Senate to meet with Executive on legislative agenda

February 14, 2020 | 6:49 pm

PALACE and Finance officials will separately meet with Senate leaders next week to discuss President Rodrigo R. Duterte’s legislative agenda, Finance Secretary Carlos G. Dominguez III said on Friday.

This comes after Senate President Vicente C. Sotto III said the chamber won’t be able to pass a bill that seeks to lower corporate income tax and rationalize tax incentives by March.

Senate leaders will meet with Palace officials on Monday, to be followed by a meeting with Finance officials two days later, Mr. Dominguez told reporters in a Viber message.

He said he remained hopeful that the Senate would approve the measure before Congress takes a seven-week Holy Week break.

Mr. Sotto earlier cited the intricacies in the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) and Passive Income and Financial Intermediary Taxation Act (PIFITA).

Mr. Dominguez last week said the bill seeking to lower corporate income tax would rationalize the government’s “tangled” tax incentive scheme, which has forced it to forego hundreds of billions of pesos in revenue.

Also referred to as the second package of the Comprehensive Tax Reform Program (CTRP), it is one of Mr. Duterte’s priority measures.

Aside from the P441 billion pesos the government “gave away as tax discounts,” some companies that avail themselves of fiscal perks cheat the state by abusing transfer pricing rules or by shifting profits and costs to cut tax liabilities. The latter costs the government about P504 billion in a year, he said.

Senators are still discussing the bill. The House of Representatives approved a counterpart measure in September last year.

The Finance department wants the remaining tax measures under the tax reform program to be approved before the campaign season for the 2022 presidential and general elections kicks in.

All of the remaining bills under the tax reform program are still at the committee level, Mr. Sotto said in a mobile-phone message, adding that he could not guarantee their approval on time.

The passive income bill, which will simplify the tax structure by halving the 80 combinations of tax base and rates on passive income and financial transactions, is pending at the Senate committee level.

“The complicated tax structure makes tax administration and compliance difficult and costly for both government and the private sector,” Mr. Dominguez said in his speech last week.

Other pending tax reform bills include one that seeks to simplify real property valuation and assessment and another that will raise the government’s share in mining revenue.

Mr. Dominguez said the remaining tax packages will “help produce a more business-friendly environment.”

“While we await the passage into law of these remaining tax reform packages, we continue to implement measures that will reinvigorate our capital markets, boost investor confidence and enhance financial inclusion,” he said. — Beatrice M. Laforga

Court orders arrest of ex-Senator Trillanes

February 14, 2020 | 6:48 pm

A QUEZON City court has ordered the arrest of a former senator critical of President Rodrigo R. Duterte after he was indicted for inciting to sedition last month.

Former Senator Antonio F. Trillanes IV and 10 co-accused may post a P10,000 bail, according to the Metropolitan trial court.

The Justice department last month indicted Mr. Trillanes along with 10 other people including for allegedly circulating a series of videos accusing President Rodrigo R. Duterte and his family of being in the illegal drug trade.

It dismissed the sedition, inciting to sedition, cyberlibel, libel, estafa and obstruction of justice complaint against all 31 respondents, including Mr. Trillanes, Vice President Maria Leonor G. Robredo, detained Senator Leila M. De Lima, former Senator Paolo Benigno A. Aquino IV, and other opposition candidates during the midterm elections.

Human Rights Watch earlier said authorities should drop the “preposterous complaint” against opposition politicians, religious leaders and human rights advocates.

It said the case was a “transparent attempt to harass and silence critics” of Mr. Duterte’s bloody drug war. — Vann Marlo M. Villegas

Taal alert level lowered further

February 14, 2020 | 6:48 pm

STATE volcanologists lowered Taal Volcano’s alert status to level 2 on Friday, citing “diminished plume activity.”

The lower status does not mean “unrest has ceased or that the threat of an eruption has disappeared,” the The Philippine Institute of Volcanology and Seismology said on its website.

Residents in high-risk areas must be prepared for a quick and organized evacuation in case the volcano acts up again, the agency said.

Taal’s alert status reached the second-highest level at No. 4 last month as state volcanologists warned of an impending hazardous eruption.

It was lowered to level 3 on Jan. 26

More than 151,000 families in Batangas, Quezon, Laguna, and Cavite provinces were affected by Taal Volcano’s eruption starting on Jan. 12, the local disaster agency said in a 6 a.m. report on Friday.

About 3,000 families were taking temporary shelter in 76 evacuation centers, while 53,826 were staying outside, it said.

The volcano emitted a giant ash plume that covered many cities near the capital, forcing financial markets to suspend trading and the Manila airport to close. — Genshen L. Espedido

Former chief justice named GSIS chairman

February 14, 2020 | 6:47 pm

PRESIDENT Rodrigo R. Duterte appointed retired Chief Justice Lucas P. Bersamin as chairman of the Government Service Insurance System (GSIS).

Mr. Duterte approved Mr. Bersamin’s nomination by the state pension fund’s board. The former magistrate will replace Rolando L. Macasaet.

Mr. Bersamin will also replace former GSIS President and General Manager Jesus Clint O. Aranas as a member of the Board of Trustees. Mr. Aranas resigned in July.

The former chief justice will serve the unexpired term of Mr. Aranas until June 30.

“We are confident that Mr. Bersamin would serve the GSIS with the same dedication and integrity he demonstrated in his many years of government service,” presidential spokesman Salvador S. Panelo said in a statement. — Vann Marlo M. Villegas

MacroAsia and Chinese partner bag Sangley airport project

February 14, 2020 | 6:47 pm

THE provincial government of Cavite has awarded the P208.5-billion contract to develop Sangley airport to the listed holding firm of businessman Lucio C. Tan and its Chinese partner.

In a disclosure to the stock exchange on Friday, Mr. Tan’s MacroAsia Corp. said it had received on Feb. 14 the notice of selection and award for the Sangley Point International Airport project.

MacroAsia has teamed up with China Communications Construction Co. Ltd. for the contract covering the development and implementation of the first phase of the airport.

It said the Public-Private Partnership Center’s selection committee acted favorably on Feb. 11, 2020 upon the recommendation of the Cavite provincial government, which chose the Tan-led consortium as its joint venture partner for the project’s first phase.

It said the initial phase will have a project cost of approximately P208.5 billion.

MacroAsia said it would take 12 to 18 months, from the signing of the joint venture development agreement, for the tandem to finish the detailed engineering design.

Before it was repurposed for general aviation, Sangley was formerly known as Danilo Atienza Air Base. Its location on Sangley Point, a narrow peninsula which served as a naval facility during the Spanish occupation, is surrounded by navigable waters that require extensive reclamation.

Cavite’s government and its joint venture partner plan to develop a bigger airport out of the existing small airport.

The proposed airport will have four runways — or double the two runways of the Ninoy Aquino International Airport — and a terminal that can handle 100 million passengers annually.

Last month, Cavite Governor Juanito Victor C. Remulla said the local government was looking at Feb. 15 to start the project and that it was scheduled to make an announcement.

He said the airport would be operational by 2023, and the fourth runway to be opened after six years.

On Friday, shares in MacroAsia jumped P1.15 or 11.56% to close at P11.10 each. — Arjay L. Balinbin

Ayala Land income up 13% in 2019

February 14, 2020 | 6:47 pm

AYALA LAND, Inc. (ALI) reported a 13% increase in net income last year to P33.2 billion after a single-digit growth in revenues that was driven by sales of office, commercial and industrial lots, the listed property company said on Friday.

The double-digit profit growth comes even as revenues grew by just 2% to P168.8 billion. The company has yet to report figures for the fourth quarter alone.

In its disclosure to the stock exchange, ALI said sales were supported by higher contributions from new leasing formats. It said property development revenues reached P117.6 billion, without giving a comparative number.

“We continue to serve new areas in the country and reach out to a broader market with more affordable products. This is in line with our mission to enrich the lives of more Filipinos. Furthermore, we continue to invest in all our existing estates which help spur economic activity in their respective localities,” said Bernard Vincent O. Dy, ALI president and chief executive officer, in a statement.

Sales reservations during the year hit P145.9 billion, up 3% compared with the figure a year ago as ALI’s Alveo and Avida brands recorded reservation growth.

Commercial leasing revenues rose 13% to P39.3 billion, driven by newly opened malls, offices and hotels.

Shopping center revenues rose by 11% to P22 billion after the increased contributions from Ayala Malls Feliz, Capitol Central and Circuit Makati.

In 2019, ALI opened three shopping centers with a total gross leasable area of 213,000 square meters, bringing its mall footprint to 2.12 million square meters.

Office revenues grew by 12% to P9.7 billion with the improved performance of ALI’s office assets in Ayala North Exchange, Vertis North, and Circuit Makati. Office gross leasable area hit 1.17 million square meters after the completion of Ayala North Exchange BPO Tower, Manila Bay BPO Tower and Central Bloc Corporate Center 1 in Cebu.

Revenues from hotels and resorts increased by 19% to P7.6 billion, with Seda Ayala Center Cebu and Seda Lio recording strong patronage. Up to 797 rooms were opened to this year to bring ALI’s total hotel and resort rooms to 3,705.

ALI’s performance last year was marked by the second straight year that it exceeded its target P100-billion capital expenditure (capex) with the continued investment in new mixed-use developments across the country. Capex last year hit P109 billion equivalent to 64% of gross revenues.

Last year, ALI launched P158.9 billion worth of property development projects and P15.1 billion in malls, offices, and hotels resorts with its continued thrust to build sustainable, integrated, mixed-use communities across the country.

“The company also continues to extend its reach to serve the broader housing market. Its Avida, Amaia and Bellavita residential brands delivered 11,476 units in 2019 and have, over the last five years, increased its delivered units by 28% year on year,” it said.

The company’s major launches last year include Cresendo in Tarlac, which is its 29^th estate to date.

ALI invested P18 billion to develop the 290-hectare “new downtown” in Tarlac, which is three kilometers from the Subic-Clark-Tarlac Expressway and MacArthur Highway. It said a 32-hectare industrial park for light to medium industries, and a commercial row of shophouses are poised to jumpstart local business and employment in the area.

The company also launched the 120-hectare Broadfield, which was planned as a new commercial and industrial district in Biñan, Laguna.

“Seeing potential in enhancing fully built-up areas with smaller community hubs, ALI also introduced The Junction Place, an 11-hectare pocket urban development located in the Novaliches-Quezon City area,” it said.

This year, ALI through its real estate investment trust (REIT) vehicle AREIT, Inc. became the first Philippine company to file for listing at the Securities and Exchange Commission.

The filing on Feb. 7, 2020 “reflects the company’s commitment to provide Filipinos with options to invest in high-quality, income-generating assets,” it said.

“ALI’s initiative to establish the first REIT reflects its confidence in the local economy, and with it hopes to pave the way for the development of a healthy and sustainable REIT market in the country,” it added.

On Friday, shares in ALI traded lower by P1.80 or 4.2% to close at P41.10 each. — Victor V. Saulon

Vivant ventures into sewerage project in Palawan

February 14, 2020 | 6:47 pm

A UNIT of Vivant Corp. has acquired a 45% stake in a company that is jointly developing with a local government a combined sewerage and septage facility for Puerto Princesa City in Palawan province.

In a disclosure to the stock exchange on Friday, Vivant said it was notified by wholly owned subsidiary Vivant Infracore Holdings, Inc. of the acquisition by Vivant Hydrocore Holdings Inc. of the equity interest in Faith Lived Out Visions 2 Ventures Holdings, Inc., or FLOWs.

“The transaction will result in Vivant ultimately owning 40% in Puerto Princesa Water Reclamation and Learning Center, Inc., the joint venture company of the City of Puerto Princesa and FLOWs,” it said.

Vivant also said that the value of the transaction is less than a percent of its stockholders’ equity.

The disclosure comes after the listed company earlier this week disclosed the signing of a 15-megawatt (MW) power supply agreement between the Bantayan Electric Cooperative, Inc. (Banelco) and Isla Norte Energy Corp.

Isla Norte is a consortium of Vivant Energy Corp., its wholly owned subsidiary Vivant Integrated Diesel Corp. and Gigawatt Power, Inc., with the Vivant group owning 65% total equity.

Under the agreement, Isla Norte will install a 23.31-MW diesel-fired power plant in the town of Bantayan, a popular tourist destination in northern Cebu.

Vivant Integrated Diesel is a wholly owned subsidiary of Vivant Energy, which manages the investments of publicly listed Vivant Corp. in the energy sector. — Victor V. Saulon

Sta. Lucia board approves joint ventures, land purchases

February 14, 2020 | 6:47 pm

STA. LUCIA LAND, Inc. said on Friday that its board of directors had approved three joint venture projects to develop areas in Luzon and the acquisition of 10 parcels of land, including two in Mindanao.

It told the stock exchange that the meeting held on Feb. 13 included resolutions approving the renewal and increase of the corporation’s credit line with China Bank Corp. of up to P2 billion.

The board also approved the borrowing of up to P2 billion from Sta. Lucia Realty & Development, Inc. The terms of the borrowing were reported to, and approved by, the related party transactions committee of the listed company.

Sta. Lucia identified parcels of land for acquisition in Luzon as located in the following areas: Palawan with a total area of 387,576 square meters (sq.m.); Batangas with 68,690 sq.m.; Bataan with 82,916 sq.m.; Laguna with 707,530 sq.m.; Pangasinan with 6,282 sq.m.; Rizal with 447,790 sq.m.; and Bulacan with 10,620 sq.m.

The two parcels of land for acquisition in Mindanao are in Surigao del Norte with an area of 65,409 sq.m., and in Davao City with an area of 50,000 sq.m. One area is targeted in Iloilo with an area of 38,745 sq.m.

The joint ventures involve the following: development of projects located in Rizal with a total area of 122,787 sq.m.; Bataan with an area of 377,043 sq.m.; and Pangasinan with an area of 218,545 sq.m.

Sta. Lucia’s board also approved resolutions authorizing the company to open accounts with BDO Unibank, Inc.

The board also approved resolutions approving the appraisal made by Colliers International Philippines of the company’s assets as of June 30, 2019.

On Friday, shares in Sta. Lucia rose by P0.02 or 0.80% to close at P2.53 each. — Victor V. Saulon

Cayetano says House to be “objective” on ABS-CBN franchise

February 14, 2020 | 6:47 pm

LAWMAKERS are open to any mode of scrutiny to make their judgment on the legislative franchise of media company ABS-CBN Corp. “more objective,” said House Speaker Alan Peter S. Cayetano on Friday.

“Congress is open to any kind of mechanics to make our judgment more objective. You wanna get a panel of experts aside from the congressmen to join the hearing? Okay ako ‘dun (I’m fine with that),,” he told reporters.

“But the timing and the way we’re going to do the hearings is very important,” he said.

Mr. Cayetano said the case was “not that urgent” because ABS-CBN could still operate until March 2022 when the 18^th Congress ends, as long as there is a pending bill for its franchise renewal.

He said the House of Representatives cannot immediately hold a hearing on the network’s franchise because “it will suck all the energy of the 18^th Congress.”

“Kung tayo mag-hearing ngayon, alam mo, sasabihin ko sa inyo kung ano mangyayari: it will suck all the energy of the 18^th Congress. Halos lahat ng miyembro, maga-attend. Mapapabayaan ang ibang mga importante,” he said.

(If we will hold a hearing now, what will happen is, it will suck all the energy of the 18^th Congress. All the members will attend. Other important matters will be set aside.)

The House Speaker urged those opposing the renewal of the media company’s franchise to submit evidence to the House committee on legislative franchises. He said the move would allow their submissions to be forwarded to ABS-CBN for it to respond.

“That’s the way our democracy works — welcome the issues against ABS-CBN, but also welcome their reply, so that we can finally get somewhere with all of these,” he said.

Asked when the chamber will conduct a hearing, he said, “when the time comes but definitely before March 2022. Possibly in May if we have time and if we have cooler heads on all the issues. Worst case, after SONA (State of the Nation Address in July).”

Separately, ABS-CBN told the stock exchange on Friday that it had received the notice from the Supreme Court requiring it to file, within a non-extendible period of 10 days, a comment on the petition for quo warranto and temporary restraining order or writ of preliminary injunction, filed by the Office of the Solicitor General.

“We will comply with the Notice of the Supreme Court,” it said. — Genshen L. Espedido

STI Holdings income up 10%

February 14, 2020 | 6:46 pm

STI Education Systems Holdings, Inc. reported a third-quarter net income of P152.6 million, up 10% compared with what it earned in the same period a year earlier.

In a disclosure to the stock exchange, the listed company that owns one of the largest private school networks in the country, said revenues for the three-month period ending Dec. 31, 2019 rose by 5% to P813.2 million.

“The increase was due to the improvement in the mix of students enrolled. A total of 55% or 45,902 of the group’s 83,967 total student population are enrolled in programs regulated by the Commission on Higher Education (CHED). Last school year’s percentage of students enrolled in CHED programs was at 50%,” it said.

The holding firm’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 13.4% to P377 million while EBITDA margin grew to 46% from 43% in the same period a year earlier.

STI Holdings said operating income during the period increased by 5% to P187.3 million.

“As the company’s line of business is in education, STI Holdings’ fiscal year begins in April and ends in March of the following year, which is aligned with the schools’ academic calendars. For school year 2019-2020, though, the opening of classes was moved to July from June,” it said.

The firm has three subsidiaries involved in education, namely: STI Education Services Group (STI ESG), STI WNU, and iACADEMY.

STI ESG’s network totals to 76 schools, with 38 owned schools and 38 franchised schools comprised of 69 colleges and seven education centers.

Founded on Feb. 14, 1948, STI WNU was granted its university status by CHED on Feb. 11, 2008. STI WNU’s campus sits on a 3.1-hectare property in Bacolod City.

iACADEMY is the premier school in the group that has senior high school and college programs focused on computing, business, and design.

On Friday, shares in STI Holdings slipped by 1.72% to close at P0.57 each. — Victor V. Saulon

Local shares down 1.6% as virus spooks investors

February 14, 2020 | 6:44 pm

By Marissa Mae M. Ramos, Researcher

THE main index edged lower on Friday as investors continue to worry over the coronavirus disease 2019 (COVID-19) outbreak.

The benchmark Philippine Stock Exchange index (PSEi) lost 121.12 points or 1.63% to close at 7,282.00 on Friday with the broader all shares index also dropping 38.13 points or 0.87% to 4,319.11.

“Market continues to be in light volumes after a number of bonds and preferred share were offered past months. Also, the COVID-19 has made the volatility in the market that creates uncertainties in the investment surroundings at this time,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

Manuel Antonio G. Lisbona, president of PNB Securities, Inc., said the “dramatic 10-fold spike in new cases of the COVID-19 virus in China has spooked a lot of investors.”

“Investors are becoming more concerned that the virus will cause the global economy to slow down. Declines in air travel/tourism and global manufacturing and supply chains have already been observed and investors are extrapolating these into other sectors,” Mr. Lisbona said in an email.

“Concerns are also rising that China could be understating its numbers so as not to induce panic or increase discrimination against its citizens outside their borders,” he added.

China, the center of the new coronavirus, confirmed around 15,000 new cases with a few hundred additional deaths this week after adopting a new diagnosis methodology for the COVID-19, CNBC reported on Thursday.

Data from the World Health Organization showed that as of Feb.12, China’s death toll was at 1,114 with a total of 44,730 confirmed cases.

At home, Tourism Secretary Bernadette Fatima T. Romulo-Puyat said that the country’s tourism sector could lose up to P42.9 billion from February until April as travelers are expected to cancel scheduled flights and postpone events amid the virus scare.

At the trading floor, a total of 888.41 million issues worth P6.45 billion were exchanged on Friday, down from the previous day’s 978.23 million issues valued at P4.77 billion.

All sectoral indices ended lower. Industrials lost 95.04 points or 1.05% to 8,936.64; holding firms gave up 77.96 points or 1.09% to 7,051.97; property dropped 66.61 points or 1.66% to 3,928.65; mining and oil shed 44.21 points or 0.62% to 7,058.64; financials fell 25.12 points or 1.42% to 1,738.95; and services slipped 14.40 points or 0.99% to end the trading session at 1,440.30.

Advancers edged decliners, 100 against 82, with 44 listed names left unchanged.

Offshore investors continued to be sellers with net foreign outflows ending at P864.82 million, higher than Thursday’s P528.74 million.

Insurtech firm Saphron launches new “heartbreak insurance” product

February 14, 2020 | 5:57 pm

In perhaps one of the more innovative product launches in the insurance market today, local insurtech startup Saphron today offers “heartbreak insurance” aimed at ensuring that your next breakup has at least a little silver lining (in this case, a one-night hotel stay to nurse yourself back together).

MONA, or “Move On NA”, is reportedly the first-ever heartbreak insurance product to hit the local market. It only costs P300 and assures one that, in case life gets in the way of love, the insured has a staycation waiting for them at any one of Saphron’s partner hotels.

Backed by Pioneer Insurance, MONA is actually a form of Events Cancellation Insurance, which secures a predetermined benefit for the insured if a similarly predetermined event is cancelled. Saphron says this product is designed to be attached to anniversary celebrations, weddings, and the like.

“In case your planned wedding or any relationship anniversary celebration gets cancelled because of a breakup, a critical illness, a cancelled flight, or any of our covered event cancellation causes, we intend to give you that break from heartbreak, with a one-night stay at one of our partner hotels nearest your locality,” the company shared.

Saphron is one of a number of startups under Talino Venture Labs, a venture builder focusing on inclusive and innovative enterprises.

You can find out more about Saphron’s new product MONA here.