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Duterte presses Senate on higher alcohol, cigarette taxes

MALACAÑANG is pushing the Senate to approve a proposal to increase the excise tax on alcohol products, cigarettes, heated tobacco and vapor products by certifying “the necessity of the immediate enactment” of the measure concerned, Senate Bill No. 1074.

The certification was made through a Nov. 12 letter from President Rodrigo R. Duterte to Senate President Vicente C. Sotto III that was distributed to reporters on Tuesday.

The certification removes the three-day separation between second- and third-reading approval that is required by current rules on legislation, hence, such a bill can be approved in quick succession within a day.

In his letter, Mr. Duterte cited “the urgent need to generate additional revenue to support the effective implementation” of Republic Act No. 11223, or the Universal Health Care Act which he signed into law on Feb. 20, and which the Finance department estimates has a P63-billion funding gap in its first year of implementation.

The department projects that the Senate version will generate P47.9 billion in 2020 and a total of P356.9 billion over five years.

This is much higher than the revenue expected from the House version — House Bill No. 1026 that was approved on Aug. 20 — amounting to the P16.3 billion in 2020 and a total of P108.9 billion within five years.

SB 1074 proposes to increase the specific tax rate on distilled spirits to P90 per proof liter in 2020 from the current P23.40 and retain the ad valorem tax of 20% of the net retail price (NRP). The specific tax rate is set to increase by P10 until it reaches P120 in 2023.

Sparkling wines will be levied P600 per liter, while still wines and carbonated wines will be taxed at P43 per liter in 2020; with both increasing by 10% annually beginning 2021.

Tax imposed on wines currently vary by the net retail price (NRP) of a bottle or volume of alcohol content. At present, sparkling wines costing up to P500 and those costing more than P500 are levied P316.33 and P885.72, respectively.

Rates on still wines and carbonated wines are currently at P37.96 for bottles with up to 14% alcohol content and P75.92 for those with over 14% alcohol.

The Senate version also proposed to tax fermented liquor with P45 per liter in 2020; P55 in 2021; P65 in 2022; and P75 in 2023; from there, the rate will increase by 10% every year starting 2024.

The same rates will be imposed on alcopops, or “pre-mixed alcoholic beverages with alcohol content less than 10% alcohol by volume and which alcohol is from malt or wines or a distillation process.”

In comparison, HB 1026 proposed the following rates on distilled spirits: 22% ad valorem tax on NRP and a specific tax rate of P35 in 2020, which will increase by P5 every year until 2022; and by seven percent annually starting 2023.

An ad valorem tax of 15% on NRP and a P650 specific tax rate with a seven percent annual indexation will be imposed on sparkling wines.

Moreover, still and carbonated wines with up to 14% alcohol content will be charged P40 per liter, while those with more than 14% will be charged P80 per liter for those with more than 14% alcohol.

Rates for fermented liquors and alcopops will be increased to P32 per liter in 2020 from the current P25.42.

The same measure will also amend Republic Act No. 11346 — which was enacted last July 25 — by raising the excise tax on tobacco products to P60 per pack by 2023 from P35 currently, and introduce a P10 per pack rate on heated tobacco products in 2020.

It also introduced the following rates on vapor products: P10 for 10 milliliter vapor products, P20 for 20 ml, P30 for 30 ml, P40 for 40 ml, P50 for 50 ml and so on.

Both versions proposed to increase the rates on heated tobacco products to P45 per pack beginning 2020 to put them at par with regular tobacco products. This will increase by P5 annually until 2023.

The Senate version further proposed to increase rates on vapor products to P45 per 10 milliliter in January, whether they use nicotine salts or classic nicotine. The rate will increase by P5 per year until it reaches P60 in 2023.

This reform forms part of the administration’s comprehensive tax reform program, alongside measures that seek to reduce corporate income tax and streamline redundant fiscal incentives; centralize real property valuation and assessment; and simplify the tax structure for financial investments.

Aside from RA 11346, the government has so far passed Republic Act No. 10963, which slashed personal income tax rates and increased or added levies on several goods and services; and RA 11213, the Tax Amnesty Act, which grants estate tax amnesty and reprieve on delinquent accounts left unpaid even after being given final assessment. — G. M. Cortez

Ayala Corp Q3 income rises 7%

By Denise A. Valdez, Reporter

AYALA CORP. (AC) saw a 7% increase in its earnings in the third quarter, driven by the sustained contributions of its banking and power units.

AC said in a statement yesterday its net profit in the July to September period stood at P8.3 billion, bringing the nine-month attributable net income to P46.16 billion, almost double from P23.86 billion last year.

Consolidated revenues in the nine months climbed 4% to P232.88 billion, following the 4% increase in total costs to P171.85 billion.

By business segment, Ayala Land, Inc. contributed the biggest chunk of revenues at P23.2 billion, 12% higher from last year. The growth was driven by higher revenues from its office segment (up 51%), commercial and industrial lot sales (up 16%), and commercial leasing revenues (up 16%) during the period. This helped offset the 2% drop in property development revenues to P85.4 billion due to a decline in contributions from high-end and upscale residential projects.

The company’s power business, under AC Energy, Inc., reported a P24.3-billion profit at the end of the nine months, from P2.8 billion last year, “lifted by the recovery of costs incurred from adjustments in the construction and operations of its power plants and gains from the partial divestment of its thermal assets.”

AC Energy also started recording earnings from its new solar projects in Vietnam, which opened new revenue streams since the second quarter. Its bigger stake in South Luzon Thermal Energy Corp. from acquiring PHINMA Energy Corp. likewise helped drive earnings growth.

Meanwhile, Bank of the Philippine Islands (BPI) contributed P22 billion to total revenues, 30% higher year-on-year. BPI revenues jumped 25% to P71 billion during the nine months as its net interest income grew 20% to P48.7 billion.

Globe Telecom, Inc. likewise expanded its net income 20% to P17.7 billion during the nine-month period. The heavy demand for its data-related services and the increase in its number of subscribers helped lift the company’s profits in January to September. Mobile data revenues stood at P52.2 billion (up 44%), home broadband revenues at P16.1 billion (up 19%), and corporate data revenues at P9.5 billion (up 12%).

Manila Water Co., Inc., on the other hand, saw its bottom line affected by the water supply crisis hounding Metro Manila. Its net income fell 11% to P4.4 billion as profits from its Manila concession dropped 17% to P4 billion.

Manila Water’s domestic subsidiary, Manila Water Philippine Ventures, reported its revenues more than doubled to P301 million. Operations of Laguna Water, Boracay Water and Estate Water also helped in boost the company’s top line 10% to P16 billion.

AC Industrial Technology Holdings, Inc. posted a net loss of P1.6 billion during the nine-month period, dragged by the weak performance seen across its business segments. The net profit of Integrated Micro-Electronics, Inc. was halved to $451,000 as a global slowdown in the automotive sector weighed on its performance.

AC Motors, which handles AC Industrials’ vehicle distribution and retail businesses, slumped to a net loss of P262 million during the period due to lower sales of Honda, Isuzu and Volkswagen cars. Investments in start-ups Merlin Solar and MT Technologies also reported higher losses during the period, but AC did not provide details.

AC was able to spend P15.1 billion in the nine months, representing 67% of its total capital expenditure allocation for 2019. This went primarily to the company’s investments in power, industrial technology and infrastructure.

NEW INVESTMENT
Meanwhile, the company said in a separate statement yesterday its health care unit Ayala Healthcare Holdings, Inc. (AC Health) is taking a minority stake in a pharmaceutical product importer and its affiliated distribution company.

AC Health said it signed an agreement with I.E. Medica, Inc. and MedEthix, Inc. yesterday to improve its vertical integration as a health care business. The companies are primarily involved in importing and distributing medicines.

“Our investment into IE Medica and MedEthix fits well with AC Health’s overall vision to improve health care. The Salians (company owners) have built an impressive platform, and we are happy they share in our vision to bring quality, affordable medicines to more Filipinos,” AC Health Chairman Fernando Zobel de Ayala was quoted as saying.

AC Health currently has a network of more than 800 Generika pharmacies and 70 FamilyDOC primary care clinics.

Shares in AC fell 16 points or 1.87% to P840 each at the stock exchange on Tuesday.

Pilipinas Shell Q3 income drops

PILIPINAS Shell Petroleum Corp. reported a third-quarter net income of P640.68 million, down 63.4% year-on-year, amid “depressed regional refining margins.”

Net sales during the July to September period reached P52.63 billion, lower by 8.9% compared with the level a year ago, the company’s quarterly report submitted to the stock exchange showed.

In the nine months to September, net income stood at P4.37 billion, lower by 39.2% from P7.2 billion a year earlier. Revenues were flat at P162.3 billion during the period, from P161.9 billion a year ago.

“We are very pleased with Pilipinas Shell’s business delivery for the third quarter in the face of industry challenges and depressed regional refining margins. We assure all our stakeholders that we remain committed to maintaining safe and efficient operations to meet our customer expectations on quality products and services and close the year strong,” said Pilipinas Shell President and Chief Executive Officer Cesar G. Romero.

As of September, the company reported a 4% increase in its retail and commercial sales volume or an increase of 160 million liters from a year ago through the support of its “integrated and highly efficient” supply chain network.

In the retail business, volumes grew by 1% compared with last year, and goes against the retail industry’s 1% volume decline as of the first half.

“Retail also maintained a high premium fuel penetration of 27%, despite higher excise taxes,” Pilipinas Shell said.

The company attributed the retail segment’s performance to Shell’s “high brand preference in the Philippines, coupled with quality fuel products and services backed by innovative marketing campaigns.”

During the period, the company opened 30 new stations across the country. As of end-September, Pilipinas Shell had 1,105 retail sites, of which 46 are solar-powered.

“Pilipinas Shell continues to develop its non-fuels retail segment as it enjoys double-digit growth year-on-year. The company opened 9 Select stores, 5 deli2go stores, and 23 Shell Helix Oil Change+ and Helix Service Centres,” the company said.

In the commercial segment, lubricants, bitumen, aviation and commercial fuels all posted an increase in volumes.

“Bitumen posted a strong volume growth of around 50%, as the company continues to support the government’s ‘Build, Build, Build’ program and export products to international customers,” the company said.

Pilipinas Shell owns and operates the country’s sole bitumen production facility since 2018. Lubricants posted a volume growth of 7%.

Meanwhile, Pilipinas Shell said it had registered cost savings at its refinery, reaching more than P500 million through process efficiencies and other optimization initiatives.

“Not only did the company complete the planned maintenance shutdown of its refinery ahead of schedule, it also broke ground on two key projects,” it said.

The company said that its integrated hydrogen manufacturing facility, once completed, would enable the refinery to process more crude oil varieties into more quality fuels. It is also working on building an integrated energy system that will harness solar energy, natural gas and battery system. The system is expected to boost energy efficiency and stability in the refinery.

On Tuesday, shares in Pilipinas Shell slipped by 0.45% to P33.45 each. — V.V. Saulon

ALI invests P18 billion in Tarlac City estate

AYALA LAND, Inc. (ALI) is investing P18 billion to build a 290-hectare estate in Tarlac City.

The real estate arm of the Ayala group presented on Tuesday its “modern local community” project in Tarlac called Cresendo, is situated 40 kilometers from the Clark International Airport and about 15 kilometers from the New Clark City.

ALI broke ground on the first phase of Cresendo last week. The property giant has so far received reservations for six lots, equivalent to P500 million, in the estate’s industrial park.

ALI is allocating P5.5 billion for the development of Phase 1, which includes construction of the Cresendo Industrial Park (CIP), a residential project under Avida brand, a commercial space, and retail area. The estate will also host Don Bosco Technical Institute, which will open its senior high school in 2022.

In a briefing in Makati City on Tuesday, Cresendo Project Head John R. Estacio said the development’s Phase 2 will focus on the development of residential spaces and shop houses, while Phase 3 will involve further residential expansion and construction of other commercial formats.

The company expects the entire 290-hectare project to be completed in 10 to 15 years. About 59% of the property will be allocated to residential spaces, 31% for a town plaza and open spaces, 11% each for commercial and industrial spaces and 3% for institutional establishments such as the school and a church.

ALI is offering commercial lots surrounding the Cresendo central plaza with sizes ranging from 500-2,000 square meters (sq.m.).

At the CIP, industrial lots, ranging from 2,000-10,000 sq.m., are for sale at P6,000 to P9,000 per square meter. The industrial park aims to attract companies from light to medium industries.

“Our vision is to encourage more homegrown entrepreneurs and new businesses at Cresendo. The property is strategically located and has a young and growing population that makes it one of the promising areas in the region,” Mr. Estacio said in a statement.

In the years to come, Mr. Estacio said ALI wants to bring its Alveo Land brand to Cresendo as well. It is also in talks to bring health providers into the development.

Shares in ALI went down 0.30 points or 0.64% to P46.50 each on Tuesday. — Denise A. Valdez

Century Properties’ 9-month earnings hit P1.2 billion

EARNINGS of Century Properties Group, Inc. (CPG) surged 81% in the nine months to September due to the completion of projects.

In a statement yesterday, CPG said its net income reached P1.2 billion in the January to September period, from P661 million a year ago. The figure also exceeds the P1.1 billion profit recorded for the full year 2018.

Revenues during the nine-month period jumped 36% to P9.8 billion, which the company traced to its diversification efforts of its business segments.

“We are very confident because the plan is materializing and income contributions from our new businesses are growing,” CPG President and Chief Executive Officer Marco R. Antonio was quoted as saying.

The in-city vertical developments of CPG contributed P773 million or 65% of the company’s revenues during the period. Affordable housing added P220 million or 18%, the leasing business accounted for P166 million or 14%, and property management pitched in P35 million or 3%.

The company was able to finish four projects during the nine-month period, and substantial completion of three more projects is expected in the last two months of the year.

“We expect to sustain the company’s strong performance in the coming months which will be supported by our upcoming project completions and the pipeline that is aligned with our diversification strategy. We are continuously mindful of keeping our balance sheet robust and healthy and making our operations even more efficient,” CPG Chief Finance Officer Ponciano S. Carreon, Jr. said in the statement.

The developer did not provide third quarter figures. — Denise A. Valdez

ICTSI income jumps 7% in third quarter

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) posted a 7% increase in net income attributable to equity holders in the July-September period, as revenues from port operations grew 5%.

In a regulatory filing, ICTSI reported an attributable profit of $56.4 million in the third quarter, bringing the nine-month figure to $184.9 million — which was 29% higher than a year ago.

The Razon-led company attributed the profit growth to “strong operating income contribution from the terminals in Democratic Republic of Congo, Iraq, Mexico, and Manila and Subic in the Philippines; new contracts with shipping lines and services at Victoria International Container Terminal (VICT) in Melbourne, Australia; continuing ramp-up at the new terminals in Papua New Guinea; and a decrease in equity in net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.”

However, ICTSI said the growth was tempered by “acceleration of debt issue costs associated with the partial prepayment of Euro-denominated term loan in July 2019 and the non-recurring gain from the interest rate swap related to the prepayment of the project finance loan at its terminal operations in Manzanillo, Mexico in 2018.” Excluding these one-off items, net income would have jumped 34% in the nine-month period.

Revenue from port operations went up by 3% to $355.6 million during the third quarter, and by 10% to $1.1 billion during the January to September period.

The global port developer and operator said total consolidated throughput rose 5% to 2,548,175 twenty-foot equivalent units (TEUs) in the quarter ending September, bringing the nine-month tally 6% higher to 7,590,090 TEUs in the first nine months.

Consolidated financing charges and other expenses jumped 7% to $95.2 million on higher debt issue costs.

“ICTSI has continued to deliver strong financial performance driven by organic volume growth, diligent cost management, and the continued ramp up of newer terminals. Positive progress has been made across the business which in part has been enabled by the prudent investments we make in our brownfield terminals.

While we remain conscious of the current geopolitical trade tensions, we are well-positioned to deliver value for all our stakeholders,” Enrique K. Razon, Jr., chairman and president of ICTSI, was quoted as saying in a statement.

The company said it spent $177.7 million out of the $380-million capital expenditure budget as of end-September.

Fil-Am editor, art director win top Palanca awards

By Susan Claire Agbayani and
Michelle Anne P. Soliman
Reporter

“The truth may be stretched thin, but it never breaks, and it always surfaces above lies, as oil floats on water.” — Miguel de Cervantes Saavedra’s Don Quixote, as cited by Criselda Dang Cecilio-Palanca during her speech on behalf of the Palanca family at the Palanca Awards.

FILIPINO-AMERICAN freelance editor Reine Arcache Melvin flew in from Paris for just two days to receive one of two grand prizes at the 69th Carlos Palanca Memorial Awards for Literature at the Rigodon Ballroom of Peninsula Manila on Friday night.

A former International Herald Tribune editor, Ms. Melvin received the Grand Prize for the Novel category for The Betrayed, which is her “first completed novel.” It was published by the Ateneo de Manila University Press last year, which also published her The Normal Life, an anthology of short stories many years ago.

“(The Betrayed) takes place in the immediate period after Martial Law. It’s a story of two sisters who love the same man. But the background is (about the) political uprising going on. It’s really a story of how people (who) try to do good or to find their own personal satisfaction in a very narrow sphere, unwittingly or from a lack of vision can do extreme harm, to themselves, to other people, and the country. It’s a lot about violence and corruption, but by people who are a little bit clueless — who don’t actively mean to do harm — but can create tremendous destruction despite themselves,” Ms. Melvin told BusinessWorld prior to the awarding ceremonies.

Meanwhile, GMA News and Public Affairs Art Director Jerking Guzman Pingol, 36, was the Grand Prize winner of the Nobela category for Agaw Anino, a 350-page, three-volume novel in Filipino.

Mr. Pingol described his novel as a coming-of-age story of a group of children who are born at a time when “kababalaghan (mystery), myth, and the aswang (evil spirits) are fading” and they seek these things out, but this search leads to tragedy.

Talking to BusinessWorld, Mr. Pingol said his novel shows changes in society, and culture. He is considering transforming the novel into a graphic novel.

The Palanca’s Novel and Nobela categories are open only every two years.

HALL OF FAME AWARDS
Translator, retired editor, and Insiang co-screenwriter Lamberto E. Antonio, 73, braved the distance from his native Cabiao, Nueva Ecija to accept the Palanca Hall of Fame Award. Mr. Antonio has received 10 Palanca awards, five of which were 1st prize awards for his poetry collections in the years 1976, 1977, 1999, and 2019; and for his essay “Bakasin mo sa Bakasyon” in 1999.

Professor Vim Nadera read excerpts from “Pinakamagandang Pagluha sa Balat ng Lupa,” “Uliliang Mandirigma,” and “Hain sa Gitna” from Mr. Antonio’s award-winning 2019 poetry collection titled Turno Kung Nokturno at iba pang Tiyempo ng Rilyebo sa Pagberso last Friday.

Mr. Antonio, who has been writing for over half a century, told BusinessWorld after the awarding rites, “I started writing in 1965 — without letup. My first love was fiction. But I branched out to poetry, then essay, then — the art form of the 20th century: film (where he was contemporaries with Pete Lacaba),” until he got into journalism and worked as an editor for 30 years for Manila Times and Diyaryo Filipino.

At 73, he is not slowing down. Mr. Antonio started writing in English, and wishes to go back to writing in that language because of the “information age” and because it’s an international language. He is reviewing his Spanish, and is also studying Italian and French. He wants to write a literary biography about what’s happening in the country (“like Samuel Taylor Coleridge”).

He said a writer should mine folk wisdom; and that it’s important to combine what’s traditional and modern to give readers a choice.

Entering the Palanca Hall of Fame would give him the impetus to continue writing, he said. However, “Manalo’t matalo, sumusulat ako. Hindi naman nagre-retire ang writer hanggang di patay.” (Whether I win or not, I write. A writer doesn’t retire until he dies.”)

Mr. Antonio co-wrote the screenplay of Lino Brocka’s Insiang (1976), the first Philippine film to be shown at the Cannes Film Festival in 1978. He is the author of critically acclaimed books and has translated the works of Gabriel Garcia Marquez, Rainer Maria Rilke, Rabindranath Tagore, and Leo Tolstoy, among others.

FIRST PRIZE FOR FIRST WIN
Chavacano-speaking Zamboangeña Mary Honeylyn Joy Alipio won first prize in what was her very first Palanca win for the Filipino division of full-length screenplay for Teatro Pacifico (Pacific Theater).

“It’s a period play set during the Japanese occupation of the Philippines in World War II. It’s about Filipinos who were working in the film industry when the Japanese forces arrived in the Philippines, and the colonizers prohibited the production of films because our filmmaking was patterned after Hollywood. The Japanese forces closed theaters, confiscated film equipment… When the sense of normalcy was restored, there emerged the golden years of theater or vaudeville,” Ms. Alipio said in Taglish during an interview with BusinessWorld before the awards were given.

Ms. Alipio said that director Paul Soriano commissioned her to write the screenplay, and that she and director Bing Lao had to hire four to five readers, and pored over 50 books in order to write a faithful interpretation of this part of our history.

De La Salle University (DLSU) Literature and Creative Writing professor Eros Atalia is now one 1st prize short of joining the Palanca Hall of Fame. He received his 7th (or 8th, he’s not sure) Palanca award, and his 4th first prize win for the short story “Si Etot,” which is about love in the time of EJK. The story revolves around Etot, who is going to be treated by a girl during a date for the first time. However, he never shows up because he is picked up by the police and is summarily killed during due to “mistaken identity.”

Mr. Atalia told BusinessWorld that he got his inspiration from the story of EJK casualty Kian de los Santos. He is hoping that this work of fiction will be included in the anthology of short stories he is publishing next year.

Adrian Carl Pescador, 31, won two awards on his first try. The MBA-turned-MA Creative Writing major and LGBTQ champion won 2nd place for Daddy Complex in the One-Act play in English category, and 3rd place for “Neon English” in the Short Story in English category.

The evening continued with a posthumous award given to Milagros Palanca Furer “in recognition to her being the proponent of the Carlos Palanca Memorial Awards for Literature, sponsored by the Palanca family, which spurred creative writing in the country and for unwavering dedication to the interest of the Filipino writer.”

ANSWERING SERIOUS QUESTIONS
This year’s first prize winner for the Maiking Kwentong Pambata (Filipino Division) of the Palanca Awards narrates the experience of teachers and families who were evacuated during the Marawi siege in his winning piece.

Luis P. Gatmaitan was inspired to write “Maselan ang Tanong ng Batang si Usman” after an immersion with Maranao teachers who had evacuated to Cagayan de Oro from Marawi City during the siege in 2017. The pediatrician-writer had been sent by the Cultural Center of the Philippines Arts and Education Department to conduct arts therapy sessions with the teachers. One day, a teacher talked about her son who asked a difficult question.

To paraphrase the boy’s question, Mr. Gatmaitan said: “Bakit ang kinakampihan natin sa giyera ay mga sundalo? ‘Di ba ang sundalo ay Kristiyano? (Why do we side with the soldiers in the war? Aren’t the soldiers Christians?),” Mr. Gatmaitan told BusinessWorld prior to the ceremony. Mr. Gatmaitan said that the boy was confused, believing that Muslims should support their fellow Muslims. The teacher — the boy’s mother — did not have an answer.

“I pondered on the question. Then one day, I decided to write a story to answer it,” Mr. Gatmaitan said.

He added that in writing about serious topics for children, the author should be mindful of their use of vocabulary in storytelling.

Nasa maingat na kamay ng isang manunulat kung paano niya tatalakayin ang isang difficult topic. (It is in the hands of the writer how they will tackle a difficult topic.) I believe that any topic can be written for kids, kahit gaano pa siya ka-complicated (despite how complicated it is),” he said.

EXPLORING WRITING
Multi-awarded writer and recipient of three Palanca Awards, Dr. Cristina Pantoja-Hidalgo was the Guest of Honor and Speaker at this year’s awarding ceremony and recipient of the Gawad Dangal ng Lahi award.

Dr. Pantoja-Hidalgo, Professor Emeritus of English and Comparative Literature at the University of the Philippines. She is a multi-awarded fictionist, critic, and pioneer of creative nonfiction (CNF) in the Philippines, and has published more than 40 books: novels, short story collections, numerous CNF collections, autobiographical travel books, and literary criticism focusing on women’s literature. She has received three Palanca awards — including the Grand Prize for Novel in 1996 for Recuerdo — and is the Director of the Center for Creative Writing and Literary Studies of the University of Santo Tomas.

In her speech, Dr. Pantoja-Hidalgo posed the question: “How long will writers keep wanting to write and trying to produce the kind of writing that wins a Palanca award?”

She urged writers to explore various types of writing from pop fiction to “hard” literature or “serious literature” (a term she recently encountered for the first time in the publishing industry) to which she gave her own definition as “literature that is carefully crafted, literature that seeks to explore ideas which the writer feels strongly about, literature that is written, not just to share experiences, but to offer insights about its subject.”

While acknowledging the emergence of various platforms from Wattpad writing to online self-publishing as opportunities for writers to share their stories, Ms. Pantoja-Hidalgo noted that young writers have to figure out several things as they go along: “First, what kind of books do they want to write? Second, what kind of writers do they want to be, or think they can be? Third, do they mainly want to entertain readers, or to challenge them intellectually, or to influence them politically? Do they want to make as much money as they can? Or do they want to write in the best way they know how? Or do they want to try and do both? And, finally, how do they want their books distributed — by commercial publishers? by academic publishing houses? by themselves, online and in small expos?

“These choices will be determined by what they believe the function of literature is in a country like ours, at the time in which we live, and what role they want to play in it as writers. Because I am a writer who is also a publisher, I understand the need to be commercially viable. But, as an educator, I also believe that public service is an important responsibility of the publishing industry. And this means recognizing that expanding the market for books is important, not just for bigger profits, but because more educated citizens make more mature citizens — an indispensable element for any experiment in democracy like ours.

“In concrete terms, this means: on the one hand, accepting the level at which most of our reading public is — what it’s willing to read, what it enjoys reading — and, on the other hand, committing at least a part of the resources available to producing books which will upgrade standards and tastes,” she said.

She concluded: “We will observe, we will record, we will protest. Above all, we will remember. And, we will endure.”

Dennis Uy gobbles up Wendy’s Philippines

DAVAO-BASED businessman Dennis A. Uy continued to expand his holding company Udenna Corp. as it snapped up all 51 Wendy’s restaurants in the Philippines.

Udenna’s food group subsidiary, Eight-8-Ate Holdings, Inc. is now the master franchisee of Wendy’s in the country.

“Food is a basic need and Filipinos love to eat. We want to be in industries where there is growth and we will continue to expand our footprint in the restaurant space by offering quality, affordable dining out options,” Mr. Uy, chairman and CEO of Udenna, was quoted as saying in a statement.

The Wendy’s deal is part of Udenna’s continued expansion in the food industry, after its acquisition of Philippine FamilyMart and Conti’s Bakeshop.

“The Philippine food service industry is growing at a phenomenal rate. The booming population, strong economic performance, rising incomes, increasing demand for convenience, and cuisine curiosity will continue to drive this growth for years to come. Eight-8-Ate wants to take a sizable bite of the opportunity,” Joey Garcia, Eight-8-Ate president and CEO, said.

Udenna is the holding company for Mr. Uy’s businesses, which include petroleum and oil through Phoenix Petroleum Philippines, Inc.; shipping and logistics through Chelsea Logistics Holdings Corp.; real estate through Udenna Development; infrastructure through Udenna Infrastructure; and education through Enderun Colleges.

And the winners are….

THIS YEAR’S Palanca Awards — given out on Nov. 8 at the Rigodon Ballroom of The Peninsula Manila hotel in Makati — accepted 1,167 entries which were then evaluated by 63 authors, poets, and academics who determined which literary compositions deserved to be conferred the prestigious award. There were 22 categories with 56 winning writers — 32 of whom are first-time awardees.

Named after the businessman and philanthropist Don Carlos Palanca Sr., the Palanca Awards was founded in 1950 with the aim to “enrich Philippine Literature by giving incentives to writers and serving as a treasury of Philippine literary gems.” It is the longest-running literary competition in the Philippines.

As of September 2019, the Palanca Awards collection consists of 2,499 winning works composed of 640 short stories, 414 collections of poetry, 256 essays, 388 one-act plays, 219 full-length plays, 60 teleplays, 77 screenplays, 187 stories for children, 34 futuristic fiction stories, 122 student essays, 44 novels, and 58 collections of poetry written for children in English, Filipino, Regional Languages, and Kabataan Division.

The full list of winners follows:

KABATAAN DIVISION
• Essay — 1st prize: Enrico Miguel Pe Aguirre Perez, “Thoughts on Eden”; 2nd prize: Criscela Ysabelle A. Racelis, “Before You Click”; 3rd prize: Ann Jeline R. Pablo, “The Naught of What-is, What-ifs, and Whats-not”

• Sanaysay — 1st prize: Marielle M. Calicdan, “Echo Mula Sa Gatilyo”; 2nd prize: Mark Andy Pedere, “Sa Pilang Salungat sa Manghuhula at Bolang Kristal”; 3rd prize: Adrian Pete Medina, “Pregonir Noon Akto-o He’n Fa Gali Em (May Katotohanan pa pala)”

FILIPINO DIVISION
Nobela — Jerking Guzman Pingol, Agaw-anino

Maikling Kwento — 1st prize: Eros S. Atalia, “Si Etot”; 2nd prize: Benjamin Joshua L. Gutierrez, “Dahil Wala Kaming Tubig”; 3rd prize: Allan Alberto N. Derain, “Hilaw at Luto sa Bangkete ni Kapitan Gimo

Maikling Kwentong Pambata — 1st prize: Luis P. Gatmaitan, “Maselan ang Tanong ng Batang si Usman”; 2nd prize: Victoria Estrella C. Bravo, “Ako ang Kuya”; 3rd prize: Jacqueline V. Franquelli, “Anak ng Tinapay

Sanaysay — 1st prize: Marianne Mixkaela Z. Villalon, “Form & Content: Sandata sa Panahon ng Disimpormasyon at War on Drugs”; 2nd prize: Wilfredo O. Pascual, Jr., “Sumasaiyo”; 3rd prize: Reson A. Gregorio, “Wala sa Langit si Hesus

Tula — 1st prize: Lamberto E. Antonio, Turno Kung Nokturno at iba pang Tiyempo ng Rilyebo sa Pagberso; 2nd prize: Ralph Lorenz G. Fonte, Ang Wika ng Dagat ay Layo; 3rd prize: Allan John Andres, Yaong Hindi Maaaring Hawakan nang Buo

Tula para sa mga bata — 1st prize: no winner; 2nd prize: John Romeo L. Venturero, Ganito sa Pabrika; 3rd prize: German Villanueva Gervacio, Ang Totoo Raya, ang Ulan ay Luha ng Bituin

Dulang May Isang Yugto — 1st prize: no winner; 2nd prize: Chona M. Fernando, Beach House; 3rd prize: Bridgette Ann M. Rebuca, Transient Lovers

Dulang Ganap ang Haba — 1st prize: Dustin Edward D. Celestino, Ang Duyan ng Magiting; 2nd prize: Mario L. Mendez, Jr., Ang Huling Mambabatok; 3rd prize: Bonifacio P. Ilagan, Junix at Maricel

Dulang Pampelikula — 1st prize: Mary Honeylyn Joy E. Alipio, Teatro Pacifico; 2nd prize: Jaymar Santos Castro, Angkas; 3rd prize: Rodolfo C. Vera, Nana Rosa

REGIONAL DIVISION
• Short Story (Cebuano) — 1st prize: Roehl Joseph A. Dazo, “Binignit”; 2nd prize: Januar E. Yap, “Ang Haya ni Tasyo”; 3rd prize: Jondy M. Arpilleda, “Armas

• Short Story (Hiligaynon) — 1st prize: Alice Tan Gonzales, “Si Ena sa Kasisidmon”; 2nd prize: Ritchie D. Pagunsan, “Pakutkot”; 3rd prize: Anthony B. Capirayan, “Ang mga Retrato sang Dalaga

• Short Story (Ilocano) — 1st prize: Edison B. Tobias, “El Quinto”; 2nd prize: Daniel L. Nesperos, “Ti Kayo”; 3rd prize: Remedios S. Tabelisma-Aguillon, “Naisangsangayan a Sangaili

ENGLISH DIVISION
• Novel — Reine Arcache Melvin, The Betrayed

• Short Story — 1st prize: Kathleen Osias, “James Machine”; 2nd prize: Rayjinar Anne Marie de Guia Salcedo, “Death for Serafina”; 3rd prize: Adrian Carl M. Pescador, “Neon Blindness”

• Short Story for Children — 1st prize: Juanita Roxas Singer, “Pretty Peach and The Color-Matching Kaleidoscope”; 2nd prize Victoria Estrella C. Bravo, “Hair”; 3rd prize Daisy Ruth Oñate Sohne, “The Accidental Adventure of Bubalus Bubalis”

• Essay — 1st prize: Jocelyn G. Nicolas, “The Age of the Missing”; 2nd prize Josephine V. Roque, “Ashfall”; 3rd prize: Michaela Sarah De Leon, “Call Me A Book ‘Editor,’ I Dare You”

• Poetry — 1st prize: Regine Miren D. Cabato, Notes from the Field; 2nd prize: Rodrigo V. Dela Peña, Jr., Pentimento; 3rd prize: Alvin Dela Serna Lopez, Departures

• Poetry Written for Children — 1st prize: no winner; 2nd prize: no winner; 3rd prize: Mia A. Buenaventura, What Magical Fur is This? And Other Poems

• One-act Play — 1st prize: Peter Zaragoza, Mayshle Dolorosa; 2nd prize: Adrian Carl M. Pescador, Daddy Complex; 3rd prize: Maria Amparo Nolasco Warren, The Root of all Magic

• Full-length Play — 1st prize: Justin Michael A. Naniong, Changelings; 2nd prize: Rolando S. Salvaña, Mercy Country; 3rd prize: Lito Casaje, Theoria Republica

Isuzu seeks DTI meeting over proposed safeguard duty on automobile imports

ISUZU Philippines Corp. (IPC) is seeking to meet with the Department of Trade and Industry (DTI), which is evaluating a petition seeking the imposition of safeguard duty on imported vehicles.

IPC President Hajime Koso said on Tuesday the IPC’s imports will be affected by safeguard measures, but has yet to evaluate the possible impact on operations.

“We have to start discussion with government very carefully,” he told reporters on the sidelines of a company event.

Around sixty percent of Isuzu vehicles sold in the Philippines, he said, are imported. Most come from Indonesia, Thailand, and Japan.

In its petition filed with the DTI, the Philippine Metalworkers Alliance cited a causal link between automotive import growth and the decline in Philippine employment in the automotive industry.

On Tuesday, IPC launched its newest lightweight truck Isuzu Travis, which covers the “last mile” delivery items of retail stores and door-to-door deliveries.

Mr. Koso said that IPC currently has no plans to assemble this vehicle in the Philippines.

Asked if IPC would consider increasing its automotive production in the Philippines, he said the company may do so if offered incentives and a long-term parts localization plan.

“The cost comparison is higher,” Mr. Koso said. “In the future, if our government supports something, we have the potential to assemble this vehicle with this country,” noting the draw of incentives such as tax breaks.

“If we decide to assemble the vehicle here, we need the support of parts suppliers,” he added.

He used Thailand’s automotive industry growth as an example for further localization.

“I would like to ask [the Philippine] government to make sure [there is a] long term strategy in terms of localization program. In Thailand, they are very successful in the automotive industry… when the Thai government decided to assemble the one-ton pickup truck,” Mr. Koso said.

“Government gave manufacturing a very big benefit — not only Isuzu — most pickup manufacturers transferred from Japan or other countries to Thailand. And then pickup manufacturing business went up.”

IPC currently has trucks assembly production of light and medium-duty trucks in the Philippines. The company had discontinued local production of the D-Max, cutting around 70 jobs temporarily. The Philippines imports the vehicle from Thailand.

IPC now has 600 employees in total, Mr. Koso estimates, from around 700 five years prior. — Jenina P. Ibañez

The memory of Cats

COMPOSER Andrew Llyod Webber’s first memory of T.S. Eliot’s Old Possum’s Book of Practical Cats was of his mother reading the poems to him at bedtime when he was six-years-old.

“It was in 1978 that I first thought about setting the poems to music, partly because I wanted to discover if I could write melodies to existing work,” Mr. Webber wrote in the playbill of Cats the Musical. “I began playing around with a more theatrical order of the poems but at no time did I think of turning them into a full blown musical, although I vaguely toyed with the idea of a companion piece to my Variations album, my first solo hit that I wrote for my cellist brother Julian and his rock band.”

When Mr. Webber met T.S. Eliot’s widow, Valerie at the Sydmonton Festival in 1980, she brought with her an unpublished poem “Grizabella The Glamour Cat” and told the composer that Mr. Eliot “thought it was too sad to publish in a children’s book.”

“I remember reading the short poem in front of her,” wrote Mr. Webber. “My heart raced. Something in me was already seeing that I wasn’t dealing with a concert piece anymore.”

Cats the Musical premiered at the New London Theater in 1981 where it played for 21 years. The musical has been presented in 30 countries and translated into 15 languages.

The story is set in a junkyard where the Jellicle cats meet for the annual Jellicle Ball where their benevolent leader Old Deuteronomy chooses which cat goes up to The Heaviside Layer to be reborn to a new Jellicle life.

The award-winning musical has returned for its second staging in Metro Manila and runs until Dec. 1 at the Theater at Solaire.

BEHIND THE CURTAIN
During a media call on Nov. 7, Cats the Musical’s stage manager Jordan Goff led members of the press on a backstage tour.

Mr. Goff explained that the stage — the components of which fill eight shipping containers — takes two days to set up. The stage is also structured on a slope and is “difficult to dance in.” He noted that the stage design “helps with the perspective” to suggest that the humans are cat sized.

Behind the right wing of the stage are vanity tables and racks of hand-painted costumes made from lycra of which each character has three sets. Fun fact: Old Dueteronmy’s wool coat weighs 14 kilograms. Lastly, Mr. Goff showed one of his favorite props — a “cockroach” headpiece made with tea strainers for the eyes, black bin liners, and bottle brushes for the antenna.

“Everything onstage or part of the set is designed to look like it was part of the junkyard or made by the cats,” he said.

FOR ALL AGES
The current tour features the staging of the version of Cats which played at the London Palladium in 2015.

According to producer David Ian, Mr. Webber reunited with the original creative partners, set designer John Napier and choreographer Gillian Lynne, for this staging.

“He (Mr. Webber) introduced a couple of new members, he changed some of the music, [Lynne] changed some of the choreography. John [Napier] did a few bits and pieces and changes to the set. And that’s very much the production that we’re bringing here,” Mr. Ian said.

Directed by Dane Quixall, the musical features Filipino singer Joanna Ampil as Grizabella, the former glamour cat. Mr. Ian noted that having have Ms. Ampil perform for the Manila run was intentional. Ms. Ampil first played the role at the UK and European tour from 2013 to 2014.

“Joanna has played Grizabella for several years. And I’ve always wanted to bring the show to Manila. And I’ve always said [to Joanna], I only want to do Manila if you’re available to play Grizabella,” he said.

Ms. Ampil did not hesitate to do the show for this year’s Manila staging. “I just love the fact that it’s a different challenge for me because I get to dance in the start, and having to sing “Memory” every night is a privilege,” she said.

Ms. Ampil will also join the production in Singapore after the Manila leg.

One of the longest-running shows on the West End and on Broadway, Cats the Musical is a show for all ages. “[Y]ou can either be eight-years-old or 80-years-old and you can enjoy it,” Mr. Ian said.

Cats the Musical runs until Dec. 1 at the Theater at Solaire. For more information, visit www.catsthemusical.com. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph). — Michelle Anne P. Soliman

Shang Properties earnings up 14% in July-Sept

SHANG Properties, Inc. increased its earnings by 14% during the third quarter on higher revenues.

In a regulatory filing, the listed property developer said its net income during the July to September period stood at P1.35 billion.

Total revenues during the period grew 8% to P5.7 billion, as total costs inched up 3% to P2.92 billion.

Year to date, the company’s net income climbed 8% to P2 billion as revenues saw a 3% uptick to P8.47 billion. A 1% slip in expenses to P3.97 billion helped keep the company’s bottomline higher.

Shang Properties said its “turnover sales,” or revenues from sales of condominium units, rental and cinema, hotel operations and other income increased 2.5% to P8.7 billion during the three quarters

Broken down, sales from residential condominium units went down 7% to P3.47 billion, making up 40% of the company’s total revenues.

Revenues from leasing operations amounted to P2.36 billion, 6% higher than in the same nine-month period last year, which accounted for 27% of the pie.

Hotel operations generated P2.64 billion in the three quarters, up 16% from last year. The company specifically said its Shangri-La at the Fort brand in Taguig City contributed P2.6 billion in revenues during the period.

Shang Properties’ core businesses involve office and retail leasing and residential development. It is the listed operator of the Shangri-La Plaza mall and has a stake in the owner of The Enterprise Center.

Among its other projects are The Shang Grand Tower, The St. Francis Shangri-La Place, One Shangri-La Place, Shang Salcedo Place and Horizon Homes.

Shares in Shang Properties slipped 0.06 points or 1.82% to P3.24 apiece on Tuesday. — Denise A. Valdez