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PHL seen to add 543,300 sq.m. of office space yearly

JOSE LOSADA-UNSPLASH

THE Philippines can expect the completion of an average of 543,300 square meters (sq.m.) of office space in the next four years, a study on the property shows.

Real estate consulting firm Colliers in its report “Asia Pacific Market Snapshot” said that it sees office completion to return to the time before the entry of Philippine offshore gaming operators.

This year, Colliers projects the completion of 808,900 sq.m. of office spaces, which it anticipates to increase office vacancy to 18.2% by yearend.

In the third quarter, Colliers said that vacancy was steady at 17.7% due to the contribution of business process outsourcing and traditional firms.

It also recorded the delivery of 102,700 sq.m. of new office space in the third quarter, which was lower than the 146,700 sq.m. recorded in the second quarter and 156,600 sq.m. in the same period a year ago.

“Office space absorption for the remainder of 2022 should be supported by traditional and outsourcing firms,” Colliers said.

Meanwhile, it expects office rents to recover next year after forecasting these to bottom out by the end of 2022.

In the third quarter, Colliers saw a 0.4% increase in rental rates. It then projected an annual rent increase of 1.9% from 2022 to 2024.

On the residential side, Colliers said that improving consumer sentiment and sustained remittances from overseas Filipino workers would support the demand for residential units.

However, it also expects rising interest rates, compressing yields, and increasing prices of construction materials to hamper launches in the remaining months of the year.

Historical launches and take-up in the third quarter rose to 30,000 and 15,000, respectively, which already surpassed the 2021 full-year launches of 28,000 and take-up of 13,000.

According to Colliers, property investors are seeking value across all types of assets and for long-term use.

“We expect the recent growth trend in market inquiries to be sustained until yearend,” Colliers said. — Justine Irish D. Tabile

Entertainment News (11/18/22)

HARRY Styles

Harry Styles coming to the Philippines

SINGER and former One Direction member Harry Styles is coming to the Philippines in 2023 with the Harry Styles: Love on Tour, promoter Live Nation PH announced on Tuesday. The one-night show will be on March 14, 2023 at the Philippine Arena in Bulacan. Tickets will be available on Nov. 23 at noon. Since taking on a solo music career, Mr. Styles has released three albums: Harry Styles, Fine Line, and Harry’s House. Some of his popular singles include “Sign of the Times,” “Watermelon Sugar,” and “Music for a Sushi Restauarant.” For more information, visit https://www.livenation.ph.


Netflix’s Slumberland premieres this weekend

THE NETFLIX film Slumberland premieres on Nov. 18. Slumberland unfolds in a magical new place, a dreamworld where Nemo (Marlow Barkley) and her eccentric companion Flip (Jason Momoa) embark on an adventure. After her father Peter (Kyle Chandler) is lost at sea, young Nemo’s idyllic Pacific Northwest existence is upended when she is sent to the city to live with her well-meaning but deeply awkward uncle Phillip (Chris O’Dowd). Her new school and new routine are challenging by day but at night, a secret map to the fantastical world of Slumberland connects Nemo to Flip, a lovable outlaw who becomes her partner and guide. Slumberland is directed by Francis Lawrence (I Am Legend, The Hunger Games: Catching Fire & Mockingjay), written by David Guion and Michael Handelman (Night at the Museum; Secret of the Tomb).    


Openair Cinema One returns

AFTER being suspended for three years because of the COVID-19 pandemic, OpenAir Cinema One is back this holiday season with featured films Four Sisters Before the Wedding and Red Shoes and the Seven Dwarfs, on Dec. 3 (Saturday) at the Water Garden, Festival Mall, Alabang. Cinema One has partnered with Festival Mall to stage the outdoor screening event, “OpenAir Cinema One: A Merry Movie Night,” that is an all-day music and movie event. Four Sisters Before the Wedding, starringA lexa Ilacad, Belle Mariano, Charlie Dizon, and Gillian Vicencio, is a prequel to the 2013 hit movie Four Sisters and a Wedding. Meanwhile, the animated fantasy film Red Shoes and the Seven Dwarfs offers an interesting take on the story of Snow White. It features the voices of Chloe Grace Moretz, Sam Claflin, Gina Gershon, and Patrick Warburton. TV personality KaladKaren will host the event while Tarsier Records’ artists Jon Guelas, Maki, and Zion Aguirre will serenade the moviegoers. Gates open at 4 p.m.


Cinema ‘76 Film Society reopens in QC

IT’S a double celebration this November as Cinema ’76 Film Society finally reopens its new branch in Tomas Morato, Quezon City with a lineup of movies from the 10th QCinema International Film Festival. The popular micro-cinema will have its soft launch opening from Nov. 23-25, screening some of the festival’s titles under the Asian Next Wave Competition, QC Shorts, Asian Shorts, and Rainbow Section. Among the Asian Next Wave films to be screened in Cinema ’76 are Autobiography by first-time Indonesian director Makbul Mubarak; Sorayos Prapapan’s feature debut Arnold is a Model Student; the Cannes award-winning dystopian drama Plan 75 by Chie Hayakawa. One of Plan 75’s cast members, Filipina actress Stefanie Arianne, will be at the screening for a Q&A with the audience. Other films programmed are the French LGBT drama Stranger By The Lake and QCinema 2018 film Billie and Emma. Tickets are priced at P240. This is a special discounted price for the QCinema International Film Festival movies that would be screened between Nov. 23-25 only. For a complete list of films and screening schedule, follow Cinema ’76 Film Society on Facebook, Instagram, and Twitter. Cinema ‘76 will resume regular operations on Nov. 30.


YouTube FanFest’s 10th anniversary performances online

ALL the performances from the 10th year of YouTube FanFest can now be viewed on YouTube FanFest’s YouTube channel. The YouTube FanFest returned on-ground for its 10th anniversary, featuring performances from the Asia Pacific region’s biggest content creators, with more than 50 creators and artists representing 11 countries. There are performances from Punjabi singer and actress Noor Chahal and Atta Halilintar; Philippine trio of Ranz, Niana, and Natalia, AC Bonifacio and P-pop group SB19; Travis Japan from Japan, Billie from Korea, and StarBe from Indonesia, among many others.


GMA News is now GMA Integrated News

GMA Network’s news programs — GMA News Manila, GMA Regional TV, and GMA News Online — have merged into GMA Integrated News. “Through GMA Integrated News, we are evolving into a dynamic multi-media global newsroom — integrating the newsrooms of GMA News, GMA Regional TV News, and GMA News Online — while staying true to the journalistic principles and confronting the challenges faced by media organizations in this Digital age,” GMA Integrated News Acting Head Oliver Victor B. Amoroso said in a statement. The news program is available in Mega Manila, 69 provinces, and 16 highly urbanized cities. Online, netizens are updated via www.gmanetwork.com/news and www.gmaregionaltv.com as well as via GMA News and GMA Regional TV’s YouTube channels and accounts on Facebook, Instagram, Viber, and TikTok.

Figaro Group’s profit up 36% to P83 million as store sales climb

FIGARO COFFEE FACEBOOK PAGE

FIGARO Coffee Group, Inc. posted a 36.5% increase in attributable net income to P83.42 million in the first quarter from P61.11 million a year ago, after booking higher revenues.

The listed company starts its fiscal year in July and ends in June of the succeeding year. Through its subsidiary Figaro Coffee Systems, Inc., it operates and franchises retail restaurants.

In the three months ending September, the company’s top line reached P1.02 billion, up by 56.9% from the P649.16 million it booked in the same period last year.

Its top revenue contributor during the quarter is the Angel’s Pizza brand, which accounted for P681.43 million. Its other brands — Figaro Coffee and Tien Ma’s Taiwanese Cuisine — contributed P312.27 million and P24.99 million, respectively.

During the quarter, the company saw a 51.4% increase in systemwide sales to P988.41 million from P653.04 million last year.

“This was brought about by the opening of stores which brought the total number of stores to 138 by end of September,” the company said in its quarterly regulatory filing.

The company’s direct costs during the period climbed to P674.25 million, up by 58.9% from P424.33 million a year ago. Its operating expenses reached P240.77 million, 72.8% higher than P139.33 million in the previous year.

According to the report, the increase in expenses resulted from massive store opening activities and increasing overhead costs. Figaro Coffee operates commercial franchises in the food industry.

On the stock market on Thursday, shares in Figaro Coffee climbed by two centavos or 3.28% to P0.63 apiece. — Justine Irish D. Tabile

Actor Kevin Spacey faces more sexual assault charges in Britain

KEVIN SPACEY on a scene from House of Cards.

LONDON — Britain’s Crown Prosecution Service (CPS) has authorized seven additional charges against Oscar-winning actor Kevin Spacey for a number of sexual assaults against one man between 2001 and 2004, it said on Wednesday.

The new CPS charges include one of causing a person to engage in sexual activity without consent and others of indecent and sexual assault. The new charges follow a review of evidence gathered by British police.

Mr. Spacey, 63, was previously accused of five offenses in Britain — four counts of sexual assault by touching, and a more serious charge of causing a person to engage in penetrative sexual activity without consent. His lawyer had said in June Spacey had “strenuously” denied those allegations of sex offences.

Mr. Spacey’s defense lawyer in Britain, Patrick Gibbs, did not immediately respond to an e-mail seeking comment on the latest charges. In the United States, Mr. Spacey last month defeated a sexual abuse case against him after jurors in a Manhattan civil trial found his accuser did not prove his claim that Mr. Spacey made an unwanted sexual advance on him when he was 14. — Reuters

Suntrust, Megawide extend hotel-casino opening to 2024

SUNTRUST Resort Holdings, Inc. and Megawide Construction Corp. agreed to extend the opening of a hotel-casino project to 2024 to provide flexibility to both parties.

In a disclosure to the Philippine Stock Exchange on Thursday, Suntrust said that both parties agreed to revise their agreement signed in 2020. Megawide is constructing Suntrust’s five-star hotel and casino, Westside City Resorts World project.

In a past revision on Nov. 24, 2021, the companies agreed to extend the completion date of the project’s first package, which includes a pile cap and an excavation, to Oct. 31, 2021.

They also extended the completion date for the second package, which includes the construction of the basement substructure, superstructure, and architectural builders’ works and finishes, to March 31, 2024.

The third supplemental agreement on Thursday added an item that will provide incentives ex gratia to Megawide for achieving interim milestones as detailed in the agreement. Incentives ex gratia are voluntary bonuses or extra payments given by a contracting party and are therefore not required.

The updated supplemental agreement also stated that Suntrust will award all the remaining mechanical, electrical, plumbing, and fire protection main and sub-packages to Megawide.

On Nov. 13, Suntrust gave the letters of award to Megawide for the construction of the Westside City Resorts World project. The initial award totaled P6.3 billion, with the first package amounting to P2.3 billion and the second package amounting to P4 billion.

The project’s Main Hotel Casino is a gaming and entertainment complex facing Manila Bay called Entertainment City Manila.

Suntrust is into tourism-related businesses. Its subsidiaries include SWC Project Management Ltd., WC Project Management Ltd., and Suncity WC Hotel, Inc.

On the stock market on Thursday, shares in Suntrust slipped by four centavos or 4% to P0.96 apiece, while shares in Megawide added five centavos or 1.49% to P3.40 each. — Justine Irish D. Tabile

CA upholds dismissal of worker by Ilocos electric cooperative

PHILSTAR FILE PHOTO

THE Court of Appeals (CA) has found that the National Labor Relations Commission (NLRC) acted within its authority in holding Ilocos Norte Electric Cooperative, Inc. (INEC) not liable for the dismissal of a maintenance worker.

In a decision dated Nov. 11 and made public on Nov. 14, the CA Fifth Division said the NLRC did not abuse its discretion in finding that the power firm’s dismissal was valid.

“We see no indication or any submission in the petition that the court may examine to determine how the NLRC acted capriciously and whimsically or in total disregard of evidence material to the controversy,” said the appellate court.

The commission earlier held that INEC did not act in bad faith when it ruled the employee was no longer qualified to perform his maintenance duties.

The electric cooperative first hired the employee as a driver in 2009 and terminated his employment in 2013, which led to an illegal dismissal complaint filed the following year.

The NLRC had ruled in favor of the former employee and ordered his reinstatement as driver, with back pay.

INEC then reassigned him to its mini hydroelectric power plant in Pagudpud, Ilocos Norte as a maintenance helper in the pole farm department.

The electricity distributor noted that the reassignment did not affect his salary.

It also argued that a leg injury sustained by the employee rendered him incapable of performing the duties of a driver.

The maintenance position was later made redundant when the power plant was automated.

The NLRC found that the reassignment was not a demotion since benefits and pay remained the same.

The appellate court said the cooperative duly notified its employees about the redundancy plan when it automated the power plant.

“It cannot be said that INEC’s redundancy program was unfair or unreasonable,” the CA said. “It was within the ambit of its management prerogative.” — John Victor D. Ordoñez

Lab-grown meat cleared for human consumption by US regulator

WASHINGTON — The US Food and Drug Administration (FDA) for the first time cleared a meat product grown from animal cells for human consumption, the agency announced on Wednesday.

UPSIDE Foods, a company that makes cell-cultured chicken by harvesting cells from live animals and using the cells to grow meat in stainless-steel tanks, will be able to bring its products to market once it has been inspected by the US Department of Agriculture (USDA), said a release from the FDA.

“The world is experiencing a food revolution and the (FDA) is committed to supporting innovation in the food supply,” said FDA Commissioner Robert M. Califf and Susan Mayne, director of the FDA’s Center for Food Safety and Applied Nutrition in a statement.

The FDA said in documents released on Wednesday that it had reviewed data from the company and had no further questions about the company’s conclusion that its product is safe for humans to eat.

“We are thrilled at FDA’s announcement,” said David Kay, UPSIDE’s director of communications, in an e-mail. “This historic step paves the way for our path to market.”

The review is not technically an approval and applies only to UPSIDE products, though the agency is ready to work with other firms developing cultured animal cell food, the FDA said in a release.

USDA and FDA together regulate cell-cultured meat under a 2019 agreement between the two agencies. USDA will oversee the processing and labeling of cell-cultured meat products.

Demand for alternatives to farmed meat has grown alongside awareness of the high greenhouse gas emissions of raising livestock. Cultivated chicken was served to attendees at this year’s COP27 climate conference in Egypt. — Reuters

Lazada sees strong sales for beauty items, electronics in recent “11.11” sale

E-COMMERCE platform Lazada recorded higher sales for beauty items, electronics, and activewear during its recent “11.11” sale ahead of the holiday season.

In a statement on Thursday, it said beauty products sold during the sale event increased, with makeup orders up seven times, while fragrance purchases increased six times compared to normal days.

According to Lazada, some of the top beauty products bought by Filipinos during the sale were Vitamin C serum, retinol, and tinted sunscreen. The top lipstick shades sold in the first hour of the sale were red, nude, and pink shades.

The company added that 11.4 million baby wipes were sold in the first hour of the sale, while activewear sales increased 19 times.

Lazada also disclosed that electronics sales surged 230 times compared to normal days. The top devices were virtual reality accessories, smart switches, and watches, adding that orders doubled year over year.

“11.11 has become more than just a shopping tradition, it has become a part of consumers’ lifestyles as we all seek for the best deals and trendiest assortment. Just as importantly, it is also an avenue for brands and sellers to thrive and reach more customers,” Lazada Philippines Chief Executive Officer Carlos Barrera said.

Lazada is targeting to serve 300 million shoppers by 2030 and to achieve a $100-billion annual gross merchandise value. The e-commerce platform has a presence in the Philippines, Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

In a separate statement, logistics engine Locad said that it posted six times more items sold, 2.5 times bigger average basket size, and four times higher spending per order in this year’s 11.11 sale versus last year.

“Despite the surge in orders, Locad reports 99% on-time fulfillment and 93% next day shipped on 11.11 orders across Lazada, Shopee, Zalora, TikTok Shop, and more,” it said.

“This increase could be driven by consumers purchasing more items in each order to maximize available discounts and promos offered by online merchants, brands, and market places,” it added.

Locad is a logistics engine that supports e-commerce brands to automatically store, pack, ship, and track orders across the Asia-Pacific region.

Its platform harmonizes inventory across online channels and arranges end-to-end order fulfillment through its warehouse network and shipping partners in Singapore, the Philippines, Thailand, Hong Kong, and Australia. — Revin Mikhael D. Ochave

HK migrants locked out of UK jobs by police check fears

REUTERS

LONDON — When Hong Kong (HK) math teacher Jessica was freed from jail last year following her arrest during the territory’s massive pro-democracy protests, she decided it was time to leave her home city and head abroad.

The 28-year-old is among thousands of Hong Kongers who have recently moved to Britain to build new lives following Beijing’s crackdown on dissent in the former British colony, which returned to Chinese rule in 1997.

With Britain crying out for teachers, Jessica was confident she could quickly resume her career, but schools have repeatedly turned her down because she has not provided background checks from the Hong Kong police.

“Teaching is a real vocation for me. It’s been my dream job since I was young. But I’m really struggling with this because I don’t want to contact the Hong Kong police,” said Jessica, who asked not to use her full name.

She has been open about her reasons for refusing to contact the police force that arrested her during the protests, but employers want proof her record is otherwise clear.

While Jessica’s case is unusual because she has a conviction, it highlights a wider problem for some Hong Kong job seekers. Requests for police documents are creating barriers to jobs in education, health and other sectors where employers demand stricter background checks.

Some Hong Kongers, including those active in the 2019-2020 protests, said they did not want to share their personal details with a police force they did not trust.

A few feared the risk of arrest if they returned to the city to visit family.

Concerns around surveillance have been stoked by recent news reports — denied by Beijing — that China has established unofficial police posts overseas that could target critics.

Others did not want the police to know their whereabouts for fear their assets in Hong Kong might be frozen or confiscated in the future if the authorities knew they had left.

Some Hong Kongers who have recently tried to obtain background checks from the police also said the process had suddenly got much harder — a fact they linked to concerns about an exodus of professionals.

“I think the Hong Kong authorities are making it difficult for people coming to Britain because they’re worried about a brain drain,” said Alex Mak, employment coordinator of Hong Kongers in Britain, a group helping new arrivals.

The Hong Kong police website states that it only provides a Certificate of No Criminal Conviction (CNCC) for visa applications and child adoptions, not job offers.

Britain launched a settlement scheme for Hong Kong residents last year after Beijing imposed a sweeping national security law in the territory in 2020.

More than 140,000 have so far applied for a visa allowing them to live and work in Britain and eventually apply for citizenship.

The program — which has angered Beijing — is open to Hong Kongers who hold British National (Overseas) or BN(O) status — a limited type of nationality — and their dependents.

China has accused Britain of interfering in its affairs and no longer recognizes the BN(O) passport.

Britain has estimated up to 322,400 Hong Kongers could arrive in the first five years, potentially bringing a net benefit exceeding £2.6 billion ($3.05 billion) over the same period.

Most of those relocating are well-educated with three-quarters holding a degree or higher qualification and 60% arriving with children, according to a study by UKHK, a group supporting new arrivals.

Many are looking for jobs in IT, education, accountancy, banking, finance, transport, logistics and health. Some, like former IT company boss Tony, are planning a career change.

Earlier this year, he secured a job as an exam invigilator, but lost it when he failed to supply a CNCC.

Tony, 55, who asked not to use his full name, does not want the Hong Kong authorities to know he is in Britain, partly because he still has family and assets in Hong Kong.

Like many Hong Kongers, he is particularly worried about money he has tied up in the territory’s pension scheme, which he cannot access until he is 65.

“This has become a problem,” he said, adding that his wife would also need a CNCC to resume her nursing career.

“I don’t have a criminal record, but we don’t want contact with the Hong Kong police. My feeling is that the Hong Kong government is not friendly towards people moving abroad.”

Tony is now working in a warehouse while training to become a mortgage adviser, but fears his new career choice could be scuppered by the same issue.

Hong Kongers said concerns around CNCCs came up frequently on social media forums for education and health professionals moving to Britain, and urged the government and employers to recognize there was a problem.

Britain’s Home Office did not directly address such concerns but said that in “the absence of available checks, we would expect employers to obtain as much information as possible in the form of references before deciding whether to make an offer of employment.”

Until recently, Britain’s Foreign Office or its consulate in Hong Kong could facilitate requests for police background checks, but they stopped doing so in June.

The Foreign Office said this was to align policy with consular services elsewhere, but some Hong Kongers think the territory’s authorities pressured it to stop.

The Hong Kong police force told the Thomson Reuters Foundation it could still provide a record check “in exceptional circumstances” to meet another country’s legal or administrative requirements.

Some nurses have successfully requested checks backed by letters from Britain’s National Health Service (NHS).

But other Hong Kongers have been sent in circles trying to obtain them. They include former speech therapist Betty, 33, who needs one for her new job in the NHS.

After weeks of e-mails, she sent a request to the police with a letter from her employer, but has yet to hear back.

“I worry they might not give me a certificate because they’re angry with Britain and don’t want professionals moving to the UK,” said Betty, who asked to use a pseudonym. “But if I don’t get it, I will lose my job.” — Thomson Reuters Foundation

Millennium-old Viking ships shored up for Oslo move

THE OSEBERG ship is seen inside The Viking Ship Museum, in Oslo, Norway Sept. 12. — REUTERS/VICTORIA KLESTY

OSLO — At Oslo’s Viking Ship museum, a team of engineers has begun work to ensure a new home being built next door does not prove fatal for three vessels that have survived for a millennium or more.

The new building is necessary to protect the wooden ships, two of which date from the 9th century and the third from the 10th century, which are at the mercy of temperature changes and humidity in the current museum.

But the vibrations caused by construction are also a threat to ships so fragile their weight alone is enough to cause them to crumble. The engineers are building steel girders around them to protect them during the upheaval.

“If we keep displaying them as they stand today they will end up in pieces,” said Haakon Gloerstad, director of the Museum of Cultural History, which owns the Viking Ship Museum.

Looters stole some of the artefacts from the three ships, named Oseberg, Gokstad, and Tune after the places where they were found. Much survived, however, including a wagon, textiles, sculptures of animal heads, and three sleighs, which are unique.

“The Viking ships are wonders similar to the pyramids in Egypt and Tutankhamen’s grave,” Gloerstad said — and they are at least as vulnerable.

While the ships will be lifted in their protective metal casing, the sleighs are being moved on a rail track, centimeter by centimeter, to a chamber for their safety. It took 17 hours to move the first sleigh 70 meters (230 feet).

“This wood is now incredibly fragile: you could make crumbs out of it, it would just fall apart between your fingers,” said head engineer David Hauer, who is supervising the move after years of careful planning.

The new museum will open in 2026, a hundred years after the ships’ current home was opened, ultimately attracting 10 times more visitors than it was designed for.

Until it closed in September last year to allow preparation for the move, it received around 500,000 visitors per year.

Meanwhile, Oslo’s tourists are disappointed.

“We heard a lot about it and were really looking forward to have a look at it,” US tourist Shalin Patel told Reuters. — Reuters

As recession looms, British firms seek to secure affordable financing

LONDON — As inflation rockets and recession looms, many British businesses are struggling to secure affordable bank finance, piling pressure on the embattled UK government as it unveils a budget aimed at reviving the economy.

British fruit-grower Hall Hunter is one of thousands of businesses in Britain feeling the squeeze, forcing owner Harry Hall to consider the drastic step of lending to his own successful company to top up its expensive bank lending.

“I’m probably going to be the bank,” said Hall, who can’t secure a loan product from his bank to offset his high borrowing costs. He told Reuters he would likely inject some of his personal wealth into his business to insulate it from inflation rates of 11.1% and a recession that could last up to two years.

Banks are increasingly nervous about extending credit to small companies, according to data compiled by Reuters and interviews with lenders and business heads, as rising costs of debt, labour and raw materials put the business case of lending to such companies under unprecedented strain.

Lenders expect the supply of credit to the smallest firms, with annual turnover of under 1 million pounds, to fall by 10.9% in the last three months of this year, a Bank of England (BoE) survey published last month showed.

This could spell trouble for new Prime Minister Rishi Sunak and finance minister Jeremy Hunt as they announce a new, austere financial blueprint on Thursday, seeking to stabilize the economy after their short-lived predecessors unleashed chaos in financial markets with plans for unfunded tax cuts.

Any crunch for Britain’s small businesses, which often lack the scale to pass on cost rises to customers as easily as bigger rivals, could deliver a new economic body blow.

Such companies account for 48% of private sector employment and about 1.6 trillion pounds, or 36%, of turnover, according to the Federation of Small Businesses (FSB), citing government data that defines small firms as having up to 49 staff.

FSB Chair Martin McTague told Reuters he met Mr. Sunak and Mr. Hunt last Friday to demand fresh fiscal support for small businesses, including relief on asset sales and tax credits on research and development.

“How are we going to get out of this hole if it’s not small businesses? Those sectors that have been hardest-hit by the pandemic, are finding it very difficult to try and get the banks to provide them with support,” he said.

‘MAKE OR BREAK’ FOR ECONOMY
Banks are still lending, but the risks and higher relative costs associated with funding the smallest businesses, many of which may not survive, means they often have no choice but to turn them away, four senior banking industry sources said.

Stephen Pegge, head of commercial finance at bank lobby group UK Finance, pointed to evidence that small and medium enterprises (SMEs) more broadly were securing credit — banks lent 6.5 billion pounds to companies with less than 25 million pounds turnover in September, BoE data show.

“Lending is definitely flowing,” Mr. Pegge added. “But there’s no question that small businesses now have less capacity to increase their borrowing because you’ve got a slowing economy.”

Indeed small companies in Britain see their access to credit at its worst level since 2015, according to a quarterly survey by the FSB of 1,383 small business owners.

Forty-two percent of applications for funding in the third quarter failed, up from 39% in the second quarter of the year, the survey found, while one-in-five firms seeking finance were quoted loan offers at interest rates higher than 11%.

Many small companies have also yet to repay state-backed loans extended to prop them up during COVID lockdowns, making their credit profiles increasingly unattractive. Only 4.7 billion pounds from the 46 billion lent to small businesses under the “Bounce Back Loan” scheme had been fully repaid as of the latest July 31 data from the government.

“Business owners are having to look at alternative options, one of which is to dip into their own pockets,” said Claire Burden, partner for advisory consulting at Evelyn Partners.

Others like Douglas Grant, CEO of Manx Financial Group, called for a permanent state-backed loan scheme to protect SMEs, saying this could act as the “fundamental difference between make or break for many companies and, in turn, our economy.”

BANKS ‘DON’T HAVE A CHOICE’
Naresh Aggarwal, associate director of policy at the Association of Corporate Treasurers, which represents business finance staff, said banks were taking a pragmatic approach to lending as the economy falters to avoid costly writedowns.

Loans are still being issued and firms in breach of covenants linked to their debts are being offered waivers but support is coming at a price.

“Lenders are increasing the margin on the loan,” he added. “And for most corporates, they don’t have a choice. It’s not exploitative, it is a risk premium,” Aggarwal said.

Major banks have already set aside hundreds of millions of pounds of extra cash to cover potential losses.

Lloyds, which provided the most detailed breakdown for the July-September quarter, disclosed a 30% jump in the most severe category of problem loans in its small business unit compared with the end of 2021, hinting at why banks may tread carefully.

Companies of all sizes are already buckling under the strain in greater numbers. The number of quarterly company insolvencies in England and Wales hit its highest level in nearly 13 years in April-June, official data last month showed.

Small businesses face the biggest threat; one in four have considered closing down as a result of rising cost pressures, according to a survey of 1,930 firms conducted by business bank Tide in September.

“Businesses are finding it hard to demonstrate they are still sound businesses,” said Richard Burge, CEO of the London Chamber of Commerce and Industry. “But they’re only going to be sound if they can get access to the loans they need.” — Reuters

Canon Philippines opens Visayas regional office

CANON Marketing Philippines, Inc. recently opened a regional office in Visayas as part of expanding its coverage in the country.

Launched on Nov. 9, the new regional office will complement the company’s authorized service center network. Canon’s products include cameras, lenses, and printers.

“The open-concept workspace provides employees the mobility to interact and collaborate more freely and comfortably. Customers are also able to avail of checkup, cleaning, and repair services for their Canon cameras and lenses,” the company said in a statement on Thursday.

“The expansion reaffirms Canon’s continued investment in the Philippines, which has remained a key player in the company’s Asia growth strategy since its arrival in the country 25 years ago. Looking ahead, Canon has continued to see its shared desire for progress and growth affirmed by positive net sales results, as well as the encouraging economic and market potential of the country,” it added.

Canon Philippines President and Chief Executive Officer Anuj Aggarwal said that the Visayas office allows the company to better serve its clients.

“The local team here has placed a premium on operations that will allow us to smoothly serve clients across the country better, as well as provide them with the convenience and confidence of Canon’s excellent after-sales experiences right in their neighborhood. We look forward to welcoming those from Cebu City and nearby areas,” Mr. Aggarwal said.

Canon’s Visayas regional office is located on the 9th floor, Unit 10, JEG Tower, Archbishop Reyes Ave. corner Acacia St., Cebu City. — Revin Mikhael D. Ochave