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Women, young people in PHL most affected by job cuts during pandemic, ADB says

YOUTH AND WOMEN in the Philippines lost jobs in greater numbers during the height of the coronavirus pandemic last year, with young people accounting for a quarter of job cuts, a study from the Asian Development Bank (ADB) said.

The report “A Crisis Like No Other — COVID-19 and Labor Markets in Southeast Asia” released Thursday said that young people in Indonesia, Thailand, and the Philippines accounted for 22-28% of total job losses in the second quarter of 2020 despite representing only 10-15% of the working population.

“In all countries of the region, youth represented a higher-than-average share of the workforce in hard-hit sectors,” the ADB said.

“They were also disproportionately affected in terms of job cuts in these sectors, often as a consequence of having less experience and being less likely to have permanent contract arrangements, which make them the first to be let go during the crisis.”

The Philippines’ unemployment rate soared to a record 17.7%, equivalent to 7.25 million jobless Filipinos, in April 2020. The government placed Luzon under an enhanced community quarantine (ECQ) amid the coronavirus dis-ease 2019 (COVID-19) outbreak starting mid-March.

Government data also showed the labor force participation rate among Filipinos 15 years and older stood at a record low of 55.6% in April 2020, the height of the strictest form of lockdown.

In the education sector, the youth represented half the job losses in the Philippines during the April to June period last year, despite accounting for just 17% of employment just before the pandemic.

Young Filipinos also made up a third of job cuts in the accommodation and food service sector while representing a quarter of the workforce. Hotels, restaurants and other similar businesses were forced to shut or scale down operations due to the ECQ.

Women also recorded a greater share in job losses than their share in employment.

While women represented almost 40% of the Philippine and Indonesian workforce just before the pandemic, they accounted for 44% of the employment losses by the second quarter of 2020.

Nearly one in four Filipino women in sales and services were laid off, as most businesses were temporarily shut during the lockdown.

“In the Philippines, (women who lost jobs) in agriculture, accommodation and food services, administrative and support services, public administration, and education (was higher than the share of women employed),” ADB said.

“The massive labor force exits among women are largely a consequence of their greater involvement in the care burden (such as childcare and homeschooling and caring for ill relatives), as has been observed across the world.”

The annual unemployment rate hit a record 10.3% in 2020 versus the 5.1% a year earlier.

ADB said Southeast Asian countries should develop comprehensive social protection systems, building on efforts to temporarily fill gaps during the pandemic.

“The pandemic and the risk of slower economic growth and increased inequalities have underscored the need for fiscal policy to go beyond its countercyclical role through increased investments in social protection and its infra-structure,” ADB Director of Human and Social Development for Southeast Asia Ayako Inagaki said.

“Countries should boost investments in human capital and mobilize domestic resources to build inclusive, sustainable social protection programs and increase social insurance contributions.” — Jenina P. Ibañez

World Bank evaluating $200-M PHL fisheries loan

PHILSTAR

The World Bank is considering a proposed $200-million loan for Philippine fisheries by February, according to project documentation posted by the bank Wednesday.

The seven-year project aims to improve fisheries management and enhance the value of fisheries production in coastal communities.

The appraisal date was Dec. 14 and the estimated board date is on Feb. 28.

The project aims to develop a planning framework for fisheries management, and plans to enhance the economic value of fisheries to communities by investing in projects that reduce post-harvest losses and expand production. Investments will be made mostly in public infrastructure and private enterprise projects.

The World Bank said the two goals should be closely coordinated.

“Without the foundation of sustainable fisheries management, investment in post-harvest value chain will potentially threaten, rather than enhance long-term fisheries production,” the World Bank said.

“Conversely, introduction of new harvest control measures may, in the short term, adversely impact the fishers’ livelihoods that they aim to support in the longer term.”

The project will assess the impacts of resource management reforms and respond through livelihood support activities.

The Department of Agriculture (DA) in October said it expects to launch the Fisheries and Coastal Resiliency project early next year, to benefit 500,000 fisherfolk and other stakeholders.

Targets include a 3% increase in household income and value-added for fishery commodities, a 5% reduction in postharvest losses, and a 1% to 5% reduction in illegal and unreported fishing. — Jenina P. Ibañez

PSALM ordered not to take on more liabilities from Mindanao power co-ops owing billions

THE Power Sector Assets and Liabilities Management Corporation (PSALM) said Wednesday that it has been instructed by the Department of Finance (DoF) to stop taking on additional liabilities from delinquent electric cooperatives.

“Finance Secretary Carlos G. Dominguez III said that PSALM should not incur more liabilities arising from non-paying electric cooperatives. He stressed that PSALM’s mandate does not include subsidizing the energy requirements of ailing electric cooperatives,” PSALM said in a statement.

Mr. Dominguez is the chairman of the PSALM Board of Directors, which is composed of the Secretaries of Energy, Budget and Management, Justice, and Trade and Industry, as well as the National Economic and Development Authority (NEDA) and the President of PSALM.

Mr. Dominguez said PSALM is not legally mandated to provide free electricity to entities which have no paying capacity, according to the statement. He added that the National Electrification Administration (NEA) should take the lead in resolving payment disputes.

The NEA is in charge of electrification in the countryside and works directly with cooperatives. PSALM, on the other hand, manages the outstanding obligations of electric co-ops to the NEA and other government agencies.

BusinessWorld asked NEA to comment, but it had not replied at the deadline.

PSALM President and Chief Executive Irene B. Garcia has raised concerns over increasing receivables from cooperatives. She raised the issue to the DoF on Dec. 6.

According to Ms. Garcia, as of Oct. 31, Lanao del Sur Electric Cooperative. Inc., (LASURECO) was in arrears to PSALM by P12.40 billion, while Maguindanao Electric Cooperative, Inc. (MAGELCO) owes P2.91 billion.

“For the past two years, LASURECO and MAGELCO have been drawing their full energy requirements from PSALM but have not been paying PSALM in full,” PSALM said.

PSALM said that the Energy department in May 2019 asked the company to “prioritize allocation to LASURECO and MAGELCO in order to avoid the recurring load dropping incidents in Mindanao.”

In April 2020, under Republic Act No. 11469 or the Bayanihan to Heal as One Act, PSALM increased allocations to the two cooperatives to ensure stable power in Southern Mindanao during the height of the pandemic. — Marielle C. Lucenio

Senate passes SIM card registration bill on final reading

STOCK PHOTO | Image by terimakasih0 from Pixabay

THE SENATE passed on third and final reading Thursday a bill requiring the registration of Subscriber Identity Module (SIM) cards, a measure intended to deter cybercrime committed using mobile phones.

“At the core of this measure is the promotion of security in the country,” according to Senator Mary Grace S. Poe-Llamanzares, primary sponsor of the bill, speaking in plenary session. “It is timely and fitting given that various technology-aided crimes are rampant in the country today.”

Senate Bill 2395 or the SIM Card Registration Act was filed to add another layer of security for mobile users targeted for internet or electronic communication-aided crimes, which include terrorism, fraud, unsolicited and indecent messages, and bank fraud.

“Finally, after eight years and two Congresses, our efforts have paid off,” Sen. Sherwin T. Gatchalian said in a statement. “The registered subscriber identity module card will enable law enforcers and regulatory agencies to have the means to track and monitor those carrying out illicit acts.”

If passed, the measure will require all telecommunications companies to make registrants give out information and present valid government-issued identification cards upon the sale of the card.

Under the measure, all current SIM card subscribers with active services must register with their respective Public Telecommunications Entities within a year of the act taking effect.

Failure to register will cause the account to be deactivated and the number retired.

If approved, social media providers and the telecommunication sector are obliged to provide information in response to a court order or a finding that a specific mobile number was or is being used to commit malicious, fraudulent, or unlawful acts.

The penalty for the use of fictitious identities to register SIM cards or social media accounts is a fine of up to P200,000 or imprisonment of between six and 12 years. — Alyssa Nicole O. Tan

E-vehicle industry bill bicam report approved by Senate

REUTERS

THE SENATE approved Thursday the harmonized version of a proposed bill creating a road map to develop the electric vehicle (EV) industry.

The reconciled version of Senate Bill 1382 and House Bill 10213, known as the proposed Electric Vehicle Industry Development Act, dictates the pace for growing the Elective Vehicle industry, Senator Sherwin T. Gatchalian, who chairs the bicameral conference committee, said.

He said in the Senate plenary session that the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) will set common standards and specifications of EVs, charging stations and equipment, parts and components, batteries, and related facilities.

CREVI will also set the timetable for offering dedicated parking slots and building charging stations.

“The two Houses of Congress managed to find common ground on the two most contentious provisions — the installation of charging stations in dedicated parking slots and the installation of charging stations in dedicated spaces in gas stations,” Mr. Gatchalian said.

According to the reconciled bill, CREVI will determine when dedicated parking lots and charging facilities at gasoline stations are to be offered to EV users, while specific public buildings and establishments will also be permitted to install public charging stations operated on a commercial basis.

“Through this, the CREVI shall address the needs of first movers in the rollout of charging stations,” he said.

The owners of buildings and gasoline stations have the option to install, operate or maintain a charging station on their premises or allow a service provider to do so, he added.

An entire section of the House bill was also adopted, which designated the Department of Environment and Natural Resources (DENR) as the lead agency in setting the rules for recycling and disposing of waste products from EVs, to ensure compliance with Republic Act 6969 or the Toxic Substance Hazardous and Nuclear Waste Control Act of 1990.

The Department of Energy (DoE), together with the Department of Transportation (DoTr), various other national government agencies, and industry stakeholders, must agree on implementing rules and regulations within 120 days after the law takes effect.

The bicameral report is awaiting ratification by the House of Representatives before the bill is sent to the Palace for the President’s signature. — Alyssa Nicole O. Tan

MREIT to acquire 4 Megaworld assets for P9B

Company Handout

MREIT, Inc. is acquiring four “prime, grade A buildings” registered in economic zones for P9.12 billion, the company said in a statement on Thursday.

MREIT is the real estate investment trust (REIT) sponsored by Megaworld Corp.

MREIT’s board of directors has approved to acquire four assets that will increase its property value by 19% to P58.5 billion.

“This transaction marks the beginning of our significant growth journey,” MREIT President and Chief Executive Officer Kevin Andrew L. Tan said.

“Consequently, the infusion of these prime assets will result in a 5.3% increase in our expected dividends for calendar year 2022 from P0.95 per share to P1.00 per share,” he added.

MREIT will infuse Iloilo Business Park buildings Two Techno Place, Three Techno Place, and One Global Center into its portfolio, along with World Finance Plaza located in McKinley Hill at Fort Bonifacio in Taguig City. The buildings have an average occupancy rate of 99%, the company said.

The four assets have a total of 55,700 square meters (sq.m.). It will boost MREIT’s gross leasable area (GLA) by 25% to nearly 280,000 sq.m. from 224,431 sq.m.

It will form part of MREIT’s current portfolio with 10 Grade A office assets, located in Megaworld’s Eastwood City, McKinley Hill, and Iloilo Business Park townships.

MREIT’s board of directors also approved to close a 10-year loan worth P7.25 billion with fixed rates to fund the acquisition. The balance will be paid using the company’s cash.

“We do not have any debt on our balance sheet at the moment, so we decided to lever up in order to take advantage of the current favorable interest rate environment and enhance our returns,” Mr. Tan said.

MREIT said its total debt will be at 12% of its deposited properties upon full drawdown, still below the 35% limit under the REIT law.

“Should MREIT secure a credit rating from a duly accredited or internationally recognized rating agency, the limit goes up further to 70%,” the company said.

MREIT said the four new assets will start contributing to revenues once the deed of absolute sale comes into effect before the year ends. According to Megaworld’s regulatory filing on Thursday, it expects the document to be executed on or before Dec. 29.

Shares of MREIT on Thursday declined 0.11% or two centavos to close at P18.32 apiece. — Keren Concepcion G. Valmonte

New $304-million bond backed by music rights for The Who, Tim McGraw

British rock band, The Who

Bond investors will soon be able to buy a piece of the music catalogs of a wide range of pop, country and classic rock acts including The Who and Tim McGraw.

Private equity and credit firm Northleaf Capital is selling $303.8 million of asset-backed securities supported by publishing and sound recording rights, as well as other income streams on a total of 52,729 songs, according to a presale report from Kroll Bond Rating Agency. The offering is being led by Guggenheim Securities, and Kroll expects to give the deal a grade of A, the sixth-highest rating.

This isn’t the first time music rights have been used to back debt obligations. David Bowie pioneered similar deals in the late 1990s when he securitized royalty streams from his catalog of music in a model that was later replicated by musicians including James Brown and The Isley Brothers.

More recently, bonds backed by recording artists’ performing rights have hit the market. Separately, a wide range of performers, from Bob Dylan to Shakira have been selling all or some of the rights to their catalogs. The latest music ABS sale comes amid a banner year for bankers bundling assets into bonds. They’ve sold securities backed by everything from fast food franchises to fitness-center fees, at the fastest clip since the global financial crisis as investors chase yield and inflation protection.

Northleaf’s sale is its first music ABS deal. The Toronto-based company originally started as TD Capital, a unit of TD Bank Financial Group, before becoming a management-owned firm in 2009. The catalog boasts more than 200 No. 1 Billboard songs and more than 800 charted hits.

Another firm, Lyric Copyright Services, which is in the business of acquiring music royalty generating assets, has been administering and collecting money for the catalog for the last decade, and is also involved in the transaction. The full catalog is valued at $467.4 million, Kroll said.

The proliferation of streaming will only help the performance of the bonds, Kroll analysts said. “Consumption is increasing at a subscriber level and the entire music industry is growing as the number of users increase as well as the frequency at which they stream.”

While the catalog is not currently subject to any meaningful litigation, there are two outstanding infringement claims with respect to two songs, which has the potential of impacting cash flow in the future, Kroll said.  — Bloomberg

Telcos watching developments as Senate OK’s full foreign entry

By Arjay L. Balinbin, Senior Reporter

The Philippines’ major telecommunications companies on Thursday said they are monitoring developments following the Senate’s approval of a bill allowing 100% foreign ownership in public services, including telecommunications.

The proposed legislation seeks to amend the 85-year-old Commonwealth Act No. 146, commonly referred to as the Public Service Act (PSA), to ease restrictions on foreign investment in public services such as telecommunica-tions, air carriers, domestic shipping, railways, and subways.

“We are closely watching the development and the opportunities and challenges that could result from its passage,” PLDT Inc. and Smart Communications, Inc. President and Chief Executive Officer Alfredo S. Panlilio said in a statement sent to reporters, when asked to comment on the matter.

“But there is no desire to increase foreign equity in PLDT at present; so, in that sense, PLDT is neutral on this issue,” he added.

For its part, Globe Telecom, Inc. said the proposed legislation will “benefit more future telcos.”

“We hope that Congress will enact more laws that will make Bayanihan II permanent and strengthen it further,” Globe General Legal Counsel Froilan Vicente M. Castelo said in a statement.

He was referring to Republic Act No. 11494 or the Bayanihan to Recover As One Act (Bayanihan II), an economic stimulus program that also granted the government the power to simplify the permit process for building cell tow-ers.

“Also, we need more laws for less taxes and permit fees on telcos so that we can offer less expensive telecom and broadband services,” Mr. Castelo added.

Both Globe and PLDT are within the 40% foreign ownership limit based on their latest public ownership reports.

PLDT said its foreign ownership level was 22.19% of the 366,055,775 total outstanding shares of voting common and preferred stocks as of Sept. 30.

Globe said its foreign ownership level on all voting shares (total of common and voting preferred shares) was 26.62% as of the third quarter of the year.

PLDT shares on Thursday closed 5.11% higher at P1,810 apiece. At the same time, Globe shares went up 8.89% to close at P3,600 apiece.

Senator Mary Grace Natividad S. Poe-Llamanzares, primary author and sponsor of the bill, said in a statement on Wednesday that the proposed measure includes safeguards to protect national security, such as prohibiting foreign state-owned enterprises from owning capital in any public service classified as critical infrastructure.

Foreign investments will also be reviewed by the National Security Council.

Senator Ana Theresia N. Hontiveros-Baraquel, who voted against the bill, said that she was “saddened” that many critical services, such as telecommunications, were opened up to 100% foreign ownership when foreign participa-tion could have been limited to 70%.

Foreign business groups said the measure “will create jobs, improve technology, modernize and lower the prices of services to the benefit of Filipino consumers.”

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.

Bringing characters to life in new Korean crime drama

The actors in the new original Korean crime drama Bad and Crazy found themselves doing things differently in the show, which premieres today on Chinese streaming platform iQiyi.

Directed by Yoo Sun Dong and written by Kim Sae Bom, Bad and Crazy follows police inspector Ryu Su Yeol (played by Lee Dong Wook) who is looking to get ahead in life. Then, he meets a man named K (Wi Ha Jun) who solves injustice through physical fights. Meanwhile, Han Ji Eun plays the hot-blooded narcotics police officer Lee Hui Gyeom; while Cha Hak Yeon plays an optimistic junior police officer, O Gyeong Tae.

During the online press conference with Southeast Asian press on Dec. 13, the actors talked about their characters and the ways they brought them to life.

Lee Dong Wook said that he discussed character details with the director.  “He allowed me to act however I thought to act,” Mr. Lee said, as translated from Korean.

Meanwhile, Wi Ha Jun had to take on the challenges of action scenes.

“K has a lot of action scenes to pull off. So, I trained a lot before shooting. And K as a character is quite different from all the characters that I’ve played before. And there are a lot of comical aspects of this character. So I wanted to really bring that aspect of him to life,” Mr. Wi said.

For Han Ji Eun, the role is far more serious compared to her previous roles.

“I tend to try to form a character by paying attention to the physical appearance,” she said. “In previous works, I played a lot of cute and lovely characters. So, I wanted to stay away from that stereotype that people might have on my characters,” she continued. “So, for this series, I wanted to stay away from being cute and perky, and I wanted to be serious.”

From not getting along initially, to becoming a team to fight against police corruption, a bromance develops between Mr. Lee’s and Mr. Wi’s characters.

“They are stark opposites of each other, but then gradually they work together and become very good team players,” Mr. Wi said of their characters.

“Bad and Crazy’s plot unfolds as the spectacular action scenes. The comic factor is not stereotypical. And it has so many different layers you will enjoy it in very different way,” Mr. Wi said.

Bad and Crazy premieres on Dec. 17, with new episodes simulcast with Korea on Fridays and Saturdays at 9:50 p.m. (SGT), globally across 191 territories on the iQiyi International app and www.iq.com. — Michelle Anne P. Soliman

PAL losses since Chapter 11 filing reach P3.45B in Nov.

PHILIPPINE Airlines (PAL) reported a loss of $11.67 million, or P582.65 million, for November, three months after filing for Chapter 11 bankruptcy protection, resulting in a cumulative loss of $69.09 million, or P3.45 billion.

According to PAL Chief Financial Officer Nilo Thaddeus P. Rodriguez’s end-November report to the United States Bankruptcy Court for the Southern District of New York, the embattled airline had a gross income of $143.48 mil-lion for the month.

To recall, PAL ended October with a loss of $27.87 million, or P1.4 billion.

PAL filed its November operating report on Dec. 15, according to a copy of the document from the airline’s claims agent Kurtzman Carson Consultants LLC.

The US Bankruptcy Court for the Southern District of New York is expected to decide this month on either to approve or reject the reorganization plan of PAL.

The airline recently received approval from the US court to access its debtor-in-possession (DIP) financing totaling $505 million.

The DIP financing is “comprised of a $250-million first lien secured Tranche A multi-draw term loan, of which $20 million was drawn following approvals on the “First Day” court hearing last Sept. 9, and a second lien secured Tranche B multi-draw term loan facility of $255 million,” it said.

PAL also said that the DIP financing could be converted to “long-term unsecured debt and equity — rather than repay in cash — upon emergence from Chapter 11.”

PAL expects to exit the recovery phase by the end of 2022, as operating activities “generate more consistent positive monthly cash flow.”

It anticipates to generate an operating income of $220 million next year and $364 million in 2023. — Arjay L. Balinbin

ADB approves $2-M grant for farm consolidation

BW FILE PHOTO

The Asian Development Bank (ADB) has approved a $2-million grant to support studies on farm clusters and to evaluate the impact of the Rice Tariffication Law.

The Agriculture department will be implementing the project, known as the Philippine Competitive and Inclusive Agriculture Development Program (CIADP2).

The project hopes to “reduce income inequality by expanding economic opportunities in the farm-fishery sector amid the COVID-19 pandemic,” according to a statement issued by the department Thursday.

The scope of the CIADP2 includes farm consolidation and clustering studies, as well as an impact assessment of the tariffication law and one of its key features, the Rice Competitiveness Enhancement Fund (RCEF).

Around $1.493 million will find a pilot of clustered rice farms to serve as showcases for the farm and fishery consolidation and clustering (F2C2) program. Luzon, Visayas, and Mindanao will each receive two model farms.

“The aim of the farm clustering is to replicate the lessons learned from relevant projects or other undertakings in the Philippines, highlighting the importance of the participation of LGUs and private sector as partners,” Secretary William D. Dar said.

At least $250,000 will fund a medium-term evaluation of the tariffication law and its impact on the rice market and stakeholders. This also includes an assessment of the RCEF.

The remainder of the funds of the grant will support studies on coconut and sugar; to set up a centralized database for agricultural commodities; and to assist government agencies in achieving gender targets.

The technical assistance package will also be funded in part by the Japanese government through its Japan Fund for Poverty Reduction. — Luisa Maria Jacinta C. Jocson

Rave reviews may help Spider-Man deliver holiday gift to theaters

Spider-Man: No Way Home (2021) - imdb.com

LOS ANGELES — The newest Spider-Man movie adventure won glowing reviews from film critics, and box office analysts predicted the superhero action spectacle would set pandemic-era sales records at cinemas this weekend.

Spider-Man: No Way Home, produced by Sony Corp.’s movie studio and Walt Disney Co., stars Tom Holland as Marvel’s web-slinging superhero and Zendaya as his girlfriend, MJ. The film opens exclusively in North American theaters on Friday. (The movie is opening in the Philippines after the Metro Manila Film Festival, on Jan. 8. —  Ed.)

As of Tuesday afternoon, No Way Home had earned a 98% positive score from 65 reviews collected on the Rotten Tomatoes website. Supporters said the storyline would please old and new fans alike.

“Spider-Man: No Way Home is a goliath that feels destined to eat the world, a potent combination of the ongoing Marvel Cinematic Universe and nostalgia for what came before,” said Esther Zuckerman of Thrillist.

Brian Truitt of USA Today called the film “a rousing entry that doubles as a love letter to the comic-book character, a film very much about second chances and a cleverly crafted reminder of that famous adage: ‘With great power comes great responsibility.’”

Advance ticket demand has been strong, a welcome sign for movie theater chains, including AMC Entertainment, Cinemark and Cineworld that are still struggling to lure back audiences amid the coronavirus disease 2019 (COVID-19) pandemic.

The holiday season around Christmas typically ranks as the second-biggest movie-going period of the year, but recent box-office tallies are hovering well below pre-pandemic levels.

Steven Spielberg’s West Side Story remake disappointed with $10.6 million in domestic ticket sales last weekend, prompting new questions in Hollywood about what it will take to attract crowds back to theaters.

First-day presales for No Way Home were the highest recorded by ticket seller Fandango since 2019’s Avengers: Endgame, the second-highest grossing movie of all time.

“We’ve worked so hard on this film,” Mr. Holland said in an interview with Reuters. “For it to be so well-received is awesome.”

Paul Dergarabedian, senior box office analyst at Comscore, said he expected No Way Home to haul in more than $130 million in US and Canadian ticket sales over its opening weekend. A debut at that level would mark the first $100 million-plus weekend since Dec. 2019.

“That will wash away much of the negative news that came before and hit a positive reset for theaters as we head into the box-office year of 2022,” Mr. Dergarabedian said.

Hollywood will closely watch this weekend’s results to help gauge the future of movie-going amid the rise of streaming television. Tom Rothman, the head of Sony’s movie division, said he believed the rush for advance tickets to No Way Home showed “people are ready to get back to the big screen.”

“This movie was made for movie theaters,” Mr. Rothman said. — Reuters

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