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BSP to release rules for Islamic bank products

THE BANGKO SENTRAL ng Pilipinas (BSP) is set to release implementing rules and regulations (IRR) on Islamic financing products in a bid to bolster financial inclusion for people that have limited access to financial products partly due to religious suitability, according to an official.

In an interview with BusinessWorld, BSP Managing Director of the Center for Learning and Inclusion Pia Bernadette Roman-Tayag said while there are already some Shariah-compliant financial products in the market, an IRR could urge more banks to make these kinds of offerings.

“We are going to be issuing our implementing rules for the Islamic finance. So du’n siguro magkakaroon ng details (Maybe the details will be clearer then),” Ms. Roman-Tayag said at the sidelines of an event held by Paymaya Philippines, Inc. and Oxfam Pilipinas held in Mandaluyong City on Thursday.

In 2019, BSP issued Circulars 1069 and 1070, which contain guidelines regarding the establishment of Islamic banks and banking units as well as the Shariah Governance Framework.

“More IRRs will be issued,” Ms. Roman-Tayag said.

She noted that the Muslim Mindanao region is still among the most financially underserved in the country due to lack of financial institutions in the area as well as product suitability.

“First of all, ’yung presence din kasi of banks there, du’n din kasi pinakakaunti (the presence of banks there is the lowest). That’s really one barrier, the actual presence of financial institutions there,” she said.

“So hopefully, with the digital…cash agents, that can be addressed. The second is suitability of products,” she added.

Aside from this, she noted that residents in the region are also restricted to some products amid the lack of Shariah-compliant offerings.

“From the financial inclusion standpoint, we don’t want to exclude people because of religious consideration,” Ms. Roman-Tayag said. “It’s also a form of exclusion, if you are not able to deliver products that they need…for religious considerations.”

A key concept in Islamic banking is that operations do not involve “riba” or interest.

“So hopefully with this new law, and with more providers, we can see more inclusion in the area,” Ms. Roman-Tayag said.

Republic Act. No. 11439 or the act providing for the regulation and organization of Islamic banks was enacted last August.

Among its key provision is to allow traditional banks to operate Islamic banking operations subject to approval from the BSP Monetary Board.

Tengfu Li, Financial Institutions Group Analyst at Moody’s Investors Service, has previously told BusinessWorld that the establishment of an Islamic banking framework will help boost growth in the newly established Bangsamoro Autonomous Region in Muslim Mindanao. — Luz Wendy T. Noble

Philippine history told through fashion

WHILE one may think that clothes don’t matter, history would show otherwise. An era’s fashions show the dictates of society at a point in time: the materials available to a people, the prevalent moral and social codes, and a measurement of the people’s prosperity. A fashion show at the Shangri-La Plaza aimed to tell the story of the Philippines through its clothing: from the pre-colonial period to the near-past of the 1960s.

The show, called Obra Maestra 2020: Homage to Heritage was held at the Shangri-la Plaza’s Grand Atrium late last month. The show also served to announce the book Obra Maestra: A Portrait of Excellence in Philippine Fashion and Culture, set to be released in May. The book and the show are both projects of Zardo Austria. Proceeds of the Obra Maestra efforts will benefit the construction of the Benedictine Sisters Reparatrices of the Sacred Heart’s new monastery and chapel in Mexico, Pampanga. These also raise funds for the Duyog Marawi Project, spearheaded by Bishop Edwin dela Peña, and the victims of the recent Taal Volcano eruption.

Designers who participated in the show include Oskar Peralta, Renee Salud, Ditta Sandico, Richard Papa, Roland Lirio, Steve De Leon, Delby Bragais, Peri Diaz, Albert Figueras, Peter Lim, Ricci Lizaso, Glenn Lopez, Edgar Madamba, Jontie Martinez, Jerome Navarro, Joyce Penas-Pilarsky, Lito Perez, Edgar San Diego, Gerry Sunga, Philip Torres, Edwin Uy, and the late Eddie Baddeo.

The clothes onstage were supported by performances from kundiman musicians, tenor Sherwin Sozon and soprano Tonton Pascual of the Lyric Opera of the Philippines, Mike Austria, Al Gatmaitan, Homer Mendoza, Vince Conrad, and Kathy Hipolito Mas.

The part of the show highlighting the pre-colonial period showed indigenous textiles from all over the country, while the segment covering the Spanish colonial period showed marvelously worked traje de mestizas. Samples of opera and kundiman played in the background as the models swayed down the runway.

The pace picked up with the presentation covering the American period. This is when the quasi-Victorian traje de mestiza evolved into the sleeker, one-piece terno we know today. Jazz and Big Band music played in the background, while outfits by Lito Perez came out. This included a terno with spotted embroidery, a sequined overskirt over a heavily embroidered underskirt in blue and silver, and a gold lamé fichu. For the men, reflecting the Americanization for the upper classes, light summer seersucker suits were brought out on the runway. Of note was a white lace number with blackworked sleeves paired with a black panelled skirt, and the cherry on top, a black lace pañuelo (fichu).

Jontie Martinez, meanwhile, showed off a magnificent terno in black lace and silver sequins. This was accompanied by a peacock-feather collar with a matching fan. The dress, and the one that followed it, imagined the dresses worn by Manila’s Carnival queens, a predecessor of our present obsession with pageants.

The next dress was Ricci Lizaso’s, a one-shouldered evening dress with crystals at the skirt and bodice, topped by a magnificent cockle headdresss. Continuing the beauty pageant theme, Peter Lim drew out a sequinned dress made of net, with a sash forming a bit of a bustle behind. The next dress, by Joyce Pilarsky, was pink, with a ruched ball gown skirt and a massive lace collar appliquèd in gold.

Hollywood’s influence in Philippine fashion was also touched on: Edgar San Diego brought out a villainously chic dress with a model with marcelled hair, wearing a black traje de mestiza with floral appliqués in pink over a very pale pink skirt.

The next segment began by introducing the privations of war, moving swiftly to the Liberation period, again bringing Big Band sound and Swing. Lito Perez brought out a pair of soldiers wearing khaki uniforms, while 1950s fashion was on the runway with models in ruffled skirts and shirtwaists for daywear. Formalwear didn’t take a backseat with a lovely rose-colored traje de mestiza with ruching and panelling at the skirt.

As the country settled more comfortably into the highs of independent government, high society began to throw lavish parties, such as the Kahirup and the rival Mancomunidad balls, which were thrown by rich Southerners and rich citizens of Central Luzon, respectively. The women who attended these lavish occasions were dressed mainly by five people: Ramon Valera, Pitoy Moreno, Aureo Alonzo, Ben Farrales, and R.T. Paras, whose works were exhibited at the mall until the end of last month.

The dresses that came next were interpretations of the creativity of these designers. For example, Steve de Leon’s knotting and draping combine in an angel-sleeved confection of yellow and white. Philip Torres, meanwhile, showed patchwork on a flared skirt made of net, with crystals on the butterfly-sleeved bolero. Delby Bragais showed a simple terno with crystal tendrils extending from the sleeve and waist, and a pattern drawn of crystal formed diamond shapes on the fabric. Edgar Madamba showed a beautiful panelled skirt in the shape of a tulip, below a delicate terno bodice. This was followed by a magenta evening gown.

The last part of the show showed Filipiniana of various lines, of all regions of origin; all made to showcase a sense of Filipino pride. They were all made with colors of the Philippine flag (yellow, red, blue, and white). A series of red dresses by Delby Bragais, for example, featured a tiered skirt and an interesting neckline, but for the series representing the flag’s red colors, we’ll have to give it to a stunning opera coat, spanning several feet, occupying almost the entire width of the runway, in a translucent material (possibly abaca), with a high collar and bell sleeves by Ditta Sandico. Lito Perez brought out a white unstructured terno like an 18th century chemise dress. This was literally given structure with armor made of yellow metal.

Mr. Austria pointed out that outfits that may not have been historically accurate were part of the whole process. “I’m not asking them to be authentic. I told them to stylize,” he said.

It’s interesting to see such an ambitious fashion show in — of all places — a mall. This then democratizes the process, a point Mr. Austria agrees with. “It’s trying to reach out to this generation. These millennials, they’re hungry; they’re thirsty for something cultural,” he said in a mixture of English and Tagalog.

While it’s easy to fall in love with the terno’s shape and style, it isn’t always accessible to a lot of people for its sometimes prohibitive price: the piña (pineapple fiber fabric) used to make some ternos, for example, is hard to source and can be quite expensive. Still, some brands have been daring to turn the terno from formalwear to daywear, thus injecting a sense of Filipino pride (and style) to the everyday.

“That is what we want to encourage. We have to be proud of our heritage,” said Mr. Austria. “If this generation can relate to this type of interpretation, well and good.”

We can see this in Republic Act No. 9242 (Philippine Tropical Fabrics Law), which prescribes the use of native fabrics for official government uniforms. This alone may have spearheaded the ubiquity of the formal barong through its daywear polo-barong cousin, which Mr. Austria points at as a good example of the adaptation of national dress. In a mixture of English and Tagalog, he said, “I’m very, very sure, the terno will adapt as well.” — Joseph L. Garcia

Off-cockpit betting firm refutes P1.3-B unpaid taxes

By Beatrice M. Laforga
Reporter

MANILA Cockers Club, Inc. (MCCI) has refuted reports that it has P1.3 billion in unpaid taxes since the case remains under investigation, although it has agreed to settle the penalties and comply with registration requirements for its ticket-dispensing machines, which were earlier sealed for non-registration.

In a letter to the Bureau of Internal Revenue (BIR), which was obtained by BusinessWorld, MCCI argued that its alleged tax deficiencies “are still in the informal conference stage of the investigation” and that it had not yet received preliminary and final assessment notices from the bureau.

“It is only at that point in time that it can be said that MCCI has been assessed deficiency taxes. Thus, MCCI maintains that the news reports are inaccurate, considering that it has no deficiency taxes,” the document read.

It said it had paid a total of P401.596 million in taxes last year, P145.195 million in 2018, P81.068 million in 2017, P26.065 million in 2016 and P89,908 in 2015.

The BIR reported last week that the company had P1.3 billion in unpaid taxes and that it had no registered automated ticket dispensing machines in any of its 132 locations nationwide.

The bureau sealed 51 machines in some of MCCI’s branches in Quezon City on Thursday, arguing that all businesses need to register their machines as these are used to properly monitor sales and transactions and not doing so will subject companies to penalties and liabilities.

“In keeping with our earnest intention to settle the matter of the non-registration of the ticket dispensing machines, and as a show of good faith, MCCI hereby formally offers to pay the assessment for non-registration of betting machines and undertakes to register said machines forthwith,” the document read.

However, the company argued that its 147 machines used in off-cockpit betting stations are simply betting machines recording “bets and issue tickets as evidence of bets,” and do not issue receipts or invoices “as the amounts paid by bettors are not consideration for any goods sold or compensation for any services rendered.”

“Thus, these machines need not be registered with the BIR,” it said.

Despite this, MCCI said it had agreed to comply with registration requirements and pay necessary fees during its meeting with the BIR-National Investigation Division on March 3.

“Thus, it came as a great surprise when the BIR issued the MO (mission order), and through its agents, proceeded to constructively seize, by sealing, the ticket dispensing machines in the various betting stations,” it said.

According to its website, the company said it is “the only cockfighting event entity that pays taxes due to its legal operations.”

MCCI is a wholly owned subsidiary of the listed company Manila Jockey Club Inc. (MJCI).

Bureau of Fisheries prepares new management strategy as sardine season starts this month

THE BUREAU of Fisheries and Aquatic Resources’ (BFAR) Zamboanga Peninsula regional office is preparing to implement the government’s new fisheries management strategy with the sardine fishing season opening March 1.

BFAR Regional Director Isidro M. Velayo, Jr., speaking during the open season ceremony on March 2 at the Sindangan Port in Zamboanga del Norte, announced that the bureau will be starting this month with an information caravan on the ecosystem approach to fisheries management (EAFM).

Under EAFM, 12 Fisheries Management Areas (FMAs) were established through BFAR Administrative Order 263 issued in January 2019 for a more coordinated policy development and implementation.

Zamboanga Peninsula is under FMA 4 together with the regions of Western Visayas, Central Visayas, and the Bangsamoro Autonomous Region in Muslim Mindanao.

The clustered provinces are: Antique, Guimaras, Iloilo, Negros Occidental, Negros Oriental, Basilan, Sulu, Tawi-Tawi, Zamboanga del Norte, Zamboanga del Sur, and Zamboanga Sibugay.

Mr. Velayo, in a statement, said “despite the fact that handling the area in the region is very challenging,” he is “thankful for this strategy as this will help revolutionize the protection, conservation and ensure the sustainability of the fishery resources for the benefit of our future generation.”

After the information campaign, BFAR will organize the selection of representatives from key stakeholders for the FMA’s Management Board.

The FMA will create and implement an EAFM Plan, which includes goals, roles, and monitoring system.

“The EAFM Plan is a ‘living document’ that is regularly refined and updated to address priority issues and problems. It also considers the governance capacity of implementing partners,” according to a BFAR briefing document.

BFAR will serve as convenor, inter-agency facilitator, and lead agency in implementing action plans for areas outside municipal waters.

Local government units will be responsible for their respective jurisdictions.

Each FMA was set up based on fish stock boundary, range, and distribution, and structure of fisheries and administrative divisions.

The Zamboanga Peninsula Region accounts for almost 50% of the country’s sardine production, based on BFAR’s National Sardine Management Framework Plan 2019–2024. It had a catch of 152,283 metric tons in 2017. — Marifi S. Jara

Peso seen to weaken further as coronavirus continues to spread

THE PESO may continue to decline this week due to the prolonged coronavirus disease 2019 (COVID-19) outbreak, although it could get some relief from the release of key local and US data.

The local unit closed at P50.64 versus the dollar on Friday, depreciating by 5.50 centavos from its P50.585 finish on Thursday, according to data from the website of the Bankers’ Association of the Philippines.

Week on week, however, the peso appreciated by 33 centavos from its P50.97-to-a-dollar close on Feb. 28.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the local currency’s weakness to continued market fears due to the prolonged spread of the virus.

“The peso exchange rate was slightly weaker, could be brought about by latest volatility in the financial market that effectively increased shift to safe havens,” Mr. Ricafort said in a text message on Friday.

Meanwhile, a trader said the peso’s weakness on Friday was a “delayed reaction” after some weak data released on Thursday.

The Philippine Statistics Authority (PSA) reported on Thursday that headline inflation in February slowed to 2.6% from the 2.9% pace in January, on the back of easing food, transport, and utility prices. This headline inflation print is closer to the lower end of the 2.4-3.2% inflation forecast range penciled by the central bank last week.

This also compares to the three percent inflation estimate from a BusinessWorld poll of 17 economists.

The PSA on Thursday also said preliminary data from the Labor Force Survey (LFS) showed the Philippine unemployment rate as of January was unchanged at 5.3% from the same period of 2019.

A closer look at the data, however, showed the number of jobless in the country went up by 106,651 to 2.39 million in January from 2.28 million in the same LFS round last year.

This week, headlines regarding the spread of COVID-19 as well as some key data will affect currency trading, according to Mr. Ricafort and the trader.

“The major factors include developments related to the coronavirus, both locally and globally, as well as the upcoming announcements on the latest Philippine trade data,” Mr. Ricafort said.

The PSA is set to release the January international merchandise trade data not later than March 12.

In 2019, the trade deficit stood at $37.05 billion, smaller than the $43.53-billion gap in January-December 2018. In December alone, the trade gap was at $2.48 million, thinning from the $4.17-billion deficit in the same month of the prior year.

Aside from the progress of the spread of the virus, the trader also said the market will factor in key US data released late last week.

“’Yung isang big thing na nakikita ko (One big thing I see) besides the virus is the nonfarm payrolls US data,” the trader said.

Reuters reported that US non-farm payrolls grew by 273,000 jobs in February to match January’s tally, which was the largest since May 2018.

On March 7, the Department of Health (DoH) declared Code Red sub-level 1 and has alerted medical professionals to be ready to report for duty after the country confirmed the fifth case of COVID-19 in the country, which is a local transmission as the 62-year-old Filipino did not have any recent travel history. His 59-year-old wife has also contracted the virus, bringing the total infections in the country to six.

“With Code Red, the DoH has recommended to the Office of the President for the declaration of a State of Public Health Emergency which will facilitate mobilization of resources, ease processes, including procurement of critical logistics and supplies, and intensifying reporting,” the DoH said in a statement.

The virus has already infected more than 100,000 around the world and killed more than 3,000.

This week, the trader sees the peso moving around the P50.50-P51 levels while Mr. Ricafort gave a forecast range of P50.50-P50.90. — L.W.T. Noble with Reuters

Valentino goes back to black at Paris Week

PARIS — From leather bodices to sheer frilly dresses, Italian label Valentino showcased a series of all-black looks in Paris on Sunday as fashion houses pressed on with their shows in spite of the coronavirus outbreak that has kept some attendees away.

At Valentino, models strutted the runway in a series of black outfits, some decked out in sequins, others in more delicate lace designs.

The somber looks were offset by splashes of fiery red here and there — from a ruffled clutch bag to long gloves — while designer Pierpaolo Piccioli ended the show with airier tones, including some sparkly mesh gowns.

Some workers at the scene wore black face masks as they put the final touches to the seating and set before guests arrived.

The fast-spreading coronavirus outbreak, which originated in China, has pushed organizers of some major global events to cancel as a precaution, and France on Saturday put a temporary ban on gatherings of more than 5,000 people.

Fashion shows tend to be smaller, with several hundred people attending at most.

Many Chinese journalists and fashion bloggers were absent in Paris this season due to travel restrictions, however, French label Agnes b. on Friday became the first non-Chinese fashion house to cancel a presentation due to the outbreak. — Reuters

Voyager having tough time getting investors

PLDT, Inc. is having a hard time getting investors for its digital arm Voyager Innovations, Inc., its top official said.

“I think we are finding it harder to get investors… Generally speaking, I think the environment has changed. The tough questions are now being asked like when will you break even in terms of your EBITDA (earnings before interest, taxes, depreciation and amortization) and in terms of your profitability? And how sustainable is it? So these are tough issues,” PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan told reporters last week.

He added: “I think the universe has become tougher in terms of the requirements for the turnaround.”

Mr. Pangilinan also said his group was in the negotiation process with potential investors.

“The demands for cash are still there as per schedule, so we are delayed in terms of getting the final list of investors to agree on the valuations and the amounts that they would invest. So, we decided that before they (Voyager) run out of cash, which is probably by the middle of the year or by June, before they hit the wall, they (current shareholders) should provide…[the funding],” he added.

In 2018, PLDT sold more than 50% of its stake in Voyager for $215 million (about P10.91 billion) to China’s Tencent Holdings Ltd.; US-based Kohlberg Kravis Roberts & Co. (KKR); International Finance Corp. (IFC) and IFC Emerging Asia Fund. PLDT remains the single largest shareholder in Voyager.

Mr. Pangilinan noted that there had been an agreement among the four shareholders of Voyager to provide the initial funding for its operations this year.

PLDT had invested some P9-10 billion in Voyager from 2013 to 2018 before it welcomed the foreign investors into the firm.

“Then they will let the final investors decide in the next two or three months on what sort of investment they would like to make,” Mr. Pangilinan added.

In 2018, PLDT incurred a loss of P3 billion in Voyager, a 150% increase from P1.2 billion in 2017.

Last week, PLDT said Voyager’s losses in 2019 were lower by P1.2 billion.

Voyager’s portfolio includes PLDT’s mobile remittance brand Smart Padala, digital payments firm Paymaya Philippines, Inc., and financial technology firm FINTQnologies Corp. whose products include digital banking, digital aid and finance, and digital lending platforms.

Mr. Pangilinan expects Voyager to be profitable by 2023.

“I think the enterprise part of Voyager will come in positive gross profit first, followed by the consumer [segment]; then come 2023, it will break even totally as a company,” he said.

In December, Voyager President Shailesh Baidwan said the company was close to hitting 20 million users on its platforms as it aims to have P1 trillion annual transactions in PayMaya by 2023.

The company does not disclose actual user figures, but it previously claimed PayMaya had the largest active user base in the Philippines.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Palay farmgate price little changed in last week of February; corn falls

THE AVERAGE farmgate price of palay fell 0.1% week-on-week to P16.04 per kilogram (kg) in the last week of February, with the price also declining 18% year-on-year, the Philippine Statistics Authority (PSA) said.

In its weekly update on palay, rice, and corn prices, the PSA said the average wholesale price of well-milled rice (WMR) rose 0.4% week-on-week to P37.19. The retail price rose 0.2% to P41.24.

The average wholesale price of regular-milled rice (RMR) fell 0.2% week-on-week to P32.77, while the retail price fell 0.4% to P36.16.

The farmgate price of yellow corn grain fell 0.6% week-on-week to P12.34, and was down 10.9% year-on-year.

The wholesale and average retail prices of yellow corn grain fell 2.1% and 0.3% to P21.09 and P24.73 respectively.

The average wholesale price of white corn grain rose 4.3% to P16.10.

The average farmgate and retail prices of white corn grain fell 0.4% and 0.2% to P13.31 and P26.66 respectively. — Revin Mikhael D. Ochave

Stuck-at-home rich boost trading at Asia’s private banks

ASIA’S SUPER RICH suddenly have lots of time on their hands.

The coronavirus has forced many of them to work from home, cancel travel and avoid the golf course. That’s left them more time to trade stocks amid the turmoil, boosting revenue for Citigroup, Inc. and other banks in the region.

“Clients are getting restless,” said Jyrki Rauhio, South Asia head of private banking for Citigroup. “They’re traveling less and have more time to look at the markets and review their portfolios.”

New York-based Citigroup joins firms including UBS Group AG and JPMorgan Chase & Co. that have seen a jump in trading this year as the virus roils markets. The trading surge has helped dull the pain of a health crisis that has otherwise frozen parts of their Asian banking businesses, from mergers to initial public offerings, and grounded investment bankers across globe.

JPMorgan’s brokerage activity at its Asia private bank increased more than 30% in February from a year earlier as wealthy customers traded more, said Kam Shing Kwang, regional chief executive officer of the unit.

“Client activity has been good so far,” Kwang said in an interview. “The trend depends on how long the virus outbreak is going to last.”

The coronavirus epidemic has led to wild swings in equities around the world, boosting activity at stock exchanges and bringing in more revenue for bank trading desks. Some 49.1 billion MSCI Asia Pacific Index shares changed hands on Feb. 26, the highest level in history, according to data compiled by Bloomberg.

In Hong Kong, trading exceeded HK$100 billion ($12.9 billion) on 24 of the 28 days after the Chinese New Year holiday, according to data from the Hong Kong exchange. Trading on Feb. 28 alone was the highest in a year. Currency and rates trading have also increased during the virus scare.

“The combination of less travel and increased market volatility means that clients are extremely active,” said Michael Blake, Asia CEO of Swiss private bank Union Bancaire Privée. “We have seen consistently high transaction volumes since the start of the year.”

With the fastest expansion of millionaires in the world, Asia is the region where wealth managers from UBS, Credit Suisse Group AG and others are seeking to grow. They’re racing against time to change how they interact with wealthy customers amid the outbreak that has claimed more than 3,300 lives.

While the virus has provided a short-term boost to trading, the travel restrictions have made it harder to win new private bank clients, especially in China. Some banks are signing up new customers digitally, though most new accounts have to be opened in person.

The risk for these banks is that a prolonged crisis will curb that client growth, just as they are trying to expand in China’s massive wealth market. The world’s second-largest economy is expected to see the biggest annual growth among the world’s private banking markets through 2023, Boston Consulting Group, Inc. said in a report last year.

One Hong Kong-based private banker, focused on the offshore Chinese business, said he’s mostly talking to prospective customers in his city because his firm has curbed travel and there are limited ways to reach mainland Chinese investors.

Another banker, whose focus is on Hong Kong clients, said it’s difficult to get new business from clients because they are unwilling to meet even if they’re in town. While his business in the first quarter is holding up, the outlook is dim if the outbreak persists, he said. Both bankers asked not to be identified speaking on client matters.

The crisis has opened up opportunities with existing clients as investor caution grows, bankers say. Blake at UBP said structured product volume has doubled from the same period a year ago as clients reduce risk and look for some downside protection. Citigroup has noticed a similar trend, with some clients holding more than 20% in cash, though some of that’s starting to be deployed after the global stock pull back.

JPMorgan and UBS are among banks that have allowed relationship managers to use WeChat, a popular messaging app in China, to communicate with clients on the mainland and maintain engagement. The Swiss firm, Asia’s biggest wealth manager, said it’s been investing in technology and providing digital communication resources for its staff and clients.

“Since our clients are not traveling, they are actually spending more time discussing their investment portfolios with us over phone or video conference,” said Amy Lo, co-head of wealth management for Asia Pacific at UBS. — Bloomberg

Animal mascots at Stella McCartney’s show

PARIS — British designer Stella McCartney presented on Monday her snug and elegant looks for next winter with a playful twist, as animal mascots including a big white bunny joined models on the runway at the Paris fashion show.

People dressed in fox, crocodile, and cow costumes stole the show during the joyous finale, eliciting smiles from A-list guests including Vogue editor-in-chief Anna Wintour and actress Shailene Woodley.

McCartney has long been known for her environmentally friendly approach and was one of the first major designers to shun animal-related products — a cause many others have since taken up, though rarely in such a tongue-in-cheek manner.

“There has never been a time when we have had more hope in ending fashion’s use of fur and leather — a practice that is cruel to the animals and harmful to the planet,” McCartney said in the show notes.

A pioneer in using recycled fabrics, the designer uses vegan leather in her latest collection, including a perforated raincoat and long, amber-brown jackets.

Models showcased fluffy outerwear and comfortable dresses, with many featuring lumberjack and checked prints. Some coats were even shaggier, and appeared to be clad in mini-dreadlocks.

High-collar cloaks, utilitarian tunics and slouchy suits also made an appearance while McCartney’s tailoring mixed feminine and masculine codes in an androgynous and minimalist style.

In some of the most ready-to-party looks, McCartney offered silky and fluid gowns embellished with luxurious metallic beaded designs, presented in the corridors of the sumptuous Opera Garnier.

Gold or silver animal jewelry including necklaces and brooches added an eccentric touch to some outfits.

The Stella McCartney brand has joined forces with French luxury goods group LVMH, after a long-running partnership with the conglomerate’s rival Kering. — Reuters

Court affirms San Miguel Foods’ P960M canceled tax assessment

THE Court of Tax Appeals (CTA) affirmed the cancellation of the P959.9 million tax assessment against San Miguel Foods, Inc. for 2010.

In a six-page resolution on March 2, the court’s third division denied for lack of merit the motion for reconsideration of the Bureau of Internal Revenue (BIR).

The court junked the claim of the BIR that the “due date” requirement for the validity of an assessment is misplaced.

The BIR argued that in Section 228 of the Tax Code, the three mandatory requirements for an assessment to be valid, namely: the taxpayer are to be informed of the audit, the notice must be in writing, and it must contain the facts.

The court, on the other hand, cited several jurisprudence stating that an assessment is also a “demand for payment within prescribed period” and not just a computation of tax liabilities.

“Indicating a fixed and definite period within which a taxpayer must pay the tax deficiencies is necessary to the validity of an assessment,” the court said.

“In the absence thereof, it negates the CIR’s demand for payment making the FAN defective and therefore void. As a rule, a void assessment bears no valid fruit,” it added.

The court in October last year cancelled the assessment of the BIR against San Miguel Foods because of a lack of due date in the demand letter to the company.

It also denied the allegation of the bureau that there was a misapplication of two jurisprudence in the case, saying in one of the cases that a valid formal assessment should also include a demand for payment within a prescribed period aside from computation of tax liabilities..

“Having addressed the aforementioned arguments of respondent, the Court finds no cogent reason to reverse or modify the assailed Decision,” the court said.

The decision was penned by Associate Justice Erlinda P. Uy and concurred in by Associate Justices Ma. Belen M. Ringpis-Liban and Maria Rowena Modesto-San Pedro. — Vann Marlo Villegas

Maxus PHL enters pickup segment via T60

Text and photos by Kap Maceda Aguila

FOLLOWING its release of people movers along with the commencement of business here nine months ago, Maxus Philippines now throws its hat into the highly competitive pickup arena. A total of three variants of the Maxus T60 join the local portfolio of the China-headquartered brand which touts a deep British history.

The company reported in a release that T60 is the “the longest and widest” in the mid-size pickup class, “allowing varied requirements of cargo and passenger transport.” Under the hood rumbles a 2.8-liter diesel engine with a variable-geometry turbocharger and Drive Mode Select, mated to either a six-speed manual or six-speed automatic transmission. The system generates a peak of 150ps at 3,400rpm and maximum torque of 360Nm at 1,600 to 2,800rpm.

Maxus lists the standard features found on the T60: an infotainment system with Apple CarPlay and Mirrorlink, rear camera and sensors, rain-sensing wipers, cruise control, and rear air-conditioning vents. The pickup boasts a wading depth of 800mm. The top variant 4×4 Elite additionally boasts LED headlamps and daytime running lamps, electronic stabilization, power driver-seat adjustment, push-start ignition, a larger 10-inch monitor, and automatic air-conditioning.

Meanwhile, in a speech, Automotive Central Enterprise, Inc. President Felipe Estrella pointed to a whole suite of safety features in the T60. “Thanks to the European-style double layer welding technology, tire pressure monitoring system, the six air bags, and a host of other safety features, the T60 has scored the highest five-star rating in the Australian NCAP safety test,” he said. “This is a true testament to the pickup’s adherence to global safety standards.” The vehicle also has Isofix seats and an immobilizer.

In an exclusive interview with Velocity, AC Industrials CEO Arthur Tan said it makes sense to bring in the T60. “In the Philippine market, the pickup and mini SUV are the fastest-growing segments. We (also) already have a strategy that we’re going to support the entire spectrum of motoring needs in the country… including passenger cars, light commercial and commercial vehicles.”

The automobile brands within the purview of the Ayala conglomerate are “looking at all the different white spaces available, looking at those actually growing independent of the current economic situation, and we’ll make sure that we have a pipeline that will fit inside those segments. And the T60 is one of those that perfectly fit both in terms of need, in terms of growth, in terms of competitive pricing, and feature requirement,” he added.

Perhaps cognizant of the battle it has to wage to secure its place in a market full of more established competition, Maxus Philippines is upping the ante by backing up the T60 with a five-year/100,000-km. warranty. Even its preventive maintenance schedule (PMS) promises more convenience and savings to customers. Following the first 5,000-km servicing, customers only need to bring in the T60 once a year or 15,000 kms — whichever comes first. The company also offers 24/7 emergency roadside assistance, pickup and delivery service for customers, and on-site servicing for corporate fleet accounts.

“Filipinos are very, very discriminating,” added Mr. Tan. “We’re very knowledgeable about cars, and we understand the plus and minus of features under the hood, of convenience, and of safety. On all those factors, we saw that the T60 ticks the boxes.”

At the launch event, guests were able to test-drive and experience the T60 models through a gauntlet of off-road and on-road challenges. But surely tipping the scales in its favor is the pricing of the new model. The Maxus T60 4×2 Pro MT, 4×2 Pro AT, and 4×4 Elite AT are offered at special introductory prices of P948,000, P1,028,000, and P1,278,000, respectively. Maxus Philippines General Manager Reginald See described the T60 as “packed with features at an entry level price.”

Still, it’s not just about the numbers, averred Mr. Tan. “It’s always an indication, but it’s more than that. Having the Ayala brand behind it helps build a certain level of trust among the public. It’s a new brand, although it has a very long British heritage, but Ayala has been here more than 185 years, and we’re going to be here for the next 185 years.”

After-sales support is also an important pillar of what Maxus is trying to build here. “We’re putting in a pipeline of dealerships, and we’re making sure we vet those dealers very well; that they will give the customer experience that we like to impart. We’re managing the distribution part of it and at the same time we’re setting up our own dealerships in order to be a reference for everybody else.”

All T60 units come from Shanghai, China, which begs the question of whether or not there will be a risk of supply disruption in the face of the COVID-19 outbreak.

“The issue of disruption permeates across all brands,” Mr. Tan said. “There’s no single brand globally that would not be affected. So there’s no reason to think that Maxus will be singled out differently from what is happening across the board. Everybody will be in the same playing field.”

The Maxus brand is owned by SAIC Motor — ranked among the top 10 automakers globally — which sold more than seven million units in 2018. The Ayala executive concluded with a smile: “Now, the advantage that we have is that we’re working directly with the clear biggest manufacturer in China. So in terms of pecking order, if there was a supply chain issue, the big one wins, right?”

For more information, visit www.maxus.com.ph or like and follow the Maxus Philippines Facebook page and Instagram account (@maxusph). Maxus showrooms are located in Mandaluyong, Quezon City, Taguig South, Cebu, and Iloilo.