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Singapore inflation slows in Nov.

UNPLASH

SINGAPORE — Singapore’s key consumer price gauge slowed to 3.2% in November on the year, in line with expectations, official data showed on Tuesday, and headline inflation fell to 3.6%.

In a joint statement, the Monetary Authority of Singapore and the trade ministry said headline and core inflation were projected to average 3-4% and 2.5-3.5% respectively in 2024.

The core inflation rate — which excludes private road transport and accommodation costs — slowed from 3.3% in October, while headline inflation dropped from 4.7% in October, and was lower in November than economists’ forecast of 3.8%.

The central bank is set to review monetary policy settings next month after it changed the frequency of policy reviews from a semi-annual to a quarterly schedule.

Manufacturing data, also released on Tuesday, showed that manufacturing output increased 1% in November on a year-on-year basis. — Reuters

New Year’s Eve Parties in the City and Beyond

BULACAN.GOV.PH

BUSINESSWORLD has compiled this list of performances and parties for you to send away the old year and bring in the new with a bang. The city will be hopping with parties left and right, but then, one can always choose to jet off to Hong Kong.

Makati brings back New Year Countdown at Ayala Avenue

AYALA Land and Make It Makati, in collaboration with the local Government of Makati, are presenting “Nostalgia Meets the Future: Ayala Avenue New Year’s Eve Countdown to 2024.” It will happen on Dec. 31 starting 7 p.m. at the intersection of Makati Avenue and Ayala Avenue. The event features Asia’s Songbird, Regine Velasquez, together with P-Pop sensation, SB19. Joining them on the stage are Sponge Cola, Al James, and a team of talented musical theatre artists led by Gab Pangilinan and Myke Salomon. It will be hosted by Baus Rufo and Ai Dela Cruz, with direction from Paolo Valenciano. The highlight will be a  lights and fireworks show illuminating the Makati skyline. As the clock strikes midnight, DJ Brian Cua and DJ Mike Lavet will lead the crowd into an all-night dance party. “Nostalgia Meets the Future: Ayala Avenue New Year’s Eve Countdown to 2024” is open to everyone, free of charge, and requires no registration.

Newport’s New Year Countdown concert and parties

TO end the year, some of original Pilipino music’s (OPM) finest will take center stage in The Grand Countdown to 2024. It will be headlined by Sharon Cuneta and Ogie Olcasid, together with Jona, Arthur Nery, and Katrina Velarde. The New Year’s extravaganza also treats revelers to lavish feasts and numerous raffles on Dec. 31 at the Marriott Grand Ballroom. Over at the Newport Grand Wing, there will also be a “Blast from the Past” poolside countdown party at the Vega Pool, filled with 70s disco-era, groovy performances from DJ Chelle Ibañez and the HydroProject Band. At Newport Garden Wing, the “New Year’s Eve Countdown to 2024” kicks off with yuletide chorale performances at The Plaza at 6 p.m., with international DJ Ian Sndrz taking over from 10 p.m. onwards. Tickets for these shows are available at TicketWorld outlets.

Eastwood City to hold New Year Countdown event

ON Dec. 31, starting 6 p.m., Eastwood City will be having its New Year Countdown show which boasts a star-studded lineup. Performers will include Morisette Amon, Silent Sanctuary, and Armi Millare, along with loveteam KD Estrada and Alexa Ilacad, Sunkissed Lola, Player Two, and P-Pop group 1st One. The event will be hosted by Janeena Chan and Mikee Reyes.

HK to stream New Year Countdown firework musical

FOR the arrival of 2024, Hong Kong (HK) is putting on its largest New Year’s Eve firework display to date on Dec. 31 starting at 11:45 p.m. As the clock inches closer to midnight, the façade of the Hong Kong Convention and Exhibition Centre (HKCEC) will be adorned with a large-scale countdown clock. At the stroke of midnight, the numerals 2024 will light up the harbor-front building, setting off a 12-minute firework musical set against the iconic Hong Kong skyline, surpassing any previous New Year’s Eve displays in the city in both coverage and duration. The New Year countdown spectacle will be shared with viewers worldwide via youtube.com/@hongkong and facebook.com/discoverhongkong.

What I got wrong about remote work

THE END of one year and the start of another is always a good time to admit one’s mistakes. And I got something wrong — really wrong — about remote work.

In 2020, when offices shuttered and many knowledge workers began routinely clocking in from home, many skeptics decried the arrangement’s loneliness and isolation. This, I argued, was shortsighted — because although remote workers might be alone much of the day, it’s perfectly possible (in normal, non-pandemic times) to have a social life outside of work.

But after nearly three full years of remote and hybrid arrangements, the evidence is in: Most people working from home are seeing less of their friends than before COVID.

This surprised me. I thought that when pandemic-era isolation ended, remote employees would use the time saved on commuting to reinvest in their non-work relationships. Without a long commute, it would be easier to invite friends over for a home-cooked meal. Increased flexibility would allow for more midday walk-and-talks and coffee dates.

To borrow an economic metaphor, I didn’t think remote work would shrink the pie of camaraderie; personal friendships would just steal some market share from professional connections.

This hasn’t come to pass. Multiple studies have looked at how remote workers have reallocated their commute time. For the most part, they just start work earlier and finish later. They also spend more time sleeping, cooking, doing chores and exercising. Parents spend more time caring for children.

And although remote workers do gain more leisure time, only workers younger than 30 actually use it to get out of the house and hang out with friends. Those of us older than 30? We’re spending more time relaxing at home — either alone or with our families.

It’s alarming that mid- and late-career remote workers are spending markedly less time socializing. Adults weren’t exactly getting in a lot of quality time before the pandemic. Political scientist Robert Putnam chronicled the decline in civic and social connections in his 2001 book Bowling Alone. US Surgeon General Vivek Murthy has been warning of a “loneliness epidemic” since at least 2017, when he wrote that “loneliness and weak social connections are associated with a reduction in lifespan similar to that caused by smoking 15 cigarettes a day.”

In The Good Life: Lessons from the World’s Longest Scientific Study of Happiness, by psychiatrist Robert Waldinger and psychologist Marc Schulz, the authors share results from the decades-long Harvard Study of Adult Development. The overwhelming finding: The biggest factor in life satisfaction is our relationships with other people.

Friendships are a basic human need, up there with sleep, food and exercise. And when I interviewed Schulz earlier this year, he emphasized that for a lot of people, work can be a pretty good source of friends. That’s one reason retirees often report more feelings of loneliness. In-person work provides forced social interaction.

Of course, that’s exactly why so many people prefer to work remotely; hard pass on the awkward office small talk! But even though many of us think we dread meaningless prattle, there have been a number of studies showing that short conversations with total strangers boost mood. Even introverts feel better after chatting with a barista, a bus driver or a receptionist. A natter with colleagues improves collaboration. Remote workers miss out on those conversations.

That’s not to say that the answer is to return to HQ for 40 hours each week. For one thing, the nature of work has shifted, such that even if you’re sitting near some co-workers, you’re more likely to be communicating electronically than in person.

For another, returning to HQ may not actually put us closer to our colleagues: 31% of people now report to a boss in a different city, about a 10-percentage-point jump since before the pandemic. These are called “distributed teams,” but such teams generally aren’t evenly dispersed; some people are clumped together in one office, with the rest elsewhere. The share of employees who work “elsewhere” has been rising.

Those are among the reasons that even if remote work entails some trade-offs, many of us are likely to keep doing it — plus, of course, factors like long commutes and the inflexible realities of school and day-care schedules.

To be sure, remote work need not be lonely. A recent study published in the Journal of Research in Personality found that we can spend long stretches in solitude — up to 75% of waking hours, which is more than a standard workday — before feelings of loneliness start to rise. And today’s remote work norms are impossible to fully tease apart from COVID; the pandemic itself got a lot of us over-30 folks out of the habit of socializing regardless of our work arrangements. But the data make clear that those who work from home must begin to be much more intentional about spending time with other humans.

Simply put, remote workers over 30 need to spend more time with their friends. If you’re thinking of resolutions for 2024, that’s not a bad place to start.

BLOOMBERG OPINION

SN Aboitiz keen on CBK hydro plants

RENEWABLE ENERGY company SN Aboitiz Power Group (SNAP) has expressed interest in the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power project in Laguna.

“CBK is interesting, right? Because energy storage is a very important part of the portfolio especially when we realize our aspirations for the renewable energy portfolio standard,” SNAP President and Chief Executive Officer Joseph S. Yu told reporters in a recent interview.

The Power Sector Assets and Liabilities Management Corp. (PSALM) held an investors forum on Dec. 1 to generate interest in the privatization of the CBK hydroelectric power plants, as well as the rehabilitation and asset management plan for the Agus-Pulangi hydroelectric power plants with a private partner.

The public bidding and contract turnover to the winning bidder of the CBK project is set to be held in the second semester of 2024.

“It’s a very interesting project, so yes it’s very interesting for us kasi (because) it will require a fair bit of creativity and it will be a fun exercise,” Mr. Yu said.

SNAP is a joint venture between Aboitiz Power Corp. and Norwegian company Scatec. It owns and operates the 112.5-MW Ambuklao and 140-MW Binga hydroelectric power plants in Benguet; the 388-MW Magat hydroelectric power plant on the border of Isabela and Ifugao; and the 8.5-MW Maris hydroelectric power plant in Isabela.

The CBK hydro facilities are currently under a 25-year build-rehabilitate-operate-transfer scheme run by independent power producer CBK Power Co. Ltd. — a 50:50 partnership between Electric Power Development Co., Ltd. (J-Power) and Sumitomo Corp. of Japan — which will expire in 2026.

These facilities are composed of the 39.37-MW Caliraya in Lumban; 22.91-MW Botocan in Majayjay; and 366-MW Kalayaan I and 368.36-MW Kalayaan II in Laguna.

In October, the Asian Development Bank was awarded a contract as the transaction advisor to help PSALM monetize the CBK hydroelectric power plant complex.

Its advisory services, through its Office of Markets Development and Public-Private Partnerships, will support the transfer of the facilities to the private sector “at an optimal value for the government.”

This is also while ensuring that the government’s objectives of energy security and grid stability are met. — Sheldeen Joy Talavera

Welcoming audiences back to movie theaters

MYRIAM TIRLER / HANS LUCAS VIA REUTERS CONNECT

By Brontë H. Lacsamana, Reporter

CINEMAS and other places of entertainment are hopeful as they aim for resilience amid economic risks. Since reopening in 2021 after the pandemic-induced lockdowns, movie theaters are attracting more audience members through upgraded facilities and an increased variety of film choices.

Ayala Malls Cinemas reports that operations have been picking up. In September, the division reported that “watching movies in cinemas, long cherished by Filipinos, is experiencing a renaissance.”

“Philippine cinemas successfully achieved a robust box office performance for the year 2022. The same performance was reached as early as September 2023,” said Emee Aganon, head of Ayala Malls Cinemas, in an interview with BusinessWorld.

This year, this renaissance manifested in blockbuster favorites like Barbie, The Little Mermaid, and Insidious: The Red Door, as well as the acclaimed Cinemalaya film festival.

Barbie was Warner Bros. Pictures Philippines’ biggest release in 2023, spurred on by toy box photo booth campaigns in malls nationwide. Meanwhile, its “partner-in-crime” in the “Barbenheimer” moviegoing phenomenon, Oppenheimer, was the highest-grossing IMAX release in 2023, according to Universal Pictures Philippines.

“These films drew substantial audiences back to theaters,” said Ayala Malls Cinemas via e-mail.

MAKING FILMS MORE ACCESSIBLE
Steven Tan, president of SM Supermalls, said in December that SM Cinemas’ response to the returning demand is to make films more accessible to Filipinos.

At the opening ceremony of the French Film Festival, which was done in partnership with the French Embassy, he said, “Film is such a compelling medium to enrich our perspective. This is why we expanded the film festival to two of our iconic SM Supermalls, making French cinema more accessible than ever before.” The festival was held at the cinemas of the SM Mall of Asia and SM Megamall.

Regular tickets for those films cost P150 while tickets for students, seniors, and persons with disabilities (PWDs) cost P100.

Most notably, Filipinos’ clamor for accessible films was seen on Oct. 15, during SM Cinemas’ 65th anniversary, when eight titles were available for only P65 across SM Cinemas nationwide.

Photos of long queues at the mall went viral as audiences chose from the eclectic mix of American, Asian, and Filipino selections under the one-day promo. The films were Instant Daddy, The Creator, The Expendables, Forbidden Play, Monster, Coffee Wars, and Dr. Cheon and the Lost Talisman.

In a disclosure on Nov. 6, SM Prime said “cinemas, event ticket sales, and other revenues increased significantly to P7.7 billion from P3.5 billion in the same period last year” — a whopping 120% increase.

NOT AT PRE-PANDEMIC LEVELS YET
However, despite the seemingly positive growth in the country’s cinema exhibition industry, it pales in comparison to pre-pandemic times.

Ms. Aganon of Ayala Malls Cinemas notes: “Although there’s a considerable improvement compared to the previous year, it’s important to note that the current performance is still 60% below pre-pandemic levels.”

Both companies acknowledge the arduous journey ahead for cinema operators. They cite the potential occurrence of another pandemic, evolving consumer behaviors, and the persistent issue of piracy.

But there will always be people who will want to go to the movie theater, according to Mr. Tan of SM Supermalls. This is why SM opened many cinemas in some of their malls this year: in Bataan, in Sto. Tomas in Batangas, and in Pulilan in Bulacan. Its newest IMAX theater opened in SM Iloilo just last month.

As the country’s largest cinema operator, it has 384 screens combined nationwide.

BETTER TECHNOLOGY
To keep Filipinos coming back to the movies, it’s also essential to continue bettering their current offerings, as per Ayala Malls Cinemas, a major runner-up cinema operator in the Philippines.

“Cinemas play an integral role in the malling experience for Filipinos. Along with our competitors, we persistently invest in upgrades and introduce new formats to enhance the overall cinematic experience,” said Ms. Aganon.

Both companies told BusinessWorld that audiences can look forward to more cutting-edge projectors, state-of-the-art sound systems, comfortable seats, and enhanced online ticketing systems.

Given these technical advantages, the question that emerges is: What experiences do cinemas offer that (admittedly convenient) streaming platforms don’t? Many point to the communality of watching with a crowd and the sense of exploration provided by an in-person venue, program, or festival.

“There’s something about watching films collectively, with the audience reacting together, that strengthens bonds,” said Mariel Nini, officer in charge of the National Commission for Culture and the Arts’ (NCCA) Sentro Rizal International Cultural Affairs Office.

FILM FESTIVALS GO ON-SITE
At the sidelines of the Tingin Southeast Asian Film Festival in September, she noted that although many online platforms have mushroomed, moviegoers are still coming back to the theaters. “There has been clamor for in-person screenings,” she added, on why film festivals are now veering away from the purely online format they adopted during the COVID-19 pandemic.

Patrick Campos, a University of the Philippines Film Institute (UPFI) professor and Tingin’s festival programmer, said that the lockdown “has certainly changed people’s viewing habits, although Filipinos’ exposure to Southeast Asian and world cinema remains the same.”

“Our interest in films from the region is piqued not by popularity, but by thoughtful programming, and audiences turn to festivals to gain insight into other cultures and histories,” he told BusinessWorld back in September.

This is also the reason the Film Development Council of the Philippines (FDCP) licensed the rights to various world cinema titles for commercial release in Ayala Malls Cinemas in August. These included Cannes-winning titles Aftersun by Charlotte Wells and Return to Seoul by Davy Chou.

“More than its aim to encourage audiences to return to the cinemas, this program aims to further expose moviegoers to titles that would help them expand their horizons,” said FDCP Chairman Tirso Cruz III in a statement.

2023 also saw a colorful array of film festivals from embassies such as Japanese, Korean, Spanish, Italian, and so on — all held in person — as well as a much bigger QCinema International Film Festival.

In November, QCinema screened nearly 70 films from the Philippines and around the world, welcoming three times more guests and filmmakers compared to last year, said Ed Lejano, its festival director.

“We know there’s a strong filmgoing market here. Yes, streaming platforms have become the most popular form of entertainment for Filipinos nowadays, but film festivals are back with a vengeance,” he told the press at the launch.

AFTER THE HOLLYWOOD STRIKES
Moving forward, these festivals showing independent and acclaimed foreign titles will be providing a variety to complement the blockbusters peddled by the Philippines’ major cinema operators.

Both SM and Ayala have said they are eagerly anticipating the Hollywood movie lineup for 2024, despite the delays caused by the actors’ and writers’ strikes in the USA.

“Currently, the ratio of foreign movies to local movies stands at 70:30,” said Ms. Aganon of Ayala Malls Cinemas. “We hope that this will improve with more contribution from local movie producers.”

She added that partnerships with foreign distributors will be broadening their offerings. This includes concert films featuring the successful live performances of popular global artists such as Taylor Swift, Beyoncé, Coldplay, BTS and other notable K-pop groups.

For renowned Filipino screenwriter Ricardo “Ricky” Lee, the variety of films in theaters is essential to not only entertain audiences, but also inspire them.

“Aspiring artists and writers, upon seeing the variety of films in theaters, get a strong push to explore storytelling possibilities. These avenues embolden the youth,” he told BusinessWorld at the sidelines of QCinema’s opening night.

“I’m also very optimistic about Filipino audiences. I don’t think streaming will go away because it’s convenient, but I think people are realizing how great it is to watch on a big screen. There will always be a place for it,” Mr. Lee added.

UPFI’s Mr. Campos concludes that pitting movie theaters against streaming platforms is not necessary: “It is not that one is better than the other, but that each mode of distribution and consumption should be considered distinct and worthy of being explored separately.”

IMF pushes for better liquidity management, debt pricing and supply

THE BANGKO SENTRAL ng Pilipinas (BSP) can further improve liquidity management and debt pricing and supply in the country by developing more instruments and collaborating with the Treasury for its open market operations, the International Monetary Fund (IMF) said.

The IMF, in its staff report for the Philippines following its Article IV consultation, said the BSP could further refine its operational framework as it aims to reduce the reserve requirement ratio (RRR).   

In June, the BSP cut the RRR for big banks by 250 basis points (bps) to 9.5%. It also lowered the ratio for digital banks by 200 bps to 6% and by 100 bps for thrift banks, and rural and cooperative banks to 2% and 1%, respectively.

However, the adjustment in reserve requirements coincided with the expiration of a pandemic relief measure and was combined with an introduction of the 56-day securities, which mopped up any excess liquidity from the RRR cuts. 

“In the future, the BSP could manage banking system liquidity more flexibly by expanding the use of market-based operations like reverse repurchase operations (RRPs). This approach is now viable due to large-scale purchases of government bonds during the COVID-19 (coronavirus disease 2019),” the IMF said.

The IMF also noted that the BSP has shifted to a variable rate format in the auction for the overnight RRP facility in September, which introduced a formal overnight RRP rate and renamed the BSP’s key policy rate to the target RRP rate.

“As the BSP is exiting from the extraordinary liquidity support measures introduced during the pandemic and letting maturing treasury securities run-off, its communication of the desired size of its balance sheet in normal times including the use of its portfolio of treasury securities would be helpful,” it said. 

The changes to the RRP facility are part of BSP reforms that started in 2016, which was when the central bank adopted the interest rate corridor (IRC) framework to help bring short-term market rates closer to its policy rate for better monetary policy transmission.

The RRP facility is part of BSP’s monetary operations to help manage the amount of money circulating in the economy by selling government securities, which the central bank commits to buy back at a later date.   

The BSP and the Bureau of the Treasury (BTr) could also collaborate more to improve the securities market and to further develop a credible yield curve, the IMF said in its report.

“The main issue facing the short-end of the curve is a large discrepancy between yields on BSP bills and Treasury bills. This discrepancy has created challenges for the banking sector in pricing debt instruments accurately, with the Bloomberg valuation tool relying exclusively on government bond yields and banks starting to use the RRP rate explicitly for pricing working capital loans,” it said.

A smooth yield curve would help support the development of a derivatives market for hedging purposes, the IMF said.

“To harmonize the two markets, the BTr should refrain from keeping supply at the short end artificially low by transitioning to a price-taker model during bond auctions. Reducing the number of individual bond series on offer and consolidating maturities into a reduced number of benchmark bonds would help concentrate trading activity,” it said.

The BSP and the BTr could also work on streamlining approved participants in each market because the exclusion of nonbanks from the BSP bill market is a large contributing factor for the observed yield discrepancy, it added.

“Other issues in the two markets, such as the obligations and performance of primary dealers including market-making and facilitating the use of repos of government securities, should also be addressed,” the IMF said.

Meanwhile, the BSP intends to utilize its government securities holdings to support its monetary operations and enhance the transmission of monetary policy.

The central bank is also working on expanding the list of market players with access to BSP bills and has requested follow-up technical assistance from the IMF on developing a benchmark yield curve.

“The BTr has the view that the yield differential is partly due to excess structural liquidity which will decline over time,” the IMF added. — K.B. Ta-asan

God save the King’s hands

KING CHARLES — REUTERS

Charles makes ‘sausage fingers’ joke in coronation film

BRITAIN’S King Charles poked fun at his “sausage fingers” — a topic that has drawn immense media attention and internet memes in recent years — in a behind-the-scenes documentary that charts the royal family’s preparations for his coronation.

When his son, Prince William, struggles to fasten one of the ceremonial robes, Charles tells him not to worry, as he does not have “sausage fingers” like himself, the BBC cited the then 74-year old monarch as saying on camera.

British tabloids ran stories, ranging from lengthy explainers to more light-hearted takes, focusing on Charles’ fingers in the days leading up to the historic ceremony earlier in the year.

Some even brought in doctors to weigh in on whether there may be an actual cause for concern about the new monarch’s chubby digits. Speculations have ranged from oedema and arthritis to infections and allergies.

Internet searches for “sausage fingers” peaked in the run-up to the May 6 ceremony in Britain, according to data from Google Trends.

The 90-minute documentary, which had private access to follow the first year of the new reign after the death of Queen Elizabeth in 2022, is due to air the day after Christmas, or Boxing Day, as it is celebrated in Britain.

It features Justin Welby, Archbishop of Canterbury and the spiritual leader of the worldwide Anglican Communion, forgetting his lines during a rehearsal.

“I have a memory that is probably about as good as our spaniel — in other words zero,” Mr. Welby says, about not knowing the words. — Reuters

Ample opportunity to be heard 

@DRAZEN ZIGIC-FREEPIK

Every employer has the right to exercise its management prerogative in the conduct of its business affairs, and this prerogative includes the right to dismiss its employees. In the Philippines, the employer’s prerogative to terminate an employee should muster both substantive and procedural due process.

Substantive due process is met when there exists a just or an authorized cause provided under Articles 297 and 298 of the Labor Code, respectively. With respect to termination under just causes, procedural due process is hurdled when the employer complies with the twin-notice requirement, and after granting the said employee an ample opportunity to be heard.

Notably, “ample opportunity to be heard” has been the phrase used under the Labor Code, particularly Article 292 thereof, which states that “the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement the causes for termination and shall afford the latter ample opportunity to be heard x x x.”

Interestingly, however, under Section 2(d), Rule I, Book VI of the Implementing Rules of the Labor Code, a “hearing or conference” shall be observed by the employer, if only to comply with the procedural due process in termination cases. The provision reads:

“Section 2. Security of Tenure. — x x x

(d) In all cases of termination of employment, the following standards of due process shall be substantially observed:

For termination of employment based on just causes as defined in Article 282 of the Labor Code:

x x x

(ii) A hearing or conference during which the employee concerned, with the assistance of counsel if he so desires, is given opportunity to respond to the charge, present his evidence or rebut the evidence presented against him.”

With the apparent conflict between the text of the Labor Code vis-a-vis its Implementing Rules, an employer may be confused on whether to merely grant the erring employee an ample opportunity to be heard, or to mandatorily conduct a hearing or conference to hear the employee’s possible defenses.

THE GENERAL LAW PREVAILS
In 2009, the Supreme Court had the occasion to discuss this apparent conflict in the case of Perez v. Philippine Telegraph and Telephone Co., et al. (G.R. No. 152048, 7 April 2009), where it ruled that in case of conflict between a general law and its implementing rules, the former prevails.

According to the Supreme Court, an implementing rule cannot expand nor amend the scope of the law it implements, considering that the authority to promulgate implementing rules proceeds from the law itself.

Therefore, with respect to procedural due process in termination based on just causes, granting the erring employee an “ample opportunity to be heard” satisfies the requirement of the law.

AMPLE OPPORTUNITY
What then is the yardstick of this ample opportunity to be heard given to erring employees?

According to the Supreme Court in the Perez case, the fact that it is couched in general language reveals the legislative intent to give some degree of flexibility or adaptability to meet the peculiarities of a given situation. To require a single rigid proceeding such as a formal hearing will defeat the intent of the law.

Admittedly, an ample opportunity to be heard is broad enough to substantially include a formal hearing or conference. However, this is also satisfied when the employee is given a meaningful opportunity to controvert the charges and allegations hurled against him or her, and to submit evidence in support thereof. “To be heard” does not mean verbal argumentation alone inasmuch as the employee may just as effectively be heard through written explanations, or whatever submissions where the employee may substantiate his or her defenses.

In Autobus Workers’ Union v. NLRC (G.R. No. 117453, 26 June 1998), the Supreme Court ruled that “there is no violation of due process even if no hearing was conducted, where the party was given a chance to explain his side of the controversy. What is frowned upon is the denial of the opportunity to be heard.”

Clearly, in cases of termination for just causes, it is already enough that the employee is given the chance to air his or her side, and that a formal hearing or conference, while maybe preferred and ideal, is not required.

INSTANCES WHERE A HEARING OR CONFERENCE IS MANDATORY
While the Perez case laid down the general rule that a formal hearing or conference is not required in termination cases, it also enunciated several exceptions to this rule, to wit: (i) when requested by the employee in writing, (ii) when substantial evidentiary disputes exist, (iii) when a company rule or practice requires it, or (iv) when similar circumstances justify it.

Meaning to say, if the employee himself or herself requests the management in writing that a formal hearing be conducted, if only to properly ventilate his or her possible defenses, then the employer must ensure to afford the employee a formal hearing or conference. The same can be said when substantial evidentiary disputes exist, such as when material and relevant proofs to support the allegations and defenses lie contrary to each other.

Moreover, a formal hearing is mandatory when it is provided in the company rules, or it has evolved into a company practice. It is said that for a benefit to become a company practice, such as granting the employees an opportunity to attend a formal hearing during termination cases, it must be done for a long period of time, and that it has been made consistently and deliberately. As a catch-all exception, a hearing is likewise mandatory when circumstances, similar to the recognized exceptions, are in play.

In the final analysis, both employers and employees must note that a formal hearing is not mandatory, so long as the employee is given a fair and reasonable opportunity to explain his or her defenses and controverting evidence. Unless and until the aforementioned exceptions exist, “ample opportunity to be heard” does not equate to the conduct of a formal hearing or conference.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or opinion.

 

Khen C. Aquino is an associate of the Cebu Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

kcaquino@accralaw.com

Globe anticipates growth of its fiber broadband business

REUTERS

GLOBE Telecom, Inc. is expecting its broadband business to expand further after recording a significant growth in the company’s broadband revenues, the telecommunications company said.

“We’re seeing an encouraging uptrend in our fiber broadband business, and our commitment to delivering exceptional service is stronger than ever,” Raymond Policarpio, vice-president of Globe At Home Brand Management, said in a media release on Tuesday.

Globe said it had reported an 18% growth in its year-to-date fiber broadband revenues, which it attributed to the growing demand for internet connectivity in the country.

The company has also recorded a decline in fixed wireless revenues, which it said is an indication of a market shift toward fiber offerings.

“Our focus is not just on expanding our reach but also on acquiring quality subscribers who value longevity and reliability,” Mr. Policarpio said.

The company noted that it is also targeting to widen its fiber connectivity in underserved areas through its fiber prepaid offerings.

“This unlimited prepaid fiber service offers cost-effective options for superior connectivity, ensuring that high-speed internet is within everyone’s reach,” Globe said.

In the third quarter, Globe recorded an attributable comprehensive net income of P4.97 billion down by 27% from P6.81 billion a year ago, amid higher non-operating charges for the period.

The telecommunications company recorded consolidated revenues of P44.27 billion in the quarter, a 3.2% increase from P42.88 billion a year ago, amid strong service revenues.

From January to September, Globe’s attributable comprehensive net profit fell by 27.1% to P19.29 billion from P26.46 billion in the same period last year.

Its nine-month consolidated revenues stood at P133.79 billion, 2.8% higher than the previous year’s P130.2 billion. — Ashley Erika O. Jose

Yields on government debt go down

YIELDS on government securities (GS) continued to decline last week due to a lack of catalysts as the end of the year nears.

GS yields at the secondary market fell by an average of 6.21 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Dec. 22 published on the Philippine Dealing System’s website.

Most tenors saw their yields decline last week, with rates of the 91- and 364-day Treasury bills (T-bill) dropping by 21.69 bps and 15.14 bps to 5.1579% and 5.8218%, respectively. On the other hand, the 182-day T-bill went up by 13.42 bps to yield 5.5233%.

Rates of tenors at the belly likewise dropped. Yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went down by 5.04 bps (5.9323%), 6.96 bps (5.9203%), 7.95 bps (5.9193%), 7.79 bps (5.9291%), and 5.69 bps (5.9592%), respectively.

Yields at the long end were mixed. The 10- and 20-year papers saw their rates decline by 10.51 bps and 1.06 bps to 5.9665% and 6.1201%, respectively, while the 25-year paper inched up by 0.09 bp to yield 6.1281%.

Total GS volume traded reached P22.51 billion on Friday, more than three times the P7.46 billion recorded on Dec. 15.

The continued drop in GS yields last week was due to a lack of catalysts and bond supply, a bond trader said in a Viber message.

“Bond yields dropped as investors scramble to find investment outlets. The move was also supported by a drop in global yields,” the bond trader said.

The lack of catalysts was likely due to risk aversion and the “higher for longer” policy stance of local monetary authorities, Oikonomia Advisory & Research, Inc. President and Chief Economist John Paolo R. Rivera said in a separate Viber message.

However, increased consumption and various economic activities brought by the holiday season can help drive trading in the last week of the year, he said.

“Trading is usually active in the latter parts of the year in anticipation of slower flow of funds as the new year starts. Increased consumption due to holidays is also indicative of an active economy,” Mr. Rivera added.

“Total borrowing remains to be constrained as interest rates will remain elevated given the hawkish stance of BSP (Bangko Sentral ng Pilipinas),” he added.

The BSP is unlikely to start policy easing in the next few months and will only consider cutting rates if inflation settles at the midpoint of the 2-4% target, its chief said last week. 

“We’re unlikely to cut rates in the next few months. We’re in a higher for longer (scenario). When I say hawkish, that basically means high for a while,” BSP Governor Eli M. Remolona, Jr. told reporters.

The Monetary Board this month kept its benchmark rate at a 16-year high of 6.5% for a second straight meeting. Interest rates on the overnight deposit and lending facilities were also left unchanged at 6% and 7%, respectively.

From May 2022 to October this year, the BSP raised borrowing costs by a cumulative 450 bps to tame inflation.

The BTr plans to borrow a total of P435 billion during the first quarter, with the bulk coming from T-bond auctions, based on its borrowing plan released last week.

For the week, Mr. Rivera said trading may pick up as traders may take advantage of the momentum seen in the past weeks.

“As expectations level off and as traders harness the holiday effects, trading may increase albeit at a slower rate. The last [three] days are crucial as it can make or break annual targets,” he said.

“Bond trading will remain to be constrained given a foreseeable elevated policy rates. Higher cost of borrowing inhibits bond issuance,” Mr. Rivera added.

GS yields may move sideways with an upward bias, with investors expected to cash in on their gains, the bond trader said.

“For next year, it will be bumpy as the market’s pricing in of rate cuts and the corresponding reaction in bonds assume that yield curve inversion will remain. This may not be consistent with expectations on inflation,” the trader added. — Bernadette Therese M. Gadon

Freed from COVID restrictions, malls have recovered

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Joseph L. Garcia, Senior Reporter

THE YEAR 2023 was the first year since the lockdowns of 2020 when businesses in the Philippines were free from pandemic-related restrictions. These included limited operating hours, limited occupancy, and, for some businesses deemed nonessential in the very early days of the pandemic, closure.

In that period, malls treaded carefully. Quarantine passes, and later, vaccine cards had to be presented at doors, and only a limited number of shoppers could be accommodated at one time, forming long lines, or else the businesses had to completely turn away potential customers.

BusinessWorld asked for insights of two of the largest mall operators in the country on their first year of restriction-free operations. Ayala Malls — under Ayala Land, Inc., which is itself under the larger Ayala Corp. umbrella (which has interests in banking, telecommunications, energy; among others) — operates more than 30 malls across the country, including several in the National Capital Region, reaching across to the Visayas and Mindanao with several more properties. Robinsons Malls, meanwhile, is the second-largest mall operator, with over 50 malls in the country. It has properties as far up the northern region with Robinsons Place La Union, all the way down to Mindanao’s Iligan. Robinsons Malls is one of the business units of Robinsons Land Corp. (RLC), itself under JG Summit Holdings, Inc.

According to Robinsons Malls website, its establishments generate over 120 million visits annually. Meanwhile, Ayala Land’s annual report for 2022 says that “footfall and tenant sales exceeded pre-COVID levels, reaching 108% and 110%, respectively” in Q4 in 2022. “This significant improvement brought the average footfall and tenant sales to 87% of 2019 levels,” said the report. For this year, Clavel Tongco (Head of Operations, Ayala Malls), Mark Sablan (Head of Leasing, Ayala Malls), Lisa Yang (Marketing Director, Ayala Malls), told BusinessWorld in a joint e-mail, “We are pleased to confirm that we have successfully recovered to pre-pandemic levels in terms of foot traffic and sales.

“Our malls are once again bustling with activity, and we are delighted to witness a resurgence in people returning to the malls for their shopping needs,” they said. “This positive trend indicates a renewed confidence among our patrons, reflecting their eagerness to engage in the vibrant and diverse retail experiences our malls offer.”

Meanwhile, Robinsons Land’s annual report for 2022 says that their footfall and occupancy rates are nearing pre-pandemic levels. For 2023, Joel S. Lumanlan, Robinsons Malls Vice-President for Operations, Marketing, and Business Development told BusinessWorld, “Robinsons Malls’ rental revenues experienced a 32% increase, propelled by strong consumer spending and the normalization of business operations nationwide.” That figure is 6% above pre-pandemic levels.

BIGGER, BETTER?
Because malls had to adjust to less foot traffic during the pandemic, a possible scar would be smaller spaces for fewer people. But because of a post-pandemic surge in business, that may not have to be the case.

According to its 2022 Annual Report, Ayala Malls completed 7,000 sqm of gross leasable area (GLA) in 2022 with the opening of The Shops at Ayala Triangle. As of 2022’s end, their total GLA was 2.1 million sqm. “Bigger is still better when it comes to building mall space,” they told BusinessWorld. “A larger mall space allows us to offer a wider array of retail options, dining experiences, entertainment facilities, and community spaces, thereby enhancing the overall shopping experience for our patrons.

“This strategic focus on creating spacious and comprehensive mall spaces aligns with our commitment to staying at the forefront of evolving consumer preferences and industry trends, ensuring that Ayala Malls remains a preferred destination for both tenants and visitors,” they continued.

As for Robinsons Malls, in 2022, they opened three new malls (including one in Gapan, Nueva Ecija), and expanded two other malls, including their property in Antipolo, Rizal. “Yes, the bigger the better,” said Maria Kristina Real-Lim, Robinsons Malls Vice-President for Leasing. Mr. Lumanlan however, added, “The choice of the size of mall to build depends on a lot of factors including the market, economic, and competitive profile in an area and the property that is available for the developer to build on.”

GOING ONLINE
When malls operations were limited during the pandemic, the mall operators’ online arms reached out for customers. Robinsons retail units like its supermarkets and department stores jumped into online platforms such as Grab, Shopee, and Lazada, as well as maintaining its department store’s website. “Given the acceleration of digitalization in the industry post pandemic, the online platforms became more relevant and more important especially the video sharing, payment systems, and social networking platforms,” said Ms. Real-Lim. Mr. Lumanlan, agreed, saying, “With consumer shopping habits evolving, it’s important to reach, interact with and engage customers across different channels and platforms.”

Ayala Malls, however, reminded BusinessWorld: “We don’t have our own retail store, unlike our competitors,” they said. “Unlike some competitors who operate their own retail stores, Ayala Malls functions as a facilitator for various brands and retailers.”

However, they continued: “Recognizing the evolving retail landscape, we acknowledge the ongoing importance of online platforms. Ayala Malls views online channels as complementary to our mall-based business.”

During the pandemic, they had the Ayala Malls Neighborhood Assistant (nicknamed ANA) as a sort of a personal shopper service. The complementary services of their online arm includes today its Ayala Malls Zing App, which serves as a loyalty program.

Both entities opined on the continued importance of malls in a post-pandemic world. While online shopping may be here to stay, the age-old practice of choosing items by yourself seems to be indelible. However, the mall operators conclude that being in the mall just to buy things is no longer enough, and every visit should have value added to it, perhaps with added and amplified experiential factors.

“Consumer journeys continue to evolve and the malls are adapting well to the changes by introducing more experiential, differentiated, and wider range of options for shoppers,” said Mr. Lumanlan. “The pandemic-evolved Pinoy shopper is more empowered so it’s very important that we focus on customer experience in providing convenience and customer satisfaction,” said Ms. Real-Lim.

For Robinsons Malls, these include the evolution of their spaces beyond retail to be entertainment hubs with “experiential installations,” dining options, art exhibits, and other leisurely activities. While malls had already been used as government-service hubs, the use of mall space for these activities accelerated by the pandemic. “Malls also are now more actively engaging the local communities through government services, community events, etc.; nurturing the relationship between retail and the local area where the mall is located in,” said Mr. Lumanlan.

For Ayala Malls, they discussed their various holiday-related events that keep shoppers captivated, as well as the traditional holiday sales, and even CSR efforts such as community exchange gift activities and opportunities for shoppers to pledge money to children’s charities. “While the convenience of online shopping has become a significant aspect of consumer behavior, Ayala Malls recognizes the evolving landscape and remains committed to providing engaging, community-centric, and immersive experiences that go beyond the transactional nature of e-commerce,” they said.

Malls have become our main cultural and social centers — more than museums, parks, libraries, and other such spaces. There is an enduring importance of the mall, despite shifts in consumer behavior. Malls, apparently, are less a retail space in the Filipino psyche, but are instead an important pillar in building a community.

“Consumer behavior has shown a preference for community-centric spaces. Ayala Malls, with its emphasis on creating vibrant and social environments, taps into the Filipino culture of malls being gathering places. This aligns with the desire for not just shopping but also socializing, dining, and engaging in cultural experiences,” they said. “Our malls continue to be an integral part of the retail ecosystem, offering a dynamic and social shopping environment that complements the convenience of online platforms.”

“Shopping in a mall remains to be an important social activity,” said Robinsons’ Mr. Lumanlan. “One can go shopping with families or friends and enjoy spending time together while going around the stores, try on stuff being sold, dine in exciting food outlets and these cannot be easily replicated online. It’s also great way to bond, meet new people, build new friendships and create more memories.” His colleague Ms. Real-Lim, agrees: “Malls are important in nurturing communities as we bring people together in malls in ways e-commerce cannot.”

Tapping into creativity: A mom’s shift from restaurant-bar to tampipi basket innovation

By Miguel Hanz L. Antivola, Reporter

A SMALL BUSINESS must have all hands on deck, yet it is even better if only a single pair runs a tight ship to effectively manage missteps, according to stay-at-home mom and entrepreneur Bambi Y. Temeña.

Before starting her handmade insulated tampipi basket business, Ms. Temeña was a go-getter who had experienced both business failures and successes.

“I was into events and parties, then I also got into catering and food,” she said in an interview with BusinessWorld. “I had a restaurant, bar, eatery. I think I’ve entered all of them.”

After her graduation, Ms. Temeña began doing gigs such as event planning and catering all by herself for small functions. Eventually, she was invited by four other married couples to start a restaurant-bar.

She used to run the 2000s-famous Tapika Resto Bar along Katipunan Avenue, Quezon City, which nurtured musical talents such as Paolo Santos and MYMP.

However, the business had to close down due to increasing traffic in the area from the underpass construction, causing low demand, as stated by Ms. Temeña.

This was followed by the neighborhood barbecue and packed meals stop, Barbi-q-han, along Xavierville Avenue — a partnership with her mother-in-law, which she had to leave unattended for two years to attend to her sick mother in the United States.

The small eatery’s lease expired without her management, and she had to continue home-based as the pandemic came about.

“All those times I had partners, but with this one — it’s really just me myself,” she said, applying the lessons she learned previously in her current venture.

“What I always advise is to start small, and if you can, start just by yourself,” she added on the difficulty of navigating the dynamics that come with having business partners, whether it stems from personal or corporate endowments.

“Because I’m always very much involved in the business as a managing partner, it’s hard to meet halfway and find your place.”

Ms. Temeña noted always having a hands-on, creative, and entrepreneurial mindset, which she has clung onto amid challenges, given the limits of her resources.

INSULATED TAMPIPI BASKETS
What came about from searching for holiday packaging for Ms. Temeña’s frozen food products in 2020, eventually pivoted into its own online business named “Baskets Just Created for You.”

“Handicraft Christmas packaging was all the rage. There was a market for it,” Ms. Temeña said. “But my business was the food, not the packaging.”

“It’s just that I had to customize the sizes in terms of how many packs I could put in, depending on the client’s need,” she added. “But a lot were asking if they could just buy the basket.”

She saw the opportunity to disrupt the local market by practically lining handwoven tampipi baskets and their lids with insulation material to preserve temperature.

She fully embraced this pivot at the start of 2021 by the end of the holiday season, hiring more weavers to cater to the growing demand.

“It was easy for me to hire more because of the pandemic. Some of them were laid off and concentrated on the supposedly part-time work,” she said, providing alternative income to weavers.

Ms. Temeña also diversified into making custom-designed tampipi bags from clients given their feedback, and receiving orders from celebrities and personalities.

When asked about her expansion plans for the business, she said she is eyeing exports, but only if quality can be maintained.

“I cannot really expand it given my limited resources, finances, and time. Also because I’m very hands-on,” she said.

“Many have offered to distribute, sub-manufacture, and export, but quality control is needed since it’s very handmade,” she added. “I don’t want to let it go to someone.”

“Because I inspect every piece I sell. I always talk to my weavers, especially when there are deformities.”

“With distributors outside Metro Manila, I don’t know how they’re going to store and sell it… After-sale service is very important to me. I don’t know if they can do that.”

She acknowledged how her being hands-on may impede the business from realizing its potential. “This is perhaps one of the things that impedes its full growth.”

However, throughout her three decades of entrepreneurship, Ms. Temeña said she finally gained a sense of content in her current venture.

“At this point in time in my life, I just want to enjoy what I’m doing and at the same time, make money,” she said. “My husband even told me, ‘At last, you’re earning from your creativity.’”

“It’s still important that you know what you’re doing, what kind of business you’re getting into, and your definitive target market,” she added.

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