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Tech partnership streamlines PMP Pain Center’s operations

Philippine-based Pain Management Plus (PMP) Pain Center leverages clinic management software HealthBlocks360 for growth and operational efficiency

Pain Management Plus (PMP) Pain Center, a dynamic physical therapy clinic in the Philippines, has taken a proactive approach to its operations by embracing the transformative power of technology. Through its strategic partnership with HealthBlocks360 — a cloud-based clinic management software developed by HealthBlocks — PMP Pain Center is streamlining its operations and fast-tracking its expansion in the country.

PMP Pain Center was established in 2020 by Angelo Romero, President; and Naila Romero, Chief Finance Officer, a dedicated husband-and-wife team. Since its inception, PMP Pain Center has successfully navigated numerous challenges.

“PMP Pain Center began its operations during the pandemic, a time marked by significant uncertainty and unique challenges,” Angelo Romero recalls. Naila Romero adds, “There was a time we had to personally accompany and fetch our employees when serving clients so that we could operate daily.”

This unwavering commitment to delivering personalized service, even amidst a challenging start, has paid off significantly. In just four years, PMP Pain Center has expanded to 30 branches nationwide, offering a comprehensive range of treatments for pain and sports injuries across a broad patient demographic.

Even while operating a single clinic, the Romeros encountered hurdles in managing daily operations as their business grew. “When we started our operations, we relied on pen-and-paper reports combined with basic Excel formulas to monitor the clinic’s daily operations,” Angelo explains. “It was manageable at first, but as we opened more branches and took in more patients, we began having issues with data management.”

Turning to technology

Manual data entry and tracking led to inaccuracies, double bookings, and missed billings. The reliance on clinic managers for data management also resulted in errors and unaudited monetary losses. “Consolidating and balancing all branches’ month-end reports became tedious and chaotic,” Naila laments. Recognizing the need for a more efficient system, PMP Pain Center turned to HealthBlocks360.

HealthBlocks360, developed by Philippine-based HealthBlocks, is a comprehensive, cloud-based clinic management software. It offers solutions for inventory, financial, and patient record management, as well as appointment scheduling and billing. The platform is customizable to meet the specific needs of healthcare providers. 

Streamlining clinic operations

PMP Pain Center was established in 2020 by Angelo Romero, President; and Naila Romero, Chief Finance Officer, a dedicated husband-and-wife team.

PMP Pain Center, under the foresight of its owners, the Romeros, has always prioritized patient care and expanding its customer base. Understanding the needs of both their employees and the customer lifecycle, they embraced technology to enhance their operations.

Naila highlights the transformation, stating, “With HealthBlocks360, it’s easier to consolidate all reports and remotely monitor all branches. What used to take manual effort, we now obtain in just one click.” She adds, “The system handles everything — from appointment setting, patient information, and sales monitoring to HMO collections. All of our previous challenges have been resolved.”

Recognizing that not all employees are tech-savvy, the Romeros chose a user-friendly software that simplifies report generation and patient record retrieval, making transactions and audits seamless. Angelo notes, “The system not only meets our current needs but also helps us identify potential future problems.”

Today, the technology has reduced employee workload, ensuring accuracy and efficiency, and positioning PMP Pain Center for sustained growth and enhanced patient care.

Collaboration and customization

PMP Pain Center has found great success in collaborating closely with HealthBlocks360, ensuring tailored solutions that meet their specific needs and goals. HealthBlocks360 offers a wide array of features including patient appointment scheduling, inventory tracking, financial management, and secure patient record handling — all accessible remotely via its cloud-based platform for seamless operation management.

The Romeros have personalized various aspects of HealthBlocks360 to enhance productivity and efficiency within their clinics. “We’ve customized productivity reports for our physical therapists, performance reports, and even bank reconciliation reports,” Naila explains. “This customization capability from HealthBlocks360 has significantly optimized our clinic operations.”

With the robust support of this management system, Angelo, Naila, and the PMP team are focusing on expanding their network. Their future plans include collaborations with academic institutions and physical therapy schools, as well as expanding services to private companies, aiming to establish themselves as the foremost physical therapy clinic in the Philippines.

“With HealthBlocks’ adaptability and efficiency,” Naila stresses, “we are confident in integrating all future branches seamlessly.”

PMP Pain Center’s proactive approach in seeking and leveraging innovative technology, one shown by its successful partnership with HealthBlocks360, demonstrates how organizations in healthcare management are thinking ahead and recognize the need for streamlined operations that elevate patient care. 

About PMP Pain Center:

Pain Management Plus (PMP) Pain Center is a leading physical therapy clinic offering evidence-based treatment and protocols spearheaded by affiliated medical doctors and licensed physical therapists. Established in January 2020, PMP Pain Center has over 30 branches nationwide. 

About HealthBlocks360

HealthBlocks360, developed by HealthBlocks, Inc., a subsidiary of MaroonStudios, Inc., is a cloud-based clinic management software offering solutions for inventory, financial, patient records, appointment scheduling, billing, and more. Tailored to the Philippine healthcare community, it enhances efficiency and effectiveness in clinical operations. 

About MaroonStudios, Inc. 

Founded in 2014, MaroonStudios, Inc. is an IT company committed to advancing the Philippines into a first-world economy through innovative software technologies. Known for their smart-creative engineers, MaroonStudios has excelled in global competitions, perfecting their software processes to world-class standards while serving numerous organizations worldwide.

In 2016, MaroonStudios received seed funding from Sagesoft Solutions and Bonifacio Triangle Capital Holdings, leading to the launch of its health IT subsidiary HealthBlocks, Inc. in 2018, focused on providing modern, affordable healthcare management solutions.

Start your pain management journey with PMP Pain Center. Explore how HealthBlocks360 can elevate patient care and enhance operational efficiency. For more details, visit the websites of PMP Pain Center and HealthBlocks360 today.

 

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CREIT’s Q2 earnings climb to P334M on new asset revenues

SAAVEDRA-LED Citicore Energy REIT Corp. (CREIT) booked an attributable net income of P334.14 million for the second quarter (Q2), up 5.7% from the previous year’s P316.08 million, mainly driven by additional revenues from new assets acquired in 2023, which were funded by green bonds.

Gross revenues went up by 5.8% to P448 million from P423.53 million a year ago, the company said in a regulatory filing on Monday.

Its gross expenses for the April-to-June period fell by 2.8% to P26.07 million from P26.83 million last year.

From January to June, the company’s attributable net income climbed by 11.7% to P693.41 million versus the P621.04 million a year ago.

“The increase is mainly related to full take-up of incremental revenues from the assets acquired in 2023 which were financed by the green bond issuance,” CREIT said.

Revenues were higher by 15.1% to P920.85 million. Gross profit increased by 16% to P868.71 billion, translating to a gross profit margin of 94%.

“The increase [in gross profit] is related to the company’s expansion of leasing activities arising from various acquisitions of freehold assets out of the green bond’s proceeds, which have a full impact of revenue recognition this year,” the company said.

During the period, CREIT’s gross expenses went up by 2.2% to P52.14 million from nearly P51 million a year ago.

CREIT is the Philippines’ first real estate investment trust listing with a focus on renewable energy. It specializes in owning sustainable infrastructure projects, including income-generating renewable energy properties across the Philippines.

CREIT’s sponsor, Citicore Renewable Energy Corp., has over five gigawatts of project pipeline in varying stages of development, with its first gigawatt well underway. — Sheldeen Joy Talavera

Taylor Swift and the insatiable appetite for MICE facilities in PHL

PHILIPPINE STAR/MICHAEL VARCAS

THE RETURN of in-person events has been fueling the demand for MICE (meetings, incentives, conferences, and exhibitions) facilities across the Philippines. There’s no doubt that developers are cashing in on this gargantuan need for massive convention centers. The strong take-up for this sub-segment should also be buoyed by the rise in foreign tourists, including business travelers.

Filipino Swifties will definitely be glad to welcome and hear Taylor Swift live in the Philippines. The clamor to eventually host the multi-awarded performer has been compelling property firms to build massive convention centers that can accommodate Taylor’s fans. But what’s interesting is that developers are also trying to capture demand from business travelers who want to convene in person. Colliers believes that despite the availability and proliferation of online platforms, nothing replaces people’s desire to physically network and interact. This is particularly true for Filipinos, considered highly sociable beings. Already, there are plans to develop a massive convention center within Villar City, while the government has announced its plan to build the P18 billion ($314 million) New Philippine International Exhibition Center, which will have 108,000 square meters of exhibition/event space and host up to 150,000 attendees. Once completed, it will become the largest exhibition venue in Southeast Asia. It’s go big or go home for MICE development in the Philippines.

Colliers believes that the establishment of more MICE and co-working facilities should complement the accommodation and dining packages that hotels will offer to business travelers. The integration of these facilities is of utmost importance, especially in business hotels located in major business districts in Metro Manila, Pampanga, Cebu, and Davao. The Tourism department is also priming the Philippines as a major MICE destination, and this should enable the country to corner major global MICE events (including Taylor Swift’s concert and related promotional activities) and further boost tourist arrivals and spending across the archipelago. Colliers believes that previous hosting of MICECON events in Clark, Cebu, and Davao should help promote the Philippines’ viability as a MICE hub in the ASEAN region.

THRIVING MICE OPPORTUNITIES FOR HOTEL DEVELOPERS
Four- and five-star hotels are likely to benefit from the return of in-person corporate events and the resurgence of business travel. Property exhibits, pharmaceutical product launches, and overseas employment summits are among the events that help drive occupancies of hotels and are primarily hosted in hotels’ meeting rooms and exhibition centers. Hotel operators should maximize the return of these in-person events and tap corporates by offering attractive packages. Hotel operators should also work closely with the Tourism department, which is actively enticing international organizations to mount their events in the country. The department is also priming the Philippines as a key MICE destination in Asia, and this should result in the holding of international MICE events in the Philippines, especially in Metro Manila, Clark in Pampanga, Cebu, and Davao.

MORE FOREIGN BRANDS IN KEY AREAS
Colliers believes that now is an opportune time for foreign brands to expand their presence in the Philippines, given the planned modernization of the country’s international airports and the projected rise in international arrivals. The Department of Tourism is aiming to attract 7.7 million foreign visitors this year, up from 5.45 million in 2023 and 2.65 million in 2022. The government has also set a lofty goal of attracting 12 million international tourists by 2028. This optimism has been enticing foreign hotel operators to expand their presence across the Philippines. Sofitel Philippine Plaza Manila has officially closed its doors on July 1, 2024, but is expanding its presence in key destinations such as Cebu and Clark in Pampanga. Accor Hotels will also be developing a 175-room Ibis Styles and a 250-room Mercure Hotel in Subic, Zambales. Radisson Hotels also announced that they will be launching Radisson Blu in Cagayan de Oro, as well as other Radisson brands in Cebu. Other foreign-branded hotels in the pipeline will come from Sheraton, Dusit Thani, Citadines, and Tryp by Wyndham. Colliers recommends that developers be on the lookout for upcoming convention centers and soon-to-be modernized airports outside the capital region for their hotel expansion plans.

OCCUPANCY SLIGHTLY SOFTENS
Average hotel occupancies in Metro Manila reached 63% in the first half of 2024, lower than the 65% in the second half of 2023 due to new supply. By end-2024, we expect average occupancy to hover between 60% and 65% as the number of returning overseas Filipino workers is likely to pick up during the holiday season.

The holiday-induced increase in demand for MICE and other in-person events should also help prop up occupancies in the second half of 2024.

NEW KEYS IN QC AND BAY AREA
In the first half of 2024, Colliers recorded the delivery of 2,700 rooms, more than triple compared to 797 rooms a year ago. Quezon City (QC) accounted for nearly half of the new supply with the delivery of Hop Inn North EDSA (187 rooms), Ibis Styles Manila Araneta City (286 rooms), Citadines Roces (200 rooms), and Solaire North (526 rooms), Quezon City’s first five-star hotel. The Grand Westside Hotel also opened in the Bay Area and is now the largest hotel in the country with 1,530 rooms. In 2024, we forecast the completion of 4,560 rooms, lower than our earlier forecast of 5,100 rooms due to construction delays.

Among the hotels due to be completed in the second half of 2024 are Ridgewood Premier Hotel in C5 Road, Somerset Valero Makati, Seda Hotel One Ayala, Seda Hotel Arca South, Ascott DD Meridian Park, and Westside City Resorts World. The Bay Area will likely account for nearly half of the new supply.

 

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

Filinvest REIT powers 94% of portfolio with RE

LISTED Filinvest REIT Corp. (FILRT) said that 16 out of 17 buildings, equivalent to 94% of its property portfolio, are now powered by renewable energy (RE).

The recent additions to the company’s green portfolio are Filinvest Axis Tower 1 and Filinvest Cyberzone Cebu Tower 1, which transitioned to renewable energy after renewing their supply contracts with FDC Utilities, Inc. in June, FILRT said in a statement to the stock exchange on Monday.

Filinvest Three also transitioned to renewable energy under the government’s Green Energy Option Program (GEOP) on July 26.

“With these recent additions, 16 out of FILRT’s 17 Grade A buildings, or 94% of the portfolio in terms of the number of properties, are now supplied with 100% renewable energy as of July 2024,” the company said.

The GEOP is an initiative of the Energy department that empowers users to choose renewable energy as their primary power source.

Other FILRT buildings powered by renewable energy include Vector One, Vector Two, Vector Three, iHub 1 and 2, Filinvest One, Filinvest Two, Plaza A, Plaza B, Plaza C, Plaza D, Plaza E, and 5132 Building.

The only nonrenewable energy powered building in FILRT’s portfolio is the Capital One building in Alabang, which has a direct contract with its retail electricity supplier and coordinates independently with its chosen supplier.

“Our goal is to ensure that all our properties are not only economically viable but also environmentally responsible. This success is shared with our tenants, who are equally dedicated to our sustainability goals,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said.

For the first half, FILRT saw a 7% increase in its net income to P601 million from P561.31 million a year ago. Revenue dropped by 11% to P1.4 billion while costs and expenses also fell by 3.1% to P643 million.

FILRT shares were unchanged at P3.09 per share on Monday. — Revin Mikhael D. Ochave

Good governance and laying the groundwork for sustainable growth — 2

SMPRIME.COM

(2nd of two parts)

Corporate leadership entails business transparency, integrity, and accountability, which are manifested in SM’s publication of Integrated and Sustainability Reports, its conduct of forums and public briefings, and its accessible company website, among others. Transparency invites all forms of feedback, including scrutiny, which SM welcomes from its investors and all stakeholders. We use feedback to improve our corporate governance (CG) and Environmental, Social, and Governance (ESG) initiatives alongside business performance. Doing this expands and further strengthens the circle of business trust such that investors, shareholders, and stakeholders see actual results of efforts towards actively engaging with them.

SHARED RESPONSIBILITY
Good governance becomes an even more effective tool when it is a shared responsibility and when everyone does his or her share in upholding the values of fairness, accountability, and integrity.

While the tone is set from the top, it is crucial that everyone in the organization should be involved not as mere participants but as stakeholders. SM directors, key officers and leaders attend CG training at least annually pursuant to regulatory requirement. Such a venue is used to keep leaders and management abreast of CG and ESG trends that affect business performance and strategies.

Other than SM’s annual stockholders’ meeting, the company communicates and engages with all of its stakeholders through various communication channels, such as social media and the company website. SM recognizes that the business becomes more meaningful to its customers, shareholders, and all other stakeholders when they can take part in the growth journey.

SM Investments practices good CG in all its dealings with all stakeholders, investors, business partners, creditors, customers, and employees because it believes that good CG will provide long-term growth, sustainability, and success. Its good CG framework and practices are part of the company’s core values on fairness, integrity, accountability, transparency, and stakeholder engagement. The company is recognized for practicing good CG through the ASEAN Corporate Scorecard alongside various awards and recognition.

In SM, running the business is anchored on values set by its founder, Henry Sy, Sr. or Tatang as he was fondly called. As part of its DNA to serve communities, the company values encompass the ESG aspects of the business from the get-go.

In a book written by Daniel Aronson called The Value of Values, he explains a framework called CORE which stands for Customer, Operations, Risks, and Employees.

Aronson said that the “crux of any business” are the customers. In a similar manner, Tatang instilled a high standard of service to SM’s patrons with customers at the heart of SM for 65 years.

The author also explains that when companies assess their operations through the lens of their values, they “uncover hidden inefficiencies.” The kind of business pragmatism in SM becomes a good tool in confronting complex business challenges such as the recent pandemic. It ensured sustainable returns to shareholders while still upholding the regulatory and environmental standards. This also applies to SM’s practical approach towards sustainability where it assesses what is feasible and works at where it can make the most impact such as in energy efficiency, efficient use of water resources, waste management and community engagement.

As examples, SM’s property development arm, SM Prime Holdings, is working towards reducing its ecological footprint through solar rooftops, water recycling systems, the adoption of air conditioning inverters and installation of standard Light-Emitting Diode (LED)-lighting and motion detectors on its escalators, solid waste management, advanced water conservation practices and green building developments.  Currently, it sources more than 50% of its electricity from renewable energy across all its properties and facilities nationwide.

SM has been recycling water since the 1990s, treating an average of 1 billion gallons annually in past years to repurpose for mall operations including toilet cleaning and landscaping use. It has integrated rainwater harvesting systems in over 30 malls, particularly in flood-prone areas. It made another breakthrough in water usage by treating rainwater into potable water in SM City Baguio.

SM Prime also partnered with GUUN Co. of Japan to actively participate in developing infrastructure for systematic waste management and resource recovery.

The third is all about risks. “Companies often identify risks sooner when seeking to further their values,” says Aronson. Risk means that the vast legacy of the conglomerate would be at risk.  
To help manage risks, SM has started to integrate ESG risks into its risk registers, realizing that these need special attention because of their evolving, interconnected, and long-term nature.

The most important point Aronson made is about employees and that if the company wants to get the best people, their business values should align with the company’s.

SM employees are educated on CG and ESG through the employee onboarding and training program and awareness campaigns. Through the Orientation for New Employees of SM (ONE SM), new employees are given an overview of SM’s CG framework, including the different corporate policies and its various components. A substantial portion of the orientation is devoted to discussing SM’s core values and the Code of Ethics, highlighting the roles that each can play in the development of the organization’s CG culture. The Governance, Risk and Compliance Group collaborates with the Human Resources Group, Internal Audit Group, and other teams to continue improving this program for all employees.

SM’s teams exemplify Tatang’s entrepreneurship, drive, teamwork, leadership, and, most of all, business integrity. What Tatang proved is that acting on one’s good governance values can be a very good business strategy. And in his case, it was all about the philosophy that business growth and social growth go hand in hand.

The mantra of good CG cannot be just about the company and its shareholders. It must go beyond compliance with regulatory directives. It must consider fair and acceptable behavior, among others, to those who are more vulnerable, even if it means accruing less to the bottom-line.

One can always talk of governance at length but the true challenge, however, is not in extolling the virtues of good CG. Rather, it is what happens after that.  The challenge is measuring how  far we have moved forward and how much of the CG proactive culture genuinely influences our ways of working. What we want to achieve is having the comfort that values, principles and practices are fully in place, reviewed and updated even when no one is looking and even if it does not always pay off.

 

Amando “Say” M. Tetangco, Jr. has been serving as the first independent director chairman of the Board of SM Investments Corp. since 2023. He is also the vice-chairman of SM Prime Holdings, Inc., and is an independent director of other companies. Prior to joining SM, Mr. Tetangco was a career central banker for over four decades.  He eventually assumed the post of governor of the Bangko Sentral ng Pilipinas and chairman of the Monetary Board, serving two consecutive six-year terms from July 2005 to July 2017.

map@map.org.ph

pujuan29@gmail.com

DMCI, RLC: First tower of Sonora Garden Residences 56% sold

By Aubrey Rose A. Inosante, Reporter

DMCI HOMES and Robinsons Land Corp. (RLC) Residences said that Cadence, the inaugural tower of their joint-venture development, Sonora Garden Residences, has sold 56% of its units.

Located in Robinsons Las Piñas Complex along Alabang-Zapote Road, the three-tower project began its turnover of units on July 27.

“The sales take-up is doing very well since we physically opened the project for viewing last March. The sales continue to show an upward trend over the past few months,” DMCI Homes told BusinessWorld via an e-mailed statement on Aug. 8, adding that Cadence is already 56% sold.

DMCI also said that both companies still expect P13 billion in revenue from Sonora Garden Residences and P6 billion for the Cadence building.

“Sonora Garden Residences is still priced competitively at P128,000 per square meter (sq.m.) at the moment vs. other developments in the area that can go as high as P190,000 per sq.m.,” DMCI said.

The firm also said that the upcoming opening in the fourth quarter of some infrastructure near the project will further benefit investors by improving the project’s accessibility.

The 1.45-hectare Sonora Garden Residences offers a mix of one-, two-, and three-bedroom units ranging from 28 to 83.5 sq.m., ideal for young professionals and startup families.

“The spacious units are complemented by expansive open spaces, lush gardens, and a variety of resort-inspired amenities, all of which perfectly blend with the relaxed atmosphere of Las Piñas City,” DMCI said.

The amenities include a kiddie pool, leisure pool, lap pool, and snack bar.

Residents can access the Sky Lounge, designed for family gatherings and community events, with a view of the southern metro’s cityscape.

Sonora Garden Residences also offers proximity to Robinsons Place Las Piñas, with access to various retail and dining options, and to Las Piñas, Zapote, and Dr. Arcadio Santos stations of the Light Rail Transit Line 1 Cavite extension project.

“Once completed, travel time between Quezon City and Cavite will be reduced from an hour and a half to just 25 minutes,” it said.

The project is minutes away from Dr. A. Santos Ave. (formerly Sucat Road) and the Manila–Cavite Expressway, providing convenient travel around the metro and to southern tourist destinations like Tagaytay, the firm said.

“With its strategic location, comprehensive amenities, and thoughtfully designed living spaces, Sonora Garden Residences is poised to redefine urban living in Las Piñas City, promising a serene and convenient lifestyle for its residents,” DMCI said.

T-bill rates inch up before BSP decision

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as it saw strong demand and even as rates mostly inched up as the market awaits the Bangko Sentral ng Pilipinas’ (BSP) policy decision this week.

The Bureau of the Treasury (BTr) raised P20 billion as planned from the T-bills it auctioned off on Monday as total bids reached P52.535 billion, or more than twice the amount on offer. This was higher than the P47.298 billion in tenders recorded at the Aug. 5 T-bill auction.

Broken down, the BTr borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P15.29 billion. The three-month papers were quoted at an average rate of 5.9%, 7.2 basis points (bps) above the 5.828% recorded last week. Accepted rates ranged from 5.878% to 5.929%.

The government likewise made a full P6.5-billion award of the 182-day securities as bids for the tenor reached P17.26 billion. The average rate for the six-month T-bill stood at 6.093%, up by 3.1 bps from the 6.062% fetched last week, with accepted rates at 6.074% to 6.1%.

Lastly, the Treasury raised the planned P7 billion via the 364-day debt papers as demand totaled P19.985 billion. The average rate of the one-year debt inched down by 1.2 bps to 6.062% from the 6.074% quoted for the tenor last week, with the BTr only accepting bids with this yield.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.8429%, 6.1056%, and 6.1977%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The government made a full award of the T-bills as the offer was met with strong demand, with investors seeking to lock in returns from longer tenors in anticipation of the start of the BSP’s easing cycle, a trader said in a text message.

“Treasury bill average auction yields were again mostly slightly higher after the faster inflation rate in July and the faster-than-expected GDP (gross domestic product) growth rate that could reduce the possibility of a BSP policy rate cut as early as Aug. 15,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message on Monday.

Analysts are divided on the Monetary Board’s rate decision this week as faster inflation in July caused BSP Governor Eli M. Remolona, Jr. to take a less dovish policy stance.

A BusinessWorld poll showed that nine out of 16 analysts surveyed expect the central bank to deliver a 25-bp rate cut at Thursday’s review.

This would bring the target reverse repurchase rate to 6.25% and would be the first reduction in benchmark borrowing costs since November 2020, or during the height of the coronavirus pandemic.

The BSP has kept its policy rate at an over 17-year high of 6.5% since October 2023 following cumulative increases worth 450 bps.

The Monetary Board is now “a little bit less likely” to cut rates at this week’s policy meeting following the elevated July inflation print, Mr. Remolona said last week, adding that they remain open to off-cycle moves.

Headline inflation picked up to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority (PSA) reported last week. This was slower than the 4.7% print in the same month a year ago and was within the BSP’s 4%-4.8% forecast for the month.

However, this was the fastest print in nine months or since the 4.9% clip in October 2023. It also marked the first time since November that inflation exceeded the central bank’s 2-4% annual target.

Meanwhile, Philippine GDP expanded by an annual 6.3% in the second quarter, the PSA reported separately last week. It was stronger than the revised 5.8% growth in the first quarter and 4.3% in the second quarter of 2023.

For the first semester, economic growth averaged 6%, hitting the low end of the government’s 6%-7% target.

On Tuesday, the BTr will offer P30 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 11 months.

It wants to raise P220 billion from the domestic market this month, or P80 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy

Docufiction on Ati community wins top prize at Cinemalaya

CAST and crew of Tumandok with the Cinemalaya Organizing Committee. — SCREENGRAB FROM CINEMALAYA FACEBOOK PAGE

TUMANDOK, a film that follows a 16-year-old chieftain’s daughter as she and her people fight for their ancestral land in Panay, was the top winner at the 20th edition of the Cinemalaya Independent Film Festival, bagging five awards including Best Film and Best Screenplay at the awards night on Aug. 11 at Ayala Malls Manila Bay.

The film, directed by Richard Jeroui Salvadico and Arlie Sweet Sumagaysay, also won the Network for the Promotion of Asian Cinema (NETPAC) Award for Full-length Feature, Best Supporting Actor for Felipe Ganancial, and Best Original Music Score for Paulo Almaden and the Ati People of Kabarangkalan and Nagpana.

“[Tumandok is awarded the Best Film] for its focus on a marginalized sector of Philippine society; for its nearly epic sweep of the life and landscape of a people disempowered by the wealthy and the powerful and victimized by government neglect and corruption; for its highly convincing characters and effective ensemble acting by a cast of non-professional actors; and for its highly effective filmmaking in defense of the rights of indigenous people to their ancestral domain,” the citation read.

“Although this is our first full-length film, we take ourselves out of it because this film is the symbol of bravery and strength of the Ati community who co-authored, co-directed, and made this with us,” Ms. Sumagaysay said in her acceptance speech.

Named for the Ati word for “native” or “inhabitant,” the film is based on real accounts by the Atis in Barotac Viejo, Iloilo.

The next big winner of the night was Kono Basho, which bagged four awards including Best Director for Jaime Pacena II, Best Cinematography for Dan Villegas, and Best Production Design for Eero Yves Francisco.

The family drama follows Ella, played by Gabby Padilla, who reunites with her estranged half-sister in Japan at her father’s funeral, allowing them to heal from their respective traumas.

Ms. Padilla’s portrayal in Kono Basho earned her the Best Actress award “for her sensitive and very moving portrayal of a young woman navigating the cultural complexities of a foreign funeral while coming to terms with personal loss and family grief.”

Ms. Padilla shared her Best Actress award — a first in Cinemalaya history — with Marian Rivera, who was recognized “for her spirited portrayal of a public school teacher risking life and limb to protect the sanctity of the ballot” in the film Balota.

Meanwhile, child actor Enzo Osorio was named Best Actor, for “his sensitive and very convincing portrayal of a boy who refuses to be silent and to be silenced about his abuse” in the film The Hearing, according to the citation.

In the short feature film category, Cross My Heart and Hope to Die took home the Best Short Film prize, its director Sam Manacsa also earning the Best Director award.

The short follows an unpaid office worker who finds comfort in a love interest through his constant phone calls.

“[Cross My Heart and Hope to Die won Best Short Film] for its heartbreaking portrait of overworked and underpaid women workers, and its subtle but mordant critique of their abuse and exploitation,” the citation read.

This year’s Cinemalaya was held at Ayala Malls Manila Bay in Parañaque because of the extensive ongoing renovation of its regular venue, the Cultural Center of the Philippines’ main building. The festival showcased 20 films in competition this year, with 10 full-length features and 10 short feature films. — Brontë H. Lacsamana

 

And the winner is…

FULL-LENGTH FEATURE FILMS
• Best Film: Tumandok by Richard Jeroui Salvadico and Arlie Sweet Sumagaysay

• Best Direction: Jaime Pacena II for Kono Basho

• Best Actress: Gabby Padilla for Kono Basho; Marian Rivera for Balota

• Best Actor: Enzo Osorio for The Hearing

• Best Supporting Actress: Sue Prado for Kantil

• Best Supporting Actor: Felipe Ganancial for Tumandok

• Best Screenplay: Arden Rod Condez and Arlie Sweet Sumagaysay for Tumandok

• Best Cinematography: Dan Villegas for Kono Basho

• Best Production Design: Eero Yves Francisco for Kono Basho

• Best Editing: Dominic Bekaert for An Errand

• Best Original Music Score: Paulo Almaden, The Ati People of Kabarangkalan and Nagpana for Tumandok

• Best Sound: Jedd Dumaguina and Mario Consunji for An Errand

• NETPAC Jury Prize: Tumandok by Richard Jeroui Salvadico and Arlie Sweet Sumagaysay

• Special Jury Prize: Alipato at Muog by JL Burgos

• Audience Choice Award: Gulay Lang, Manong by BC Amparado

SHORT FILMS
• Best Short Film: Cross My Heart and Hope to Die by Sam Manacsa

• Best Direction: Sam Manacsa for Cross My Heart and Hope to Die

• Best Screenplay: Sonny Calvento for Primetime Mother

• NETPAC Jury Prize: Abogbaybay by P.R. Monencillo

• Special Jury Prize: Pamalandong sa Danow by Breech Asher Harani

• Audience Choice Award: Primetime Mother by Sonny Calvento

SMC’s first-half income jumps to P33.5B on strong segment performance

ANG-LED conglomerate San Miguel Corp. (SMC) grew its first-half net income by 66% to P33.5 billion, carried by higher profits across its business segments.

First-half consolidated revenue rose by 15% to P789 billion, led by business units Petron Corp., San Miguel Global Power Holdings Corp. (SMGP), San Miguel Infrastructure, San Miguel Food and Beverage, Inc. (SMFB), and Ginebra San Miguel, Inc. (GSMI), SMC said in an e-mailed statement on Monday.

Operating income increased by 22% to P85.1 billion on higher margins in the power business and lower raw material costs in the food business.

“Our strong first-semester performance shows the resilience of our businesses even in a challenging market. We expect this positive momentum to continue throughout the year and deliver sustained value to all our stakeholders,” SMC Chairman and Chief Executive Officer Ramon S. Ang said.

On the food and beverage business, SMFB grew its first-half net income by 6% to P20 billion. Consolidated sales increased by 4% to P192.9 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 5% to P33.9 billion.

San Miguel Brewery, Inc. saw a 1% increase in consolidated revenue to P75.1 billion on higher sales volume, while GSMI recorded an 18% increase in sales to P30 billion.

San Miguel Foods had a 3% sales increase to P87.8 billion, led by the double-digit revenue growth in prepared and packaged foods along with “resilient” poultry sales.

On the power segment, SMGP grew its first-half operating income by 56% to almost P23 billion, while EBITDA rose by 45% to P30.1 billion on improved margins from contracted volumes and contribution of higher-margin ancillary service from battery energy storage systems.

First-half revenue rose by 17% to P98.9 billion despite a lower average realization price caused by an overall decline in fuel prices.

On the fuel and oil segment, Petron recorded a 2% drop in first-half net income to P6 billion, while operating income rose by 8% to P17.3 billion.

Consolidated revenue increased by 21% to P444.5 billion from P367 billion last year as the company continued to register strong volumes in the Philippines and Malaysia, reaching 69.1 million barrels in the first six months, up 20% from the 57.6 million barrels sold last year.

On the infrastructure business, San Miguel Infrastructure saw a 9% increase in revenue growth to P18.1 billion, led by the 4% growth in combined tollways daily average volumes, which ended at 1.034 million vehicles. Operating income rose by 8% to P9.7 billion, while EBITDA increased by 9% to P14.7 billion.

On the cement business, Eagle Cement Corp., Northern Cement Corp., and Southern Concrete Industries, Inc. saw a 6% decline in first-half consolidated revenue to P19 billion. 

Operating income rose by 31% to about P4 billion on the back of cost reductions and operating efficiencies, while EBITDA increased by 18% to P5.4 billion.

“Lower average selling price in response to the influx of imported traded cement weighed on its topline. However, the decline has been mitigated in part by stronger second-quarter sales volume,” SMC said.

On Monday, SMC shares dropped by 1.40% or P1.40 to P98.50 per share. — Revin Mikhael D. Ochave

On estimates of future claims and the PhilHealth reserve fund: Why giving away P89.9B is not a good idea

BW FILE PHOTO

A part from the issue of whether the Secretary of Finance has the discretion to transfer PhilHealth funds to the General Fund is the question on the impact of the reduction of PhilHealth funds by P89.9 billion on the operations of PhilHealth. The P89.9 billion is part of PhilHealth’s P463.7 billion reserve fund as of the end of 2023.

PhilHealth’s P89.9 billion has been invariably referred to as a government subsidy, excess funds, unspent funds, and a reserve fund. If it is a subsidy, it is not a direct subsidy of the government for PhilHealth, but a subsidy for more than 38 million Filipinos — indigents, senior citizens, people with disabilities, and others. The subsidy represents the aggregate premium payment for the mass enrollment of the informal sector of the population in PhilHealth.
Withdrawing the P89.9 billion from PhilHealth is tantamount to cancelling the premium payment of the informal sector, consequently cancelling their enrollment in PhilHealth. That would be in violation of RA 11223, An Act Instituting Universal Health Care for All Filipinos. The law enrolled every Filipino citizen in PhilHealth.    

It matters to PhilHealth, being an insurance company, if the P89.9 billion is an excess fund, unspent funds, or a reserve fund.  In the context of insurance, a reserve fund is the amount of money set aside by an insurance company to assure the payment of future claims.

The P89.9 billion may be unspent or idle money at a certain point in time, but if the amount is part of PhilHealth’s reserve fund, it will not remain unspent or idle for long. A substantial part of it, or even the entire amount may be spent within the year.

In 2022, the total premium received by PhilHealth was P216.8 billion. The claims paid totaled P129.6 billion or 59.8% of premium received. In 2023, premiums received totaled P224.9 billion and claims paid amounted to P122.4 billion or 54.4% of premium received. The decrease in the ratio of claims paid to premiums received was due to the decrease of COVID-19 related cases in 2023. Payment for COVID-related cases was P35.3 billion in 2022 and P16.6 billion in 2023. We can safely assume it will be significantly lower than P16.6 billion in 2024.

PhilHealth’s income statement for the period ending June 30, 2022 showed operating expenses of P3.3 billion. Extrapolating that to one full year, PhilHealth’s operating expenses for one year should average P6.6 billion. Operating expenses in 2023 should not be markedly different from that amount.

As the law mandates that every Filipino citizen be enrolled in PhilHealth, it has no need for agents and brokers to sell PhilHealth policies. Thus, it does not pay commissions to anybody as private insurance companies do. Also, PhilHealth is by law tax exempt. So, what is left after deducting claims payment and operating expenses from premiums received is the net income.

Based on the data provided by PhilHealth, it would seem PhilHealth’s reserve fund of P463.7 billion is more than enough to cover future claims. However, what is not shown in PhilHealth financial statements is Incurred But Not Reported, commonly known in the insurance business as IBNR.

A PhilHealth enrollee may be hospitalized but instead of availing himself of his PhilHealth benefits, he pays the hospital bill and the doctor’s professional fee to facilitate his discharge and files a claim with PhilHealth at a later date for reimbursement of his medical expenses. That is IBNR. Or he could choose to avail himself of his PhilHealth benefits by asking the hospital to apply his PhilHealth benefits to his bill. In which case it is the hospital that incurs expense for which it will ask PhilHealth at a later date for compensation. That, too, is IBNR.

Since PhilHealth knows neither how many of these expenses have been incurred, nor the amount of each expense, IBNR is necessarily an estimate.

There is also IBNER — Incurred But Not Enough Reported. It refers to development on reported claims. For example, when a claim is first reported, a P10,000 payment might be made, and a P2,000 case reserve might be established, for a total initial reported amount of P12,000. However, subsequent expenses related to the original claim may be incurred, resulting in a total claim of P20,000. The estimated amount of this future development on reported claims is known as IBNER.

Various methods are used to estimate IBNR and IBNER. The chain-ladder method is the most common method used. The primary underlying assumption of the chain-ladder method is that historical claims development patterns are indicative of future claims. However, factors other than historical claims patterns should be considered when estimating future claims.

The impact of COVID-19 must have wreaked havoc on PhilHealth’s 2020 estimates of future claims and reserve fund as historical data prior to 2020 did not include COVID-19 related claims. COVID-19 related claims comprised 27% of total claims in 2022 and 17% in 2023. Estimates of future claims based on historical data are generally increased by about 10% by actuaries to cover contingencies.    

That is why whoever in PhilHealth estimates future claims and the corresponding reserve to fully cover all those claims should be familiar with the developments and patterns in the areas of morbidity broken down into age bracket, geographical location, occupation, and socio-economic class. He should also know the capacity of the country’s healthcare delivery system and advancement in medical science as they also determine the cost of healthcare and its inflation rate.

Using a blend of mathematics, statistics, and financial theory, he estimates the financial risk and the size of the reserve fund. That means whoever does the calculations should have received formal training in mathematics, statistics, probability, economics, finance, and computer science. We asked PhilHealth if whoever does the calculations and projections has such an academic background. We did not get an answer.

So, we do not know if future claims and the reserve set aside to cover those projected claims were calculated competently.  Therefore, we cannot say that the reduction of PhilHealth’s reserve fund by P89.9 billion has not compromised the integrity of the reserve fund.

 

Oscar P. Lagman, Jr. was formerly the chief operating officer of a health insurance company and consultant to others.

Metro Manila office rental prices decline despite improved vacancy rate

PHILIPPINES.CBRE.COM

VACANCY RATE in Metro Manila’s office market improved in the second quarter of 2024, yet rental prices for office spaces have continued to decline since 2023, according to real estate services and investment firm CBRE Philippines.

“This may look good on the upper hand, but zooming into the prices of each sub-district, we have been noting a trend of declines or reductions in rates as well,” CBRE Philippines Research Head Samantha Laureola said during a briefing last week. 

Metro Manila’s fair market rents (FMR), which represent the typical rental prices for office spaces, have decreased by 2% to 19% across various sub-districts from the first quarter of 2023 to the present. 

The Bay Area’s FMR fell 19% from the first quarter of 2023, followed by a 13% decrease in Makati A&B premium office buildings. Alabang also went down 10%, North Bonifacio declined 3%, and Makati Prime went down 2%.

Meanwhile, Quezon City rose 9% and McKinley inched up by 6%. Ortigas also increased by 2%, and Bonifacio Global City (BGC) rose by 0.4%.

“So lower rates, potentially more attractive lease structures for clients, higher demand, and lower vacancy overall,” she added.

The vacancy rate went down to 17.8% in the second quarter of 2024 from 19.7% in the same period last year.

CBRE also revised its initial forecasted vacancy rate from 18.8% to 22.6% by the end of the year due to the Philippine Offshore Gaming Operators (POGO) ban. 

Makati Prime had the highest FMR in the second quarter of this year at P1,289.01, followed by BGC at P1,170.88, while North Bonifacio and the Bay Area logged P1,076.88 and P702.64, respectively. 

Makati A&B recorded an FMR of P789.40, McKinley at P834.06, Ortigas at P764.39, Alabang at P671.40, and Quezon City at P735.35.

“Lower FMR for most of the major Metro Manila markets as developers continue to provide aggressive rates to spur transactions,” the firm said.

On a quarter-on-quarter basis, CBRE Philippines Director of Advisory and Transactions Services Garri Amiel Guarnes said the Bay Area had the highest reduction of 7.3% in FMR in the second quarter of 2024.

“That’s a lot to do with the transactions, government take-ups within the Bay Area, and the high number of square meters being taken by the government offices,” he said.

The office market logged 257,200 square meters (sq.m.) of office leases for the second quarter, driven by government take-ups that accounted for a 26% share. 

Some of the biggest government leases during the first half went to Filinvest, including the National Bureau of Investigation in Cyberzone Bay City Towers and the Department of Trade and Industry in Filinvest Buendia. 

Despite CBRE’s expectation that the vacancy rate by year-end will hit 43% due to the POGO ban, the Bay Area was the top district for the second quarter of 2024 with 83,400 sq.m. of leases in the country.

SERVICED OFFICE VACANCY RATE HIT 20.6%
Meanwhile, the vacancy rate of Metro Manila’s flexible market — comprising coworking spaces, serviced offices, and short-term leases — surged 20.6% to 7,000 vacant seats in the second quarter due to the opening of new sites across the area, CBRE Philippines said.

This figure was 6.75% lower than the 14% vacancy rate in the same period last year, and lower than the 17% recorded last quarter.

CBRE Senior Research Analyst Angela Joyce Sumalinog said the increase in vacancy was driven by the opening of new sites in Metro Manila, where Fort Bonifacio recorded the lowest vacancy rate at 11%.

North Bonifacio’s vacancy rate fell to 10% in the second quarter, while BGC also decreased to 10%. McKinley’s vacancy rate rose to 18%.

The vacancy rate in Makati increased to 19%, Ortigas doubled to 24%, and Quezon City reached 22%. Meanwhile, the Bay Area and Alabang saw increases to 25% and 52%, respectively.

“Another factor that we’re seeing that can affect the flex market would be comparing serviced offices versus vacated spaces with quality fit-outs. The former would often have a premium on rates of 50% to 80% over three to five years,” Ms. Sumalinog said.

CBRE reported that Metro Manila rates range from P5,000 to P36,000 per seat per month. — Aubrey Rose A. Inosante

RCBC posts lower net profit in 2nd quarter

PHILSTAR FILE PHOTO

RIZAL COMMERCIAL Banking Corp.’s (RCBC) net income declined by 12.97% year on year in the second quarter due to increased tax expenses, it reported on Monday.

The bank’s attributable net profit stood at P2.25 billion last quarter, down from P2.58 billion in the same period last year, its financial statement disclosed to the stock exchange showed.

This brought RCBC’s net income for the first semester to P4.45 billion, 28.47% lower than the P6.22 billion booked last year.

This translated to a return on average assets of 0.7% at end-June, down from 1.1% at end-2023, and a return on average equity of 5.7% versus 9.5% as of December 2023.

Net interest income in the second quarter increased by 26.04% year on year to P10.19 billion from P8.08 billion, driven by higher interest earnings from both loans and investment securities, which more than offset the increase in interest expenses.

Net interest margin was at 3.7%, up from 3.4% at end-2023.

Other operating income likewise grew by 8.66% to P2.59 billion in the second quarter from P2.38 billion a year prior, mainly on the back of higher earnings from fees and commissions and gains on sold assets.

Meanwhile, operating expenses rose by 6.85% to P7.61 billion from P7.13 billion.

This resulted in a cost-to-income ratio of 61.5%.

RCBC’s profit before tax stood at P3.23 billion in the second quarter, higher than P1.38 billion a year prior.

However, the bank recorded a tax expense of P979 million this year, a reversal of the deferred tax expense worth P1.2 billion booked in the same quarter last year.

Its loans and receivables rose by 2.66% to P667.22 billion at end-June from P649.93 billion at end-2023.

RCBC said its consumer loan portfolio grew by 38% in the first semester, driven by the 53% expansion of its credit card loans, with billings rising by 42%. Auto and home loans likewise increased by 28%.

Personal and salary loans also tripled year on year, it added.

Consumer loans made up 36% of the bank’s loan portfolio as of June, while the remainder went to its corporate and small and medium enterprise clients.

Despite an increase in consumer loans, RCBC’s gross nonperforming loan ratio improved by 14 basis points to 3.77% as of June.

On the funding side, total deposits grew by 0.34% to P959.92 billion at end-June from P957.71 billion in 2023.

This resulted in a loan-to-deposit ratio of 68.2%.

RCBC’s total resources grew by 1.82% to P1.26 trillion at end-June from P1.24 trillion at end-2023.

Total equity stood at P152.1 billion.

Its common equity Tier 1 ratio was at 13.8%, while its risk-based capital adequacy ratio stood at 16.4%.

RCBC President and Chief Executive Officer Eugene S. Acevado said the bank will continue to make innovative use of data and digital technology.

“By combining on-the-ground encounters with data insights, we create a digital customer experience that fuels the remarkable growth we are witnessing,” Mr. Acevedo said.

As of June 30, RCBC had 458 branches, 1,486 automated teller machines, and 6,836 ATMGo terminals nationwide.

Its shares declined by 15 centavos or 0.67% to end at P22.10 apiece on Monday. — AMCS

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