DAVAO CITY — Government-owned Small Business Corporation (SBC), a merger of the Small Business Guarantee and Finance Corporation and the Guarantee Fund for Small and Medium Enterprises, is looking at cacao producers as possible partners for a planned venture capital in the industry.
US President Barack Obama and Philippine President Rodrigo Duterte. AP FILE PHOTO THE PHILIPPINES needs the United States as a counter balance in the South China Sea, where it remains locked in a territorial dispute with China, President Duterte said on Tuesday. Mr. Duterte made the statement in the course of explaining his earlier remark that he might later ask US Special Forces to leave Mindanao to pave the way for talks with Muslim rebels, who have historical grievances from abuses suffered at the hands of the Americans. “I never said get out of the Philippines, for after all, we need them there in the China Sea. We don’t have armaments,” President Duterte said. He added that the Philippines was not ready to go to war with China, and he would not want it, because it would be a “massacre.” The Permanent Court of Arbitration, acting on the Philippines’ complaint, earlier invalidated Beijing’s claim to almost the whole of the South China Sea. China has refused to recognize the ruling. The President is seeking bilateral talks with China over the issue, and has said that he would insist that discussions between the two countries be based on the decision. Mr. Duterte however insisted that the Americans continue to look down on the Philippines. “I really do not know what’s wrong with these Americans. They look at us as if we’re lowly,” he said. He repeated his earlier lament over the FA-50 jets the country had acquired, which he said did Read More …
MANILA, Philippines – The Energy Regulatory Commission (ERC) has cleared the construction of a critical substation which would connect incoming power plants in Quezon province with a total capacity of 2,720 megawatts (MW) to the Luzon grid. The power regulator approved the petition of the National Grid Corp. of the Philippines (NGCP) to construct the Pagbilao EHV Substation aimed to address the overloading of the Tayabas 500/230 kv transformers and the fault level issue at Tayabas 230 kv Substation. Estimated to cost P3.6 billion, the facility will connect four incoming new capacities to the Luzon grid, namely the 420-MW Pagbilao Coal-Fired Power Plant (CFPP) expansion, the 500-MW San Buenaventura Power Ltd. Co. (SBPL), the 3×200-MW Energy World Liquefied Natural Gas (LNG) Power Plant and the 1,200-MW Atimonan Coal-Fired Power Plant. ERC chairman and CEO Jose Vicente Salazar said the Pagbilao EHV Substation will be beneficial in terms of ensuring the quality, reliability and integrity of the Luzon Grid. “The approval of the NGCP’s Pagbilao EHV Substation will enable it to adequately serve the needs and demands of generation companies, distribution utilities and suppliers requiring transmission service and ancillary services through the transmission system,” he said. The ERC said the project shall be subject to optimization based on its actual need and/or implementation under the performance based rate (PBR) system to determine the extent of the value that will be included in the rate base of NGCP. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The power regulator also directed Read More …
The divestment comes four years after Ayala and Ho Chi Minh agreed to jointly invest in Vinaphil, a corporation established under Vietnam law to invest in infrastructure projects in Vietnam. MANILA, Philippines – Ayala Corp., the country’s oldest conglomerate, has approved the divestment of its 100 percent interest in Vinaphil Technical Infrastructure Investment JSC. The company said its board of directors approved the sale of its entire stake in Vinaphil to Ho Chi Minh City Infrastructure Investment JSC. The divestment comes four years after Ayala and Ho Chi Minh agreed to jointly invest in Vinaphil, a corporation established under Vietnam law to invest in infrastructure projects in Vietnam. No immediate reason was given for the divestment. During yesterday’s meeting, Ayala’s board also approved the creation of a new subsidiary, HCX Technology Partners Inc., for the acquisition of the human resource outsourcing assets from HR Mall Inc. HR Mall provides strategic value for the Ayala Group’s HR requirements. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The board likewise ratified the appointment of former Cabinet Secretary Jose Rene Almendras as president and CEO of AC Infrastructure Holdings Corp. and managing director of Ayala Corp. Almendras replaced John Eric Francia who continues to serve as president and CEO of AC Energy Holdings Inc. and a member of Ayala’s management committee. He served as Energy secretary and Secretary to the Cabinet of the Aquino administration. Francia’s appointment as full-time CEO of the company’s energy unit was in line with the group’s efforts Read More …
MANILA, Philippines – Only about two months in office, Bureau of Internal Revenue (BIR) Commissioner Caesar Dulay has gone on leave for medical reasons, but is expected to return to work later this month. This was bared during the House ways and means committee hearing yesterday tackling re-filed tax reform bills. “May I ask where is the commissioner?” Nueva Ecija Rep. Estrellita Suansing told BIR officials present at the hearing. In response, deputy commissioner Nestor Valeroso said: “He is currently on medical leave, but we understand he will return by the end of the month.” “He underwent an operation, but he is already recuperating,” he added. Suansing called the committee’s attention on Dulay’s apparent persistent absence at congressional hearings, which started at last week’s organizational committee meeting. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Dulay was last present at the briefing of the Development and Budget Coordinating Committee at the Senate two weeks ago. Asked later on what prompted the BIR chief to go on leave, Valeroso first declined to say what he characterized as “personal matter” before he admitted Dulay underwent a hip operation.” Aside from Valeroso, who was appointed officer-in-charge, Dulay was represented by deputy commissioners Jesus Clint Aranas, Celia King and Lanee David in yesterday’s hearing. During the hearing, BIR and its mother agency, the Department of Finance, were asked how they intend to run after self-employed and professionals which only account for 14 percent of total revenues. The figure has consistently gone down from Read More …
MANILA, Philippines – The local equities market needs stronger support from domestic investors, particularly in retail and institutional, to help cushion the impact of sharp swings during volatile times, according to BPI Capital Corp. During the Annual Private Equity & Venture Forum recently, BPI Capital co-head for investment banking Reginaldo Cariaso said the Philippine equity market was still dominated by foreign institutions, making it vulnerable when foreign funds come and go. “The market dries up when foreign funds go,” he said. At present, more than 50 percent of the liquidity in the market comes from foreign investors. “Majority of the liquidity is really foreign driven. It’s more than 50 percent so when foreign fund flows out, it has a big impact on the overall liquidity of the market,” Cariaso said. Cariaso said that while foreign funds were necessary to keep the market healthy, the ideal situation would be for domestic investors to account for a bigger share. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “What we should strive for is to really have a market that is strongly supported by the domestic market, both retail and institutional. It’s not to say we don’t want the foreign markets to be there in fact we need them but I want the domestic market to grow much bigger and faster than the foreign markets,” he explained. A situation like this would pave the way for a market that is more conducive to investment deals. “It allows deals to be done even Read More …
MANILA, Philippines – Despite widespread public support, the Philippine Chamber of Commerce and Industry (PCCI) and the Management Association of the Philippines (MAP) yesterday expressed some reservations on the Duterte administration’s tax reform plan. “It is a non-issue that we need to do a (tax) re-bracketing, but aside from addressing equity and progressivity, tax laws should also be simple, equitable and efficient,” MAP governor Benedicta Du-Balalad said. “I don’t see that yet,” she told the House ways and means committee hearing tax bills. Du-Balalad cited difficult taxing mechanisms on fringe benefit taxes on corporations as well as those on micro, small- and medium-enterprises (MSMEs), which she said could be “lumped all as compensation.” Under the National Internal Revenue Code, fringe benefits such as housing, vacation expenses, life and health insurance are charged a separate 32 percent on their gross monetary value. Concerns were also expressed on “discrepancies” on data used to gauge the number of those employed by MSMEs. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Bureau of Internal Revenue and the Department of Labor and Employment have different figures. Du-Balalad, also speaking for the PCCI, also said tax evasion is a possibility once a higher 35-percent tax rate is imposed on “ultra rich” individuals. The plan, which will be part of the first of the four package of reforms, will be slapped on those earning more than P5 million annually. Currently, the highest rate of 32 percent is charged against those getting above P500,000. “The profile Read More …
Much of what is making the current political situation seemingly volatile can be described as self inflicted. We love scaring ourselves like children telling each other ghost stories and finding it difficult to sleep alone afterwards. I am sure most of us have heard one conspiracy story or another. Even some friends who should know better seem to believe there is more to it than mere product of the overworked imagination of some people who profit from it. There is a plot to kill the president, one story goes. And the PNP chief says it isn’t just the president whose life is in danger but his as well. But isn’t such danger inherent to the jobs they both agreed to take? Plots against presidents are par for the course. That’s why we have the PSG and the Secret Service among others. As for the plot against the PNP chief, isn’t he leading the war against drugs? Of course he should assume the drug lords will try to neutralize him. It is his job to neutralize them first. It doesn’t fit his image to sound like a cry baby. The Liberals are plotting to oust Duterte, another story goes. Well… the Liberals lost so badly in the last election there isn’t much of a Liberal Party left. Didn’t a throng of Liberals renounce party membership to join Duterte’s super majority in the House of Representatives? That makes Duterte impeachment proof. As for the conspiracy story the Liberals will try to unseat Read More …
Despite what they say about the Duterte administration, there is one thing the present government was able to do that the previous leaderships failed to do – fast track approval for important and critical infrastructure projects. Metro Pacific Investment Corp. subsidiary Metro Pacific Tollways Development Corp. (MPTDC) has just received the notice of award from the Department of Public Works and Highways (DPWH) for the North Luzon Expressway-South Luzon Expressway (NLEX-SLEX) connector road project. According to news reports, the contract for the project was awarded to MPTDC, the original proponent, as no comparative proposals were submitted to the DPWH during the Swiss challenge held last July. Being an unsolicited proposal by MPTDC submitted sometime April 2010, the law requires that a Swiss challenge be conducted wherein the government accepts comparative proposals from interested parties, after which the original proponent is given the right to match the best offer given. The connector road project started out as an unsolicited project by MPTDC in 2010. It was approved by the National Economic and Development Authority (NEDA) board in 2013 under the public-private partnership (PPP) program. However, it suffered several delays because the government at the start said the proposal should undergo a Swiss challenge, and then it changed its mind and the DOTC proposed that the private proponent should instead enter into a joint venture with the state’s Philippine National Construction Corp. Sometime middle of 2014, the Department of Justice opined the JV is illegal, so government went back to the Swiss Read More …
The PSEi gained 95.88 points or 1.27 percent to finish at 7,671.72, while the broader All Shares index gained 21.58 points or 0.47 percent to finish at 4,563.55. MANILA, Philippines – The benchmark Philippine Stock Exchange index (PSEi) continued to firm up yesterday, ahead of the scheduled meeting today of the US Federal Reserve. The PSEi gained 95.88 points or 1.27 percent to finish at 7,671.72, while the broader All Shares index gained 21.58 points or 0.47 percent to finish at 4,563.55. Except for the industrial index all sub-indices gained led by the services and mining index. Jonathan Ravelas, chief market strategist at Banco de Oro said all eyes are on the US Fed meting. Analysts said investors’ concerns on rate hike have ease as the latest US macroeconomic figures indicate a postponement of a September rate hike to possibly in December. A consolidation above the 7,500 level could lead to continued bounce following five weeks of decline. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Thus, the market may recover to 7,700 after today’s consolidation. The mining and oil index gained 256.39 points or 2.46 percent after the Department of Environment and Natural Resources (DENR) cleared some mining companies after a technical audit. Semirara Mining and Power Corp. gained 4.77 percent to close at P114.20 per share after the DENR found its expansion project to be “technically sound,” and “complaint” with regulations. The company underwent an audit last July after the DENR sought to put an end to Read More …