measures were imposed to help contain the coronavirus pandemic.

The listed company’s attributable net income slumped 68% to P472.16 million in the January to March period, as revenues dropped 29% to P2.58 billion.

Shares in ATI were unchanged at P16 each on Thursday. — Arjay L. Balinbin

New stores boost AllHome income

EARNINGS of AllHome Corp. surged 30% in the first quarter as it recorded higher sales from opening new stores last year.

The Villar-led retailer of home improvement products posted a net income of P270.22 million in the January-to-March period, higher than the P207.15 million it recorded in the same period last year.

Its topline jumped 41% to P3.37 billion despite having to close its stores in Luzon when the government imposed a lockdown in mid-March due to the coronavirus disease 2019 (COVID-19) pandemic.

In a regulatory filing, the company said it was able to keep recording higher sales because it opened 22 additional stores in 2019. Its existing 23 stores as of March 2019 posted a 24.3% sales growth in 2020.

“AllHome’s growth in the first quarter of 2020 was mainly driven by the additional contribution from the new store openings from the last quarter of 2019,” AllHome Chairman Manuel B. Villar, Jr. said in a statement.

“We are very pleased with our performance, which remained strong despite the occurrence of unforeseeable circumstances such as the eruption of Taal volcano and the [lockdown] due to the COVID-19 pandemic,” he added.

As the pandemic lingers and no vaccine has been developed to fight the virus yet, AllHome is now reconsidering its plans to expand its network.

“In the light of the recent situation, the company is constantly evaluating its expansion program. We grew our store network from 23 in 2018 to 45 by the end of 2019,” AllHome President Benjamarie Therese N. Serrano said. “We still view 2020 with optimism as the lockdown condition eases out.”

The company earlier said its plan was to have 70 stores by the end of 2020.

“I would like to highlight that if the situation improves, we have the capability to fast track construction and fit out and subsequently, open new stores as we see fit,” Ms. Serrano said.

In the meantime, the company is trying to adjust its growth strategy around a so-called “new normal,” capitalizing on the consumer mindset that works around physical restrictions and safety protocols.

“More households are taking the opportunity to recreate their personal spaces by prioritizing comfort, refurbishing and renovating their homes since they spent most of their time during the (lockdown) inside the house,” AllHome Vice-Chairman Camille A. Villar said.

Among the initiatives AllHome has launched to tap this market is allowing touch-free payments and various delivery options and enhancing e-commerce platforms. However, it is also implementing early closures in stores and limited customer traffic as precaution against the virus.

Shares in AllHome at the stock exchange ended 52 centavos or 10.10% up at P5.67 each on Thursday. — Denise A. Valdez

A casualty of COVID-19: Fun Ranch is closing the barn doors

CHILDREN’S playground and party place Fun Ranch is closing its doors due to the pandemic as its management felt it would be “too long a wait before the situation becomes ideal for children to play freely and have parties again,” the company told BusinessWorld.

“We have not been able to operate since the lockdown started in mid-March and will most likely not be allowed to operate yet for a long while (especially as a party venue),” the company told BusinessWorld in a Facebook message on June 3.

The company shared the announcement on its Facebook page on June 3 saying, “We’re sad but it’s time to go. A big thank you for trusting us over the years.”

The same announcement said that they will be returning all remaining party deposits made before lockdown to its customers.

The announcement sparked multiple comments from families who recalled celebrating their children’s birthdays in Fun Ranch. Quotes from Fun Ranch customers:

“Thank you Fun Ranch for the joy you brought our kids and the break you gave parents. We love you,” went one comment on Fun Ranch’s post announcing its closure.

“I got to experience Fun Ranch as soon it was opened. I remember having arcades, rides, as well as the [iconic] slide at front. Now, I just turned 20 and Fun Ranch definitely earned a place in my heart. It’s heartbreaking to see you guys go,” said another.

Even if Fun Ranch was allowed to open partially, the company said it would be very difficult to implement “proper social distancing in a playground setting.”

“Most importantly, we believe that parents are not likely to allow their kids to go to public play areas until they are sure that they can be completely safe from the virus. This can only happen when there is a vaccine. All these factors led us to the decision to close,” Fun Ranch said before adding that all its employees will be given retrenchment packages.

Fun Ranch has three branches — Pasig (the first, which opened in 2006), Muntinlupa, and Pampanga — and is best known for being a play space and a children’s party venue, although it has also hosted corporate events and debuts.

As this is a permanent closure, Fun Ranch will be selling all of its equipment, including rides and playground equipment, although it intends to offer its Fun Ranch food trays to interested clients.

“We were pleasantly surprised by the overwhelming support we have received from clients who expressed that Fun Ranch was a big part of their children’s growing-up years. It is heartwarming to know that we brought happiness to many people’s lives,” Fun Ranch said. — Zsarlene B. Chua

Aboitiz power unit to disconnect from Meralco

THERMA Mobile, Inc. will disconnect from the distribution system of Manila Electric Co. (Meralco) and will quit trading at the wholesale electricity spot market starting mid-July, its parent firm told the stock exchange on Thursday.

“[Therma Mobile’s] bunker-C fired diesel power plants located in Navotas, Metro Manila will be on reserve shutdown in the absence of a Power Supply Agreement duly approved by the Energy Regulatory Commission (ERC),” Aboitiz Power Corp. said.

It said Meralco had been notified of the move on June 3.

Therma Mobile is a wholly owned subsidiary of AboitizPower through Therma Power Inc., its holding company for its investments in thermal energy.

Notices have also been sent to Philippine Electricity Market Corp., Independent Electricity Market Operator of the Philippines Inc., Department of Energy, National Grid Corporation of the Philippines, and ERC as called for by the notice requirements of Republic Act 9136 of the Electric Power Industry Reform Act of 2001, its implementing rules, and other relevant rules and regulations.

On Feb. 5, 2019, Therma Mobile physically disconnected from Meralco’s system and de-registered as a trading participant at the spot market. It then signed a power supply agreement (PSA) with Meralco on April 26, 2019 for a term of one year. The contract has not been renewed and currently, the power generation company has no ERC-approved PSA.

On Thursday, shares in AboitizPower slipped by 20 centavos or 0.67% to P29.80 each.

Milk tea pearls and yoga mats, fruits and meat: what people ordered from Lazada during the lockdown

Over the last two and a half months when Metro Manila and many parts of the country were under varying degrees of lockdown due to the COVID-19 pandemic, e-commerce site Lazada noted that many people used their time to learn a new skill — including making their own milk teas at home — as their customers bought quite a few interesting things while on lockdown.

“We’ve definitely seen a significant shift in what Filipinos are searching for and adding to their cart in Lazada during the ECQ. While most Filipinos have been turning to Lazada for their essential needs, many have also been buying products to help them learn a new skill or create family bonding moments,” Neil Trinidad, Lazada Philippines’ chief marketing officers, said in a statement.

Among the products they saw their customers were buying during lockdown were tapioca pearls to satisfy milk tea cravings, baking and cooking equipment, makeup (for office video conferences), yoga mats, DJ equipment, inflatable swimming pools, and loungewear.

Lazada said they sold nearly 30,000 loungewear sets, 65,000 yoga mats, and 140,000 inflatable pools during the lockdown.

The company also noticed a “15 times increase in orders of essential goods,” such as groceries and cleaning supplies.

LOCKDOWN EQUALS MORE TRAFFIC
As people were ordered to stay at home to stem the spread of the virus, many opted to go online shopping to get their essentials. Throughout the lockdown period from mid-March to May, Lazada saw a “gradual increase of demand for products like fresh fruits and vegetables, meat, and rice, and have expanded our categories on the platform. This was considered in low demand prior to the [enhanced community quarantine],” according to an e-mail sent to BusinessWorld.

With the increased demand for fresh food, the platform introduced Lazada Fresh that features sellers who will deliver orders using their own delivery fleet to ensure product freshness.

More business owners have also decided to go digital, as Lazada reported that the number of sellers and brands joining the platform in the first half of 2020 was twice the number it had during the same period in 2019.

People also spent more time on the Lazada website and app as the duration of each visit “has almost doubled,” with users spending approximately 15 minutes on Lazada per visit compared to the period before the lockdown.

“This has also led to more than a 9% increase in transactions occurring on the Lazada app,” the company said.

Lazada also noticed more traffic during lunchtime — previous peak hours were in the evenings from 8 to 9 p.m. — likely due to people browsing the site while taking a break from working at home.

More people are also using cashless payment options including credit cards and its in-house LazWallet payment channel, as the company recorded a “two-times increase in use,” as people try to reduce physical interactions and prefer the convenience of online transactions.

The e-commerce platform’s digital bills payment service also saw a five-fold increase in use during the quarantine period.

“As we continue to observe safe physical distancing measures, Lazada foresees that this will continue to be on an upward trend as more people are looking for ways to source all their everyday essentials online,” the company said.

BOUNCE BACK SALE
This weekend, Lazada is holding its nationwide Bounce Back sale until June 6, and while the usual sale promotions apply including free shipping vouchers and great deals, this sale will also allow customers to donate and “contribute towards the country’s fight against the spread of COVID-19 by purchasing items from participating brands,” according to a press release.

Among the participating brands are Colgate-Palmolive where for every P750 minimum spend, P50 will be donated to the beneficiaries of Lazada for Good; and Unilever Skin Sciences where every P1,000 minimum spend will lead to a donation of P50 to the beneficiaries of Lazada for Good.

In true Lazada sale fashion, the platform will also be hosting a two-hour livestream special featuring performances by KZ Tandingan, Ben&Ben, and Regine Velasquez-Alcasid. The special, which will be held on June 6 at 6 p.m., will also be giving away more than P200,000-worth of shopping vouchers.

Telecommunications company Globe Telecom, will also be joining the sale by giving discounts for its prepaid SIM cards and select phones. Digital payment channel PayMaya is also giving a 10% discount voucher for a minimum spend of P1,200 on Lazada. — Zsarlene B. Chua

‘Unscathed’ Phoenix reports positive April, May results

Phoenix Petroleum Philippines, Inc. has stayed relatively unscathed, the Davao City-based oil company said, as the coronavirus pandemic persists to challenge an industry that has suffered from a slump in consumer demand.

“Compared to what has been reported by the industry, we generated an operating income and a positive EBITDA (earnings before interest, taxes, depreciation and amortization). Further, we are encouraged by positive results in April and May enough to suggest worst is behind us,” said Henry Albert R. Fadullon, the new president of the independent oil firm in a statement on Thursday.

In the first quarter, Phoenix recorded a gross profit of P1.7 billion on the back of revenues of P21.9 billion, leading to an EBITDA of P503 million. Operating income and net loss stood at P179 million and P215 million, respectively.

The petroleum industry is experiencing challenges because of geopolitical tensions compounded by the coronavirus pandemic, Mr. Fadullon said, adding that these factors began to weigh on demand towards March.

The company claims that it has remained resilient compared with other major players.

“Definitely Phoenix has not been spared from the challenges, but we are able to navigate the downturn better due to our earlier investments in strategic, higher-margin and diversified businesses areas such as retail and liquified petroleum gas (LPG),” Mr. Fadullon said.

During the period, LPG volume climbed by 39%, with the company’s core market in the Visayas and Mindanao consistently growing by double digits. Expansion was sustained in Luzon, Phoenix said.

In fuel, retail volume was higher by 9% after the network expansion in 2019. The company opened 660 stations nationwide as of end-March.

“In response to the ongoing COVID-19 public health crisis, we have identified three key strategies — keeping people safe, maintaining business-as-usual operations and preserving resources,” Mr. Fadullon said.

Phoenix adopted a work-from-home arrangement for most of its workforce, up until the end of the year. Operational staff are on a bi-weekly rotation and financial aid has been extended to employees. No COVID-positive case has been reported in the company.

Phoenix’s supply chain remains 100% online with 95% of its retail sites and LPG outlets open to serve customers. Around 60% of its FamilyMart retail convenience stores are operating. The company is pursuing e-commerce platforms for cashless transactions.

The company has also adjusted to demand changes by keeping inventory levels to 50% of terminal capacity, which reduced the burden on working capital.

Cash requirements were reduced by at least P2.3 billion this year compared with the original plan. Of this amount, P1.5 billion is from capital expenditure reduction and P800 million has been saved from marketing, advertising, and travel as resources shift from traditional to digital channels.

Phoenix has set aside P100 million for COVID-19 relief efforts. It provides free fuel for the transportation of frontliners as well as for the delivery of fresh produce from farmers in provinces as part of parent company Udenna Corp.’s Sagip Saka program.

FamilyMart continues to share free meals to healthcare workers and other frontliners, while Phoenix Super LPG supplies cooking fuel to community kitchens in various local government units and agencies.

House approves cash agent bill

THE House of Representatives on Wednesday evening approved on second reading House Bill 6924 which seeks to expand banks’ service delivery channels through cash agents.

Also known as the Bangko sa Baryo Act, the measure seeks to widen unbanked Filipinos’ access to financial services. The bill is principally authored by Deputy Speaker and Camarines Sur Rep. Luis Raymund F. Villafuerte, Jr.

The bill defines cash agents and provides eligibility requirements. It ensures that agents, as extensions of the banking system, are able to provide professional service, keep records, handle cash and manage liquidity.

Cash agents should be able to assist in performing bank services, including forwarding account opening applications, cash-in and cash-out services and initial customer identity verification, especially for efforts on anti-money laundering and combating terrorism financing.

The measure also requires the contracting bank to ensure the cash agent follows standard bank protocols and exercise due diligence when dealing with customers.

Cash agents who establish business in a “remote area” will be entitled to the following incentives: free training of cash agent personnel on various bank processes; expedited processing of permits and certificates that are requisites to business registration; and exemption from income tax for one year.

To make sure the government can make “seamless” online cash transfers to beneficiaries via banks, remittance centers, payment platforms or cash agents, Mr. Villafuerte said in a statement on May 31 that the Department of Information and Communications Technology (DICT) needs to expedite its National Broadband Program.

The program aims to deploy fiber optic cables and wireless technologies to ensure regional connectivity and improve internet speed nationwide.

Citing reports from the Asian Development Bank (ADB), Mr. Villafuerte said only 28% of Filipino adults own a bank account, while only 10% borrow money from formal institutions over a 12-month period.

“This bill endeavors to attain financial inclusion for the Filipino people and to establish robust financial consumer protection frameworks. (It also aims to) increase citizen’s financial literacy and capability so they understand different financial services. Soon, an average barrio folk will be able to make sound financial decisions and put his hard-earned money to beneficial use,” he said.

At the same time, the House also approved on second reading two measures, including House Bill 6926 or the National Digital Careers Act which seeks to support the development and define employment standards for digital careers in the country.

Also approved was House Bill 6927 or the E-Government Act, which will require electronic government services and processes in all agencies and government corporations.

All these three bills will have to go through third and final reading before passing the House. — Genshen L. Espedido

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