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China factory activity unexpectedly grows as some bottlenecks ease

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BEIJING – China‘s factory activity unexpectedly picked up in November, growing for the first time in three months as the crippling surge in raw material prices and power rationing eased, taking some pressure off the manufacturing sector.

The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in November from 49.2 in October, data from the National Bureau of Statistics (NBS) showed on Tuesday.

The 50-point mark separates growth from contraction. Analysts had expected it to come in at 49.6.

The world’s second-largest economy, which staged an impressive rebound from last year’s pandemic slump, has lost momentum in the second half of this year as it grapples with slowing manufacturing, debt problems in the property market and COVID-19 outbreaks.

Analysts expect the slowdown in gross domestic product (GDP)seen in the third-quarter to continue in the fourth with demand expected to remain soft.

“A series of recently introduced policies and measures to ensure energy supply and stabilise market prices has been proven to be effective,” said Zhao Qinghe, senior statistician at the NBS.

“Power rationing eased somewhat in November while prices for some raw materials dropped significantly, driving an expansion in manufacturing PMI.”

Reflecting the positive headline PMI, a subindex for production rose to 52.0 in November from 48.4 in October while new orders fell at a slower pace, although November marked the fourth straight month of declines in customer demand.

 

TEMPORARY REPRIEVE

There were also signs of relief elsewhere in Asia with Japanese factory output rising for the first time in four months in October as facilities in other parts of the region resumed operations after COVID-19 closures.

The supply resumption helped cool the prices of crucial production materials.

A sub-index for input prices in the Chinese PMI stood at 52.9 in November, down significantly from 72.1 in the previous month, pointing to easing cost pressures.

That drove prices charged lower, falling for the first time since May 2020.

Despite the improvement, Nie Wen, an economist at Hwabao Trust, said he expects the manufacturing PMI to hover around 50 for the months to come, due to constraining factors such as power curbs, high raw material prices and weaker consumption.

Analysts also warn that there could be new restrictions on manufacturing in northern China due to the upcoming Beijing Winter Olympics while the impact from new COVID-19 strain Omicron on China‘s economy remains to be seen.

Factory gate inflation hit a 26-year high in October, further squeezing profit margins for producers and heightening stagflation concerns. As a result, policy sources say China‘s central bank will likely move cautiously on loosening monetary policy to bolster the economy.

Premier Li Keqiang last week acknowledged that China‘s economy faces new downward pressures but said authorities should avoid “aggressive” one-size-fits-all policy responses.

In contrast to the uptick in the factory sector, growth in the services sector slowed slightly with the official non-manufacturing PMI in November easing to 52.3 from 52.4 in October.

Fresh lockdown measures as China raced to contain the latest COVID-19 outbreak have weighed on services activity, which has been otherwise propped up by brisk construction.

The construction activity subindex rose to 59.1 in November from 56.9.

China‘s official October composite PMI, which includes both manufacturing and services activity, stood at 52.2, up from October’s 50.8. – Reuters

UN urges Philippines to let Nobel laureate Ressa travel to Norway

PHILSTAR

UNITED NATIONS – The United Nations on Monday urged the Philippines to allow Nobel Prize winning journalist Maria Ressa to travel to Norway next month to accept the award.Ressa, the first Nobel laureate from the Philippines, shared the Peace Prize with Russian investigative journalist Dmitry Muratov, a move widely seen as an endorsement of free speech rights, which are under fire worldwide.Ressa has requested government approval to travel to Norway to receive the Nobel Peace Prize on Dec. 10.Stephane Dujarric, spokesman for U.N. Secretary-General Antonio Guterres, said the United Nations was “very concerned” about travel restrictions placed on Ressa by the government.“We urge the government of the Philippines to immediately withdraw any such restrictions and allow her to travel to Oslo,” Dujarric told reporters in New York.The license for Ressa’s news site, Rappler, has been suspended and she has faced legal action for various reasons. Supporters say she has been targeted for her scrutiny of government policies, including a bloody war on drugs launched by President Rodrigo Duterte.The ranking of the Philippines in the 2021 World Press Freedom Index dropped two notches to 138 out of 180 countries, and the Committee to Protect Journalists ranks the Philippines seventh in the world in its impunity index, which tracks deaths of media members whose killers go free.The government denies hounding media and says any problems faced by organisations are legal, not political. It says it believes in free speech. – Reuters

Duterte’s preferred successor quits presidential race

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MANILA – Philippine Senator Christopher “Bong” Go, the preferred successor of Rodrigo Duterte, said on Tuesday he was withdrawing his candidacy for presidency.Go, President Duterte’s long-time aide, had recently hinted he may drop out of the race and his withdrawal leaves the administration without a presidential candidate. It was not clear yet who Duterte will now support. “I and President Duterte are ready to support whoever will truly serve and can continue and protect Duterte’s legacy towards a more comfortable and safe and prosperous life for our children,” Go said in a short speech streamed on Facebook.Go said he was making the “supreme sacrifice for the good of the country and for the sake of unity among our supporters and leaders.” Duterte’s daughter, Davao Mayor Sara Duterte-Carpio is running for the deputy post alongside the son of late Philippine dictator and namesake, Ferdinand Marcos Jr., who has emerged as an early frontrunner. The Southeast Asian nation of 110 million people holds elections in May 2022 for positions from president down to governors, mayors and local officials.Duterte, 76, is barred by the constitution from seeking re-election but he will run for a seat in the senate next year. – Reuters

BSP: Nov. inflation likely on target

INFLATION this month is likely to be within target, as a stronger peso and oil price reductions tempered the rise in consumer prices, according to the Philippine central bank.

The consumer price index would probably increase by 3.3% to 4.1% this month, based on estimates by the Bangko Sentral ng Pilipinas (BSP), Governor Benjamin E. Diokno told reporters in a Viber message on Monday.

The estimate is much slower than the 4.6% rise in consumer prices last month and could be within the BSP’s 2-4% target. The central bank had forecast November inflation at 3.7%, faster than 3.3% a year earlier.

“Higher electricity and liquefied petroleum gas prices along with the uptick in the prices of meat, fish, fruits and vegetables are the primary sources of inflationary pressures during the month,” Mr. Diokno said.

“Moving forward, the BSP will continue to monitor emerging price developments to help achieve its primary mandate of price stability that is conducive to balanced and sustainable growth of the economy,” he added.

The Philippine Statistics Authority will report November inflation data on Dec. 7.

Manila Electric Co. said the power rates for typical households increased by P0.3256 per kilowatt-hour (kWh) from a month earlier to P9.463/kWh in November due to higher generation charges.

Mr. Diokno said oil price rollbacks and a stronger peso against the dollar during the month might have slowed price increases.

The peso closed at P50.39 a dollar on Monday, 2.5 centavos stronger than its P50.415 close on Oct. 29, according to data posted on the Bankers Association of the Philippines website.

This was the second straight month-on-month appreciation of the local currency, although it is still weaker than its P48.023 a dollar close on Dec. 29 last year.

The central bank kept the key policy rates steady on Nov. 18, saying it would focus on supporting economic recovery that had gained traction.

At the same Monetary Board meeting, it revised its average inflation forecast for the year to 4.3% from 4.4%.

Inflation for the 10 months to October averaged at 4.5%. It has exceeded the central bank’s target this year except in July, amid low meat supply and a surge in global oil prices.

The Monetary Board will decide on key interest rates for the last time this year on Dec. 16. — Luz Wendy T. Noble

Gov’t asked to regulate borders to prevent surge from Omicron variant 

KJPARGETER-FREEPIK

By Luz Wendy T. Noble, Reporter

THE PHILIPPINES should tighten border patrols and boost its vaccination drive to prevent another infection surge that could come from a potentially more contagious Omicron variant of the coronavirus, analysts said on Monday.

Failure to do so could force the government to enforce strict lockdowns again that could end up being too late, they said.

The risks from the new variant from Africa remained unknown, but it could potentially cause another infection wave, Moody’s Analytics said.

“First, will policy makers in the region respond by accelerating vaccination programs?” Moody’s Analytics Chief Asia-Pacific Economist Steven Cochrane said in a note. He added that countries including Myanmar, Laos, Indonesia, India, Hong Kong, Thailand, the Philippines and Vietnam have vaccinated fewer than 65% of their citizens.

The Philippines has fully vaccinated 40.58% of its population, based on data from the Johns Hopkins University. The government has launched a three-day national vaccination drive until Wednesday as it targets to vaccinate nine million Filipinos.

The World Health Organization has called the Omicron variant a variant of concern, citing its likelihood of becoming more contagious.

“Adequate public health facilities, particularly intensive care units and isolation beds would alleviate the pressure on the healthcare system,” Mr. Cochrane said separately in an e-mail. “Countries simply cannot let down their guard. They must learn from the past.”

Based on previous infection surges, border closures might help contain the latest coronavirus variant, said Nicholas Antonio T. Mapa, a senior economist at ING Bank N.V. Manila.

“The worst-case scenario is a potential return to hard lockdowns and as experience has shown, prevention is always less costly than the cure,” he said in a separate note.

“We can take comfort in the knowledge that the Philippines posted a remarkable 7.1% year-on-year growth in the third quarter despite the presence of the Delta strain,” he added. But such growth also came from an 11.6% contraction a year earlier.

Philippine economic output expanded by 4.9% in the nine months to September, which was within the government’s 4-5% goal. Last year, the economy shrank by a record 9.6%.

Mr. Mapa said the government should be aware of the potential threats from the Omicron variant after it relaxed quarantines amid decreasing coronavirus infections.

“We do know that higher cases generally lead to slower economic output and a possible unwanted detour for our nascent recovery,” he added.

Active coronavirus infections in the Philippines rose by 665 to 16,289 on Monday, the Health department said in a bulletin. Active cases reached almost 200,000 at the height of the Delta-induced surge in September.

An Omicron-induced infection wave could affect the deployment of Filipino workers overseas amid potentially more border closures, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Cash remittances from migrant Filipino workers that fuel the country’s economy through increased household spending have risen by 5.6% to $23.117 billion as of end-September from a year earlier.

“The Omicron variant could also potentially add to the global supply chain disruptions in terms of production and shipments,” Mr. Ricafort said.

Fully vaccinated people from countries not required to get a Philippine visa may enter the country from Dec. 1 to 15, the government said on Friday, only to suspend the plan on Monday because of the threat from the Omicron variant.

The Philippines last week started suspending flights from South Africa, Botswana, Namibia, Zimbabwe, Lesotho, Eswatini and Mozambique, where the virus mutation that is potentially more contagious is present.

The variant was first discovered in South Africa and has since been detected in Australia, the United Kingdom, Germany, Israel, Italy, the Czech Republic and Hong Kong.

On Sunday, the Philippines also suspended flights from Austria, Czech Republic, Hungary, The Netherlands, Switzerland, Belgium and Italy.

Tourists trickle into Philippine paradise as latest variant stares world in its face

LAURENTIU MORARIU-UNSPLASH

By Luz Wendy T. Noble, Reporter

WAILING KIDS are at the jam-packed Caticlan seaport that leads to the world-famous Boracay Island in central Philippines.

A mother tries to bargain for quiet through nursery rhymes on YouTube, while fanning herself during an oppressively hot weather. It could well have been a picture before the coronavirus hit, only this time, people wore face masks.

Editha Regualos, a mother who works for a Netherlands-headquartered customer support company, went to Boracay with her husband and their four-year-old daughter this month after the government lifted a 20-month lockdown for children.

“My daughter knows Boracay and she was excited when she found out we were coming here,” she said in an interview while checking out fancy souvenirs at a stall along Boracay’s beachfront.

The government is banking on local families visiting tourist spots to revive an industry battered by various levels of lockdown for the past 20 months, even as the threat of an Omicron coronavirus variant from Africa looms.

The Philippine central bank held its seventh policy review this year at Shangri-La Boracay, the island’s most prestigious resort. It was also the first time the Bangko Sentral ng Pilipinas (BSP) allowed journalists to cover the event since a strict lockdown was first imposed on the entire Luzon Island in mid-March last year.

“This is our small contribution to the normalization of the economy,” central bank Governor Benjamin E. Diokno said in a speech at a welcome dinner. “What a comeback event — in Boracay.”

There are still not too many people at the D’Mall near the main white beach, but the sight of tourists slowly coming back gives Manny B. Danay, a hotel driver, hope.

Mr. Danay sold rice cakes online when there were no visitors, his market made up of locals and stranded tourists. He recalled how the island experienced a tourist drought in 2018, when Boracay was closed for rehabilitation.

It’s much worse this time, he said.

In 2020, foreign visitor arrivals shrank by 82% to 1.482 million from a year earlier, according to data from the Immigration bureau.

Gina O. Reyes, a saleslady at a souvenir shop, lost her job during the lockdown and her husband became the family’s sole breadwinner.

“The tourists are coming back, but it’s nowhere near the number in 2019,” she said in an interview in Filipino. “I don’t get my full daily salary yet.”

Emet R. Sendin, resident manager at Belmont Hotel Boracay, said they are already seeing signs of recovery. Before the crisis, 200 of their 300 rooms were occupied. Now, they have opened 50 rooms, 30 of which are occupied — higher than the 10 they used to have.

Belmont catered mostly to Chinese tourists before the crisis, he said.

“What this pandemic taught us is not to rely on a specific market,” he said. “We appreciate returning Filipinos for supporting tourism. It really helps us.”

Vanessa A. Andrade, restaurant manager at Cafe Del Sol Boracay, said tourism is far from what it used to be. “In terms of recovery, we’re still very far. There are still days when we have no customers at all.”

The tourism industry accounted for 12.7% of economic output in 2019, based on data from the local statistics agency. By 2020, when the pandemic started, its contribution to the economy had dropped to 5.4% — the lowest in two decades.

In 2020, the sector employed 11.9% of the country’s workers, down from 13.6% a year earlier.

Fully vaccinated people from countries not required to get a Philippine visa may enter the country from Dec. 1 to 15, the government said on Friday, only to suspend the plan three days later amid the threat from the Omicron variant.

The Philippines started suspending flights from South Africa, Botswana, Namibia, Zimbabwe, Lesotho, Eswatini and Mozambique, where the virus mutation that is potentially more contagious is present.

The variant was first discovered in South Africa and has since been detected in Australia, the United Kingdom, Germany, Israel, Italy, the Czech Republic and Hong Kong.

On Sunday, the Philippines also suspended flights from Austria, Czech Republic, Hungary, The Netherlands, Switzerland, Belgium and Italy.

REOPENING
Ms. Andrade, the restaurant manager, eagerly awaits the return of foreign tourists to Boracay. While they are grateful for local tourists, foreigners spend more on food during their vacation, she said.

Jose C. Clemente III, Tourism Congress of the Philippines president, said reopening the Philippines to foreign tourists would mark the beginning of the industry’s revival. “People are excited and hungry for travel,” he said in a Viber message before the policy for vaccinated foreigners was recalled.

Allowing the entry of foreign tourists resembles the “same mistake of March 2020,” when the country failed to quickly close its borders just as the global health crisis started, said John Paolo R. Rivera, associate director of the Dr. Andrew L. Tan Center for Tourism at the Asian Institute of Management.

“Opening our country to foreign tourists is similar to that same mistake, because we know that the COVID-19 situation remains fluid and we have yet to attain herd immunity.” he said in a Zoom Cloud Meetings interview.

The Philippines has fully vaccinated 40.6% of its population, based on data from the Johns Hopkins University. Thailand, which has reopened its border to foreigners, has a higher vaccination rate of 57.7%.

Mr. Rivera said it’s better to focus for now on domestic travelers, who accounted for about 80% of tourism receipts even before the coronavirus pandemic hit, compared with the 20% share of foreign travelers.

Meanwhile, Boracay’s tourism workers think there are better ways to help spur the return of travelers to the island. They cited how a QR code system has become a headache for some visitors, some of whom fail to get one before arriving in Aklan province where Boracay is.

“When the QR doesn’t work, we are affected because the travelers have a hard time entering Boracay,” Ms. Andrade said.

Mr. Sendin from Belmont said the government should streamline rules and make them uniform across key destinations to encourage more travel.

During the pandemic, Boracay remains a paradise where the weary can find rest just by watching its postcard-worthy sunset or by strolling barefoot on its powdery sand. But for the island’s workers, the island is also their lifeline.

Mr. Danay, the hotel driver, hopes the government’s vaccine rollout would lead to more visitors, whether local or foreign. “We hope and pray that more visitors will come. Many of us are raring to get our jobs back.”

Revenue from marked fuel hits P324 billion

JCOMP-FREEPIK

DUTIES AND TAXES collected from marked fuel products had reached P324.46 billion as of Nov. 25, counting back to 2019 when the program started, according to the Department of Finance (DoF).

The volume of levied fuel had hit 32.88 billion liters since Sept. 4, 2019, based on data sent by Finance Secretary Carlos G. Dominguez III to reporters via Viber on Monday.

Revenue included P294.64 billion in Customs duties and P29.81 billion in excise tax.

Almost three-quarters of the marked fuel came from Luzon, a fifth from Mindanao and 5.47% from the Visayas.

Diesel accounted for 60.98% and gasoline had a 38.49% share, with kerosene taking the rest.

The program seeks to deter fuel smuggling by injecting a special dye into the products to signify tax compliance. The absence of the dye means the fuel was probably smuggled.

The government in September last year started collecting a fuel marking fee of P0.06884 a liter, inclusive of value-added tax on manufactured, refined and imported petroleum products.

The government has lost as much as P40 billion from fuel smuggling, the DoF has said.

The House Committee on Ways and Means approved a bill on Nov. 11 that seeks to suspend or lower the excise tax on some fuel products for six months amid rising global oil prices.

Albay Rep. Jose Ma. Clemente S. Salceda, who heads the House body, said the House of Representatives was likely to approve the measure.

But the DoF has said suspending the excise tax on fuel would likely improve the disposable income of wealthier households faster than others, making the tax relief inequitable. — Jenina P. Ibañez

Major PHL telcos: Spectrum fees ‘excessive’

BW FILE PHOTO

By Arjay L. Balinbin, Senior Reporter

THE country’s major telecommunications services providers PLDT, Inc., its wireless arm Smart Communications, Inc., and Globe Telecom, Inc. said the spectrum fees are becoming excessive.

Spectrum user fees are collected annually from public telecommunications entities (PTEs), or those engaged in the provision of telecommunications services to the public for compensation.

“Currently, spectrum fees imposed on PTEs are becoming unreasonable and excessive,” Roy Cecil D. Ibay,  Smart Communications vice-president for regulatory affairs, said in a statement to BusinessWorld on Monday, when asked to comment on the approval at the House of Representatives of House Bill 9851, or the “Zero Spectrum User Fee (SUF) for Telcos Using Wi-Fi Act.”

Mr. Ibay said that, similar to last year, PLDT and Smart would “most likely” end 2021 with around P2.4-billion expenditure on spectrum user fees.

“While PLDT and Smart thank the House for passing the subject Zero Wi-Fi spectrum fees bill, we also take this opportunity to reiterate our call for the reduction and/or rationalization of SUF for other spectrum/frequencies,” he added.

The proposed measure, which was approved by the House of Representatives and transmitted to the Senate on Sept. 22, seeks to adopt a license-free, zero SUF policy in line with “best international practices.”

It also aims to protect public interest by limiting the use of outdoor Wi-Fi frequency access points or base stations and links to the government and duly enfranchised public telecommunications entities.

Globe expects that this policy will increase public access to Wi-Fi technology and, eventually, lower the cost of telecoms services for the public.

“When spectrum prices are set too high, operators are likely to invest less in their networks, which impacts the quality, affordability, and reach of services,” Globe General Legal Counsel Froilan Vicente M. Castelo said in an e-mailed statement on Nov. 26.

“We have been actively pursuing the lowering of spectrum user fees with the NTC (National Telecommunications Commission) and Congress, since we believe that telecommunications is now an essential service that should be made more affordable for users,” he pointed out.

The SUF should be set at “modest levels” to cover only the regulator’s spectrum management costs, Mr. Ibay of Smart said.

“Increased demand from mobile users put a strain on networks, necessitating the use of more spectrum,” he noted. As a result, increased spectrum use leads to increased spectrum prices.

“Operators will struggle to make the significant investments required to support dense 4G (fourth-generation) and 5G (fifth-generation) networks,” he said.

PLDT and Smart want a uniform computation of SUF across all frequency bands.

“There appears to be no basis for creating a price differentiation among the various frequencies,” Mr. Ibay said.

NTC Deputy Commissioner Edgardo V. Cabarios has yet to respond to a request for comment as of press time.

Moody’s Investors Service also said on Monday that telcos in Asia’s emerging markets, which include the Philippines, are expected to face higher spectrum liabilities.

“[B]ut these essential costs are not subject to refinancing and have limited immediate impact on cash flows and liquidity,” it said in a report e-mailed to reporters.

It noted that the ratings of telcos in the emerging markets could tolerate increased deferred spectrum liabilities at current levels if these costs are the main driver of high debt or weaker leverage.

“Deferred spectrum liabilities are distinct from bank or capital market debt and are not subject to refinancing,” said Nidhi Dhruv, a Moody’s vice-president and senior analyst.

“Moreover, in exceptional circumstances, governments are likely to provide more payment buffers, which can alleviate cash flow pressure for some telcos.”

Globe said that while the telcos incur “massive and sustained capital outlay” for telecommunications infrastructure and pay costly spectrum fees, revenues per megahertz of spectrum is “declining.”

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

Flag carrier PAL expands Vis-Min services via Iloilo

PHILIPPINE Airlines, Inc. (PAL) announced on Monday that it would expand its services in the Visayas and Mindanao in anticipation of increased demand during the upcoming holiday season.

The flag carrier will resume services from Iloilo to Cebu and General Santos City on Dec. 7 and from Iloilo to Davao on Dec. 8.

“The expanded route network will increase connectivity between the Visayas and Mindanao just in time for the peak holiday season, enabling more people to reunite with families in their home provinces,” PAL said in an e-mailed statement.

With various areas in the Visayas and Mindanao reopening for business and tourism, the airline anticipates that the new flights will contribute to the overall economic recovery.

“We also hope to restore more of our pre-pandemic routes and mount new services in the coming months, while strictly adhering to the latest health and safety protocols set by all local government units (LGUs) involved,” PAL Senior Assistant Vice-President for Philippine Sales Harry D. Inoferio said.

The airline said that each province, city or municipality might impose its own travel requirements, and the rules may be subject to change at short notice.

“For additional information and latest updates, passengers are encouraged to check the website of the LGU of their destination point. Additionally, they may also check https://www.philippineairlines.com/en/covid-19/travelingwithintheph. www.philippineairlines.com,” it added.

PHL ARRIVAL PROTOCOLS
PAL also announced on Monday that eligible travelers to the Philippines from countries or regions on the green list will now be subjected to the same quarantine and testing protocols that apply to arrivals from countries in the yellow list classification.

Travelers from yellow-listed countries are required to undergo facility-based quarantine until the release of a negative swab test that was taken on the fifth day from their arrival. They must quarantine at home until their 10th day.

The airline said the revised red list now includes South Africa, Botswana, Namibia, Zimbabwe, Lesotho, Eswatini and Mozambique, Austria, Czech Republic, Hungary, The Netherlands, Switzerland, Belgium, and Italy.

“Inbound international travel shall not be allowed for all persons, regardless of vaccination status, coming from or who have been to red-listed countries/regions within the last 14 days prior to arrival to any port of the Philippines,” PAL noted.

“Only Filipinos returning to the country via government-initiated or non-government-initiated repatriation and Bayanihan Flights may be allowed entry subject to the prevailing entry, testing, and quarantine protocols for red-listed countries,” it added. — Arjay L. Balinbin

ABS-CBN produces original content for iQiyi

TWO romance stories and a musical series are among Chinese on-demand streaming service iQiyi’s first Filipino originals shows after sealing a content deal with ABS-CBN.

Founded in China in 2010, iQiyi International is an on-demand video streaming service providing pan-Asian entertainment. It is currently available in 191 countries with more than 106 million subscribers worldwide.

The content deal with the network adds to iQiyi’s growing library of content from Japan, South Korea, China, Thailand, Singapore, and Malaysia.

“This partnership allows us to bring the best of Filipino content to an international market with iQiyi’s current reach of 191 territories,” Cory Vidanes, ABS-CBN Chief Operating Officer of Broadcast, said at online press launch on Nov. 23.

Negotiations with ABS-CBN began almost two years ago while the streaming platform was slowly building its brand in the country, said iQiyi country manager Sherwin dela Cruz.

“We’ve always known that we would go hardcore with local. We were just really waiting for the right time. [In as much as] all the Asian titles are very relatable, but nothing is more at home and authentic as our own Filipino stories,” Mr. Dela Cruz said.

THE SHOWS
Premiering on iQiyi this December is the ABS-CBN shows Saying Goodbye and Hello, Heart, while Lyric and Beat will premiere in 2022.

The young adult drama series Saying Goodbye stars Andrea Brillantes and Seth Fedelin whose characters meet at an old record store and fight over the same album. After that less than auspicious start, a friendship, then love, bloom. Joining the cast are Andi Abaya and Kobie Brown. Saying Goodbye premieres on Dec. 4, 8 p.m., with new episodes released weekly.

The romantic comedy Hello, Heart follows the hardworking yet unlucky Heart (played by Gigi De Lana) and the very serious Saul (Gerald Anderson). Heart is hired to pretend to be Saul’s wife to please his grandmother who has dementia. Hello, Heart premieres on Dec. 15, 8 p.m, with new episodes released weekly.

Lyric and Beat is a romantic musical series following the students in a music conservatory who are pitted against each other for the chance to represent the school at the prestigious National Music Competition. The series stars Andrea Brillantes, Seth Fedelin, Darren Espanto, and AC Bonifacio. Also in the cast are Nyoy Volante, Agot Isidro, Joanna Ampil, Sheena Belarmino, Jeremy Glinoga, and Angela Ken. Lyric and Beat premieres in 2022.

The shows will be streamed exclusively on the iQiyi app and www.iQ.com. — Michelle Anne P. Soliman

Is your office rebound-ready?

SEAN YORO/UNSPLASH
Maricris Sarino-Joson

Landlords need to maximize wellness features of buildings

By Maricris Sarino-Joson
Director and Head, Office Services –
Landlord Representation, Colliers

ADOPTING GREEN and sustainable features plays a crucial role in future-proofing office towers after the pandemic. The coronavirus disease 2019 (COVID-19) situation has accelerated the adoption of sustainable office spaces and we see this trend complementing the recovery of office leasing demand across Metro Manila after 2021.

As part of occupier retention as well as attraction strategies, Colliers believes that existing landlords and developers should focus not only on wellness attributes, but also on green retrofitting activities. Occupiers that are mandated to follow green initiatives should constantly be on the lookout for upcoming wellness-certified office towers likely to be completed across the Philippines in the next 12 to 36 months.

Colliers data shows that in Metro Manila, about 37% of the new supply from 2021 to 2023 will likely be wellness-certified buildings. For locators and tenants, there are many benefits to locating in green buildings, including an average of 35% lower carbon emissions, 40% lower water use, 50% lower energy use, and 70% reduction in solid waste.

LEED BUILDINGS
Colliers believes that landlords should maximize wellness features of their buildings and prioritize wellness certifications such as LEED (Leadership in Energy and Environmental Design) and WELL building standards.

LEED buildings will likely account for 37% of new office supply from 2021 to 2023. Landlords should also be more discerning with design considerations that promote sustainability and wellness (e.g., filtered air circulation, lower density ratios, and high glass ratios for natural sunlight) and strengthen property management capabilities including sanitation (e.g., implementation of measures to avoid disease transmission) and emergency preparedness.

PRODUCT DIFFERENTIATION IS KEY
As developers ramped up construction of office towers across Metro Manila in 2021, product differentiation plays a crucial role in ensuring that buildings are appropriate to the needs of the tenants given the increasing options in the market. Colliers believes that today’s labor force is also more discerning in choosing which companies to work in and the type of workspace is critical in attracting and retaining the best talent.

Many companies are also preparing for the eventual return of workers to the office as COVID-19 cases have been decreasing over the last few weeks especially in Metro Manila. The capital region is now on Alert Level 2, which eliminates age-based mobility restriction and allows for increased capacity for businesses and activities such as restaurant dine-in, beauty salons and other personal care establishments, and religious activities.

HEALTH-RELATED COSTS
Data from the Philippine Statistics Authority (PSA) show that from 2010 to 2019, Filipinos’ spending on health-related expenditures grew by an average of 7.9% per annum, faster than the growth of other consumer spending subsectors such as hotels and restaurants (7.6%), food and beverage (5.4%), communication (5.0%), and clothing and footwear (1.8%). This indicates that health and wellness are among Filipinos’ major priorities. We see both employers and employees putting a greater emphasis on health post-pandemic. Landlords and tenants are likely to implement health and wellness initiatives to retain occupants and employees.

Going green is no longer aspirational. Requiring office spaces to be environmentally certified is necessary in the return to the work place: ensuring offices are healthy, safe, sustainable, and productive in a post-pandemic environment.

 

Maricris Sarino-Joson has been a real estate professional since 1998. She joined Colliers in 2012, first as Director for Client Services with the company’s Tenant Representation team, providing strategies and solutions to Colliers’ clients. She was recently appointed as Director and Head of Office Services – Landlord Representation, working closely with office developers and landlords and providing them with sound and expert advice on how to effectively market their developments.

Gov’t raises P360 billion via RTBs on strong demand from investors

BW FILE PHOTO

THE GOVERNMENT has raised P360 billion via its offer of five-and-a-half-year retail Treasury bonds (RTBs) that ended on Friday amid strong demand from investors on the hunt for higher returns.

The Bureau of the Treasury (BTr) said in a statement on Monday that P330.5 billion of the total amount raised was fresh fund or “new money,” while the remaining P29.5 billion was from the bond exchange program.

The 26th issuance is the Treasury’s second RTB offering of the year after it raised P463.3 billion from three-year retail papers in February.

“The healthy macroeconomic environment, charactertized by sufficient domestic market liquidity and downward trend in inflation supported our third retail issuance, or the second peso-denominated jumbo offering for the year,” National Treasurer Rosalia V. de Leon said in a statement on Monday.

The bond offer was launched on Nov. 16 and the Treasury raised an initial P113.545 billion from the rate-setting auction.

The RTBs fetched a coupon rate of 4.625%. They will be issued on Dec. 2 and mature by 2027.

A bond trader in a Viber message said demand for the RTB offer was strong as almost the entire investor base — from banks to retail investors — showed significant interest due to the relatively good rate versus papers at the secondary market.

“This offering had a reciprocal benefit for both investors and the National Government as the market is still very much armed with liquidity and still on the hunt for yield. If you ask me, demand has exceeded expectations for this issuance.”

The five-and-a-half-year RTBs were sold in denominations of at least P5,000, and in multiples of P5,000 thereafter.

The BTr also opened a bond exchange offer, where holders of fixed-rate Treasury notes maturing in 2022 can swap their holdings for the new RTBs. The minimum exchange offer was P5,000.

The Treasury offers retail bonds for small investors that want low-risk, higher-yielding savings instruments backed by the National Government. To reach overseas Filipinos, the bureau also worked with the Department of Foreign Affairs to conduct RTB investment webinars.

The BTr said proceeds from the issuance will be used to fund government pandemic-response and economic recovery programs.

“With the digital platforms that we have introduced in the past years, we have also seen how more and more Filipinos are getting into the habit of investing their hard-earned money to secure the future not only of themselves, but also of their loved ones,” Ms. De Leon said.

“We at the BTr will continue to introduce new products and channels in the future to allow our individual investors to diversify their personal portfolios, as well as reduce the friction costs and barriers to investing.”

Issue managers for the RTBs include the Land Bank of the Philippines, Development Bank of the Philippines, BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., and UnionBank of the Philippines, Inc.

Gross borrowings by the National Government reached P2.75 trillion as of end-October as it continued to raise money for its pandemic response.

The government borrows from local and foreign creditors to finance the budget deficit that has widened since last year after the pandemic stalled the economy and pulled down tax collections. — Jenina P. Ibañez