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Dec. factory output worst in 13 months — PSA data

By Carmina A. V. Olano
Researcher
INDUSTRIAL PRODUCTION in the country marked December with double-digit drop that was the worst reading in 13 months, the Philippine Statistics Authority (PSA) reported on Tuesday.
In its latest Monthly Integrated Survey of Selected Industries, the PSA said the volume of production index — a measure of factory output — contracted by 10.07% in December, a reversal from the revised 1.63% growth in November. This was also bigger than the 6.1% decline posted in December 2017 as well as the sector’s worst performance since November 2017’s -10.1%.
December brought factory output growth to average 7.2% in full-year 2018, still better than the 0.5% slump recorded in 2017.
In comparison, the Nikkei Philippines Purchasing Managers’ Index (PMI) — which tracks factory activity in terms of new orders, output, employment, suppliers’ delivery time and inventory — saw the country’s reading ease to 53.2 in December from 54.2 in November. This was the slowest domestic manufacturing growth in four months or since the 52 recorded in September. A PMI reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.
“Ten out of 20 industry group registered annual declines, with two-digit decreases noted in the following major industry group: printing (-79.4%), chemical products (-28.9%), tobacco products (-22.1%), food manufacturing (-17.8%), basic metals (-16.7%) and machinery except electrical (-12.6%),” PSA said in its report.
Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3% in December. Eleven of the 20 sectors registered capacity utilization rates of at least 80%.
“We have expected this decline because the holiday season is over. These figures could also indicate a likely tepid growth consistent with the latest Business and Consumer Expectations Survey of the Bangko Sentral ng Pilipinas,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement of the National Economic and Development Authority, which he heads as director-general.
Nonetheless, Mr. Pernia noted upsides to manufacturing such as the decline in rice prices, downward adjustment of electricity rates and the slight appreciation of the peso, which may help improve consumer outlook and prop up demand.
“Moreover, election-related spending is projected to benefit manufacturing subsectors such as food, beverage, tobacco and printing and paper products,” Mr. Pernia said.
On the other hand, he warned that price hikes of domestic oil and the upcoming El Niño “could translate to price pass-throughs in manufacturing.”
For University of Asia and the Pacific (UA&P) economist Cid L. Terosa, the decline in factory output in December is “concerning,” noting that the sector has been touted as one of the economy’s growth drivers. “Also, manufacturing has consistently pulled the economy upwards up until inflationary pressures and external events dragged manufacturing output downwards,” he said.
For Michael L. Ricafort, economist at the Rizal Commercial Banking Corp. (RCBC), December’s factory output contraction echoed manufacturing performance of the US, China and other major economies. “[T]his may also be attributed to slower demand for Philippine exports (especially to China) amid the lingering US-China trade war that slowed down global trade and global economic growth,” he said.
Another major factor, Mr. Ricafort said, is the sharp rise of domestic interest rates as it may have reduced borrowing by manufacturers and “effectively reduced” the sector’s activities.
“Some manufacturers may be waiting for input costs and borrowing costs to go down further after inflation reached the peak of 6.7% in October 2018 to further save on costs as prices continued to ease… while also using up existing inventories obtained earlier in 2018…” Mr. Ricafort explained.
“Some uncertainties over the proposed rationalization of fiscal incentives… caused some manufacturers, especially foreign investors, [to be] on a wait-and-see attitude on new investments and expansion projects on their local manufacturing activities…”
Moving forward, RCBC’s Mr. Ricafort said that the easing inflation and expectations of lower interest rates “could result in some pick up” in manufacturing activities in the coming months.
“[L]ower inflation and interest rates fundamentally increase the incomes and spending power of consumers and businesses and may also support the pick-up in manufacturing growth,” he said.
For UA&P’s Mr. Terosa: “Factory output for the first half of the year will grow…”
“It won’t be as vigorous as last year, but the second half of the year could be better. The [upcoming mid-term] elections, further implementation of infrastructure projects, the upcoming South East Asian games in November, and a more stable inflation environment could trigger positive effects across many industries.”

More areas at stake in today’s Bangsamoro vote

TWO PROVINCES in two regions in Mindanao stand to lose parts of their areas as towns and villages cast their votes on Wednesday on whether or not to be part of the new Bangsamoro region.
Abdullah Camlian, a representative of the Moro Islamic Liberation Front (MILF) in the Bangsamoro Transition Commission (BTC), said the intent of the Bangsamoro Organic Law (BOL) is not to divide but introduce changes that would bring meaningful development and a chance for “the Bangsamoro people to achieve their aspirations.”
The BOL provides for the formation of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) that will replace the existing ARMM. The five provinces of ARMM, which form BARMM’s core area, and Cotabato City ratified the BOL in the Jan. 21 plebiscite.
“We want to change the status quo and reset the mindset of the people. Now an inclusive law is in our hands, kaya naman po sa plebisito, bumoto tayo ng ‘yes’ (that is why in this coming plebiscite, let us vote for yes),” Mr. Camlian said at a Peace Assembly held last Monday in Kapatagan, Lanao del Norte.
The municipalities of Baloi, Munai, Nunungan, Panta, Tagoloan and Tangkal in Lanao del Norte are participating in today’s BOL referendum, with 352,494 registered voters based on Commission on Elections (Comelec) data.
That voter number comprise more than half of the 676,395 total population of Lanao del Norte as of the 2015 census.
“… [W]e are hopeful that because this is a politically active area historically, we expect that we’ll have a turnout of at least better than 70%,” Comelec Spokesperson James B. Jimenez told reporters in a press briefing on Tuesday at the poll body’s headquarters in Manila.
Top officials of Lanao del Norte, which forms part of Northern Mindanao, have been campaigning for a “no” vote.
Governor Imelda Quibranza-Dimaporo, Vice-Governor Maria Cristy N. Atay and some members of the provincial board, according to the provincial information office, went around the barangays to conduct an information campaign and push for their stance.
“The provincial leaders, municipal mayors and the two district representatives have stood as one in saying NO to inclusion and NO to division for the good of the people of the province of Lanao del Norte, where Muslims and Christians have peacefully coexisted for so long a time,” the provincial government said in a Jan. 31 statement.
Lawyer Anna Tarhata S. Basman, former head of the government panel’s legal team that facilitated the peace process with MILF, explained that most of the local government units (LGUs) participating in the plebiscite “have voted in the past to join the Autonomous Region (ARMM) but have been voted down by their mother LGUs.”
“In the case of Lanao del Norte, since what we’re dealing with are six municipalities, the BOL says that the entire province of LDN will have to consent to its six municipalities joining the BARMM,” she told BusinessWorld.
Ms. Basman clarified, however, that “it is not the Sangguniang Panlalawigan (provincial board) or the Sangguniang Bayan (municipal council) that will give the consent, it is the voters.”
Such consent would be reflected in the ballots.
COTABATO
It’s a different story in Cotabato province — also still referred to by its old official name North Cotabato — where local officials have expressed support for the BOL.
An initial 39 barangays in six towns of Cotabato are covered by the plebiscite, with 321,489 registered voters.
The six municipalities are: Aleosan, Carmen, Kabacan, Midsayap, Pigkawayan, and Pikit.
An additional 28 contiguous barangays, within the six towns plus Tulunan, were approved for inclusion by the Comelec.
“In the case of North Cotabato, since what we are dealing with here are barangays, their mother municipalities will have to give the consent. So it’s the seven municipalities in North Cot that will participate in the plebiscite,” Ms. Basman said.
Cotabato, under the South Cotabato-Cotabato-Sultan Kudarat-Sarangani-General Santos City (SOCCSKSARGEN) region, has a population of about 1.374 million as of 2015.
At an assembly organized by the Office of the Presidential Adviser on the Peace Process in early January at the capital Kidapawan City, Cotabato Governor Emmylou Taliño-Mendoza said she sees the BOL providing inclusiveness and equality among Mindanao’s indigenous people, Muslims and Christians who are also represented within the province.
“This (BOL) will give way to long-lasting peace in Cotabato,” she said as she recalled witnessing armed conflict as a child growing up in the province. “I don’t want my children to experience what I went through.”
Ms. Mendoza also called on voters to cast their votes with the next generations in mind.
Most young voters in the two provinces who will take part in today’s plebiscite are in favor of inclusion in the BARMM, according to a survey by International Alert Philippines. In a statement released Monday, the non-government group said 71% of the youth in Lanao Del Norte and 83% in Cotabato are expected to cast a yes vote. Respondents of the study, who were 18-35 years old, included 355 from Lanao Del Norte and 209 from Cotabato.
Knowledge of the BOL has lately been high among respondents at 98% in both provinces, up from 2018’s 64% in Lanao del Norte and 86% in Cotabato, according to International Alert Statistician Angelo Casalan.
International Alert, however, noted that the youth make up only 45% of the total voting demographic in the two provinces as opposed to 57% in the ARMM.
Presidential Peace Adviser Carlito G. Galvez, Jr. — a retired military general who served many years in restive parts of Mindanao — has expressed respect for differences in opinion as he appealed to stakeholders’ “commitment for a peaceful and orderly plebiscite” to uphold “democratic ideals.”
Speaking at a BOL information forum last Feb. 2 in Iligan City, an independent component city within Lanao del Norte, Mr. Galvez said, “I earnestly hope that our votes truly reflect our sentiments for peace and development in the Bangsamoro.” — Marifi S. Jara, Tajallih S. Basman and Gillian M. Cortez

Cal-Comp Philippines eyes IPO by third quarter

By Arra B. Francia, Reporter
CAL-COMP Technology (Philippines), Inc. plans to push through with its initial public offering (IPO) by the third quarter of this year to finance its expansion plans in the country.
The local unit of Taiwan-based technology conglomerate New Kinpo Group (NKG) initially targeted to raise P6.77 billion through the exchange in 2018, but decided to withdraw such plans due to volatile market conditions.
“We’re planning to resume the IPO in this year and the timing may be around third quarter,” Cal-Comp Philippines Vice-President and Investment Relations Officer Hugh Lo said in an e-mail.
Prior to the postponement of the IPO, Cal-Comp had already secured approval from the Securities and Exchange Commission for the fund-raising activity in September last year. The company would have to get the Philippine Stock Exchange’s go signal to proceed with the share sale.
Cal-Comp Philippines looked to sell 378.08 million shares with an over-allotment option of up to 19.9 million shares at P17 each. This is equivalent to 26.77% of the Cal-Comp’s total issued shares.
Mr. Lo said the company may adjust the size of the IPO depending on market conditions this year.
“As to the size of IPO, we’re considering the market situation as well as the EPS (earnings per share) performance. We may adjust the IPO amount when preparing to resume the IPO,” Mr. Lo explained.
The share sale will help the company strengthen its presence in the Philippines, as it looks to shift its manufacturing capacity from China.
The company’s expansion plans include a new facility in Lipa, Batangas covering 24,000 square meters (sq.m.). It also plans to develop phases two and four of its manufacturing complex in First Philippine Industrial Park, Inc., Sto. Tomas, Batangas. This will add 48,000 sq.m. of manufacturing space for the company.
Despite the postponement of the IPO, Cal-Comp pushed through with the construction of its facility in Lipa last year as it continues to see the Philippines as its next major manufacturing hub.
“The already existing business and new business under negotiation are all going very well. We believe the future of Philippine for EMS/ODM (electronic manufacturing services/ original design manufacturing) will be very promising,” Mr. Lo said.
Cal-Comp Philippines offers global electronic manufacturing services and original design manufacturing services to its customers. Its products and services include storage, printers, network-attached storage (NAS), wireless and broadband, digital home, consumer electronics, wearables, 3D printing, robotics, and emerging technologies, among others.
Apart from Cal-Comp Philippines, canned fruit manufacturer Del Monte Philippines, Inc. (DMPI) also withdrew its plans for a P17.55-billion IPO last year due to market conditions.
Sought for comment in a separate e-mail, DMPI Controller Ignacio Carmelo O. Sison said the company is still waiting for a better market situation.
“Market conditions continue to be volatile and the Company has been advised by its bankers and advisors that it would be in the best interest of the Company and DMPI to defer the Offering until such time when market conditions improve,” Mr. Sison said.

ADB, IFC invest in Ayala energy unit’s green bonds

By Victor V. Saulon, Sub-editor
AC Energy, Inc. has attracted two of the world’s biggest development lenders International Finance Corp. (IFC) and the Asian Development Bank (ADB) to the Ayala-led company’s multi-million dollar green bond offering that will fund regional renewable energy projects, company officials said.
“In total now, we have $410 million from the green bond offer,” Eric T. Francia, AC Energy president and chief executive officer, told reporters in a briefing on Monday.
The principal amount of AC Energy’s green bonds was initially at $225 million, with a five-year maturity and a coupon of 4.75% per annum, the company said on Jan. 25.
IFC, a sister organization of the World Bank, provided an anchor investment of $75 million, completing the public placement and supporting the raising of a total $300 million from Philippine and international investors.
Separate 10-year bonds amounting to $100 million with a 5.25% coupon were issued through private placement, with ADB as one of the main investors with $20 million.
The initial offering was listed on the Singapore Stock Exchange on Jan. 30. The additional bonds will also be listed on that bourse. The bonds were issued through the company’s wholly owned subsidiary, AC Energy Finance International Ltd., and guaranteed by AC Energy.
“We’re excited about this because this is the first climate bond-certified publicly listed, US-dollar green bond in Southeast Asia. So it’s a first of its kind,” Mr. Francia said.
“Obviously, this will go to fund our renewables expansion both onshore in the Philippines as well as around the region,” he said.
AC Energy aims to install 5 gigawatts (GW) of energy capacity by 2025, with renewables accounting for at least 50% of its total energy output. It has generated 2,800 GWh of attributable energy last year, of which 48% was from renewable resources.
“[The bond issuance] is particularly meaningful to us because of the strong support of these multilateral development institutions. It shows the confidence in our ability to really develop renewables across the region,” Mr. Francia said.
In a statement, AC Energy quoted IFC Director for East Asia and the Pacific Vivek Pathak as saying that the group was proud to support Ayala “in greening its power generation portfolio by helping fund its aggressive growth in renewable energy.”
“We are delighted that our partnership, leveraging IFC’s extensive global experience in green bonds, successfully mobilized substantial international investment in the public placement of the company’s” five-year bond, he said.
“This demonstrates the excellent potential of the green bond asset class as a tool for mobilizing international institutional capital into infrastructure assets, and we look forward to expanding our support of such issuances across Asia, advancing the integration of regional power and financial markets,” he added.
Michael Barrow, director general of ADB’s private sector operations department, said the green bond will “contribute to ASEAN’s target of drawing 23% of its energy mix from modern, clean, and sustainable renewable sources by 2025.”
AC Energy has been selling some of its thermal assets, while increasing its investments in renewable energy.
In April 2017, the company and its joint venture partners completed the acquisition of Chevron Corp.’s geothermal assets and operations in Indonesia, further boosting AC Energy’s renewable energy portfolio in that country after earlier investing in a wind farm.
In September last year, it announced Aboitiz Power Corp.’s acquisition of a 49% voting stake and 60% economic stake in AA Thermal, Inc., AC Energy’s thermal platform in the Philippines.
In November, its international unit invested in Singapore-based renewable energy company The Blue Circle Pte. Ltd. through a 25% ownership acquisition as well as co-investment rights in the latter’s projects. They are to jointly develop around 1,500 megawatts (MW) of wind projects across Southeast Asia, including about 700 MW in Vietnam.
In January this year, AC Energy said it was investing in Phinma Energy Corp. through a “mutually strategic agreement” that gives the Ayala energy arm a 51.48% stake in the listed energy company with ownership stake in solar, wind and geothermal energy projects.

ABS-CBN, GMA Network still locked in television ratings dispute in January

ABS-CBN Corp. and GMA Network, Inc. continued to tussle over television ratings in January, with both media giants claiming the lead but citing different measurement providers.
In a statement, ABS-CBN claimed its nationwide average audience share reached 45% in January versus its rival’s 30%, based on a report from Kantar Media. Its audience measurement provider obtained its data from 2,610 urban and rural homes nationwide.
The Lopez-led firm said its dominance was spread across the country’s capital and the three main island groups, as it recorded 44% average audience share in Metro Manila against GMA’s 23%; 37% in Mega Manila versus GMA’s 28%; 40% in Total Luzon opposed to GMA’s 32%; 54% in Total Visayas edging GMA’s 25%; and 55% in Mindanao beating GMA’s 26%.
On the other hand, GMA said its average total day people audience share in the National Urban Television Audience Measurement (NUTAM) was 37.8% for the first month of the year, higher than ABS-CBN’s 35.9%, with data from Jan. 27 to 31 based on overnight ratings.
GMA had tapped Nielsen TV Audience Measurement, which gathered data from 900 more homes than Kantar, covering the total urban and rural Philippines.
Nielsen’s data showed GMA won 41.9% share of the total day people audience in Urban Luzon against ABS-CBN’s 30.1%. For Mega Manila, GMA also beat its rival with 43.7% share versus 26.8%, based on data from Jan. 1 to 26.
In terms of time slots, both ABS-CBN and GMA once again claimed dominance.
ABS-CBN said it reigned supreme across the board with 50% average audience share for prime time (6 p.m. to 12 a.m.) against GMA’s 29%; 37% for the morning block (6 a.m. to 12 p.m.) versus GMA’s 27%; 42% for the noontime block (12 p.m. to 3 p.m.) versus GMA with 31%; and 44% for the afternoon block (3 p.m. to 6 p.m.) against GMA’s 33%.
Its rival GMA challenged this, saying Nielsen data showed it garnered 34.8% audience share for the morning block versus ABS-CBN’s 30.9%; and 40.1% share in the afternoon block against ABS-CBN’s 34.2%.
Both networks likewise claimed to have produced the most watched shows for the month of January. ABS-CBN said its “FPJ’s Ang Probinsyano” had the number 1 spot with an audience share of 39.1%, while GMA said its “Kapuso Mo, Jessica Soho (KMJS)” topped Nielsen’s list for top-rating shows in the NUTAM. — Denise A. Valdez

M. Butterfly flutters back for a nationwide tour

THEATER FANS from outside Metro Manila now have a chance to see a story of love, deception, and power as M. Butterfly is set to tour six cities this year.
The revival of David Henry Hwang’s 1988 play M. Butterfly — which won awards for Best Play, Best Actor, and Best Director at the 2018 Aliw Awards — is set to go on a national tour to Iloilo, Dumaguete, Cebu, Davao, Manila, and Baguio from February to June.
Produced by Tony and Grammy winning producer Jhett Tolentino and Frontrow Entertainment, the M. Butterfly National Tour 2019 hopes to expose people from other parts of the country to a classic and relevant piece of theater.
“I personally want to push for the audience development in this country because it’s not just Metro Manila that we have to focus on…,” Mr. Tolentino said at a press conference on Feb. 4 in Quezon City. “So that’s why with Frontrow Entertainment and I, we teamed up. We had to take on this very demanding tour schedule that I personally worked on.”
RS Francisco, who will reprise his role as Song Liling, said that the shows will stay true to the 2018 Manila production. “I wanted to give the audience for this run the very same production that we did last year… And as much as possible we want to be as precise and as accurate and as authentic as last year’s production.”
The Tony award winning play which originally premiered on Broadway in 1988, follows René Gallimard, a member of the French embassy in China. He meets and falls in love with Song Liling, a Chinese opera singer whom he considers as the embodiment of a perfect woman. The story takes an unexpected twist when Gallimard discovers the truth about Song Liling.
The national tour kicks off in Iloilo where it will run from Feb. 14 to 17 at the SM City Iloilo Cinema 6; followed by Dumaguete, Feb. 28 to March 3, at Silliman University’s Luce Auditorium at; Cebu, from March 14 to 17, at the SM Seaside City Centerstage; Davao, March 28 to 31, at SM Lanang Premier Cinema 5, Manila, May 8 to 19, at the Maybank Performing Arts Theater at the BGC Arts Center in Taguig; and Baguio, May 30 to June 2, at St. Louis University.
Mr. Francisco, who won the 2018 Aliw award for Best Actor for his portrayal of Song Liling, this time shares the role with Aira Igarta, a stage and film actor from UP Diliman’s Theater Arts program who had been a member of the play’s Kurogo ensemble last year.
Mr. Francisco told the press that Mr. Igarta, who has loved the character since his college days, told the team after his audition as an ensemble member that he also wanted to try out for Song Liling’s part.
To fulfill Mr. Igarta’s dream, Mssrs. Francisco and Tolentino decided let the young actor play the part in half of the national tour shows.
As a member of the LGBT community, Mr. Igarta said that he and his character share the same traits of bravery and passion. “I fight for our rights. Until now, oppressed pa rin talaga kaming mga LGBTQ (the LGBTQ community is still oppressed)… Pareho kaming lumalaban (Both he and his character fight) for our rights. ’Yung sinasabing (that) passion for performance and love for arts, pareho kami ni Song Liling (both Song Liling and I have),” he told BusinessWorld at the sidelines of the press conference.
“And pareho kaming maganda (and we are both beautiful),” he added jokingly.
The people behind the touring production also hope to reach a younger audience. “Magandang makita ‘to ng millennials para yung message ay hindi mag-fade (It would be nice for millenials to see the message of the show so that it would not fade). This is a classic story and classic never dies. ’Yung issues applicable pa rin nowadays (the issues in the story are still applicable),” Mr. Igarta said.
Mr. Francisco refered to the themes of expectation versus reality and fake news as elements that make the play relatable. “We are showing the expectation but hindi ’yun ang (it is not the) reality,” he told BusinessWorld. “This material was written in 1988 but it is [as] much apt now than it was [before]. Ngayon, mas makaka-relate ang mga bata kasi doon nila malalaman ang totoong (The young will be able to relate since they would know the real) essence ng fake news, and expectation versus reality.”
Also in the cast are French actor Olivier Borten who will play the role of Rene Gallimard, Jenine Desiderio as Gallimard’s wife Helga, Norm McLeod as French Ambassador Manuel Toulon, Lee O’Brian as Gallimard’s best friend Marc, Jasmin Salvo as the new opera singer. The Kurogo ensemble is played by Pheith Iena Ballug, Ullyses Basa, Sasa Cabalquinto, Franco Ferrer, and John Paul Ortenero.
The M. Butterfly National Tour 2019 will benefit 10 charitable institutions across the country.
Tickets for the performances in Iloilo, Davao, Cebu, and Baguio are available at SM Tickets at any SM Mall nationwide and on SMTickets.com. For the performances in Dumaguete, contact the Culture and Arts Council Office of Silliman University at (035) 422-4365, 0917-300-0346, or 0999-797-7825. For the Manila show, contact TicketWorld at (02) 891-9999 or visit www.ticketworld.com. Ticket prices vary per city and will range between P500 to P2,000 plus taxes and fees. For further inquiries, contact Jhett Tolentino at (0906-576-6914). — Michelle Anne P. Soliman

Aboitiz bullish on Southeast Asia market

By Arra B. Francia, Reporter
ABOITIZ Equity Ventures, Inc. (AEV) sees the Southeast Asian market contributing to a significant part of its earnings in the following years, as it pursues more investments that will help sustain its growth momentum.
AEV Chief Executive Officer Erramon I. Aboitiz said the group would have to look for more growth opportunities abroad since they are growing faster than the Philippine economy and the industries where they are present.
“Projecting ourselves moving forward, we think that it’s important that we start establishing a foothold in some of these countries. Because there will come a time that for us to sustain our growth we cannot rely on just the local market, and that’s really what we’re preparing ourselves for,” Mr. Aboitiz told BusinessWorld in a recent interview.
AEV’s international business currently accounts for about two to three percent of its net profit, mostly from the food group. Mr. Aboitiz said they have yet to plot an actual target on how much they want this segment to contribute in the coming years.
“If we can get contributions from the ASEAN (Association of Southeast Asian Nations) market to 15-20% of our income (in the next 10 years), I think we will have done one hell of a job,” Mr. Aboitiz said.
AEV’s power unit, Aboitiz Power Corp., announced back in 2015 that it will be spending $500 million in a span of five years to finance its expansion in the Southeast Asian region. This also supports the company’s goal of having 4,000 megawatts under its portfolio by 2020.
While AboitizPower has identified Myanmar, Indonesia, and Vietnam as its areas for expansion, Mr. Aboitiz noted that their efforts are actually focused on Vietnam because of its similarity with the Philippine market.
The company is looking for deals with local partners who have either started the project already and are looking for partners to come in, or firms that need help in executing projects they already have.
“(We have) some solar projects, wind projects, a lot in the renewable space, because Vietnam has implemented something similar to FIT or the feed-in tariff. So these are going to be opportunities for us,” Mr. Aboitiz said.
Meanwhile, Mr. Aboitiz noted that AEV’s food business through Pilmico Foods Corp. has been the “more successful” unit abroad, having managed to acquire several businesses in previous years.
Pilmico’s latest and largest acquisition to date is Asia-Pacific animal feeds manufacturer Gold Coin Management Holdings, Ltd. The company is present in 11 countries in Asia with 20 production facilities, and has an employee base of more than 3,000 people.
“We’re very happy with that. We think this acquisition and the fact that we have a presence now in so many different countries will not only help the food group but the Aboitiz group,” Mr. Aboitiz said, explaining that this will help them better understand the markets and the opportunities they offer.
The group is investing up to $200 million to further expand Gold Coin’s business. This will be funded by borrowings or internally generated cash.
AEV booked a net income attributable to the parent of P17.32 billion in the first nine months of 2018, nine percent higher year-on-year, driven by a 21% growth in gross revenues to P135.25 billion.

Manila then and now, seen through Brocka and Bernal


MANILA in 2019 is a bustling concrete jungle where the middle class and urban poor strive to have decent life, but in reality its streets are riddled with victims of extrajudicial killings, nine-year-old street urchins used by drug peddlers, inefficient public transport, and other inequalities and injustices.
Meanwhile, Manila in the 1970s was not yet home to high-rise condos and a plethora of shopping malls, but it too suffered from poverty and corruption under the Marcos dictatorship.
Between then and now, has Manila really changed?
At the ongoing exhibition at the College of St. Benilde’s Center for Campus Art (CCA) called Brocka, Bernal, and the City, viewers are asked to look back at the critical works of film directors Lino Brocka and Ishmael Bernal — two National Artists for Cinema — and realize how timely and timeless their bodies of work are.
CCA head Gerry Torres said during the exhibit’s opening on Jan. 25 that the goal of the exhibition was to introduce the two filmmakers to a new audience.
At a time when the city, and the entire country, was under Martial Law, the two progressive filmmakers chose to resist the dictatorship through their movies. They were activists and artists who used film as their weapon of choice that subverted the safe and stereotypical movies that were common under Martial Rule.
“Brocka and Bernal called themselves artists who are activists, who used their art to present the truth and unveil the lies. They also showed that art, through film, can be a force that can rebuke the abuses of power and the people who propagate them. In life, as in their movies, they continued to be resolute in their belief that a true artist always sees, accepts, and fights for the truth,” wrote Mr. Torres in his curatorial note.
The exhibition highlights a number of quotes by Ishmael Bernal that resonate to this day: “I always investigate, question, and unravel the hypocrisy of society, of established mores. I consciously depart from stereotypes to show that people, whether prostitutes, drug addicts, philosophers, or professors can behave unpredictably. I don’t dwell on the pagmumulat (awakening) thing — poverty is caused by class contradictions, etc. — we know all that. What I do is I try to deconstruct the genres, to make them seem formless and amorphous. My themes are decadence of urban life, human perversion, the demon in all of us, cynicism about life.”
The exhibition focuses on the words “Manila” and “Maynila” — Mr. Brocka created the film Maynila, sa Kuko ng mga Liwanag (1975) while Mr. Bernal had Manila by Night (1980) — and how the two directors viewed the city and the people and how, in return, the people viewed themselves according to the city.
Different in style and storytelling, the two films are the same in depicting Manila’s life: of oppressed people like workers and prostitutes and their plight in the face of inequality, injustice, and poverty.
The two films are on view in a mini cinema installed inside the gallery. Other classic hits by the two directors are also on view for free: Mr. Brocka’s Insiang (1976), Jaguar (1979), and Bona (1980) and Mr. Bernal’s Ikaw ay Akin (1978), Relasyon (1982), Broken Marriage (1983), and Working Girls (1984).
Video installations featuring interviews with artists who worked with the two directors, including Nora Aunor, Bembol Roco, Gina Alajar, Cherie Gil, and Vilma Santos, are accompanying aids to the exhibition.
The exhibit, set up like a street with signs featuring the names of old Manila theaters, has sections dedicated to the two filmmakers’ works, and a third space is dedicated to recent movies like Manila (2009) and Anino (2000) that were inspired from the National Artists’ works.
Brocka, Bernal, and the City — which is part of the celebration of CSB’s 30th anniversary and the 100th anniversary of Philippine Cinema — is on view until April 27 at CSB-SDA building. — Nickky Faustine P. de Guzman

Central bank to set standard for payments via QR code by June

BSP
THE CENTRAL BANK is eyeing two options as it looks to set a standard for QR code payments. — BW FILE PHOTO

By Melissa Luz T. Lopez, Senior Reporter
THE CENTRAL BANK is looking to set a standard for quick response (QR) code payments by June, with the regulator eyeing two options for the new e-payment platform.
Vicente T. de Villa III, officer-in-charge of the BSP’s Financial Technology Sub-Sector, said industry players are considering the EMVCo and the URL standard for QR codes, which are among the widely used payment structures abroad.
QR codes are computer-generated images which are used for payments or fund transfers. An image, usually a black-and-white square pattern, is scanned via a smartphone camera which will then bring the user to a computer link or online payment portal to complete the transaction.
It is deemed more convenient compared to filling out online forms that require typing account names, numbers and other transaction details, as all these will be embedded in the code.
“First semester, it’s what we have in mind,” Mr. De Villa said in a recent interview when asked how soon the new rules will be out. “We are working directly with the PPMI (Philippine Payments Management, Inc.), because their thrust is to come up with a standard national QR that’s inter-operable not only here in the country, but also [abroad].”
“What needs to be standardized is the information na nandun sa likod na babasahin for the payment instruction. Right now, when you transact online, you have to choose the bank, type the account number, name, and anything about the account you want to send. All of those information will be in that QR.”
BSP Governor Nestor A. Espenilla, Jr. revealed plans to standardize the QR code in July last year, with the goal of making the codes readable across banks and merchants.
As regulator, the central bank will mandate players to agree and adopt one QR design to be used by all. Execution and compliance will have to go through the PPMI, an industry-led body expected to police their own ranks.
Currently, non-bank financial firms like PayMaya and GCash are offering QR payments via select stores. Chinese payment gateways like AliPay and WeChat Pay have also made the service available in some establishments in the Philippines through printed codes on signboards placed beside cashiers and check-out counters.
The central bank is actively looking to boost e-commerce and e-payments under the National Retail Payment System, which they see as a big step in getting more Filipinos to go cashless and reducing transaction costs.
The BSP wants digital payments to rise to 20% of total transactions by next year, from a mere 1% share back in 2013.
The Philippines ranked fourth among 55 nations in terms of financial inclusion and the best in Asia alongside India, according to the 2018 Global Microscope of the Economist Intelligence Unit.
The central bank is counting on several reform measures to broaden financial access, starting with basic deposit accounts which were formally introduced in February last year. This allows financial firms to offer low-cost bank accounts to customers by simpler opening requirements and few documents, no minimum maintaining balance, and no dormancy charges.

PH Resorts awaits PSE go signal for P18.5-B follow-on offering

PH RESORTS Group Holdings, Inc. looks to get the Philippine Stock Exchange’s (PSE) approval for its P18.488-billion follow-on offering within the month, in order to facilitate its expansion.
“We’re waiting for PSE. Feb. 13 daw ang board (meeting) nila,” Udenna Corp. Vice-President for Finance Ignacia S. Braga told reporters on the sidelines of ISM Communications Corp.’s special stockholders’ meeting in Makati last week.
Udenna Corp. serves as the parent company of PH Resorts.
The leisure and tourism arm of Davao-based businessman Dennis A. Uy secured the Securities and Exchange Commission’s approval for the follow-on offering last month. It plans to sell a total of 2.054 billion shares, consisting of 1.786 billion primary offer shares and 267.95 million shares as part of the stabilization related option, priced at up to P9 each.
The company tapped CLSA Ltd. and UBS as the international underwriters for the offer, while China Banking Corp. will act as the domestic underwriter.
PH Resorts could net P17.914 billion from the offering should it fully exercise the stabilization related option.
The funds raised will be used to fund PH Resorts’ integrated resort and casino in Lapu-Lapu City, Mactan called The Emerald. The resort will stand on a 13.5-hectare property that will house a main gaming area, non-gaming amenities, a 300-meter beachfront, fitness studio, and infinity pools.
The casino alone will have an aggregate gaming floor area of 7,585 square meters (sq.m.) during the first phase, and is set to expanded by 9,400 sq.m. in the second phase. The company also plans to develop a five-star hotel with around 1,300 rooms in the complex.
PH Resorts will also renovate The Donatela Hotel in Panglao, Bohol, a more family-oriented option near The Emerald. The company will add 28 additional villas to its existing 12 villas.
The company’s expansion plan also includes Clark Resort, a four-hectare integrated tourism resort complex in Clark Freeport Zone, Pampanga. It includes a 7,500 sq.m. casino, a retail outlet mall, and facilities for meetings, conventions, and exhibitions.
Formerly called Philippine H2O Ventures Corp. (H2O), PH Resorts entered the stock exchange in 2018, after H2O’s parent Jolliville Holdings Corp. executed a sale and purchase agreement to transfer its interest in the firm to Udenna Development Corp. or to any of its assignees.
The company’s name was change to PH Resorts in June 2018, alongside the change in its primary purpose to engage in the hotel, gaming and entertainment business. It now serves as the holding firm for the Udenna group’s tourism-related businesses. — Arra B. Francia

Ang Huling el Bimbo 2.0: same story, better narration

RESORTS WORLD MANILA’s musical Ang Huling El Bimbo will return in March and this does not only mean giving a chance to those who missed it the first time around, more than this it is an opportunity to tweak the script and some songs, and to improve character development.
“It’s so easy to show the same show again. But it would be sayang (a pity) not to refine it, to fine tune it,” said the musical’s director Dexter Santos, during a press conference on Jan. 31 at Resorts World Manila.
He added that the creative team and the cast treated El Bimbo like their baby. “We are critical about it, we nurture it until the material reaches its full potential… It’s not enough that people come to the show, kung kaya mong lagyan ng kaunting kurot ng puso (if you can add something to pull the heartstrings) why not?,” he said.
But he assured that (spoiler alert!) “The dead body will still be there.”
Ang Huling El Bimbo was first staged in September last year. It was critically acclaimed, performances were sold out, and the producers had to add a few show dates to accommodate all the people who wanted to watch it. Still, others were left unable to watch.
The musical uses the Eraserhead’s classic songs as it tells the story of three young men, Hector, Emman, and Anthony, and their one girl friend, Joy, and their journey from college, graduation, and adult life. It employs non-linear storytelling that jumps from their college days to pursuing their separate paths.
While the rerun keeps the same plot, changes have been made. First, there is the casting: the actors who play the college students and their adult counterparts will looks more alike. As Menchu Lauchengco-Yulo, the musical’s associate director who is also one of the leads, the encore has a cast that “match the alternates as closely as possible.”
The critics who saw the first run said the audience had to truly suspend their disbelief to accept the drastic physical differences between the young and old characters. This dilemma has now been addressed.
Reprising their roles are Gian Magdangal, OJ Mariano, Jon Santos, and Menchu Lauchengco-Yulo as the older versions of Hector, Emman, Anthony, and Joy, and Reb Atadero, Boo Gabunada, and Tanya Manalang, as the younger versions. First-run cast member Topper Fabregas has been replaced by Lance Reblando and Phi Palmos as the young Anthony.
Jamie Wilson and Shiela Francisco will reprise their original roles a sergeant and Joy’s aunt.
The new faces in the cast are Bibo Reyes as young Hector, Gab Pangilinan as the young Joy, Carla Guevara-Laforteza as the old Joy, David Ezra as the old Hector, and Nico Manalo and Myke Salomon (who’s also the musical director) as the old and young Emman.
Aside from the cast changes, there has been a refinement in the narration.
“Given the huge success of the first run, we wanted to ensure that the audience will still be treated to all the best-loved songs as in the original, save for a few tweaks in aid of a more streamlined storytelling,” said Ms. Yulo. “It’s even more amazing for those who will see it for the first time, and these changes will bring an added dimension of enjoyment for those who have already seen it before.”
Ang Huling El Bimbo will run from March 1 until April 6 at Resorts World Manila. For tickets, check www.ticketworld.com.ph. — Nickky Faustine P. de Guzman

Deutsche Bank may cut bonuses

DEUTSCHE BANK AG may cut bonuses if its revenue fails to grow, Chief Financial Officer James von Moltke said on Monday.
Variable compensation is one of several areas the lender has earmarked for further possible savings if necessary to achieve its profitability target, von Moltke said on a conference call with fixed-income investors. The reductions could be made if a challenging market environment makes it impossible for the bank to grow its top line, he indicated.
Deutsche Bank has seen eight consecutive quarters of falling revenue amid an effort by Chief Executive Officer Christian Sewing to boost profitability. While Sewing cut costs more than expected last year, that was outpaced by a fall in revenue, making it the number one concern for analysts and investors. The bank expects to see growth in 2019 but that depends on markets being relatively benign, it said on Friday.
Deutsche Bank is planning to slash bonuses for 2018 by at least 10%, though a final decision depends on the fourth quarter performance, people familiar with the matter have said. Revenue at the investment bank — which accounts for the lion’s share of the bank’s bonuses — dropped 5% in the final quarter, falling short of the consensus forecast and leading to a full-year pretax return on tangible equity of 0.9% for the unit, half of last year’s result.
Shifting its cash pile held with the European Central Bank into higher-yielding assets is one way Deutsche Bank wants to achieve revenue growth.
The plan, which it developed with the advisory arm of Cerberus Capital Management, could end up adding as much as €300 million to the top line von Moltke said on the Monday call.
The bank may invest some of the money in peripheral sovereign bonds, he said. — Bloomberg

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