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MRC Allied to focus on sand export business and solar energy projects

PUBLICLY listed MRC Allied, Inc. said on Monday that it plans to explore more opportunities in the sand export business while staying on the lookout for solar energy rooftop projects.

“MRC Allied is set to continue expanding its energy portfolio this year, keeping up the momentum set over the last three years,” the company said in a statement.

“For its energy portfolio, the company wants to maintain its focus on solar rooftop projects, an increasingly growing industry as many businesses now realize the benefits of solar energy and utilizing rooftops for such solar panels,” it added.

At the same time, the company said it “plans to tap opportunities” in utility-scale energy projects to build on its previous installation.

The company has 60-megawatt (MW) solar project in Naga City, Cebu. It is also a partner of SunRay Power, Inc. (SPI), which has a solar service contract from the Energy department to develop a 100-MW solar farm in Capas and Bamban in Tarlac province.

SPI had said its Clark solar project is being developed in partnership with state agency Bases Conversion and Development Authority (BCDA), the developer of the New Clark City. The solar farm is to be built within a 256-hectare property leased from BCDA by SPI.

In 2017, MRC Allied acquired a 15% stake in a solar farm in Leyte. The move marked its shift to the energy business by acquiring a stake in one of the entities that own Sulu Electric Power and Light (Phils.), Inc. (Sepalco).

Sepalco owns a 50-MW solar project in Brgy. Castilla in Palo, Leyte province. It started operating in March 2016.

In December 2019, MRC Allied signed a sale and purchase agreement with Shining Star Ningbo Import & Export Co. Ltd. for the delivery of sand.

Under the agreement, MRC will be delivering Shining Star a natural river sand in bulk from a potential seller. The contract will be effective for five years. The company expects a gross revenue of $760,000 per shipment.

MRC Allied is led by Augusto M. Cosio, Jr., who is implementing the company’s vision and road map consistent with its focus to become a “major” renewable energy participant.

The company quoted Mr. Cosio as saying that the projects in the pipeline would transform MRC Allied into “a bigger, bolder and future-ready company with investments in renewable energy.”

MRC Allied started as a company engaged in the processing and export of natural rubber, before its shift to real estate. It has since changed its primary purpose to renewable energy development.

On Monday, shares in the company closed higher by P0.001 or 0.5% at P0.20 each.

PDIC sells P277 million worth of closed banks’ assets

THE PHILIPPINE Deposit Insurance Corp. (PDIC) sold P277 million worth of 559 properties previously owned by closed banks last year, higher compared to the total sold in 2018.

In a press release yesterday, PDIC said last year’s total sales was 46% more than the 383 properties sold in 2018 and accounted for 34.9% of P792.8 million worth of assets offered for sale in various public biddings.

The state deposit insurer said last year’s sale also generated P69 million in premiums over the aggregate minimum disposal price of P208 million for properties offered for sale.

“Part of the responsibility of PDIC as Receiver of closed banks is to liquidate the banks’ assets to be able to settle claims of creditors and uninsured depositors as quickly and efficiently as possible, either through public biddings or negotiated sale,” PDIC President and CEO Roberto B. Tan was quoted as saying.

PDIC said the assets were disposed of via three regional public biddings held in Davao and Cebu City and 10 public biddings held in Manila in 2019 and consisted mostly of residential, commercial, and industrial lots, some of which have improvements. For 2019, sales also included a lahar lot, a commercial condominium unit and a number of motor vehicles.

The assets, which were mostly residential, commercial, and industrial lots and also included a lahar lot, a commercial condominium unit and a number of motor vehicles, were auctioned off via three regional public biddings held in Davao and Cebu City and ten public biddings held in Manila last year.

Proceeds from disposal of assets were added to the funds held in trust for closed banks to assist the shuttered banks’ creditors and uninsured depositors to recover their trapped funds.

“We continuously improve and innovate our services for the benefit of our customers and stakeholders. The conversion of non-cash portfolio is a major corporate initiative under our Strategy Map,” Mr. Tan added.

The state deposit insurer earlier reported that it paid a total of P1.18 billion in deposit insurance last year to 51,278 valid deposit accounts, covering 92.25% of the total claims from closed banks.

It took over a total of 11 banks last year following the closure orders issued by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP).

These banks were the Bagong Bangko Rural ng Malabang in Lanao del Sur, Inc., the Rural Bank of Mabitac in Laguna, Inc., The Palawan Bank (Palawan Development Bank), Inc., Valiant Bank, Inc. (A Rural Bank), the Rural Bank of Basey in Samar, Inc., the Rural Bank of Guihulngan in Negros Oriental, Inc., the East Coast Rural Bank of Hagonoy, Inc., the Rural Bank of Larena in Siquijor, Inc., the Rural Bank of Lemery, Inc., the AMA Rural Bank of Mandaluyong, Inc. and the Maximum Savings Bank, Inc. — Beatrice M. Laforga

A blast!

Psikyo Shooting Stars Alpha
Nintendo Switch

SHOOT ‘EM UPS have retained their popularity in arcades for a variety of reasons. In large measure, they hold universal appeal because of the relative ease with which gamers can start enjoying them; the objectives are clear and uncomplicated, with little to no backstories required to set them up. Certainly, it was what moved Psikyo, a videogame development company established in the early nineties, to keep producing titles in the genre. And it was no coincidence that chief executive officer Shinsuke Nakamura’s resume included the design of the hugely popular Sonic Wings (Aero Fighters in the West).

Psikyo would go on to produce classic shmups. It dabbled in other gaming categories, including mahjong, fighting, and sports, but it found its greatest successes in exploring concepts involving protagonists shooting out of seemingly impossible situations. And, each time, the gamers’ focus is pretty much the same; hordes upon hordes of enemies would appear on screen, and their sole purpose is to survive. Needless to say, it gained a loyal following, with the ensuing demand even resulting in its intellectual properties getting home console versions.

Fast forward nearly 30 years, and Psikyo’s titles remain among the top-of-mind responses when it comes to shmups. And, given the unique properties of the Nintendo Switch, it’s no surprise to see them thriving still. Nippon Ichi Software America’s just-released compilations of ports to the hybrid console are nothing short of excellent. Psikyo Shooting Stars Alpha, the first of the two anthologies, contains six shooters — four in vertical configuration — that preserve the look and feel of their arcade lineage. The gameplay experience is replicated, arguably even surpassed, with updated graphics and sounds.

STRIKERS 1945 is a top-down shmup that has gamers taking on the role of an ace pilot from the ranks of Strikers taking on C.A.N.Y., a shadowy organization out to conquer the world through the use of sophisticated weaponry. Suspension of disbelief is required in processing the melding of reality and science fiction: Six World War II-era planes, presented with accuracy albeit carrying technologically advanced ordnance, are on tap. In any case, the eight stages are a blast, featuring progressive difficulty as manifested in seemingly unending targets all the way to the final boss.

STRIKERS 1945 II offers largely the same: Although the Strikers are up against the FGR this time around, gamers still have six ships from the time frame (of which four make their first appearance) providing three distinct attack options. The audio-visual presentation is much improved vis-a-vis its predecessor’s, and its interface is enhanced by the introduction of a charge bar at the bottom of the screen to better represent the leveling system. Overall, it’s a superior offering on the Switch, especially if the third-party Flip Grip is utilized to enter TATE (or portrait) mode.

STRIKERS 1945 III is the best of the lot. For this release, the series abandons its WWII setting and presents aircraft and equipment attuned to its far more modern backdrop. And just as graphics and sounds are once again a step up, so does the action flow faster and freer. Over-the-top transformations of the final bosses continue to be a big draw, complementing the originality of the challenges they present and represent.

Dragon Blaze abandons reality and goes for fantasy by replacing planes with dragons, and Strikers for knights. The Demon King stands in the way of triumph, and proper harnessing of magic is critical to finishing the campaign. The gameplay adds two interesting twists. First, powerups can be stacked to allow for the desired increase in weapon number in efficacy. And, second, gamers can choose to dismount their dragons and, while risking exposure, have the latter go after enemies with close-range bites.

SOL DIVIDE is likewise steeped in fantasy, but presented horizontally. Gamers are called to action against evil emperor Ifter using melee and ranged attacks, as well as magic spells made available over time. The controllable character, chosen from a set of three, has a life gauge that can be replenished via dropped items from vanquished foes. A handful of role-playing-game elements are on offer, but, the apparent freedom notwithstanding, the denouement is the same: a potentially backbreaking — and immensely frustrating — final-boss tiff that cannot be continued midstream.

ZERO GUNNER 2 is a three-dimensional shooter that pits gamers against the Asian conglomerate Igem, bent on furthering evil designs through the use of ONI, a machine powered by a unique energy source and capable of controlling the weather. Zero gunners have three helicopters to choose from in order to navigate seven stages. In presenting the title as part of Psikyo Shooting Stars Alpha, developer Zerodiv needed to redo most of the Sega Dreamcast version. The result is an homage to the source material, which features multidirectional firing and a randomized presentation of the first four stages.

In sum, Psikyo Shooting Stars Alpha makes good on its promise. The upgraded visuals and audio tracks are a blast, with nary a lag or frame drop. Controls are smooth and free of delay, even in handheld mode. Gamers will be particularly pleased that it offers cloud saves, as well as Flip Grip support for its four offerings in vertical orientation. If there’s any bane, it’s the absence of online leaderboards; part of the thrill of plunking down quarter after quarter on coin-op machines lay in the quest to be the best of the best. That said, it nails just about everything else in delivering a nostalgic experience. At $39.99, it’s a decided steal, and provides incentive for the purchase of its Psikyo Shooting Stars Bravo, its partner compilation.

THE GOOD:

• Cooperative play

• Superb TATE mode

• High replay value

THE BAD:

• Extremely challenging to the point of frustration

• Menus fail to match chosen orientation

RATING: 8.5/10

POSTSCRIPT: NIS America will be in PAX East at the Boston Convention and Exhibition Center late this month. In the latest staging of the gaming culture festival, the game publisher will have playable setups of The Legend of Heroes: Trails of Cold Steel III, Langrisser I and II, LA-MULANA 1 and 2, Disaster Report 4: Summer Memories, and an as-yet-unannounced title. Giveaways can be had at each demo station. Merchandise will also be on sale, and up for grabs at the Prize Station.

THE LAST WORD: PlatinumGames has hit $1.5 million in its crowdfunding effort for The Wonderful 101: Remastered. The success of its Kickstarter project ensures that the two-dimensional action sidescroller, previously released on the Nintendo Wii U, will be on store shelves for owners of latest-generation consoles with an entirely different first mission. It’s currently aiming for $1.75-million and $2-million stretch goals for a “remix soundtrack” and a “brand new adventure” representing the second mission. The original goal of $50,000 was for its release on the Switch.

Greenfield District to benefit from new bridge

COMMUNITIES such as the Greenfield District in Mandaluyong City are expected to benefit once the BGC-Ortigas Center Link Road is completed this year.

The 613-meter two-way bridge connects the Lawton Avenue-Global City viaduct with Sta. Monica Street in Brgy. Kapitolyo Pasig across the Pasig River. The Pasig River is about a five minutes’ drive to and from Greenfield District.

“Once operational, the bridge will reinforce our promise to offer a fully-connected lifestyle to our residential unit buyers, and commercial and office locators,” Duane A.X. Santos, Greenfield Development Corporation (GDC) executive vice-president and general manager, said in a statement.

Greenfield District offers a “genuine fully-connected lifestyle within a future-proof community,” he added. Residential, business and commercial components are interconnected through road networks and pedestrian lanes.

Williams Street also serves as an alternate route going straight to EDSA from the Greenfield District central business district.

AG&P and Abu Dhabi firm forge long-term charter of floating storage unit in India port

ATLANTIC GULF & PACIFIC (AG&P) said on Monday that it had signed an agreement with ADNOC Logistics and Services for the charter of a floating storage unit (FSU) in an Indian port.

The logistics company said in a statement that the agreement covers the conversion, supply, operations and maintenance of the FSU at AG&P’s LNG import facility within Karaikal Port in Puducherry, India.

The 137,756 cubic meter FSU owned by ADNOC L&S is being chartered for 15 years through a commercial model enabling supply to be scaled to match demand. Construction on the terminal will begin in the first quarter of 2020 with commercial operations targeted before end-2021.

AG&P said the Karaikal FSU will be the fourth FSU-based LNG import terminal in the world, after those in Malta, Malaysia and Bahrain. ADNOC L&S will provide a Japan-built, Moss-type containment vessel as FSU for the project from its fleet of eight LNG ships.

Abdulkareem Al Masabi, chief executive of ADNOC L&S, said the agreement is significant for his firm “in a number of ways.”

“Firstly, it represents our first agreement with AG&P and one of our company’s most important goals is to find creative ways to branch out and find new partnerships around the world to fuel our company’s safer, smarter growth,” he said.

“It is also an important agreement because it provides AG&P with additional storage flexibility for their LNG terminal as well as giving us the chance to generate more value from one of our historical assets which is coming to the end of its current contract,” he added.

Owned and operated by AG&P, the LNG import facility at the Karaikal Port will have initial capacity of 1 million tons per annum (MTPA), which will be expanded to 3 MTPA in the medium term as demand increases.

The terminal will serve domestic, industrial and commercial customers within a 500-kilometer radius, including the industrialized region of central Tamil Nadu. It will also serve gas-fired power plants as well as AG&P’s own city gas distribution network across South India.

Karthik Sathyamoorthy, president of AG&P Terminals & Logistics, said: “Both of our companies will work very closely to provide a comprehensive LNG solution for our downstream customers through the Karaikal LNG Facility.”

“AG&P has focused on bringing down the unit cost of re-gasification terminals for smaller volumes,” he added.

AG&P develops and runs LNG and gas logistics and distribution solutions. It provides the infrastructure to access natural gas. ADNOC’s (Abu Dhabi National Oil Co.) logistics and services unit provides shipping, maritime, port, and logistics.

EastWest Bank to raise P2B from three-year bonds

EAST WEST Banking Corp. is looking to raise P2 billion from its maiden bond issuance. — BW FILE PHOTO

EAST WEST Banking Corp. (EastWest Bank) is looking to raise P2 billion via its maiden bond issuance of fixed-rate papers to diversify its sources of funding.

In a disclosure to the stock exchange yesterday, EastWest Bank said the bonds have a tenor of three years and carry an interest rate of 4.5% per annum to be paid quarterly.

The offer period started yesterday and will close on Friday, Feb. 14.

“Through its maiden bond issuance, EastWest aims to serve its clients better by providing alternative investment products,” EastWest Senior Executive Vice- President and Treasurer Rafael S. Algarra, Jr. was quoted as saying.

“The bond issuance will also pave the way for future issuances and strengthen the Bank’s liquidity position by diversifying its sources of funding,” Mr. Algarra added.

The bonds are available for a minimum investment of P500,000 and increments of P100,000 thereafter.

They will be issued and listed on the Philippine Dealing and Exchange Corp. on Feb. 21.

EastWest Bank and Unicapital, Inc. will serve as the selling agents and lead arrangers for the transaction.

Last year, the lender’s board of directors had approved the issuance of up to P10 billion worth of bonds to be issued in one or multiple tranches.

The bank saw its net income grow by 43% year on year to P4.6 billion in the third quarter last year with a return of equity of 14%, “on track to achieve its most profitable year.”

EastWest Bank shares closed at P11.16 each yesterday, down by four centavos from Friday’s close of P11.20 apiece. — B.M. Laforga

Entertainment (02/11/20)

Valentines at BGC

BGC celebrates romance with the Love Street: A Valentine Concert at the BHS Amphitheatre on Feb. 14, 7 p.m., featuring Moira Dela Torre and Prince Dundee Valencia. Get VIP tickets with a P2,000 accumulated purchase from any Bonifacio High Street establishment from Feb. 1 to 14. Meanwhile, the area is decoarated with a 22-foot heart-shaped red tree by Gideon Hermosa along 7th street together with eye-catching indoor installations inside One Bonifacio High Street — perfect for selfies and groupfies. Post the photos for a chance to win tickets to Matilda The Musical and gift certificates from Bonifacio High Street restaurants (Wolfgang Steakhouse, Din Tai Fung, TGIFridays, Italiani). Upload the photos on Instagram and “share with us how you’ve fallen in love in BHS” with the hashtag #InLoveInBHS. (For the full mechanics visit http://bit.ly/BHSValentines.) Check out the Cadbury Dairy Milk Promise Park with romantic booths, band performances, a pinky promise ceremony, and the reveal of the Cadbury Promise Pack. In search of gifts? Visit Valentine’s At The Park, a gifting market by Urban Pod at C1 Bonifacio High Street, where you can find food, treats, or trinkets while being serenaded. For more details, stay updated through Bonifacio High Street’s official Facebook page at https://www.facebook.com/BoniHighStreet/.

Joey G. at Robinsons Magnolia

THE MAN behind those familiar songs from the 1990s — “Got to Believe in Magic,” “Hold On,” “Heart of Mine,” “Set You Free” — Joey G, the former front man of Side A, will have a show at Robinsons Magnolia on Feb. 15, 4 p.m., at the Mall’s Atrium. For more information, check Robinsons Magnolia in Facebook and IG.

Valentine’s at Venice Grand Canal

CELEBRATE love at Venice Grand Canal at McKinley Hill. The lights and water show Aqua Y Carnevale returns on Feb 14, with shows at 6 and 8 p.m. at the Venice Piazza. The free show includes ballet performances, acrobatics, performers with striking costumes, all on board massive floats on the Venice Grand Canal. AT 6 p.m. daily from Feb. 14 to 16, there will be concerts and performances at the Venice Piazza. KZ Tandingan and TJ Monterde perform on Feb. 14, the Miss Saigon Concerto on Feb. 15 (the concerto will also be performed all the weekends of February), and a surprise guest performer on Feb. 16 at Ponte de Amore. There will also be a #LoveVenice 3D Mapping show and its modern interpretation of Italy’s Romeo and Juliet at the Venice Piazza. For singles there will be a free admission party with speed dating activities on Feb. 15, 5 p.m., at the Venice Piazza. As part of the Valentine’s Day festivities, and in celebration of Leonardo Da Vinci’s 500th death anniversary, different interpretations of Leonardo Da Vinci’s masterpieces will be shown, in partnership with the Philippine-Italian Association, on Feb. 13 to 29 at the Ponte de Amore Lobby. The Venice Grand Canal Mall is also offering customers exclusive deals from participating shops and restaurants the entire month of February. For details, visit www.megaworld-lifestylemalls.com or call 7624-1971.

Valentine’s at Robinsons Malls

FOR the month of love, there will be singers and acoustic jams at Robinsons around the country. On Feb. 14, Idol Philippines finalist Dan Ombao will perform at Robinsons Place Lipa; the acoustic group Flumia and Juan Miguel Severo will perform at Robinsons Place Antipolo; the Palabra Band and Shane Lumanog have back-to-back acoustic performances at Robinsons Angeles; Cat & Mice will have a show at Robinsons Place Las Piñas. Over at Robinsons Magnolia, catch Joey G on Feb. 15, 4 p.m. Over at Robinsons Galleria, for a minimum spend of P1,500 from Feb. 14 to 28, get a chance to win an overnight stay at Holiday Inn Galleria or a buffet for two at Crowne Plaza Manila Galleria. Robinsons Novaliches and Robinsons Place Lipa are holding a “What is your Robinsons Malls’ love story?” online contest for a chance to win a Valentines Package. Various Robinsons Malls have set up installations and displays for the perfect photograph. The complete line-up of Robinsons Malls upcoming performances, events, and promos can be found at www.robinsonsmalls.com.

Rey Valera at City of Dreams

OVER at City of Dreams, CenterPlay, the contemporary entertainment bar on the gaming floor, there will be a Valentine’s party with hitmaker Rey Valera — the man behind “Maging Sino Ka Man” and “Kahit Maputi Na Ang Buhok Ko” — on Feb. 15 at 10 p.m. Joining him are other CenterPlay bands including HeartBeats, Part 3, and Higher Ground. Guests can reserve a seat or a table starting at P1,50 nett which is inclusive of consumable snacks. Meanwhile, DreamPlay Families can avail of DreamPlay’s Panda Power-packed Valentine’s VIP Package (P1,499) from Feb. 14 to 16, which is inclusive of an all-day pass to DreamPlay’s attractions with express check-in and priority access to the attractions; an exclusive photo opportunity with Kung Fu Panda’s Po and Mei Mei; and other treats including heart-shaped cookies, Chez Gingy milkshake and a Kung Fu Panda-themed cable winder. DreamPlay is open from from 9 a.m. to 10 p.m. on weekends (Friday to Sunday). For inquiries, call 8800-8080 or e-mail guestservices@cod-manila.com or visit www.cityofdreamsmanila.com.

Rachelle Ann Go at RWM

FRESH FROM her stint in the musical Hamilton, Rachelle Ann Go brings the Broadway and West End experience this Valentines Day to Resorts World Manila’s (RWM) Marriott Grand Ballroom in The Homecoming concert on Feb. 14, 8 p.m. Joining Ms. Go are Lea Salonga, Erik Santos, Zephanie, and with the musical accompaniment of the Manila Philharmonic Orchestra. The Homecoming also features the musical direction of Marc Lopez and overall direction of Paul Basinillo. Tickets are available at the RWM Box Office and all TicketWorld outlets.

How PSEi member stocks performed — February 10, 2020

Here’s a quick glance at how PSEi stocks fared on Monday, February 10, 2020.

 

The Philippines still among the world’s top remittance recipients in 2019

THE PHILIPPINES was the fourth-largest destination for remittances by overseas workers in 2019, according to the World Bank’s Global Knowledge Partnership on Migration and Development (KNOMAD) program. Read the full story.

The Philippines still among the world's top remittance recipients in 2019

FIRB to present investors with ‘more transparent’ incentives

THE proposal to give Fiscal Incentives Review Board (FIRB) the power to grant and review tax incentives will harmonize the incentives regime and make it more “clear and transparent” for investors, the Department of Finance (DoF) said.

In a statement Monday, Finance Undersecretary Karl Kendrick Chua said the current incentive scheme with various approving bodies, packages and processes has created “confusion” for potential investors and “reduced accountability” in granting incentives.

“To promote fairness in the tax system, CITIRA not only seeks to harmonize the package of tax incentives, but to also put more order, clarity, and accountability in the process of granting incentives through the FIRB,” Mr. Chua was quote as saying.

Under the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) bill, FIRB’s coverage will be expanded to include approval of tax incentives for private businesses in addition to its current mandate to grant tax subsidies to GOCCs.

FIRB, an interagency committee chaired by the DoF, will also act as an oversight body for the 13 investment promotions agencies (IPAs) to monitor the businesses receiving tax perks and validate whether they deliver jobs and investments as committed.

Currently, the Philippine Economic Zone Authority (PEZA), an arm of the Department of Trade and Industry (DTI), grants incentives to businesses located inside its special economic zones, along with the 13 IPAs.

“The system of having different packages of incentives and processes, as well as autonomous approval points, has created confusion among potential investors and reduced accountability in the grant of tax incentives,” Mr. Chua added.

He said the FIRB, under the proposal, will also ensure the tax incentives that can be availed of will also be available to micro, small and medium enterprises (MSMEs), who are mostly unaware of these perks.

According to the DoF, around 3,150 corporations enjoy fiscal perks, paying corporate income tax rates at a discounted rate of 6-13%. This compares to nearly one million MSMEs paying the current rate of 30%.

Mr. Chua cited as a model Malaysia’s National Committee on Investment, which approves all incentives granted by its 33 IPAs.

“Promoting good governance in granting incentives through an oversight body is not a new idea. Other countries have been doing that for decades now. The Philippines actually tried creating an oversight body two decades ago,” Mr. Chua said.

The CITIRA bill aims to gradually lower corporate income tax to 20% from the current 30% and rationalize tax incentives.

The measure is pending at the Senate while the House of Representatives counterpart bill has passed.

The Department of Finance is still hoping that the remaining tax measures of the Comprehensive Tax Reform Package are passed this year. — Beatrice M. Laforga

BSP seen cutting rates by 25 bps after March

J.P. MORGAN said it expects the Monetary Board to further reduce benchmark interest rates by 25 basis points (bps) next quarter to stimulate the economy in response to the novel coronavirus (2019-nCov) outbreak.

In its “Global Watch: Asia” Economic Research note published yesterday, the bank said the outbreak could further magnify downside risks to economic growth, first manifesting in the “lackluster capex (capital expenditure) outlook this year.”

“In our view, downside risk to GDP (gross domestic product) growth has intensified owing to potential economic impact from the current 2019-nCov outbreak on the Philippine economy,” the report said.

“Amid growth concerns and a well-behaved inflation trajectory due in part to lower global energy prices, we now look for a further 25bp policy easing in 2Q20,” it said.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno signalled another possible cut by midyear in an interview with Bloomberg TV Friday.

The Monetary Board cut benchmark interest rates by 25 bps during its first rate-setting meeting of the year last week, bringing the reverse repurchase rate to 3.75%, while overnight lending and deposit rates fell to 4.25% and 3.25%, respectively.

J.P. Morgan, however, maintained its 6.2% GDP growth forecast for the Philippines, which is below the 6.5-7.5% government target. It downgraded projections for its neighbors which were also affected by the outbreak, with Hong Kong and Singapore receiving the largest downward revisions.

“Given the depth and breadth of the outbreak across borders as seen in recent days, in our view, there is some downside risk to our 6.2% y/y (year-on-year) GDP growth forecast this year, which as it is, undershoots the government’s GDP growth target of 6.5%-7.5%,” it said.

It said the outbreak’s impact will be “temporary but large” via two major channels, the first in the form of a demand shock with the panic affecting mobility, leading to declining in economic activity in tourism, offline retail sales, transportation, catering services, and entertainment.

The second will be a supply shock mainly due to factory shutdowns and supply disruptions over the near term.

“In our latest baseline scenario, we assume the contagion will peak in March and consumption will quickly recover in 2Q, while factories will reopen on Feb. 10 in most provinces (with a few exceptions), hence the supply shock will be most severely felt in February, with partial and gradual recovery throughout February and March and full recovery in 2Q,” it said.

According to preliminary estimates by the National Economic and Development Authority, a prolonged 2019-nCoV outbreak will largely hurt the tourism sector and might dent the economy by around 0.3% if the virus is felt until June. The drag on GDP is expected to rise to 0.7% if the threat remains elevated until December. — Beatrice M. Laforga

PPA-run ticketing system for ship passengers to discourage overbooking

THE Philippine Ports Authority (PPA) will pilot-test within the first half of the year a centralized online ticketing system which hopes to deter overbooking by shipping lines, improving safety in the industry.

The online booking system, which will provide ticketing for roll-on/roll-off passenger ships, will be managed by the PPA.

Shipping lines have their own online ticketing systems to process advance booking of tickets but they tend to overbook, according to the PPA.

“By the first half of 2020, the PPA will pilot-test a centralized e-ticketing system to avoid overloading and overbooking on sea vessels,” the Department of Transportation (DoTr) said in its 2019 annual report.

In a copy of the Administrative Order (AO) No. 12 series of 2019 provided by the PPA to BusinessWorld on Monday, it said that one of the objectives of the centralized e-ticketing system is “to institute port process improvement for maritime safety and security since this will provide a useful instrument for preventing ship overloading and overcrowding.”

The AO further states that the project aims to “provide ease of doing business and efficient delivery of ship/port services, get rid of fixers and scalpers, and provide shipping lines with savings in terms of administrative costs.”

The platform, PPA said, also aims to provide automatic preparation of passenger manifests that can readily be submitted to government agencies.

The PPA will provide the system software, office space and hardware to implement the online booking system at the ports under its jurisdiction.

Shipping lines will be responsible for the office space and equipment not provided by the PPA.

PPA is responsible for the collection of the integrated shipping fare, passenger terminal building (PTB) fee, and the added administrative fee.

“PPA shall also be responsible for the remittance to the shipping lines, the PTB operators, and the PPA’s designated service provider of their share of the integrated fees/fares,” according to the AO.

“Shipping lines will take charge of the refund, rebooking, and required actions… in cases of cancelled, delayed, or unfinished/uncompleted voyages,” it added. — Arjay L. Balinbin

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