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PAL, AirAsia cancel flights after Metro Manila ‘quarantine’

By Arjay L. Balinbin, Reporter

FLAG carrier Philippine Airlines (PAL) and budget carrier Philippines AirAsia, Inc. announced on Friday the cancellation of hundreds of their domestic flights to and from Manila from March 15 to April 14 in view of the implementation of President Rodrigo R. Duterte’s “community quarantine” order.

PAL, operated by PAL Holdings, Inc., said in an advisory that it was cancelling its domestic air travel to and from Manila during the said period to protect the public from the deadly COVID-19.

Mr. Duterte’s order came after the code alert system for COVID-19 in the Philippines was raised to Code Red Sublevel 2, which means that community transmission is already evident.

Both PAL and AirAsia said flights that are not bound for Manila will continue their normal operations.

AirAsia said 102 domestic round trip flights daily will be affected.

PAL said 60 of its daily domestic flights are going to be affected.

“This is a developing situation. We shall provide further updates. As of this time, we are awaiting the official guidelines in relation to the implementation of this temporary suspension of domestic flights to/from Manila,” PAL said.

“Rest assured that we will comply with all government mandates and continue to coordinate closely with the government authorities in the interest of the health and safety of all our passengers,” it added.

Both airlines allow their passengers to rebook their flight tickets to a new travel date for free or obtain a full refund.

For AirAsia tickets, a passenger may retain the value of his fare in his AirAsia BIG Loyalty account for future travel with the carrier.

PAL allows its passengers to reroute their tickets on the same fare class.

Apart from domestic air travel, Mr. Duterte’s order also covers land and domestic sea travel to and from Metro Manila.

The measure is subject to daily monitoring and reassessment by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF).

Cabinet Secretary Karlo Alexei B. Nograles said flights from Metro Manila going to and coming from abroad will be allowed, but subject to travel restrictions that are currently in place.

“Anyone flying in from abroad via Ninoy Aquino International Airport will remain in Metro Manila until the domestic travel ban is lifted, and again, that begins on March 15. If the ultimate destination is in the provinces, we suggest to fly in via Clark, Cebu and other airports that are not under quarantine, so you can proceed to your ultimate destination in the provinces,” he said in a briefing.

Nickel Asia posts 11% income slide

NICKEL ASIA Corp. reported an 11% decline in attributable net income last year to P2.68 billion after the listed miner and ore exporter recorded a drop in its share from two mining investments.

In a disclosure to the stock exchange on Friday, the company said its share of equity in the net income of Taganito HPAL Nickel Corp. and Coral Bay Nickel Corp. decreased to P10 million in 2019, or much lower than the P348 million posted a year earlier.

“Last year was another challenging year for the company. The huge increase in nickel ore exports from Indonesia had put a dampener on ore prices for most of the year, making the company focus more on the sale of higher value saprolite ore,” said Nickel Asia President Martin Antonio G. Zamora in a statement.

The drop in the company’s share of equity from the two entities came after a decline in the average realized price of cobalt, which fell to $16.57 per pound last year from $37.35 per pound in 2018.

Nickel Asia said it recognized a foreign exchange loss of P264 million last year, a reversal of the P363 million gain from the earlier year, because of the weaker US dollar against the peso.

The company sold a total of 18.8 million wet metric tons of nickel ore, down 2.6% from the previous year. It said it had focused more on exports of higher value saprolite ore to China, resulting in a decline in shipments during the year.

Revenues last year slipped to P17.92 billion, down 3.9% from the previous year because of the lower shipments and a less favorable peso-dollar exchange rate. Costs grew by 5.5% to P7.91 billion. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 13.9% to P6.54 billion.

Mr. Zamora said that the company remains optimistic amid the challenges.

“The twin-effects of the Indonesian nickel ore ban, which took place on January 1st, 2020, combined with the bright outlook for LME (London Metal Exchange)-linked nickel, given the evolution of battery technology, will certainly bode well for the Company’s medium term prospects,” he said.

The company’s board of directors approved a cash dividend of P0.08 per common share, payable on April 8, 2020, for shareholders of record on March 27, 2020.

On Friday, shares in the company jumped by 3.3% to P1.86 each. — R. M. D. Ochave

JFC inks deal to expand Tim Ho Wan in China

TIM HO WAN is set to open its flagship store in China after Jollibee Foods Corp.’s (JFC) Shanghai-based joint venture Hong Yun Hong Food and Beverages Management Co. Ltd. has secured a franchise deal to expand the Hong Kong-based dim sum business in the mainland.

JFC announced on Friday that its joint venture with Dim Sum Pte. Ltd. through its wholly owned subsidiary Golden Plate Pte. Ltd. has signed a unit franchise agreement with Tim Ho Wan Pte. Ltd. to operate a franchised store of the dim sum company in Shanghai.

“The Tim Ho Wan deal provides JFC with an excellent opportunity to operate and expand one of the known Michelin-starred dim sum restaurant chain brands,” the chicken giant said in a disclosure sent to the Philippine Stock Exchange.

But the chicken operator said it is not planning an aggressive expansion in the next three to five years.

“The JV is not expected to have an immediate material impact on the JFC Group’s sales, profitability and balance sheet as it is not planning for an aggressive expansion in 3 to 5 years,” JFC said.

“The first few years will be focused on developing and building the store model and economics,” it added. — Adam J. Ang

2Go cancels trips to and from Manila

SHIPPING and logistics provider 2Go Group, Inc. announced on Friday the cancellation of its voyages to and from Manila from March 15 in view of President Rodrigo R. Duterte’s “community quarantine” directive in Metro Manila.

“For now, voyages to and from Manila from March 15 are cancelled. We are monitoring government advisories on a daily basis and once clearance is provided, we will resume normal operations,” 2Go said in an advisory.

It said the cancellation advisory does not cover its freight and cargo services.

The company also cancelled its Cagayan de Oro-Manila and Cebu-Manila trips on Friday.

“As the resumption of sailings is reviewed day to day, we encourage all passengers with trips booked on cancelled sailings March 13 onwards to monitor our announcements on resumption of service and rebook tickets accordingly at any corporate ticketing outlet or where tickets were bought,” it said.

It said surcharges like rebooking fees and fare difference will be waived.

Mr. Duterte’s order came after the code alert system for coronavirus disease 2019 (COVID-19) in the Philippines was raised to Code Red Sublevel 2, which means that community transmission is already evident.

At least two local airlines have cancelled their domestic flights to and from Manila from March 15 to April 14.

Land travel to and from Metro Manila will also be suspended during the said period.

The measure is subject to daily monitoring and reassessment by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF).

The Trade department said the President’s directive does not cover the operations of businesses.

Goods are also free to move, according to Trade Secretary Ramon M. Lopez.

“To be clear, and to allay the fears and apprehension of the public, the government is essentially calling for a stricter implementation of preventive measures in order to slow down and put a halt to the further spread of COVID-19. While a total and absolute lockdown is considered by some as a valid preventive measure, current circumstances do not warrant such an extreme course of action,” Presidential Spokesperson Salvador S. Panelo said in a statement.

“While the Duterte Administration remains resolute in combating this disease, the Palace asks affected entities and individuals for their cooperation in properly observing the foregoing adopted measures,” he added. — Arjay L. Balinbin

SSS, GSIS directed to prop up PSE with more equities purchases

FINANCE Secretary Carlos G. Dominguez III said Friday that the state pension funds need to double their regular equities purchases to help prop up the stock market after sharp losses triggered trading halts Thursday.

In a Viber message yesterday, Mr. Dominguez told reporters he asked the Government Service Insurance System (GSIS) and the Social Security System (SSS) to double their daily average purchase volume, at the very least, in response to the market rout triggered by the coronavirus (Covid-19) outbreak.

“I have instructed GSIS and SSS to take advantage of the low stock prices as well as to support the stock market by at least doubling their daily average purchase volume of last year,” he said.

The Philippine Stock Exchange index (PSEi) fell 9.71% to 5,736.27 Thursday, its largest one-day drop since the 12.27% decline on Oct. 12, 2008, during the subprime mortgage crisis.

The PSEi dropped by as much as 10.33% intraday, which triggered the circuit breaker that halted trading for 15 minutes.

On Thursday, Mr. Dominguez said the government has “all the tools — medical, financial and monetary — to successfully handle this situation.”

Mr. Dominguez provided no estimates for the two pension funds’ equity positions.

Asked for details, the GSIS and SSS had not responded at deadline time. — Beatrice M. Laforga

Exporters call for gov’t aid to cushion impact of pandemic

THE Philippine Exporters Confederation, Inc. (PhilExport) said the the government needs to help businesses stay afloat during the coronavirus (Covid-19) outbreak and pitched a program of easier financing terms, tax breaks, and unemployment relief for workers.

“With no medical relief in sight to address the virus itself, we call on government’s assistance to help businesses, especially MSMEs (micro, small and medium enterprises), keep afloat through collateral-free loans, moratorium on loan and interest payments and tax breaks,” PhilExport President Sergio Ortiz-Luis Jr. said in a statement e-mailed to reporters on Friday.

He said PhilExport members have expressed their “very serious” concerns about the impact of the Covid-19 on their businesses.

Such concerns include late shipments, cancelled orders, and loss of buyers and suppliers, he said.

“These have resulted in higher cost of logistics and raw materials, as well as lower sales,” he added.

Mr. Ortiz-Luis said four exporters are now considering laying off workers.

“Assistance to displaced workers will be another welcome government intervention, with funds possibly coming from their local governments. Finally, it will be relevant and useful to divert or allot new funds to augment equipment, tools, medical personnel and facilities to support the response, recovery and rehabilitation phases of this crisis,” he added.

Most members, he said, are turning to the domestic market to compensate for lost business.

“There is clearly other work to be done. For example, it may not be the right time to look for raw material suppliers (other than those in China) considering the extensive coverage of the virus. But this is definitely a critical future step as we rebuild,” he said.

Because of the situation, the organization also postponed its 2nd Quarter General Membership Meeting set for April 14.

On Thursday, President Rodrigo R. Duterte announced that Metro Manila will be placed under the so-called “community quarantine” between March 15 and April 14 as confirmed Philippine cases of Covid-19 continue to rise.

The Trade department said the President’s directive does not cover business operations.

Goods are also free to move, according to Trade Secretary Ramon M. Lopez. — Arjay L. Balinbin

NCR residents warned against excessive food stockpiling

THE Department of Agriculture said Metro Manila’s population of around 14 million need not maintain more than their usual supplies of food as major commodities like rice are readily available.

Agriculture Secretary William D. Dar issued the advisory in a news conference after the government adopted a “community quarantine” policy for parts of the capital region affected by the coronavirus (Covid-19).

“Don’t stockpile too much food. There is enough food supply that you can buy during this time of health emergency,” Mr. Dar said.

Mr. Dar said the current rice inventory held by NFA warehouses nationwide is good for at least 80 days and will be further augmented by the current harvest, providing additional stock good for another two to three months.

He added that rice supply is more than enough to meet Metro Manila’s weekly demand of 26,241 metric tons (MT).

“Together with stocks (held by) the private sector and households, there is a 35-week rice supply, amounting to 929,358 MT, in Metro Manila that can last for at least nine months,” he said.

He said based on 2015 Philippine Statistics Authority (PSA) data, weekly demand in Metro Manila for vegetables and root crops was 5,000 MT, well below the expected weekly supply of 17,302 MT; for poultry and meat 7,934 MT, against supply of 11,074 MT;for fish 8,000 MT, against supply of 10,264 MT; for eggs 25 million pieces, against supply of 42.5 million pieces.

In addition, Mr. Dar said that the DA’s food resiliency action plan will help ensure equal distribution of goods.

The action plan will include the strategic positioning of basic food commodities around Metro Manila. The effort will be directed by Undersecretary Ariel T. Cayanan.

Mr. Dar said the entry of food products into Metro Manila will continue despite movement restrictions under the “community quarantine” scheme, adding that supplies will continue to come in as usual.

“All vehicles carrying agricultural goods, regardless of volume, will pass without interference,” Mr. Dar added.

However, Mr. Dar said that adjustments may be needed if the situation worsens, including special lanes for vehicles carrying agricultural goods.

Typical precautionary measures will be implemented on drivers carrying produce to Metro Manila such as temperature check.

Suggested retail prices (SRPs) for basic commodities will remain in force, he said. — Revin Mikhael D. Ochave

NEA collects P2.3-B in loan payments from co-ops in 2019

THE National Electrification Administration (NEA) said loan payments from electric cooperatives (ECs) in 2019 totaled P2.297 billion, beating the target by 15% and exceeding the 2018 total of P2.263 billion.

It said the result was propped up by some prepayment activity by ECs.

“The early payment of outstanding loans by some ECs amounting to P94.35 million and increase in advance payment made by ECs of P283 million contributed to the attainment of high collection efficiency,” NEA Finance Services Department Acting Director Milagros Robles said in a statement.

It said the largest payments were received from Occidental Mindoro Electric Cooperative, Inc. (OMECO), Nueva Ecija II Electric Cooperative, Inc. — Area 2 (NEECO II — Area 2), Misamis Oriental II Rural Electric Cooperative, Inc. (MORESCO II), Central Pangasinan Electric Cooperative, Inc. (CENPELCO), and First Laguna Electric Cooperative, Inc. (FLECO).

NEA is responsible for the electrification of rural communities, regulating 121 ECs.

Its lending programs include stand-by credit and short-term loans, which aid them in settling accounts.

The agency also offers 10-year calamity loans at 3.25% annual interest.

In February, the agency provided a total of P51.596 million in calamity loans to six power cooperatives in the MiMaRoPa, Bicol and Eastern Visayas regions to aid the rehabilitation of their distribution systems after typhoon Tisoy in December.

The agency estimated a P911.668-million-worth of damage and losses to 27 ECs in Luzon and Visayas resulting from the typhoon. — Adam J. Ang

Peso deemed among most resilient currencies in Asia — DoF

THE peso was among the more resilient currencies in Asia amid rising uncertainty and volatility in global financial markets, the Department of Finance (DoF) said.

In an economic bulletin posted Friday, Undersecretary and DoF Chief Economist Gil S. Beltran said the peso’s year-to-date performance made it among the currencies in the region that “maintained their value against the dollar.”

As of March 10, the peso strengthened by 0.28% against the dollar, putting it behind only the yen, Hong Kong dollar and renminbi, which gained 4.27%, 1.82% and 0.33% against the dollar, respectively.

“Despite the volatilities in the global economy, made more uncertain by the spread of Covid-19, the collapse of global stock markets and trade restrictions imposed on each other by the world’s top trading economies, the Philippine peso remained firm,” according to the bulletin.

Other currencies depreciated against the dollar including those of India, Singapore, South Korea, Thailand, Vietnam, Indonesia and Taiwan.

“The peso-dollar exchange rate also remains stable throughout the period. Its coefficient of variation at 0.27%, ranked 2nd behind the Vietnamese dong among 12 regional currencies and lower than the 1.19% Asian average,” it said.

Mr. Beltran attributed peso’s “growing strength and stability” to the country’s balance of payments position (BoP) and increasing gross international reserves (GIR) boosting confidence in the currency.

“Strong macroeconomic fundamentals support the country’s financial position. Manageable budget deficits and prompt adjustment of monetary settings in response to current developments help maintain investor confidence,” it said.

The BoP was in surplus by $7.843-billion in 2019, the largest since the $9.236 billion posted in 2012.

Meanwhile, GIR totaled $87.84 billion at the end of 2019, equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.

“Strong foreign exchange inflows from exports of services, remittances, income from investments abroad, direct foreign investments and foreign borrowing all contributed to the strong BoP position. These in turn boosted the confidence in the Philippine peso,” according to the economic bulletin. — Beatrice M. Laforga

Peso weakens but comes off lows after stocks rebound

THE peso weakened against the dollar Friday as the market absorbed news of the further spread of coronavirus disease (Covid-19) in the Philippines, but came off its lows after a stock market rebound.

The currency ended trading at P51.03 Friday, following a P50.85 close Thursday, according to data from the Bankers’ Association of the Philippines.

Week-on-week, the peso declined from its March 6 close of P50.64.

The currency opened the session at P51.25., hitting a low of P51.31 and a high of P50.85.

Dollar volumes rose to $1.416 billion from $1.375 billion Thursday.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said that the currency’s decline came on the back of an increase in domestic Covid-19 infections.

“The peso was holding up early part of the week until yesterday morning when it was clear that local transmission of Covid-19 in Metro Manila is escalating,” he said in a text message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the peso close on Friday was weakest in more than two weeks.

The drop came a few hours after the announcement of the community quarantine declaration for Metro Manila “as this could lead to slower economic growth and some stockpiling by households,” Mr. Ricafort said in a text message.

Mr. Ricafort also noted that the peso recovered from its intraday weakest of P51.31 reflecting the positive turnaround in the local stock market.

The Philippine Stock Exchange rose 57.67 points or 1% to 5,793.94 after falling 9.71% Thursday, the biggest decline in 12 years at the height of the subprime mortgage crisis.

President Rodrigo R. Duterte imposed one month of movement restrictions into and out of Metro Manila on Thursday to prevent the further spread of the virus. The restrictions cover domestic land, sea, and air travel to and from the National Capital Region starting March 15.

The Department of Health has registered 52 Covid-19 patients as Thursday, with two deaths reported. — Luz Wendy T. Noble

Ricoh Philippines: Celebrating 20 years, three loves, one growing company

Ricoh Philippines, Inc., the local subsidiary of leading global manufacturer of office automation equipment Ricoh Company, Ltd., recently marked its 20th anniversary in the country with the theme of “Prominence”, which expressed the Company’s appreciation for its hardworking employees and loyal partners through the years.

Guided by “the spirit of three loves”–love your neighbor, love your work, and love country–principles formulated by founder Kiyoshi Ichimura that steers how it conducts business around the world, Ricoh Philippines is stronger than ever, growing its operations as the country’s exclusive distributor of multifunction devices (MFD), printers, production printers such as Direct-To-Garment (DTG) machines, and visual communications software solutions including complete after-sales support.

Ricoh (Philippines), Inc. President and CEO Frederic Sulit is shown acknowledging their partners during his opening remarks.

“Our employees and partners have empowered our Company to go from strength to strength,” Frederic Sulit, President and CEO of Ricoh Philippines, said. “We’re further emboldened by their continued support to face even more challenges which we will turn into opportunities to serve the country through various innovative solutions.”

Shown are Ricoh (Philippines), Inc. past and current leaders (l-r) Eileen Michaela Gallardo, RPH CFO, Cecil Bien Sebastian, Frederic Sulit, RPH President and CEO, and Manuel S. Peralta with RPH Milestone awardees.

Directly reporting to Ricoh Asia Pacific Pte. Ltd, which is based in Singapore and is exclusively owned by Ricoh Company, Ltd, Japan, Ricoh Philippines shares its parent company’s commitment to not only supply but also use the most advanced innovations in the markets it operates in and to invest in practices that promote sustainability.

“Our future lies in being able to use our core strengths to address key issues in our society as our parent company has adopted eight of the United Nations Sustainable Development Goals to create a sustainable economy, a sustainable society, and a sustainable environment,” Sulit said.

Officials of Ricoh Philippines are shown receiving the Award of Appreciation from the Philippine Center for Print Excellence Foundation.

To create a sustainable economy, Ricoh Philippines will provide products and services to its customers that will help improve productivity and eliminate waste.

To create a sustainable society, Ricoh will increase investment in CSR activities as well as in internal health and wellness programs for employees, which will further encourage pursuing a healthier lifestyle.

With its technologies, Ricoh aims to improve the overall quality of life and help customers produce only what they need when they need it to create a sustainable environment.

Sulit believes “Ricoh’s business is not only about being profitable, but also about being relevant.”

Shown celebrating Ricoh’s 20th Anniversary are (l-r) Hannah Castillo, Ricoh (Philippines), Inc. Product Management Head; Eileen Michaela Gallardo, RPH CFO; Frederic Sulit, RPH President and CEO; Irene Santos, RPH General Manager for Sales Division, and Orly Closa, RPH General Manager for Customer Service Division.

PSEi’s 9.71% decline marks its biggest one-day percentage drop since 2008

THE STOCK MARKET on Thursday plunged nearly 10% to its lowest since 2012 as investors headed for the exit amid deepening fears over the coronavirus disease 2019 (COVID-19) outbreak. Read the full story.

PSEi’s 9.71% decline marks its biggest one-day percentage drop since 2008

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