[B-SIDE Podcast] Long COVID: the lingering symptoms of a medical ‘chameleon’

December 13, 2021 | 9:55 am

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A percentage of those who recover from coronavirus disease 2019 (COVID-19) still suffer from long COVID, a condition characterized by symptoms such as chronic fatigue, shortness of breath, and cognitive dysfunction.

Initiatives such as the global AFTERCOR study, a two-year research program on the long-term outcomes of COVID-19 ICU (intensive care unit) survivors, are gathering data from its partner institutions to gain a better understanding of the medical condition’s mechanism.

“What’s quite peculiar with COVID-19 is that it’s such a chameleon,” says Dr. Karin Wildi, an Australia-based ICU specialist and principal investigator of the AFTERCOR study.

In this B-Side episode, Dr. Wildi tells BusinessWorld reporter Patricia B. Mirasol how the virus attacks every organ in the body.

Recorded remotely before the Omicron variant was first reported on Nov. 24 and classified as a variant of concern by the World Health Organization on Nov. 26.

Produced by Paolo L. Lopez and Sam L. Marcelo.

https://www.bworldonline.com/in-for-the-long-haul-recovered-covid-patients-report-lingering-symptoms/

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AG&P: Driving energy transformation through clean fuel

December 13, 2021 | 9:47 am

Firmly looking ahead to recover from two years of pandemic restrictions, the Philippines has gradually opened up the economy to rekindle trade and industry. Ramping up vaccination coupled with strategic easing up of controls on key sectors contributed to a strong 7.1-percent GDP growth in the third quarter of 2021.^[1] The Philippine economy is rearing its engines again – and it needs more power than ever to refuel its post-pandemic growth.

A looming crisis

The Department of Energy estimates the country’s peak power demand in 2021 to have hit 16,333 megawatts (MW)^[2] – a seven-percent increase from 2020, the first year of the pandemic. Of this, 11,841 MW is from Luzon alone. The largest, most populated, and most economically productive region in the country, Luzon draws a third of its power supply from the Malampaya gas fields off the shore of Batangas.

The looming depletion of the Malampaya gas fields presents daunting challenges not only for Luzon but for the entire Philippines. The country’s post-pandemic recovery hinges largely on the availability of reliable and cost-efficient energy. From factories to commercial centers to the smallest homes in far-flung villages, a stable electricity supply is necessary to spur everyday economic activity.

Decarbonization

In the Philippines and elsewhere, the energy landscape is inevitably further linked to climate change. At the recent 26^th Conference of Parties (COP 26) in Glasgow, Scotland, 200 member states reached a consensus to keep global temperature rise to below 1.5 degrees Celsius – a broad target that involves phasing down of fossil fuels and active restructuring of countries’ energy portfolios, as well as financing support for more sustainable sources of energy.

In the Philippines, where 57% of installed energy capacity comes from coal^[3], the Department of Energy has emphasized energy security and climate justice as overriding pillars of the country’s energy transformation.

Minimizing dependence on fossil fuels while attaining energy security, however, are not mutually exclusive, and together they present infinite opportunities for innovation in the energy sector.

Energy transformation through Liquefied Natural Gas (LNG)/Natural Gas (NG)

Critical to driving decarbonization is achieving an energy mix that provides the most optimum results with the least impact on the environment. Liquefied natural gas, long considered the lowest-emission fuel available, presents unique opportunities in securing a clean and efficient energy supply.

The intermittent supply of renewable energy – further exacerbated by climate change – poses risks to the stability of power grids. Gas-fired power plants help address volatility issues of solar, hydro, and wind sources. Renewable energy requires an alternative, stable fuel capacity to support its intermittency. For most markets, natural gas is the cleanest and most commercially preferred source of stable capacity for a power system and works hand-in-glove with renewables.

“The fastest route to net-zero is innovative energy-efficient technologies and a rapidly growing adoption of LNG/NG as the transition fuel for cleaner air. The key thing is balance – you have to be sensible in providing the most optimized outcome for the country, and this balance is something that AG&P has envisioned to help achieve for the Philippines,” notes Anupam Ahuja, SVP, Strategic Services, Atlantic Gulf & Pacific (AG&P) Group.

Serving new and growing LNG/NG demand centers in South and Southeast Asia, AG&P is building the country’s first LNG import facility in Ilijan, Batangas. Called the Philippines LNG Import Terminal or PHLNG, the facility will have an initial capacity to deliver up to 3.0 MTPA of regasified LNG, with additional capacity for liquid distribution. Immediately on its first day of operations, PHLNG will have a scalable onshore regasification capacity of 420mmscfd and almost 200,000cbm of storage that will ensure high availability and reliability of natural gas for its customers.

“We share the country’s vision for transitioning to clean energy and look forward to supporting it every day,” Ahuja notes, sharing that PHLNG will serve to kick-start the country’s LNG importation and regasification ability.

“PHLNG will allow the Philippines to access the potential of natural gas in securing the current and future energy demand of the region while helping spur overall economic and social progress. It will, directly and indirectly, improve the quality of life for many Filipinos,” Ahuja adds.

^[1] https://psa.gov.ph/content/gdp-posted-growth-71-percent-third-quarter-2021

^[2] https://www.bworldonline.com/peak-power-demand-in-2021-seen-exceeding-pre-lockdown-levels/

^[3] https://www.bworldonline.com/what-is-the-optimal-energy-mix/

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MPIC joins as founding member of A4S APAC CFO Leadership Network by Prince of Wales

December 13, 2021 | 9:39 am

Photo - A4S CFO Leadership Network — The Asia-Pacific Chapter Pioneers. In photo: (From L-R, top to bottom) Olam Food Ingredients (Singapore) Executive Director and Group Chief Financial Officer Rishi Kaira, CapitaLand (Singapore) Chief Financial Officer Andrew Lim, Fonterra Cooperative Group (New Zealand) Chief Financial Officer Marc Rivers, Japfa (Singapore) Executive Director and Chief Financial Officer Kevin Monteiro, MPIC Chief Finance, Sustainability, and Risk Officer Chaye A. Cabal-Revilla, Ramsay Health Care (Australia) Group Chief Financial Officer Martyn Roberts, and SATS Chief Financial Officer (Singapore) Manfred Seah

PH, SING, AU, NZ among pioneers

Metro Pacific Investments Corporation (MPIC) joined the Accounting for Sustainability (A4S) Chief Financial Officers Leadership Network’s new Asia-Pacific Chapter as one of its Founding Members.

Announced during the A4S Annual Summit opened via a video message by His Royal Highness The Prince of Wales, MPIC, represented by Chief Finance, Risk and Sustainability Officer Chaye Cabal – Revilla, along with other founding members, will collaborate with global peers to progress the integration of finance and sustainability in ways of doing business.

“Finance leaders have the distinct advantage of being at the center of all business matters. We have visibility, not just on finance, but we are also integral to risk management and strategy development and most recently, even sustainability,” said Cabal- Revilla. “As such, I truly believe that we are best positioned to be catalysts for change in our organizations. With Sustainability gaining more and more importance in the global mindset, we at MPIC have been focusing on integrating finance and sustainability in all our business decisions.”

A4S and the CFO Leadership Network

Established in 2004 by HRH The Prince of Wales, A4S aims to make sustainable business, business as usual. The organization works with the finance and accounting community to inspire finance leaders to adopt sustainable and resilient business models, transform financial decision making to reflect the opportunities and risks posed by the climate crisis and other environmental, social, and governance (ESG) issues, and scale up action to transition to a sustainable economy.

His Royal Highness The Prince of Wales shares a message to global financial leaders via a video message played during the A4S Summit.

HRH The Prince of Wales, in his opening message to global financial leaders during the A4S Summit, said “We simply must seize the current window of opportunity to re-imagine our global systems in a way that puts Nature, People and Planet at the heart of how we operate.” His Royal Highness continued, “My Accounting for Sustainability Project is providing you with the guidance, tools and training required. My only hope is that you can learn from these examples and take heart from the success of the members of the various A4S networks.”

The global CFO Leadership Network is a unique group of over 60 CFOs from large organizations representing over US$20.7 trillion in combined total assets, with members having a commercial presence across 200+ countries. It brings together CFOs and their teams to develop and scale up adoption of practical approaches which embed social and environmental risk and opportunity into the heart of strategic planning and decision-making processes.

Joining the Global Movement

With the rapid increase of climate and other sustainability-related risks, it is integral for businesses, particularly in the Asia-Pacific Region, to integrate sustainability into its business operations and strategies. Due to the key risks of extreme weather, countries in the region experience the greatest level of GDP impact.

MPIC President and CEO Jose Ma. K. Lim highlighted the need for this movement, “Our businesses are key utilities that are essential to the daily lives of all Filipinos and consequentially need to be secured for future generations. We must prioritize forward-looking strategies in all our operations in order to maintain our role as a reliable partner in nation-building for decades to come.”

As the leading infrastructure investment company in the Philippines, MPIC is taking significant strides to ensure that its businesses are future-proofed for the benefit of all its stakeholders, primarily its customers and investors. Beyond providing essential services to majority of the country, MPIC takes on the opportunity to create programs that increase livelihood, become a staunch advocate for environmental stewardship, among others, and spur advanced economic development in the Philippines – a cycle that leads to inclusive progress.

“As a conglomerate, we consciously integrate collective action into our business operations, as well as our social responsibility initiatives to ensure that our efforts are for the benefit of the entire country,” said MPIC Chairman Manuel V. Pangilinan. “If we work together towards achieving sustainability on all fronts, we are closer to our ultimate goal of safeguarding a sustainable and resilient future for all.”

MPIC’s participation in the founding of the new Asia-Pacific A4S chapter is aligned with its commitment to achieve the 2030 Agenda for Sustainable Development by managing its impacts, improving its performance, and tracking its progress against the 17 United Nations Sustainable Development Goals.

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Addressing visible concerns of invisible consumers

December 13, 2021 | 8:00 am

More than half of Filipinos cannot access formal credit

Insights to Inspire aims to spark ideas that empower businesses to pursue bigger goals through data and information. Read our insights on current issues and learn new ways to make an impact in your industry.

According to figures from the Bangko Sentral ng Pilipinas, 51.2 million or 71% of the total Philippine adult population are unbanked and, therefore, credit invisible. This reflects an alarming reality for the majority of Filipinos who utilize informal (and therefore, unregulated) channels to secure loans, such as loan sharks.

In addition, some Filipinos may have a good track record when it comes to paying back loans — but to friends or relatives and not to formal financial institutions. Being credit invisible means that many Filipino adults, due to lack of any type of credit history, are subject to a catch-22 when they need to make big-ticket purchases like a car or a house and are unable to qualify for loans from financial institutions.

If we are to come closer to achieving financial inclusion for Filipinos under AmBisyon Natin 2040, the Philippine government’s long-term vision culminating in 2040, then much needs to be done. We need to build not only awareness but concrete steps so that more Filipinos can have access to financial services.

Financial inclusion through credit scoring
Credit scoring has long existed in different parts of the world, and although growing in the Philippines, levels of participation are still behind that of many other developed credit economies. A good credit score can be an enabler that helps someone gain access to credit and the economic opportunities that can bring. Credit scores help lenders to better assess a consumer’s financial risk, and based on the increased insight they can bring often enable them to give you better terms and interest rates because of your credit history.

But if someone is unbanked, it follows that there is no historical record of their spending and, more importantly, paying behavior on which to base an assessment of the risk they represent as borrowers.

In 2011, TransUnion, the first international private credit bureau in the Philippines, was established. TransUnion’s vision is to make trust possible between consumers and business — this includes helping more Filipinos become credit visible so they can access more financial products at competitive rates. This endeavor is backed by some of local banking industry’s stalwarts, including Banco de Oro, Bank of the Philippine Islands, Citibank, Metrobank, and HSBC.

TransUnion leverages technology and innovation to help member banks and financial institutions support nation-building. Where traditional data from financial institutions isn’t available to give a traditional credit score, we use our international experience to leverage alternative data assets and take a different approach.

In the Philippines, TransUnion recently launched CreditVision Link. It is the first credit score to combine trended credit bureau data and alternative data sources to give a more robust and well-rounded picture of someone’s credit viability.

While TransUnion Philippines has access to traditional data, e.g. credit and loan payments and credit card statements, relying solely on this data can return searches on many potential customers as “no-hit” or “thin-file” results, putting loan applications in jeopardy.

CreditVision Link utilizes telco data as basis for alternative scores, including telco reloads and payments, and mobile data usage. In a country where, according to data from Statistica, there are almost 169 million mobile phones in use, that is a good data source. As a result, more consumers become credit visible with more comprehensive assessments of spending and payment behavior.

Benefits of converting the credit invisible
Seventy-one percent of the Philippine population is a huge, untapped market. If banks and financial institutions can convert even just a portion of that adult population from being credit invisible to credit visible, they will make more opportunities available for Filipinos to enter and participate more fully in the Philippines’ economic recovery.

By relying on more comprehensive and reliable data about Filipino consumers, lending institutions can expand their customer base, increase their booking rates and the number of people they can help to achieve great things.

As we face post-pandemic times and work together to help restart the Philippine economy, empowering a greater number of Filipinos to be more financially independent begins with making the financial market more inclusive. As they step out of the shadows and become visible consumers, they will boost financial growth and act as a catalyst for the economy, benefitting not only themselves but the entire country.

PIA ARELLANO has over 25 years of industry experience across banking, payment solutions, telecommunications, and remittance services. She has been instrumental in establishing TransUnion as a risk management and data solutions and insights partner of banks and financial institutions in the Philippines.

Email questions to tuphcomms@transunion.com.

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BSP to stand pat on rates anew — poll

December 13, 2021 | 12:34 am

christmas — PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINE central bank is widely expected to keep its policy rate at a record low this week to support the economy amid uncertainty over the Omicron variant, according to analysts.

All 15 analysts in a BusinessWorld poll last week said they expect the Monetary Board to maintain the overnight reverse repurchase rate at 2% at this year’s last policy-setting meeting on Dec. 16.

The Bangko Sentral ng Pilipinas (BSP) has not touched the benchmark interest rates since Dec. 17, 2020.

Analysts believe the emergence of the new coronavirus disease 2019 (COVID-19) variant, which is said to be more transmissible, strengthened the case for the BSP to retain its accommodative policy setting.

The policy rates will likely be unchanged as prices remain elevated and the economic recovery is still fragile due to possible impact of Omicron, according to Mitzie Irene P. Conchada, an economist from the De La Salle University.

“More data seem to be pointing to a less virulent type of COVID-19, but this is not something that should be taken for granted especially noting the lessons that were learned about the COVID-19,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said, adding there is “no reason yet for the BSP to make a move at this point.”

The highly mutated COVID-19 variant, which was first reported in South Africa, spooked markets late last month on concerns it may spark a fresh surge in global cases.

The Philippines has already tightened its borders and restricted arrivals from countries where Omicron has been detected.

Analysts also said there is a need to assess if the Philippine economic growth is now sustainable.

“The robust third-quarter gross domestic product (GDP) print was a step in the right direction but we will need to see more data points to validate if we can string together impressive growth, sans the benefits of a favorable base effect,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

For the July to September period, the economy expanded by 7.1% year on year and 3.8% quarter on quarter. GDP grew by 4.9% in the first nine months, near the high end of the government’s 4-5% full-year target.

Mr. Mapa said the BSP is likely to look past the above-target inflation, which was mostly caused by low supply.

Inflation eased to a four-month low of 4.2% in November from 4.6% in October, but exceeded the BSP’s 2-4% target range.

The central bank expects inflation to average by 4.3% this year, before going back to within target at 3.3% and 3.2% by 2022 and 2023.

Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said the economy is only beginning to pick up “after almost 22 months of hiatus.”

“Demand is within the manageable level despite the rush of holiday spending,” Mr. Lopez said in an e-mail.

Analysts believe the central bank will start to tighten policy by 2022, depending on the sustainability of economic growth and the upcoming national polls.

“We expect the BSP to start raising rates in the first quarter of 2023, when the economic recovery will be on a firmer footing,” Makoto Tsuchiya, an economist from Oxford Economics said.

However, he warned that the central bank may need to counteract should there be possible risks from the policy normalization of the US Federal Reserve.

The Fed is widely expected to hasten their removal of policy support, and possibly give hints on raising interest rates in 2022.

“[The] US tapering and a related currency depreciation may force the BSP to raise rates earlier than desired, in order to avoid persistently higher inflation through imported prices,” Mr. Tsuchiya said.

In previous cycles, the BSP did not adjust rate settings in the months prior to an election.

“We expect the earliest rate hike to be done in third quarter of 2022 when the elections are over and economic recovery has gained enough traction to allow room for policy normalization,” Mitsubishi UFJ Financial Group Global Research analyst Sophia Ng said.

BSP Governor Benjamin E. Diokno has stressed they will remain accommodative, but will be ready to respond to any second-round effects of inflation that could be a risk to price stability. — Luz Wendy T. Noble

Central bank to look into account hacking complaints

December 13, 2021 | 12:33 am

A man types on a computer keyboard in this illustration picture taken on Feb. 28, 2013. — REUTERS/KACPER PEMPEL/FILE PHOTO

By Luz Wendy T. Noble, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) is looking into complaints posted on social media platforms by some bank customers who claimed their accounts were hacked and their funds stolen.

BSP Governor Benjamin E. Diokno said the central bank is closely working with BDO Unibank, Inc. and UnionBank of the Philippines, Inc. to take remedial measures, including reimbursement of affected bank customers.

“The BSP will do everything to ensure the safety and integrity of the financial system as well as the protection of financial consumers,” he told reporters via Viber.

Mr. Diokno said the BSP has been monitoring a “surge” in complaints posted on social media platforms since earlier this week.

BDO in a statement on Sunday said they are aware of a “sophisticated” fraud technique that affected some of clients and that additional security controls have been implemented.

“We assure our affected innocent clients that we will reimburse their losses,” the country’s largest lender said.

Some Facebook users, who claimed to be BDO clients, recently posted screenshots of allegedly unauthorized fund transfers from their accounts to UnionBank accounts.

The Aboitiz-led lender has already frozen accounts that allegedly received the funds, UnionBank President and Chief Executive Officer Edwin R. Bautista said.

“Several accounts have been frozen and investigated. We will not hesitate to take legal action against individuals (that) use their accounts to facilitate criminal activities,” Mr. Bautista said in a text message.

He said UnionBank will return the funds from the frozen accounts to BDO, “after due investigation.”

Social media posts by some BDO account holders showed the funds were allegedly transferred to a certain Mark Nagoyo’s UnionBank account.

UnionBank Chief Technology and Operations Officer Henry Rhoel R. Aguda said this could be a fake name used by potential money mules.

“I can assure you Mark Nagoyo is not an account holder of UnionBank. When you use InstaPay, you have to use a name, and sometimes its fictitious. But we’re trying to investigate right now,” he said in a phone call.

Mr. Aguda said they are also coordinating with other financial institutions for the funds that were transferred outside their bank.

In a separate statement, the Bankers Association of the Philippines (BAP) President Jose Arnulfo A. Veloso urged the public to be vigilant amid the rise of cybercrimes.

“Whenever you encounter a cybercriminal, immediately report it to your respective banks and the police. This is so we can work together to take down cybercriminals, such as the fake bank websites they are using to trick others,” Mr. Veloso said in a statement.

He also reminded the public to ensure they keep their personal information confidential.

For its part, BDO said it required all online banking users to update their passwords.

“We at BDO are continuously investing and working towards improving our security infrastructure to protect our clients’ money. While we have put back-end measures in place, we appreciate our clients’ continued vigilance to combat fraud,” the lender said.

Earlier, BAP Cybersecurity Committee Vice Chair Ramon L. Jocson said banking fraud losses could have reached more than P1 billion so far this year, with volumes already three times higher than what was seen in 2019.

BSP Deputy Governor Chuchi G. Fonacier said they are set to issue regulations on fraud management systems of financial institutions to strengthen their cybersecurity capabilities.

“With the rise in cyber-related incidents, supervised banks and financial institutions are expected to employ more robust systems to protect their data and operations for continuous delivery of financial products and services,” Ms. Fonacier said at an online event held by the Chamber of Thrift Banks on Friday.

Mr. Diokno has earlier said that a major cyberattack could affect the stability of the financial system, stressing the BSP will remain vigilant against new cyberthreats.

National Government’s debt service bill surges to P89 billion

December 13, 2021 | 12:32 am

THE NATIONAL Government settled P89.066 billion in debt payments in October, rising from a year earlier mainly due to higher interest payments and amortization, according to the Bureau of the Treasury (BTr).

Preliminary data from the BTr showed the government’s October debt service bill increased over three times from the P27.188 billion during the same month in 2020.

In October, the bulk of the payments or P57.53 billion went to amortization, which ballooned from the P5.118 billion a year ago.

Broken down, P52.706 billion or 91% were principal payments for local debt, while P4.824 billion went to foreign creditors.

At the same time, P31.536 billion went to interest payments in October. This was 42% higher than the P22.07 billion a year earlier.

Broken down, interest paid on local debt increased by 57.6% to P23.989 billion from P15.22 billion a year ago. This includes P1.18 billion in interest payments for Treasury bills, P18.402 billion for Treasury bonds, and P4.33 billion for retail Treasury bonds.

Interest payments on foreign debt increased by 10% to P7.547 billion from P6.85 billion.

For the first 10 months of 2021, the debt service bill jumped by 22% to P1.052 trillion from P861.904 billion in the same period of 2020.

The National Government paid P682.043 billion for amortization, up 30% from P526.86 billion in the same period last year. This consisted of P458.109 billion for local debt and P223.934 billion for foreign debt.

As of end-October, interest payments went up by 10.7% to P370.884 billion, which includes P281.606 billion interest on domestic debt and P89.278 billion for interest on foreign debt.

The government borrows from both local and foreign lenders to plug the funding gap.

Gross borrowings as of October dropped by 6% to P2.75 trillion from a year earlier.

For 2021, the state has programmed a P1.26-trillion debt service bill, 31% higher than the P962-billion bill in 2020. — L.W.T. Noble

Market jitters over Omicron unlikely to hurt upcoming IPOs

December 13, 2021 | 12:31 am

By Keren Concepcion G. Valmonte, Reporter

MARKET JITTERS over the new coronavirus disease 2019 (COVID-19) variant are likely to be temporary, analysts said, noting that upcoming initial public offerings (IPO) may still perform well.

“Investors are just nervous about the big unknown which is Omicron with more scientific data coming out in the next two weeks about vaccine escape, transmissibility, and mortality,” First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang said in a Viber message on Tuesday.

The emergence of the Omicron variant rattled stock markets around the world, as reports suggested it is more transmissible than the Delta variant. Some countries have already tightened restrictions to curb Omicron’s spread.

The Philippines has yet to report any local case of Omicron. It is currently under Alert Level 2, with new daily infections continue to decline.

Economic managers are hoping the country will be placed under the most relaxed COVID-19 alert level by January to help the economy recover faster. All businesses would be allowed to operate at full capacity under Alert Level 1.

Ms. Ulang said the economy is expected to continue reopening, noting that jitters over Omicron are “very temporary.”

“We will see more sizzling IPOs,” she added.

Concerns over COVID-19 may have affected Medilines Distributors, Inc.’s stock market debut on Tuesday, as its shares closed 30% lower than its IPO price.

“This is the first time an IPO closed at [the] floor bottom on the first day of listing, despite market [ending] positive [and the IPO] more than two times oversubscribed as reported in news media,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Tuesday.

Mr. Pangan said Medilines’ market debut may lead some investors to think twice before investing in IPOs.

“It will affect sentiment among investors as this will persist or stick to the minds of the investors who will rethink prior to placing them on a particular IPO and risk their hard-earned money,” he said.

Medilines did not have a stability fund, which is deployed to support the stock’s price on the market. Mr. Pangan said regulators should consider more policies to protect investors from market volatility “in order to achieve goals of increasing the number of investors [and] maintaining their credibility.”

“Not all volatility is bad as natural volatilities attract investors, but if it is [caused] by manipulation then regulators must act on this especially if there are negative reactions among investors themselves,” he added.

Asked if a stability fund should be required for companies planning to tap the capital markets, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said there are already other mechanisms to protect investors, such as lock-in periods.

“[Requiring a stability fund] would give greater appeal and protection for investors to somewhat support the price, but I am not sure if this could be imposed by regulators if market forces are allowed to determine the price in the market, while taking the interest and protection of the investing public into consideration,” Mr. Ricafort said in a Viber message on Friday.

PIPELINE OF IPOs
The Philippine Stock Exchange (PSE) still has a robust pipeline for fundraising activities this month and it has also recently approved Haus Talk, Inc., which will be the first IPO for 2022.

Solar Philippines Nueva Ecija Corp. (SPNEC) is scheduled to list at the PSE on Dec. 17. Meanwhile, EEI Corp. will list its follow-on shares at the local bourse on Dec. 23, while Philippine Estates Corp. is slated to list shares from its stock rights offering on Dec. 24.

Figaro Coffee Group, Inc. (FCG) moved its IPO to January, with the listing date set for Jan. 24.

Analysts said the success of future IPOs will depend on the companies’ fundamentals, financial performance, prospects, and the offer price.

“Although some market participants may feel spooked over the short term given the first day of the [Medilines] IPO, upcoming offerings may perform differently given that each listing may have varying characteristics, underlying market sentiment, among many other factors,” Timson Securities, Inc. trader Darren Blaine T. Pangan said in a separate Viber message.

FMIC’s Ms. Ulang said catalysts would include the reopening of the economy, improving inflation numbers, and low COVID-19 infection rates.

Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., noted that the economy is already “showing signs of strengthening recovery” which bodes well for investments in equities.

“If our economic recovery continues, then [the] general market sentiment is expected to be positive moving forward. For the upcoming IPOs to take advantage of this optimistic market sentiment, however, they must show attractive company fundamentals,” Mr. Tantiangco said in a Viber message.

Lopez-led PI Energy, Climargy plan to develop energy efficiency projects

December 13, 2021 | 12:08 am

PI Energy, Inc., an affiliate of First Gen Corp., recently signed a partnership deal with Climargy, Inc., a specialist investment and development company, to develop energy efficiency and conservation (EE&C) projects for businesses.

The two companies aim to cut the electricity use of their client companies by one terawatt-hour — saving P7.5 billion in power costs — through year 2040.

The EE&C projects will help “remove massive amounts of excess, heat-trapping carbon dioxide (CO₂) from the atmosphere,” the Lopez-led PI Energy said in a statement released over the weekend.

At the signing ceremony on Dec. 9, PI Energy Chairman Federico R. Lopez said that energy efficiency is fairly new in the region, so the partnership will be a “trailblazer” in the support and financing of energy conservation.

“Once in full play, it brings us closer to that reimagined and redesigned world that we often speak of with all the attendant benefits to businesses, consumers, energy producers, the economy, and the environment,” he added.

Climargy President Alexander D. Ablaza described the deal as a “game changer” in the EE&C market.

“It is still quite rare that energy developers team up to execute a business partnership dedicated to EE&C project assets across multiple energy service companies and multiple end users,” Mr. Ablaza said.

President Rodrigo R. Duterte signed Republic Act 1128 or the Energy Efficiency and Conservation Act in 2019, after almost three decades in Congress. The goal was to systematize energy efficiency and conservation measures by regulating energy-efficient technologies.

The law provides tax incentives to companies with EE&C initiatives in their operations.

On May 11, the Department of Energy issued the guidelines for submitting energy efficiency projects for fiscal incentives. The projects must cost at least P10 million and meet a minimum 15% project boundary or the absolute value of energy savings. — Marielle C. Lucenio

Jollibee Foods, AWS partner to innovate services

December 13, 2021 | 12:07 am

JOLLIBEE Foods Corp. (JFC) said it tapped Amazon Web Services (AWS) for its cloud migration in order to respond faster to changes in consumer behavior during the pandemic.

“Social distancing, lockdown restrictions, and in-person dining limits have led to changes in consumer dining habits, making food demand prediction and reaching customers more challenging,” JFC Head of Information Technology Yoly Chua told BusinessWorld in an e-mail interview on Dec. 7.

“It was important for the Jollibee Group to better understand changing consumer behaviors and make it more convenient for customers to buy the food they love,” she added.

JFC is moving its information technology infrastructure to AWS from data centers in the Philippines, Europe, the Middle East, and North America. The group’s headquarters in the Philippines is leading the migration.

The group said it worked with DXC Technology in the Philippines, an AWS partner, to decommission its on-premises data centers and move to AWS in less than 24 hours.

“This has helped the group reduce costs, streamline IT management, and innovate new services,” Ms. Chua said.

“The Jollibee group is becoming an even more data-driven enterprise to gain greater visibility into its sales data and supply chain operations, leveraging the breadth and depth of AWS capabilities, including analytics and database services,” she added.

JFC in the Philippines used Amazon DynamoDB, a database service that performs applications at any scale to help tag, monitor and create sales reports.

It also used Amazon Athena, an interactive query service, which automates the creation of operational dashboards based on sales reports.

Ms. Chua said the insights gained through the AWS tools enable the group “to stock inventory, scale production, allocate staff, and dispatch food across its restaurants nationwide more efficiently.”

JFC has 5,800 stores globally, including in the Philippines, the United States, Canada, China, the United Kingdom, Italy, Spain, Vietnam, Brunei, Singapore, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia, South Korea, Japan, and India. — Arjay L. Balinbin

A ‘scrappy’ brand makes it to British Vogue

December 13, 2021 | 12:07 am

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Saving the Earth one retaso at a time

By Joseph L. Garcia, Reporter

A FILIPINA designer has made it to British Vogue using the power of fabric scraps.

Rio Estuar is the designer behind RIOTaso, a brand that advocates sustainable lifestyles through making clothes out of fabric scraps. She will be on the magazine’s Designer Profile page for its Jan. 2022 issue, which dropped on Dec. 10. A snippet from Ms. Estuar’s Facebook page read: “A fiercely Filipina sustainable brand that repurposes fabric scraps into new textiles and creates one-of-one designs which cannot be replicated.”

“British Vogue reached out and hand selected RIOtaso as a brand they would like to give a feature spot to on the Designer Profile page…,” Ms. Estuar told BusinessWorld in an interview. “I seized the opportunity as a way to get RIOtaso as well as local, small, and sustainable fashion on an international level. I tapped fellow local brands who also create sustainably to be part of the photoshoot so that more brands can be recognized on an international level.”

RECYLING LEFTOVERS
The brand’s name is a combination of her own name and the Filipino word for fabric scraps (retaso). Ms. Estuar’s scraps come from her days as a fashion student. “I never threw away any of the scraps I accumulated throughout college life and the many clothing line attempts I had. Not because I was a conscious climate justice warrior up in arms against the fast-fashion industry, but simply because I am a hoarder,” she said on her website.

Hasn’t her hoard run out by now? “Some of those supplies are still with me today, four years later,” she said. “That’s how much fabric we used up as students. After college, I tried to reach out to brands and partner up with them as the person who would make sure their scraps wouldn’’ go to waste — this was initially ignored, partly because I think brands are very secretive and this might expose how much waste they produce?

“I am simply proposing a solution to the waste. So instead, I would source outside factories, and at one point, I was able to bring home four rice sacks full of perfectly good fabric waiting to be picked up and trashed. Nowadays brands are more transparent and often reach out to me with their excess fabric. I use only 100% fabric waste and turn them into new textile.”

Ms. Estuar transforms scraps from fabric that would not have reached their full potential and imbues them with new life through care and creativity. Both suits and separates (and even accessories like hats) are released by RIOtaso, and she explains how they’re made. She sorts the scraps by thinking about what she has a lot of at the moment, and what kind of clothing she can make out of them, keeping in mind “comfort, practicality, and pockets.”

“I have always had an idea for color combos as I have been painting since I was five years old and my favorite thing to do is mix colors on a palette to see what colors make up what and which colors go together in an interesting way.”

The scraps are worked in through patchwork to create the base, after which a pattern is created, then sewn. “I don’t have a factory as that would mean I mass produce. I just have my simple home studio plus storage space for all the fabric scraps I save and restore.”

SISTERLY INSPIRATION
Her journey started in 2015, a story detailed on her website (riotaso.com). The brand started when, according to her website, her “sister started to take home trash” (she was collecting plastic waste from her classmates to assemble eco-bricks at home). This started her sister’s journey to becoming vegan and living more sustainably by planting food and composting.

“Though she may be younger than me, her radical change in lifestyle strongly influenced what was to come,” Ms. Estuar said on her website.

At that time, she was working on a streetwear brand of her own called Kalye Rio, which she closed down in 2018. “The brand grew to be a great creative and commercial success, but behind the seams I slowly grew disillusioned with the amount of fabric waste my business was involved in. I had my very own ‘fashion-is-a-crime’ breakdown, withdrew myself from the city, and moved to a small beach town community where I learnt to live sustainably. Through routine beach cleanups, I saw firsthand the negative impact of plastic waste on the environment and the community, to the point that it was no longer a cute or trendy weekend activity,” she said on her website. As for the very detailed brand story on her website, she said, “Transparency is key when advocating for sustainability.”

“I struggled with myself and learned how to live as sustainably as I could (I’m still in the process of learning now), but I greatly missed creating clothes and working with fabrics. I moved back to the city and sorted through the fabric scraps I left behind and decided to incorporate the zero-waste lifestyle into a brand-new fashion line. I found inner peace as I stitched each fabric scrap together and challenged myself to only use fabric waste from then on.”

SUSTAINABLE FASHION
We’ve taken a hard, long look at our own lifestyles during this pandemic, and Ms. Estuar has done the same. She makes her own observations on the pandemic changing how we look at sustainable consumption. “The pandemic hit a lot of people really hard financially, and I noticed a rising argument on social media about how sustainable fashion is elitist. People would question the pricing of small sustainable brands and would compare it with the better value/bargain they would get from a fast fashion brand. And they’ve got a point — you do get more bang for your buck from a fast fashion company.

“But it comes at the cost of supporting a brand with unethical labor practices and environmental abuse. However, I don’t think anyone should be shamed for buying or owning fast fashion pieces. Instead, I advocate that the most sustainable act is not to buy more clothing — but to take care of the clothes you already own, and learn how to mend and repair your existing clothing whether it’s from Zara or RIOtaso.”

Clothing that ticks many boxes on sustainability checklists holds its appeal for consumers who advocate for lifestyles that are better for the environment. “Looking at how one consumes is definitely a good sign that our cause to slow down and create consciously is working. It is important for consumers to take a step back and assess before purchasing anything. I’m not sure if I’ve actually converted any lifestyles radically. However, I do meet a lot of individuals on social media who are trying to live a more eco-friendly lifestyle.”

ONE OF A KIND
The late Vogue editor-in-chief and fashion icon Diana Vreeland once said, “You’re not supposed to give people what they want, you’re supposed to give them what they don’t know that they want yet.” Ms. Estuar’s own vision for sustainability does not just cover the desire to live better for others, but a baser desire among followers of fashion: the need to own something that is only truly theirs. By its nature, no RIOtaso piece will ever be completely the same, and each piece from Ms. Estuar’s hands will be the only one in the world.

“The reason behind the one-offs is simple: I can’t repeat a patchwork pattern twice! That keeps each item I make unique, especially when it’s custom-made because the customer gets to choose which colors they want me to create with,” she said.

“Another reason why my pieces are unique is because I mostly take in custom orders to cater to the measurements of the client and that is one of the reasons people shop RIOtaso. RIOtaso is size inclusive and unique.”

As big brands switch more and more to sustainable textiles and practices (this year, Hermès released a bag made of fungi textile that mimics leather), it seems that being more careful with what we consume is fast becoming the fashion. “Designers who actually care about the consumers and the environment are the future of fashion,” said Ms. Estuar.

On a grim note, she adds, “That’s if there’s still a future to look forward to considering the climate crisis.”

Ms. Estuar’s is one of many start-up brands hoping to make a difference in the environment and in the consumer mindset. However, the battle for a more sustainable Earth cannot be won without cooperation and compromise with giant brands. “All big fast fashion businesses grew through the exploitation of workers and the environment. I’m not sure if compromising on whether to pollute a river with a bit less fabric dye will solve any problems. I think that if a big company wished to be more sustainable, bold and radical changes would have to be made.” said Ms. Estuar.

Shop RIOtaso at https://www.instagram.com/riotasoclothing/.

Macau’s gambling operator Suncity ceases junket operations

December 13, 2021 | 12:06 am

EMBATTLED Macau gambling operator Suncity Group ceased its junket operations as of Friday, according to people familiar with the matter, following the arrest of its founder amid Beijing’s ongoing crackdown on the casino hub.

Sun City Gaming Promotion Company Ltd., Suncity’s junket business arm, said it can’t operate because partnerships with other casinos were halted, and company systems were suspended due to legal proceedings, according to an internal notice seen by Bloomberg News.

Suncity employees were notified late on Friday and no follow-up arrangement has been announced, said the people, who asked not to be identified because the information is private. Employees have yet to receive November salaries because company systems and accounts are frozen under the investigation, the people said.

A representative for Suncity didn’t immediately respond to a request for comment outside of normal business hours.

Alvin Chau, who controls Suncity Group, was arrested late last month on allegations of establishing overseas gambling platforms and carrying out illegal virtual betting activities. Suncity has since closed all of its VIP gaming rooms in Macau’s casinos, and was said to have told some staff it will stop paying them amid concerns over cash flow.

Suncity’s travails have rocked the world’s biggest gambling hub, already reeling as the government intensified regulatory oversight. Some casinos, including Wynn Macau Ltd. and Melco Resorts & Entertainment Ltd., decided to close VIP gambling rooms run by junkets given the scrutiny on Suncity, Bloomberg News reported earlier.

Junkets, which have been in the cross-hairs of Beijing’s crackdown for allegedly facilitating money laundering, account for some 75% of Macau’s roughly $3 billion in annual VIP gaming revenue. They provide a service that is part upscale travel agent and part money changer for big spenders in Macau.

Shares of Suncity Group’s listed arm, which doesn’t include its junket operation, were halted on Thursday and will resume trading on Monday. They have plunged 46% since Nov. 30. Mr. Chau resigned on Dec. 1 from his posts as chairman of the board of Suncity Group and as an executive director. — Bloomberg