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Lopez-Consunji venture bags P22.6-B Cebu project

A CONSORTIUM COMPOSED of the Lopez and Consunji groups and Spain’s Acciona Construccion S.A. has bagged the P22.6-billion contract to build and design the Cebu-Cordova Link Expressway (CCLEx), the Metro Pacific group’s first tollway project in the Visayas.

In a statement on Monday, Cebu Cordova Link Expressway Corporation (CCLEC) said the Cebu Link Joint Venture (CLJV) was issued a notice of award for the “design and build” contract for the bridge that will connect Cebu City to Cordova in Mactan island.

“(CCLEC) issued the Notice of Award to CLJV on Nov. 23, 2017 at an agreed contract amount of P22.6 billion,” the subsidiary of Metro Pacific Tollways Corp. (MPTC) said.

CLJV is the joint venture company of Acciona, D.M.Consunji, Inc. and Lopez-led First Balfour, Inc., which CCLEC said all have “proven track records in major infrastructure projects.”

“We are delighted to be part of this landmark project. We have put together a very experienced team, and are looking forward to working closely together with the customer to deliver a new toll bridge that will benefit both local communities and the Philippines,” Acciona Director of Singapore and Southeast Asia Ruben Camba was quoted as saying in a statement.

Under a joint venture agreement with the local governments of Cebu City and Cordova Municipality, CCLEC will build, operate and maintain the 8.5-kilometer toll bridge.

“We are very confident that we can deliver a quality state-of-the-art bridge that will provide not just travel efficiency but also drive economic growth and productivity in the entire Visayas region, and improve the overall welfare of the Cebuanos,” CCLEC President and General Manager Allan Alfon was quoted as saying in a statement.

President Rodrigo R. Duterte led the groundbreaking ceremony for the project in Cordova, Cebu in March.

CCLEx will have two lanes in each direction. It will have a main navigation span bridge, as well as viaduct approach bridges, a causeway, roadway, and toll facilities.

The toll bridge is expected to serve at least 40,000 vehicles and help decongest traffic in the two existing bridges between Mactan and Cebu.

“We are happy to be given this opportunity to bring to Cebu and share with the Cebuanos and the people in the Visayas in general, our company’s expertise in building and operating world-class highways and bridges to create more opportunities and spur economic growth,” MPTC President and CEO Rodrigo E. Franco said.

The CCLEX is the first tollway project of Metro Pacific group in the Visayas and Mindanao areas, as it expands its tollway presence around the country.

It currently operates the North Luzon Expressway (NLEx), Subic-Clark-Tarlac Expressway (SCTEx) and the Manila-Cavite Expressway, and is currently constructing the Cavite-Laguna Expressway (CALAX).

Last month, MPTC announced it has increased its stake in Indonesian firm Nusantara Infrastructure, further expanding its presence in Southeast Asia.

Mr. Franco earlier said MPTC will be raising about P50 billion from bank loans next year to finance major toll road projects, including the CCLEx, as well as the CALAX, NLEx-SLEx Connector Road, and C-5 Link Expressway.

MPIC is one of the three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Confusion reigns as banks scramble to price FX; bond research under revamp

LONDON — How much are you worth? For the foreign exchange (FX) and bond analysts covering the world’s biggest markets, how much to charge for their time and research remains in question just a month away from sweeping new rules that require fund managers to pay for these services.

Forcing funds pay separately for research is one element of the wide-ranging European Union financial markets directive known as “MiFID II,” which is aimed at making European markets more transparent and providing better value for investors. Its complexity has already delayed its implementation by a year.

Having grappled with the issue for the past 18 months, no consensus or preferred pricing model appears to have emerged on macroeconomic, fixed income and foreign exchange research, taking discussions down to the wire.

At least 11 banks Reuters spoke to said they would be charging for investment research and meetings with analysts when the MiFID II comes into force on Jan. 3.

There was a reluctance to talk about charges but several sources said pricing of fixed income research was aimed low, many said pricing details had not yet been finalized and some said certain elements of research — mostly macroeconomic — would be free via online portals.

“While we’re currently discussing with clients, we’ve not gone public on anything yet,” said a source at an international bank with operations in London, declining to be named.

“I‘m hearing from everyone at other banks that pricing isn’t yet fixed. Someone else told me that they didn’t think things would be finalized until March.”

Because banks use research to attract clients, the fallout of MiFID II across asset classes is being watched closely.

But working out prices for forex and fixed income research has proved complex, analysts said. They added it was hard to assess the impact since a large chunk of clients such as central banks, sovereign wealth funds and certain pension funds will not have to pay under the new rules.

There were also some concerns about the implications for the thousands of analyst jobs in a banking sector already squeezed by the financial crisis and regulation.

The number of analysts at the 12 biggest banks has fallen by 10% since 2012 to 5,981 in 2016, according to data provider Coalition.

There are also numerous reports of equity analysts moving to independent research shops, investments firms or considering new careers as MiFID II looms.

BCA, an independent investment research firm, estimates that roughly $16 billion annually is spent on global investment research — a number that is expected to shrink in coming years.

Compliance demands meanwhile are keeping traders, trading desk heads and analysts away from clients, which hurts the profitability of the desk.

Peter Chatwell, senior rate strategist at Mizuho in London, said at least one or two days of his week are allocated to MiFID II.

“I am spending a vast amount of time agreeing prices for research contracts, working on our new research portal and working out how to swiftly onboard the new clients we are acquiring,” he said.

“This is far bigger than Y2K, because this is not a one-off IT fix but a structural change in how research is used and funded within financial markets,” Chatwell said, referring to preparations to deal with computer issues around the change in date before the year 2000.

According to Greenwich Associates, 94% of the 46 sell-side fixed-income traders taking part in a recent study said they are spending more time speaking with compliance.

The key question meanwhile for asset managers required to pay for research under MiFID II is whether to pass on or absorb that cost.

GOING LOW
Pricing of fixed income, currency and commodity (FICC) research was expected to be generally lower than for equities.

The median expected cost of equity research is 10 basis points (bp) — equating to €1 million per year for a firm with €1 billion under management, according to the CFA Institute. The median cost for FICC research was 3.5 bps.

That may be caused by a view that such research is free, because until now it has been bundled into the dealing spread, said Rhodri Preece, head of capital markets policy for EMEA at the CFA.

“Perhaps there’s an opportunity (for banks) to recoup some of the losses (from buy-side shifting away from their equity research) through charging for fixed income,” he said.

One source at a European bank, who declined to be named, said the pricing of research would be a “reality check,” while two bond analysts said clients had told them that they were pricing their research too low.

“The fees being talked about in the market at the moment are pretty negligible, about enough to pay for delivering the invoice,” said another banking source, declining to be named.

One source with knowledge of the matter said JP Morgan would charge $10,000 a year for electronic access to published reports only, which would not include analyst time or greater engagement with the research department. A spokesperson for JP Morgan declined to comment.

A source at another bank who asked not to be named said the annual cost of macro-economic research was set at around $15,000 which includes access to analysts.

British bank NatWest says on its website it will provide written material for free on its Agile Markets platform and charge an annual subscription of £2,000 ($2,656) to access strategists.

Credit Suisse said it intended to make written macroeconomic and fixed income product desk strategy available to investment firms through its online platform.

Others questioned the model of providing free research under the new rules and expected regulators to give further clarity.

“The idea that some firms are going to give away stuff for nothing or very little goes counter to the point of what the regulation is trying to achieve, which is trying to stop inducements,” said one London-based analyst. — Reuters

8990 allocates P3 billion for capital expenditures

By Arra B. Francia, Reporter

MASS HOUSING developer 8990 Holdings, Inc. will allocate P3 billion in capital expenditures next year to support the construction of its projects as well as the acquisition of land properties.

“We’re looking at P3 billion (for the whole 2018),” 8990 Chief Operating Officer Willibaldo J. Uy told reporters in Makati City on Monday.

This is 50% higher than the P2 billion the company has allocated for projects in 2017.

8990 Chief Financial Officer Roan Buenaventura-Torregoza said the funds will primarily be used for the construction of projects and land acquisitions.

“Mostly for the construction of high-rise. Pero on landbanking, we’ve just replenished yung land bank namin. Because our land bank strategy is 500 hectares at any given point in time. So replenishment,” Ms. Torregoza said. 

At the same time, 8990 will be launching five projects worth P60 billion in sales. These will be spread out in Cebu, Iloilo, Ortigas, and Davao with two projects lined up. 

The company added that more projects may be launched next year depending on the processing of permits from regulators.

“It’s more driven by how fast the permits can come out. Because now it’s quite long, although it’s more predictable now, it’s hard to say,” Mr. Uy said.

Mr. Uy noted they will start selling units at its Ortigas project by the first quarter of 2018, as soon as the company secures the license to sell from the Housing and Land Use Regulatory Board (HLURB). So far, the company has signed a contract to construct six buildings within the area. 

“We can start selling already. Very strict lang talaga sila sa HLURB we just want to make sure that we have everything in place before we start accepting reservations,” Mr. Uy said. 

The 8990 executive said the project will be similar in size to its Tondo development, where the company is currently constructing 13 residential buildings offering 13,212 condominium units and 2,226 parking lots.

The Ortigas project will also have a mall, which will begin construction in late 2018, as the company looks to take advantage of the market once residents start moving in the condominium. 

“Because of the size of the community there. Kasi captive market, sayang naman. Rather than them going out, they’d just stay inside the mall,” Mr. Uy said. 

Mr. Uy added they see potential mall developments complementing their housing projects.

“This is something we can’t wait to get into. As long as it can serve our market that’s big enough,” he said, adding the project may be replicated in other vertical developments with more than 10 buildings.

In this setup, 8990 will be leasing out the land to its sister company called Yuma, which will then handle the retail component.

8990 booked a 22% decline in attributable profit for the first nine months of 2017 to P2.47 billion, weighed down by delays in processing of permits.

Shares in 8990 added eight centavos or 1.44% to close at P5.63 apiece at the stock exchange on Monday.

Manufacturer disputes claim of deaths due to vaccine

By Arra B. Francia
Reporter

FRENCH PHARMACEUTICAL company Sanofi Pasteur on Monday, Dec. 4, dispelled reports that three patients who received the dengue vaccine last year supposedly died because of the shot, saying the vaccine itself cannot trigger the infection.

“We try to correct this misinformation…hindi dapat tayo nag-ko-conclude on these things (we’re not supposed to make conclusions on these things). There is an independent expert committee that decides on these matters. And as of today, what we know is that it’s judged, not related to the vaccination,” Sanofi Medical Director Ruby Dizon said at a press briefing in Taguig City.

This is in connection with a claim by the Volunteers Against Crime and Corruption (VACC) that the Dengvaxia vaccine had caused the deaths of three children, after they took part in the P3.5-billion vaccination program of the Department of Health (DoH) using drugs licensed under Sanofi in April 2016.

“May na-receive na kami sa aming coordinator sa Central Luzon, tatlo na po ang namatay doon. Ang mga bata na tinurukan noong Abril 2016,” VACC chairman Dante Jimenez said in a separate press conference in Manila yesterday. (According to our coordinator in Central Luzon, three have died, children who had been inoculated.)

A prominent senator, Richard J. Gordon, told Reuters he was aware of two deaths — but gave no details — and said approval and procurement for the program was done with “undue haste.”

For his part, Presidential Spokesperson Harry L. Roque, Jr. said there had been no reported case of “severe dengue infection” since the vaccine was administered and urged the public “not to spread information that may cause undue alarm.”

An official of the DoH also said the deaths were not due to Dengvaxia.

Prior to VACC’s statements, the DoH already ordered the suspension of the vaccination program following a new study by Sanofi itself stating that the Dengvazia vaccine may cause severe dengue cases on patients who were inoculated but did not have a prior infection.

A total of 733,713 children aged nine years and above from Regions 3 (Central Luzon), 4-A (Calabarzon), and the National Capital Region received the vaccine last year. Of this number, the DoH said around 90% already had dengue beforehand, which means the remaining 70,000 face increased risks of getting the infection, going by Sanofi’s disclosure itself.

The World Health Organization (WHO) said in a July 2016 research paper that “vaccination may be ineffective or may theoretically even increase the future risk of hospitalized or severe dengue illness in those who are seronegative at the time of first vaccination regardless of age.”

Sanofi Global Medical Head Ng Su Peing said at Monday’s press briefing: “We noted in the longer term an increased risk of hospitalized and severe dengue in the vaccinated people without a prior dengue infection history compared to the placebo.”

The company defined severe dengue to have the following symptoms: easy bruising, bleeding from nose and gums, low blood pressure, and profound shock.

On the other hand, the company said the vaccine retains its efficacy once the patient has received all three shots.

“With the three vaccine doses, majority of the people are protected. Whether you knew their infection status or not. Majority of people have fewer dengue cases, fewer hospitalizations with severe dengue,” Ms. Peing said.

When asked about precautionary steps that should be taken by those who received the vaccine but did not get the infection beforehand, Ms. Dizon said there are none as of the moment.

Should these patients get dengue, however, they should still practice the same measures as if they did not receive the vaccine. “So when your child has a fever, whether vaccinated…or not you still do the same thing…symptoms leading to dengue, you still bring the child to the doctors, it doesn’t really impact the management,” Ms. Dizon explained.

The company said it is coordinating with the DoH and the Food and Drug Administration (FDA) on how to move forward with the case.

“Our focus today is to communicate these results as proactively and as actively as we can to the FDA, to our Department of Health…to make sure that the mechanisms are in place. And we will decide how to move forward with the DoH,” Ms. Dizon said.

Meanwhile, the Department of Justice (DoJ) on Monday ordered the National Bureau of Investigation to look into “the alleged danger to public health … and if evidence so warrants, to file appropriate charges thereon.”

For her part, former Health secretary Janette Garin, who implemented the program under the administration of then-president Benigno S.C. Aquino III, said she welcomed the investigation.

“In the event that there will be authorities who will point culpability to me, I am ready to face the consequences,” she told ANC TV. “We implemented it in accordance with WHO guidance and recommendations.” — additional report by Reuters

Aboitiz unit temporarily shutters biomass power plant in Batangas

ABOITIZ POWER Corp. (AboitizPower) said its unit Aseagas Corp.’s 8.8-megawatt (MW) biomass power plant in Lian, Batangas will remain shuttered, as the company assesses its options.

In a disclosure to the stock exchange, AboitizPower said the Aseagas plant had earlier halted operations on Nov. 24 due to the unavailability of organic effluent wastewater.

“After evaluating the circumstances and the ongoing technical problems relating to the plant’s fuel stock and digester components, Aseagas decided to maintain the shutdown and to determine the appropriate way forward,” it told the stock exchange on Monday.

The supply of organic effluent wastewater was supposed to come from Absolut Distillers, Inc. The plant converts the organic effluent of Absolut into clean and renewable energy. It is meant to power about 22,000 households while producing 33 tons per day of liquid carbon dioxide for the industrial and beverage industries.

“This continued shutdown will allow us to look at our options, taking into consideration the interests of all our stakeholders,” AboitizPower President and COO Antonio R. Moraza said in a separate statement.

At the same time, Aseagas said it has prepaid an outstanding P2.368-billion loan with the Development Bank of the Philippines (DBP).

Aside from the DBP loan, Aseagas also invested equity of around P950 million for the biomass plant and has around P460 million in outstanding liabilities.

AboitizPower acquired the biomass plant in July last year, adding to its portfolio of renewable energy projects. The deal was through Aboitiz Renewables, Inc., the listed company’s holding firm that houses its investments in renewable energy. AboitizPower acquired the Aseagas facility from parent firm Aboitiz Equity Ventures, Inc.

The biomass power plant was expected to start operating and delivering power to the Luzon grid before October 2016. It built up AboitizPower’s renewable energy footprint, which currently covers large hydro, run-of-river hydro, geothermal and solar.

“Despite these challenges, our other projects are progressing as planned. About 500 MW of attributable capacity, mainly from baseload and hydro power plants, will come online in 2018. We are on track to meeting our 4,000-MW net attributable capacity target by 2020,” Mr. Moraza said.

On Monday, shares in AboitizPower closed higher by 0.39% at P38.65 each. — Victor V. Saulon

Central banks need to ensure tightening cools market froth

LONDON — Major central banks must ensure their efforts to gradually lift interest rates prove effective enough to cool some already “frothy” financial markets, the Bank for International Settlements (BIS) said in its latest report.

The umbrella organization for the world’s central banks gave the warning as investors continue to bask in what it called the “light and warmth” of improving global growth, subdued inflation and soaring stock markets.

Record high debt levels, however, highlight vulnerabilities in the financial system and the scale of this year’s rally in asset prices seems to have increased caution at the Switzerland-based BIS.

“High debt levels, in both domestic and foreign currency, are still there. And so are frothy (asset price) valuations,” the head of BIS’s monetary and economic department, Claudio Borio, said.

“The longer the risk-taking continues, the higher the underlying balance sheet exposures may become. Short-run calm comes at the expense of possible long-run turbulence.”

There was some surprise too that benchmark bond yields — which drive global borrowing costs — have stayed down even with the Federal Reserve now shrinking its balance sheet and the European Central Bank (ECB) also about to heavily cut its stimulus.

The improving global growth outlook, Japan’s ongoing money printing and the message from both the Fed and ECB that they will tread carefully going forward was the likely explanation for still low yields, though they did raise a “deeper question.”

“Can a tightening be considered effective if financial conditions unambiguously ease? And, if the answer is no, what should central banks do?” Borio said.

The pace of tightening from the likes of the Fed is already expected to be the slowest on record.

One concern is that the continued low bond yields and low market volatility, particularly in the United States, are reminiscent of the bond market “conundrum” referred to by former Fed Chair Alan Greenspan in 2005 before the financial crisis.

Yields remained low then too despite a run of US rate hikes and only gained any traction later in the cycle.

“In an era in which gradualism and predictability are becoming the norm, these questions (about effective tightening) are likely to grow more pressing.”

It is especially the case with some stock market gauges now in “frothy” territory.

At recent levels in excess of 30, the US stock market’s cyclically adjusted price/earnings ratio, for example, has exceeded its post-1982 average by almost 25%.

The dividend payout ratio of US companies is also back at highs observed in the 1970s and so might not go much further. “High valuations: market complacency?” the BIS posed the question, though it said stocks did look much less frothy when measured against extremely low bonds yields. — Reuters

P3,500 for kasambahay in NCR in effect Dec. 16

MANILA — Starting Dec. 16, all domestic workers or kasambahay in Metro Manila must be paid a monthly minimum wage of P3,500 a month, up from the previous mandatory rate of P2,500, the Department of Labor and Employment (DoLE) said.

The DoLE made the announcement after the Wage Board for the National Capital Region (NCR) issued Wage Order No. NCR-DW-01, which provides for a new monthly minimum wage for domestic workers/kasambahay in the NCR. The order mandates an additional one thousand pesos (P1,000) from the current two thousand five hundred pesos (P2,500), for a total of three thousand five hundred pesos (P3,500) as the new monthly minimum wage for domestic workers in NCR.

DoLE said the issuance was based on the collegial decision of the Board after conducting a thorough wage review on the socioeconomic conditions of the region, needs of domestic workers and their families, prevailing wage rates, capacity of the employers to pay, including those relevant data affecting the interests of both employers and domestic workers. Public consultations and hearings were also conducted in NCR to ensure that all their concerns and insights are considered, DoLE said.

The review was mandated by RA 10361, otherwise known as the Batas Kasambahay, which mandates the regional tripartite wage and productivity boards to revisit annually the wage rates of domestic workers.

The new order shall apply to all domestic workers/kasambahay, whether on a live-in or live-out arrangement and such does not allow any exemption.

It covers: general househelp, yaya, cooks, gardeners, laundry person, or any other person regularly performing domestic work in one household on an occupational basis.

The order excludes: service providers, family drivers, children under foster family arrangement, and persons performing work occasionally or sporadically.

The order was published on Dec. 1 in the Philippine Star and will be effective on Dec. 16. — news5/interaksyon.com

Impeachment hearing awaits two SC justices

TWO OTHER associate justices of the Supreme Court (SC) are set to attend the House inquiry on the impeachment complaint against Chief Justice Maria Lourdes P.A. Sereno, according to Oriental Mindoro Representative Reynaldo V. Umali.

Mr. Umali, chairperson of the House committee on justice which is conducting the inquiry, said Associate Justices Francis H. Jardeleza and Noel G. Tijam would be available to attend the committee hearing scheduled Dec. 11, two days before a scheduled vote to determine judicial determination of probable cause.

Associate Justice Teresita J. Leonardo-De Castro, who had already testified last week, is also willing to return to shed light on the inquiry, Mr. Umali said, adding that retired associate justice Arturo D. Brion will also attend the Dec. 11 hearing.

Mr. Brion and the incumbent justices are set to testify on Ms. Sereno’s alleged betrayal of public trust, such as her alleged usurpation of the mandate of the full court, and culpable violation of the Constitution by her alleged falsification of temporary restraining orders and delay of the resolution on Administrative Matter (AM) No. 17-06-02-SC on the transfer of the Maute cases to outside of Mindanao.

Ms. Sereno is also accused of corruption and other high crimes.

On the other hand, today’s hearing by the committee will focus, among other things, on the alleged delay in retirement benefits for judges and justices. Expected to attend are Court Administrator Jose Midas P. Marquez; Deputy Clerk of Court Anna-Li R. Papa-Gombio; lawyer Jocelyn T. Fabian, chairperson of the Technical Working Group on the Special Committee on Retirement and Civil Service Benefits; and Chief Judicial Staff Officer Charlotte C. Labayani of the Employees’ Welfare and Benefits Division.

Meanwhile, some senators have cried foul against the claim of lawyer Lorenzo G. Gadon that a business tycoon is ready to shell out P200 million to each senator in order to win an acquittal for Ms. Sereno should her case reach trial in the Senate.

Senator Panfilo M. Lacson noted that Mr. Gadon had been found to be spewing a lot of hearsay and even triple hearsay when he was grilled at the impeachment hearings.

For her part, Senator Grace Poe said the people are closely watching the case, so senators must ensure the case is decided on the merits. — M.N. dela Cruz with interaksyon.com

Airport congestion still expected during Christmas travel season

PASSENGERS will still experience air traffic and congestion at the terminals of the country’s main gateway, the Ninoy Aquino International Airport, despite a few improvements lined up, Senator Grace Poe said on Monday, Dec. 4, after a hearing on the Civil Aviation authority of the Philippines’ (CAAP) preparations for the Christmas rush.

“Mayroon pa rin (There will still be traffic), although may improvement na,” Ms. Poe said in an interview, referring to the plan to deploy an additional 500 immigration officers for faster processing.

Other planned improvements, however, will not be implemented until next year.

Ms. Poe cited the construction of an exit taxiway, which is scheduled to start February.

“(By) next year, mas mabilis ang takeoff and landing (would be faster),” Ms. Poe said.

An imrpoved Communications Navigation Surveillance/Air Traffic Management System (CNS/ATM) is also expected to be operational by August 2018, she added.

“Malaking sakripisyo pa rin para sa ating mga kababayan talaga itong darating na Disyembre (Filipinos will still have to make big sacrifices this December), she said. — Arjay L. Balinbin

Iflix launches NSFW Pinoy comedy show

THIS YEAR might be ending in a few weeks but it seems that its end harkens the dawn of the age of stand-up comedy as the latter half of the year saw a number of comic shows produced in the country, from small productions like Laugh It Off at Solaire’s Eclipse lounge, to larger ones like Jo Koy in Manila in Solaire’s The Theater and Waterfront Cebu. Now iflix, the Kuala Lumpur-based video-on-demand service, is taking a stab at this genre with Hoy! Bibig Mo, the company’s first original Philippine production featuring some of the top comics in the country.

The eight-episode series, which premiered on Dec. 1 and is hosted by Ramon Bautista, saw stand-up comics like Alex Calleja, GB Labrador, Tim Tayag, and Mike Unson “tackling taboo subjects you’ve never seen them joke about before,” said a company press release, leading credence to the title, Hoy! Bibig Mo which roughly translates to “Hey, watch your mouth!”

“These are not specials per se, but are designed with the intention of being a returnable series. Moreover, the idea is to build traction for ‘watch your mouth’ and establish it as a franchise so we have the option of spin-offs (such as solo act specials) where opportunities arise, all under the same comedy brand or umbrella,” Mark Francis, iflix global director of original programming, told BusinessWorld in an e-mail interview.

The show is the Filipino version of the Malaysian iflix original called Oi! Jaga Mulut — the company decided to create a Filipino version after “the success of [the show] in Malaysia.”

The Malaysian version was shot in May while the Philippine version was shot in July.

“We’re excited to bring the same boundary-pushing, hilarious stand-up comedy concept to the Philippines and to establish iflix as the destination for the region’s most talented funnymen and women,” Mr. Francis said in a press release, adding “delivering hyperlocal, high-impact content is at the crux of our original programming strategy.”

Iflix also produced an Indonesian version called Oi! Jaga Lambe which was shot in September.

“Stand-up comedy is still nascent in these parts, meaning the community is small. We selected a mix of established, high profile names, but also took pains to introduce raw, less heard of talent. The longevity of this content depends on keeping the talent pipeline fresh,” Mr. Francis said in the e-mail interview.

And if it becomes a hit, Mr. Francis said they are looking at making it a multi-season series.

But iflix is not the only service leveraging on the power of comedy as Netflix, the California-based streaming video service, has already produced comedy specials featuring comics like Amy Schumer and Jo Koy alongside a series called The Standups — six half-hour specials starring Nate Bargatze, Fortune Feimster, and Deon Cole — all the while premiering stand-up specials from Comedy Central, HBO, and Showtime.

“Netflix has a lot of great stand-up but the reality in our region is entirely different, especially since we are targeting local comics and local language over English. For instance, not many comics in our region have an hour of fresh material in their back pockets, and most have a day job to put food on the table,” said Mr. Francis in the interview, noting they started the push towards stand-up comedy in December 2016.

“The industry in Asia is not as mature, but the headroom is very much there for us to grow the scene together. There simply are not enough platforms besides the occasional stand-up club night for these comics to shine and improve their craft, while free to air is heavily censored and regional pay TV focuses on established, English-speaking comics. We believe this is a gap we can serve, but we have to take a longer view and grow it together with the talent, from the ground up,” he added.

Aside from its comedy series, iflix, announced several more original series which are in the pipeline including “a very big, very sexy feature-length film” starring Kris Aquino for the Philippines, and a spin-off of a hit movie drama, Magic Hour, for Indonesia, while Malaysia will soon announce its “first original drama series in collaboration with the country’s leading independent studio, Skop Productions Group,” said Mr. Francis. — Zsarlene B. Chua

‘Rampant’ Singapore piracy prompts Hollywood lobby for crackdown

SINGAPORE, which prides itself on being a haven for law and order, is being called a haven for pirating copyrighted programming by entertainment titans such as Walt Disney, HBO, the National Basketball Association, and the English Premier League.

Viewers in the city-state buy legitimate set-top boxes that also allow unauthorized streaming of thousands of movies, TV shows, and live sporting events, said the Coalition Against Piracy. Its 21 members, including divisions of Sony Corp. and 21st Century Fox, Inc., want the government to block the pirating software inside the devices, which are found at local electronics stores and on e-commerce sites such as Alibaba Group Holding Ltd.’s Lazada.

“Within the Asia-Pacific region, Singapore is the worst in terms of availability of illicit streaming devices,” said Neil Gane, general manager of the Asia-focused coalition, referring to countries where the boxes are considered legal. “They have access to hundreds of illicit broadcasts of channels and video-on-demand content.”

Singapore, notorious for imposing the death penalty for some drug and firearm offenses, is a focal point in the entertainment industry’s campaign to curb piracy in the region. Online TV and movie piracy will cost the industry an estimated $31.8 billion in global revenue this year, reaching $51.6 billion by 2022, according to London-based Digital TV Research.

The Asia-Pacific region will become the largest for online piracy next year, overtaking North America, the researcher said.

UNCENSORED CONTENT
Singapore ranked ninth in the number of visits per Internet user to piracy Web sites, according to London-based Muso TNT, which tracks such visits. In a separate survey of 1,000 Singaporeans sponsored by industry association CASBAA, about 40% said they were active consumers of pirated content.

“The piracy here is rampant and shockingly so,” said Lise-Anne Stott, Singapore-based head of legal for A+E Networks Asia, a coalition member that offers History, Lifetime, and three other channels there.

The boxes allow Singaporeans to use apps that access programming not shown at home because it’s censored, lacks a licensing deal or requires a subscription fee users don’t want to pay. In some cases, users can stream uncensored versions — with nudity or violence — of locally available shows such as A+E’s Vikings.

“Copyright infringement is not so much about a device or technology as it is about whether that device or technology is used in a manner that is illegal,” the Intellectual Property Office of Singapore said in an e-mail. “Users of such devices should therefore ensure that they are accessing content from authorized content providers.”

ONLINE TUTORIALS
Some of the devices scraping the Internet for unauthorized content come from Chinese vendors such as Unblock and EVPad. The square gadgets can be bought either with the streaming apps already installed for plug-and-pirate use or with embedded links for downloading those apps.

Tutorials to set them up are found on YouTube and Baidu, Inc.’s online forum.

The Singapore government said it didn’t consider the devices themselves to be illegal. The boxes also can view legally available Web sites such as YouTube.

At Sim Lim Square, an electronics market a short drive from the president’s official residence, at least 15 retailers sell the set-top boxes for as little as S$100 ($74). Many storefronts advertise that these boxes can stream content otherwise unavailable in Singapore.

NOT DOWNLOADING
Ken Lee, a salesman, said his store sells 10 to 20 boxes on a typical weekend. During major electronics fairs, sales can reach 300 a day, he said.

Lee said he tells buyers there’s nothing unlawful about using the devices. Since the boxes aren’t downloading copies of programs, they aren’t violating copyright laws, he said.

Unblocktech didn’t respond to requests for comment. EVPad said in an e-mail that customers decide which apps to download, and it cannot be held responsible.

The industry’s efforts include lobbying the Singapore government to eliminate any confusion about legal uses of the devices and to make it easier to take legal action against companies offering pirated content, said John Medeiros, Hong Kong-based chief policy officer for CASBAA, the coalition’s parent organization.

“We continue to engage with the industry on their concerns in relation to the popularity of devices that connect televisions to access online content,” Singapore’s Intellectual Property Office said.

RANKED FOURTH
The coalition also wants Singapore to block streams of illegal content from entering the country. Last year, the country blocked one Web site for offering illegal downloads.

Minister for Home Affairs and Law K. Shanmugam said in August that Singapore has “a strong intellectual-property regime which protects innovations comprehensively and effectively.” The next month, the World Economic Forum ranked Singapore fourth out of 137 countries for protecting intellectual-property rights.

Coalition members Sony Pictures Television Networks Asia and Viacom International Media Networks declined to comment. Walt Disney Co. and HBO Asia didn’t respond to requests for comment.

“This new coalition adds to our efforts to protect the legitimate rights and interests of the NBA and our partners,” said Ayala Deutsch, executive vice-president and deputy general counsel for the league, which earns $2.6 billion annually in broadcast rights from US-based networks alone.

The English Premier League, which generates at least £1 billion ($1.3 billion) a year from international media rights, is “currently investigating” suppliers of pirated content in Asia after helping Thai authorities break up an illegal streaming operation there. Games are available in Singapore with a subscription.

“The Premier League is currently engaged in its most comprehensive global anti-piracy program,” it said. “This includes supporting our broadcast partners in Southeast Asia with their efforts to prevent the sale of illicit streaming devices.” — Bloomberg

Price rollback for diesel, kerosene; gasoline steady

FOR THE second straight week, oil companies are keeping gasoline prices unchanged after the reduction three weeks ago. Diesel and kerosene prices, meanwhile, will both be down by P0.30 per liter (/L). “This is to reflect movements in the international petroleum market,” said Seaoil Philippines, Inc., which will roll back prices at 12:01 a.m. on Tuesday, Dec. 5. Other companies will be implementing the price cut at 6:00 a.m today. Last week, the prices of diesel and kerosene rose by P0.35/L and P0.25/L, respectively. Gasoline prices were unchanged last week after a P0.50/L reduction on Nov. 21. — Victor V. Saulon

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