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Changes to BOT law’s rules may be too late, analysts say

PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Senior Reporter

PLANNED CHANGES to the rules implementing the Build-Operate-Transfer (BOT) law could be too late after the announcement was made just eight months before a new administration takes over, political analysts said.

“Since we’re already in the election season, it is ill-advised to amend the said implementing rules and regulations, even if the concerned administration officials claim that it is meant to promote transparency and to fast-track the approval of proposed PPP (public-private partnership) projects,” Philippine Political Science Association President Dennis C. Coronacion said in a Viber message.

Political strategist Gerardo Eusebio said any amendment might not be feasible given the time left for the administration, “and especially if the administration’s presidential candidate will not win.”

“The administration would certainly seek to stay on top of it because they consider the former to be one of their more successful, tangible flagship projects,” he said in a Viber message.

President Rodrigo R. Duterte recently named Socioeconomic Planning Secretary Karl Kendrick T. Chua as the chairman of an interagency committee that will amend the rules of Republic Act (RA) 6957 as amended by RA 7718.

RA 6957 or the Build-Operate-Transfer Law authorizes the private sector to finance, build, operate and maintain infrastructure projects.

The National Economic and Development Authority (NEDA) and PPP Center had said the amendments aim to protect the public from “excessive payments and undue guarantees arising from PPP projects, and promote the interests of Filipinos, who ultimately pay for the costs and returns of private proponents of PPP projects.”

The committee plans to start stakeholder consultations in December and come out with the amended rules by the first quarter of 2022.

Changes to BOT rules are likely a gesture from the outgoing administration to provide a social safety net for PPP and other development projects so that the government and Filipino taxpayers don’t get pushed into a fiscally aggravating position, said Marlon M. Villarin, a political science professor from the University of Santo Tomas.

The government’s stance is that private companies should embrace legally demandable accountability and better transparency measures, he said in a mobile phone message.

The Duterte administration previously steered clear of PPPs due to allegedly disadvantageous provisions such as subsidies and guarantees.

Experts have said well-designed PPPs could accelerate the country’s “Build, Build, Build” program.

Ragnar Gudmundsson, International Monetary Fund (IMF) representative to the Philippines, said PPPs could help mobilize financing for priority infrastructure projects.

“What matters is to ensure that PPPs are well managed so that they deliver results without adverse impacts on fiscal space and debt sustainability through unwarranted guarantees and contingent liabilities,” he said in an e-mail.

Byunghoon Nam, an ASEAN+3 Macroeconomic Research Office (AMRO) senior economist on the Philippines, said in an e-mail there is no reason for the Philippines not to take advantage of PPP-type projects, as long as safeguards are in place.

He said BOT rule changes seek to improve the design and management of PPP projects.

“Tighter controls could reduce the infrastructure investments funded by PPPs in the short term. Nevertheless, if the amended rules are properly implemented, more transparent and efficient management will lead to more financially viable PPP projects, preventing unnecessary fiscal payments and guarantees,” he said.

The “Build, Build, Build” program includes 112 priority projects worth P4.687 trillion. The government aims to complete 29 before Mr. Duterte steps down from office in mid-2022, while 51 projects are ongoing and 28 are in the pipeline.

BusinessWorld forum tackles PHL recovery roadmap

NEARLY TWO YEARS since the start of the pandemic, the Philippines is on the road to recovery. Armed with the lessons from the crisis, the government and the private sector are aiming to ensure the economy will become more sustainable, resilient and inclusive.

BusinessWorld, the Philippines’ leading business newspaper, returns with the BusinessWorld Virtual Economic Forum with the theme, “Recovery Roadmap PH: 2022 and Beyond.”

Local leaders and international experts will join the two-day forum on Nov. 24 and 25 to discuss the economic outlook and industry trends.

On the first day, keynote speakers include International Monetary Fund Director of the Asia and Pacific Department Changyong Rhee and Global Green Growth Institute Director-General Frank Rijsberman.

Finance Secretary Carlos G. Dominguez III will deliver a keynote speech on the second day, sharing his insights on the “Digital Economy Transformation and Inclusion in the Post-COVID Era.” World Economic Forum’s Head of Shaping the Future of Manufacturing Francisco Betti will discuss “Tech and Industry 4.0 Trends Shaping our Future.”

The first panel on Nov. 24 will focus on “Pandemic Shifts: How COVID-19 Will Transform our Tomorrow.” Panelists include Iluminada T. Sicat, senior assistant governor for the Monetary Policy Sub-Sector of Bangko Sentral ng Pilipinas; Sagarika Chandra, director for Asia-Pacific Sovereigns at Fitch Ratings; and Steven G. Cochrane, chief economist for Asia-Pacific at Moody’s Analytics. BusinessWorld Editor-in-Chief Wilfredo G. Reyes will moderate the panel.

For the panel “Creating a Culture of Business Resilience and Sustainability,” speakers include Jose Teodoro “TG” K. Limcaoco, president and chief executive officer (CEO) of the Bank of the Philippine Islands; Jaime T. Azurin, president and CEO of Meralco Powergen Corp.; Joseph Sigelman, CEO of Atlantic Gulf & Pacific Co.; and Raoul Antonio E. Littaua, president and CEO of The Insular Life Assurance Co. Ltd. BusinessWorld Managing Editor Cathy Rose A. Garcia will moderate.

Breakout sessions will tackle topics such as smart cities, climate change and clean energy. Speakers include Dr. Enrico C. Paringit, director of the Department of Science and Technology – Philippine Council for Industry, Energy, and Emerging Technology Research and Development; Srinivas Sampath, director of the Urban Development and Water Division of the Southeast Asia Regional Department of the Asian Development Bank; Rafael Fernandez de Mesa, president of LIMA Land and head of Aboitiz Economic Estates, Aboitiz InfraCapital, Inc.; and David T. Leechiu, CEO of Leechiu Property Consultants.

For the session on climate change, speakers include Emmanuel M. de Guzman, secretary of Climate Change Commission; Oliver Y. Tan, president of Citicore Power, Inc.; and Angela Consuelo S. Ibay, head of Climate Change and Energy Programme at WWF-Philippines.

There will also be a fireside chat with Eric Feigl-Ding, an adjunct senior fellow at the Federation of American Scientists, on “Strengthening the Public Health System.” Jean-Marc Arbogast, country manager for the Philippines at International Finance Corp. will speak with Daniela Luz Laurel, a columnist for BusinessWorld, on “Investing in Circular Economy as a COVID-19 Recovery Strategy.”

For the “Ask the Expert” session, Anthony Oundjian, managing director and senior partner at Boston Consulting Group, will discuss rebound tactics for pandemic-hit sectors.

Meanwhile, the second day of the forum will tackle digital transformation and technologies.

For the first panel “Accelerating the Growth of Emerging Industries,” speakers include Paolo Maximo F. Borromeo, president and CEO of Ayala Healthcare Holdings, Inc.; Angeline Tham, CEO of Angkas; and Vince Yamat, managing director of Globe’s 917 Ventures. It will be moderated by Andrew J. Masigan, a columnist for BusinessWorld.

The second panel on “Improving the Country’s Telecoms Connectivity” will feature Leo Urbiztondo, Jr., director of Government Digital Transformation Bureau at the Department of Information and Communications Technology (DICT); Jesus C. Romero, chief operations officer at Converge ICT Solutions; and invited speaker Joel Agustin, SVP, Program Delivery for Mobile & Fixed Networks at Globe Telecoms, Inc. Arjay L. Balinbin, senior reporter of BusinessWorld, will moderate.

A breakout session on data privacy and cybersecurity features Raymund E. Liboro, chairman of the National Privacy Commission; Raymond Medina, highly technical consultant for Cybersecurity Bureau of DICT; Yeo Siang Tiong, general manager of Kaspersky Southeast Asia; and Angel T. Redoble, chairman and founding president of the Philippine Institute of Cyber Security Professionals. BusinessWorld Senior Reporter Jenina P. Ibañez will moderate.

Another breakout session on upskilling the workforce will include Lars Wittig, country manager of International Workplace Group PHL; James Matti, managing director of Willis Towers Watson; and Suchita Prasad, leader of McKinsey Academy, Southeast Asia and senior expert of McKinsey & Co.

There will be two separate fireside chats with Jonathan Wong, chief of technology and innovation at the United Nations Economic and Social Commission for Asia and the Pacific; and Rafaelita M. Aldaba, undersecretary for the Competitiveness and Innovation Group at the Department of Trade and Industry.

For the “Ask the Expert segment,” Patricia Buenaventura Nichol, an expert partner for Hong Kong at Bain & Co., and Florian Hoppe, partner and head of Bain’s digital practice in Asia-Pacific will share their insights on digital consumers.

The BusinessWorld Virtual Economic Forum 2021 will be hosted on an interactive platform that will open networking opportunities for attendees.

The entire two-day forum will be hosted by Regina Hing, business news editor of Cignal TV, Inc.

Registration for the BusinessWorld Virtual Economic Forum 2021 is now open at www.bworldonline.com/BWVEF2021.

BusinessWorld Virtual Economic Forum 2021 is made possible by Gold sponsors: LT Group, Inc., Globe Telecom, Inc. and AG&P; Silver sponsors: Aboitiz InfraCapital, Inc., GT Capital Holdings, Inc., BDO Unibank, Inc. and SM Investmens, Inc.; Bronze sponsors: Maynilad Water Services, Inc., Manila Electric Co., SGV & Co., McDonald’s and Robinsons Supermarket; and with the support of Asia Society Philippines, British Chamber of Commerce of the Philippines, French Chamber of Commerce and Industry in the Philippines, Management Association of the Philippines, Nordic Chamber of Commerce of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Franchise Association, Busybee, One News and The Philippine STAR.

For inquiries, please contact Shai Cordero through e-mail at marcom@bworldonline.com.

Price, valuation seen key as SPNEC secures nod on IPO

By Keren Concepcion G. Valmonte, Reporter

INTEREST in firms with environmentally relevant initiatives will draw investors to the P2.7-billion initial public offering (IPO) of Solar Philippines Nueva Ecija Corp., (SPNEC) but its final price and valuation will be more closely watched, analysts said.

Both the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC) have approved of the planned public offering, SPNEC said in an e-mailed statement on Friday.

Net proceeds from the IPO will be used by the renewable energy (RE) company to partly finance the first phase of its 500-megawatt (MW) solar project. Construction is expected to begin before the end of 2021.

“We thank the PSE and SEC for approving this IPO, which aims to give the public a new option to invest in RE and increase the RE capacity of the Philippines,” Solar Philippines Founder Leandro L. Leviste was quoted in the statement.

Analysts said the IPO might be attractive to investors, given the current interest in investing in firms that have strong ESG (environmental, social, and governance) businesses or initiatives.

“The Solar [Philippines] IPO would potentially create some market interest or excitement, being part of the renewable energy story theme, in view of the ESG compliance observed by some local and global investors in recent years,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message on Saturday.

Meanwhile, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan noted that RE is now a “much-sought power source.”

“RE as a source of electrical power are a much-sought power source at these times due to the harmful effects of fossil or carbon related fuels in the environment,” Mr. Pangan said in a text message on Saturday.

“Aside from this, demand for power remains critical as seen even during [these] pandemic times and especially post-pandemic wherein strong economic growth will be [experienced],” he added.

Analysts said that the attractiveness of the offer will be dependent on the IPO’s final offer price and valuations.

“The markets would also look at the company’s fundamentals and valuations, relative to other renewable energy companies in the country as well as in other ASEAN or Asian countries,” Mr. Ricafort said.

The exchange said in a notice on Friday that it approved the listing of up to 8.12 billion common shares, inclusive of IPO shares, of SPNEC. The Leviste-led energy firm plans to offer up to 2.7 billion common shares to the public for as much as one peso per offer share.

According to its preliminary prospectus dated Nov. 12, the company may net up to P2.59 billion from the offer. It plans to use P1.003 billion of the net proceeds to fund the 50-MWdc (megawatt-direct current) “Phase 1A” construction and development of its 500-MW solar project.

SPNEC plans to spend around P200 million for the construction of an approximately 10-kilometer (km), 230-kilovolt (kV) transmission line, which will be used by the entire plant to service the full 500-MWp (megawatt-peak) target capacity.

The company said the line will traverse Cabanatuan City and Santa Rosa and Peñaranda towns in Nueva Ecija.

“Phase 1A is expected to commence operations in 2022,” SPNEC said. “The company also intends to commence construction of the transmission lines in the last quarter of 2021, and complete it by the commercial operations date of Phase 1A in 2022.”

Meanwhile, P23 million has been earmarked for its lease expenses for fiscal year 2022 “over project lands and for leases on the right of way.”

SPNEC said it aims to start the operations of Phase 1A “sooner” so the company can use cash flows from the business to additionally finance the construction of Phase 1B and Phase 2 of the project.

“At this time, the total project cost for Phase 1 is P4.875 billion, approximately 25% of which will be funded via equity and the remaining 75% will be funded via debt,” SPNEC said.

“At this time, the total project cost of the company’s 500-MWdc solar PV (photovoltaic) power project is estimated to cost around P11.906 billion, inclusive of estimated financing and capitalization costs and value added taxes, but are exclusive of any IPO-related fees and expenses,” it added.

On the other hand, P33 million is earmarked for general corporate purposes.

The company said “any amount in excess of” P1.332 billion will be used to acquire land for future expansion of the project. SPNEC has yet to “identify and finalize the exact location” and it will also “finalize the agreements with various yet to be identified landowners subject to due diligence.”

“The project’s future expansion areas may be located outside the area blocked off under the existing SESC (solar energy service contract), in which case the Company will process the necessary amendment to ensure existing SESC will cover future expansion areas (as permitted under the rules of the Department of Energy, secure the relevant government permits or approvals therefore (as may be necessary)) and secure corporate approvals therefore,” SPNEC said.

The PSE said the “conduct of the IPO and the listing of the company’s shares is subject to its compliance with all of the post-approval conditions and requirements of the Exchange.”

It is said to be the first time that a firm has been given the green light to list under the Supplemental Listing and Disclosure Requirements for Renewable Energy (RE) Companies, which was approved by the PSE in 2011.

The rules are said to allow “development-stage project companies” to list at the local bourse. However, they are subjected to certain requirements such as having a valid and subsisting service contract awarded by the Department of Energy (DoE).

Solar Philippines incorporated SPNEC in 2016 and scored a DoE service contract for the project in 2017.

“I am pleased that the PSE can support a renewable energy company with its fund-raising requirements,” PSE President and Chief Executive Officer Ramon S. Monzon said in a separate e-mailed statement on Friday.

“The need for RE is more amplified now as more companies are turning to RE as part of their climate action program.

SPNEC aims to conduct its offer period from Dec. 1 to 7, while its listing on the main board of the local bourse is tentatively slated for Dec. 17. The company aims to list under ticker symbol “SPNEC.”

The company has assigned Abacus Capital and Investment Corp. to be the issue manager and leader underwriter of the offer, while Investment Capital Corp. of the Philippines was engaged as a participating underwriter.

US court expected to decide on PAL reorganization plan next month

REUTERS

By Arjay L. Balinbin, Senior Reporter

THE United States Bankruptcy Court for the Southern District of New York is expected to decide next month on either to approve or reject the reorganization plan of flag carrier Philippine Airlines, Inc. (PAL).

“[T]he hearing at which the court will consider confirmation of the plan (the confirmation hearing) will commence on Dec. 17, 2021 at 10 a.m., prevailing Eastern Time before Honorable Shelley C. Chapman, United States bankruptcy judge,” a hearing notice dated on Nov. 12 said.

An industry source told BusinessWorld in a phone message on Nov. 11 that “if [the confirmation of plan hearing] goes well, this will pave the way for emergence from Chapter 11.”

The deadline for filing objections to the plan is Dec. 10, according to a copy of the notice from the airline’s claims agent Kurtzman Carson Consultants LLC.

As part of its plan, PAL intends to exit unprofitable markets and continue to fly on those routes that are, or can be made, profitable, while reintroducing capacity in line with evolving demands.

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

It expects an operating income of $220 million in 2022 and $364 million in 2023, the airline said in its plan of reorganization.

The airline filed a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York on Sept. 3.

In September, PAL officials expressed confidence that the flag carrier would exit the Chapter 11 process before the end of the year.

PAL Holdings, Inc. (not included in the Chapter 11 filing) had said that billionaire Lucio C. Tan’s private firm Buona Sorte Holdings, Inc. (BSHI) would inject “fresh and additional capital” amounting to P12.75 billion ($255 million) into the listed parent company of PAL.

BSHI would also provide a five-year loan of $250 million to PAL.

PAL Holdings trimmed its third-quarter attributable net loss to P5.28 billion from a loss of P7.92 billion in the same period a year ago.

Its gross revenue for the quarter climbed 66.7% to P14.12 billion from P8.47 billion previously.

For the nine months to September, PAL Holdings’ attributable net loss was reduced to P21.83 billion from a loss of P28.85 billion last year. Gross revenue went down by 29% to P32.16 billion from P45.29 billion previously.

The company’s consolidated operating expenses as of the third quarter of the year decreased to P42.75 billion or 36.7% lower than last year’s same period total of P67.52 billion, mainly due to the significant reduction in the number of flights operated.

PAL Holdings said expenses related to grounded aircraft, which were recognized this year under other charges, as well as lower manpower costs as a result of PAL’s retrenchment program in mid-March of the current year contributed to the decrease in operating expenses.

A tough time(piece)

A TOUGH new watch by Tudor was created with a collaboration with the French Navy’s combat swimmer unit, the Commando Hubert.

The new watch, launched in a press conference last week, is called the Pelagos FXD. It is a diver’s watch, waterproof up to 200 meters, with grade X1 Swiss Super-LumiNova luminescent material filling.

“We never lose track of time, even in the darkest of nights,” the company said in a presentation.

The glowing markers on the hands and around the dial are surrounded by a bidirectional rotatable bezel in titanium with a ceramic insert. The dial itself is in matte blue, and the piece is powered by the Manufacture Calibre MT5602, certified by the Official Swiss Chronometer Testing Institute (COSC) with a silicon balance spring and a 70-hour power reserve. This particular movement exceeds the standards set by the COSC. The COSC allows an average variation in the daily running of a watch of between -4 and +6 seconds in relation to absolute time in a single movement; but the Manufacture Calibre MT5602 insists on a variation between -2 and +4 seconds in its running when it is completely assembled.

The watch is worn with either a navy blue fabric strap, or else a one-piece rubber strap.

The watch has a 42mm satin-brushed titanium case with fixed strap bars, machined from a single block of titanium. “There can be no weak point,” said the company.

The case back is engraved with the Marine Nationale (French Navy) logo and the inscription “M.N.21” (Marine Nationale 2021), inspired by the original engravings of the 1970s and ’80s.

The new watch isn’t the first collaboration between the brand and the French Navy: back in 1956, the Groupe d’Étude et de Recherches Sous-Marines (G.E.R.S.), a scientific body attached to the French Navy and based in Toulon, took delivery of some Oyster Prince Submariner watches in order to assess them in real-life situations. They were references 7922 and 7923, both waterproof to 100 meters (330 ft) and fitted with self-winding and manual movements, respectively. The waterproofness of these watches was judged to be “perfect” and their performance “entirely correct” by the G.E.R.S. commanding officer at the time. Persuaded by the potential of the instruments offered by the brand, they quickly placed more orders, enabling TUDOR to attain the status of “official supplier to the French Navy” in 1961.

The most famous Tudor divers’ watch used by the French Navy is the reference 9401, with a blue dial and bezel. This model was launched in the mid-’70s and was supplied to the French Navy until the 1980s. It continued to be used into the 21st century, particularly at the French Navy’s diving school, as well as by combat swimmers. According to a statement, “Although officially removed from the French Navy’s supply stocks some 20 years ago, it can still be seen sometimes today on the wrists of reserve and retired sailors alike.”

Tudor is available in boutiques in Bonifacio Global City, Trinoma, SM Mall of Asia, Okada, City of Dreams, Shangri-La Plaza, The Podium, Makati, and Cebu. — J.L. Garcia

PLDT expects ‘big growth’ in 2022

BW FILE PHOTO

PLDT, Inc. on Sunday said it anticipates “big growth” in the coming year, as it expects to surpass its one million new fiber customers target for this year.

“We are in a position of strength both in the home and enterprise segments, and are determined to stay head,” PLDT and Smart Communications, Inc. President and Chief Executive Officer Alfredo S. Panlilio said in an e-mailed statement.

“We have new ports coming in that will enable our Home team to offer our services to all Filipinos that remain unserved. As this continues to be a huge demand, we look forward to big growth as well next year,” he added.

PLDT said it breached the 800,000 new installations mark as of end-September.

Its Home business saw more than 324,000 new fiber customers in the previous quarter.

“Demand for easy installation and reliable connectivity at home continues to drive PLDT’s Home business growth streak as more customers adjust to the digitalization of hybrid work and school setups,” PLDT noted.

The telco’s fiber footprint now spans over 615,000 kilometers, with over 12.7 million homes passed and 5.3 million ports ready for service.

As of the third quarter, PLDT’s attributable net income declined 4.6% to P18.8 billion from P19.7 billion a year ago.

PLDT’s telco core income, which excludes the impact of asset sales and Voyager Innovations, climbed “10% year on year, or P2.1 billion, to P23.1 billion in the first nine months of 2021, helped by lower tax rates,” the company said in a statement.

PLDT Home saw its revenue increase 25% to P35.3 billion for the January-September period. Its third-quarter revenue went up 29% to P12.6 billion.

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. — Arjay L. Balinbin

Shopee’s 11.11 sale sets new record of over 2 billion items sold

Shopee said 5 million hours of live streams were watched on Shopee Live during the 11.11 Big Christmas Sale, which included a performance by the K-Pop boy band, NCT 127.

One Pinoy shopper spent over P466,000

FILIPINOS have a reputation as being serious shoppers, and one particularly serious shopper spent over ₱466,000 during Southeast Asian e-commerce site Shopee’s 11.11 Big Christmas Sale. The company said that in a single order, the Quezon City-based shopper bought motorcycle parts, electric tools, game consoles, smartphones, and tablets.

That serious shopper was just one of many as Shopee announced that it had set two new records at its recent 11.11 online shopping festival: over 2 billion items were bought by shoppers across the region, which includes Taiwan, during the festival period, smashing its previous record in 2020; and shoppers’ visits spiked 5.5 times within the first two hours of Nov. 11 compared to an average day.

In the Philippines, the 11.11 Big Christmas Sale attracted more shoppers from outside the metro, Shopee said, with most orders in the country coming from South Luzon, followed by Metro Manila.

“It brings us great joy to see the impact of our 11.11 Big Christmas Sale on shoppers, businesses, and our local communities,” said Martin Yu, Director at Shopee Philippines, in a statement. “The digital economy continues to present many opportunities for growth, and we want to enable more people to benefit from this growth by increasing e-commerce adoption and helping more consumers and businesses go online. At the same time, we are humbled that we can use our platform to give back to the wider community and support those in need. We look forward to creating more impact for our users in the months ahead.”

According to the Shopee statement, the sale saw the number of shoppers from rural and smaller towns increase five times when compared to a regular day. It also said that more than 3.5 billion messages were sent on the in-app Shopee Chat on Nov. 11, “as shoppers were able to interact live with sellers and get more information prior to making their purchases.”

It also noted that more shoppers used ShopeePay to pay for their Shopee orders across the region, “especially outside big cities where ShopeePay transactions grew nine times from an average day,” it said in a statement.

Local sellers who had joined the 11.11 sale for the first time “saw their orders surge 18 times compared to an average day,” said the statement.

The e-commerce company noted that Filipinos “have consistently prioritized health essentials and home decor during Shopee’s past sales, and the 11.11 Big Christmas Sale was no different.” Shoppers stocked up with 3 million face masks and bought over 800,000 wallpapers, it pointed out.

The brands that attracted the most orders among Filipinos during the sale were Uni-Care, Unilever Beauty, Xiaomi, NIVEA, and INSPI.

Aside from the bargains, the 11.11 sale also included entertainment, notably live-streaming of the K-Pop boy band NCT 127, among others. The site said 5 million hours of live streams were watched on Shopee Live during the sale, and that over 270 million plays were recorded on Shopee Prizes in the Philippines.

Over 1.2 million offline payment vouchers were claimed through ShopeePay “Deals near Me,” Shopee’s location-based feature, it said. Almost 100,000 users used ShopeePay to pay their utility bills, taking advantage of rewards in the form of cashbacks, it noted.

Globe aims to launch more potential unicorns

GLOBE Telecom, Inc. said the success of GCash operator Globe Fintech Innovations, Inc.’s (Mynt) latest funding round motivates the company to launch more potential unicorns in the near future.

“We believe that our strategy to use the telco business as a platform to become a digital solutions group by exploring adjacencies in high-growth areas such as fintech (financial technology), healthtech (health technology), adtech (advertising technology), and e-commerce, among others, will embolden us to launch more potential unicorns in the near term and pave the way for us to become a leader in the digital space,” Globe President and Chief Executive Officer Ernest L. Cu said in a statement on Friday last week.

Globe recently announced that Mynt had raised over $300 million in fresh funding, bringing its valuation to more than $2 billion (double unicorn status).

GCash now has more than 51 million registered users, 3.9 million digital touchpoints, over 94,000 cash-in and cash-out agents, and more than 750 billers.

Globe said GCash is on track to triple its gross transactions handled to P3 trillion this year from the record P1 trillion reported last year.

The telco saw its attributable net income for the third quarter increase 11.8% to P4.91 billion from P4.39 billion in the same period a year ago.

Total revenues for the period grew 3.8% to P38.09 billion from 36.68 billion previously.

“The rising data consumption and broadband usage in the country remains the biggest driver for this period’s improved topline,” Globe said.

“Total data revenues accounted for 80% of total service revenues from 76% last year,” it added.

As of September this year, the telco’s attributable net income increased 12.8% to P17.90 billion from P15.87 billion in the same period in 2020.

Total revenues for the January-to-September period grew 4.1% to P113.55 billion from P109.10 billion in the previous year.

Globe Telecom shares closed 1.15% lower at P3,430 on Friday. — Arjay L. Balinbin

Will the perfect men’s dress ever exist — and would men wear it?

HARRY STYLES wears a Gucci jacket and dress. — VOGUE.COM/ PHOTOGRAPHED BY TYLER MITCHELL

MORE famous men are wearing dresses: from actor Billy Porter on the red carpet to singer-songwriter Harry Styles on the cover of Vogue. They have prompted much commentary, both positive and negative, leading fashion commentators to ask if frocks might become a regular part of men’s sartorial landscape.

At this year’s Met Gala, racing car driver Lewis Hamilton wore a white lace dress over a black suit and singer Troye Sivan wore a simple black gown. More recently, rapper Lil Nas X wore a purple suit with a matching train to the MTV Video Music Awards and a Cinderella-style gown at an earlier award ceremony.

The trend signifies a return to ancient sartorial norms, when more androgynous clothing was accepted and, indeed, required.

Such clothes were not “dresses” as we understand them today: the dress is a garment that has become indelibly “feminine.” But could skirts and dresses become mainstream garb for 21st century men beyond these celebrity trailblazers?

Our contemporary construct of masculinity is, of course, relatively recent. Until the early 20th century, boys and girls wore dresses until boys were “breeched” (put into breeches or “short trousers”) at around seven years old.

Pink was a manly color, and it was almost impossible to tell boy and girl toddlers apart.

Before the 15th century, much clothing for men and women was fairly androgynous, particularly outside Europe — where in many cultures this continues today.

Japanese kimono are robes with only subtle hints at gender difference. In parts of North Africa, the jellabiya — a long, loose robe perfect for the warm climate — is worn daily by men and women.

Ancient Egyptian men, including pharaohs, wore the schenti, a wrap skirt similar to a kilt. This garment was so practical and versatile it remained popular for over 2,000 years.

Ancient Greece and Rome saw universal wearing of the tunica, a simple gown that was shorter and looser for men, but constructed the same way for both sexes.

The elite wore longer chiton and toga, which could be more elaborately accessorized to indicate the wearer’s gender. In these societies, the higher a man was on the social ladder, the longer his gown.

Divided garments (not then known as “trousers”) were generally worn only by soldiers and the working class. To ancient Greeks and Romans, leg coverings were more representative of the barbarian than powerful, civilized men.

From 800 AD, bifurcated (divided, two-legged) styles slowly emerged in the Christian world, propagated by the medieval emperor Charlemagne as a way of linking physicality and aggression with new European concepts of “manliness.” Such garments later came to symbolize (male) control and authority.

This was a gradual process, however. In medieval Europe, men and women wore long, layered clothing and tunics until the slow advent of tailoring in the 1400s. Even armor, the most “macho” of male attire, could still feature a metal “skirt” pleated similarly to contemporary tunics.

From the 15th century on, shorter tunics took hold for men, beneath which they could wear hose or stockings and, later, breeches.

Aside from brief outlier trends, (for example the lampooned and short-lived “petticoat breeches”) men’s hemlines continued to move north.

The advent of stockings and a codpiece and, until the 1820s, relatively tight-fitting pants for men, acted as a non-verbal reminder of their political and economic power.

This was in stark contrast to the treatment of women’s legs, which as one writer put it in 1818:

although dressed, are […] immediately connected with parts which are not, and which decency strictly conceals from view.

Women fought for a long time to wear trousers, making discreet strides in the adoption of bloomers as underwear in the 19th century. While gradually accepted as trouser-wearers in the early 20th century (and in the professional realm from the late 1960s), the same freedom of clothing choice has not been given to men.

For women, wearing trousers represented physical freedom, making certain jobs — and therefore, financial freedom — easier. Men do not have that same need, in a practical sense, to adopt dresses.

Arguably, a dress does not make any aspect of life easier, but it does allow an individual to express themselves in different ways. Restricting this suggests repression of far more than physical movement.

It could be argued that since the 18th century, (in the west at least), men have played second fiddle to women in terms of glamour and excitement in clothing. Contrary to popular belief, it was generally women who imposed what we now see as extravagant and restrictive sartorial customs, such as the cage crinoline. For many women, fashion was the one area of life over which they had some control.

During the 19th century, an era famously described by psychologist Carl Flugel as the “great male renunciation” of brilliant fashion, men had eye-wateringly little choice of garments compared to women. The monopoly of the (male) suit has perhaps been a result of this one-sidedness. Promoting dresses for men could redress the imbalance.

If dresses are to become a genuine part of menswear once again, we need first to establish what differences, if any, there will be with women’s. How will the fit be determined? How will they be worn?

This is not necessarily the same as producing androgynous or gender fluid clothes. It is about dresses that will allow men, who wish it, to still feel masculine — as trousers can make women feel feminine.

While fashion slacks were often made to conform to a woman’s body (putting aside utilitarian and wartime uniforms) there seem to be very few dresses made exclusively for the male physique.

Billy Porter’s velvet tuxedo gown worn to the 2019 Oscars was an exception. A hybrid male and female garment, it used black to create a link to contemporary womenswear, and men’s traditional evening wear. Crafted by designer Christian Siriano, it consisted of a tuxedo-style bodice with voluminous, ballgown skirt.

This dress was elite rather than mainstream fashion, created exclusively for Mr. Porter. Mr. Styles’ ethereal Gucci number on the Vogue cover is likewise hardly accessible to the everyday consumer, demanding a high level of confidence to pull off.

The same can be said of frocks and frock-spirations chosen by Carl Clemons-Hopkins at the 2021 Emmys and Queer Eye’s Jonathan Van Ness at the Creative Arts Emmys in 2018.

As Oscar Wilde put it when discussing women’s dress reform in the 1880s:

If the divided skirt is to be of any positive value, it must give up all idea of being identical in appearance with an ordinary skirt … [it must] … sacrifice its foolish frills and flounces.

Perhaps men’s dresses should aim for that same end: not to masquerade as anything else, but to take on a life of their own as new, separate garments.

Examples such as Mr. Porter’s and Mr. Styles’ frocks prompt intrigued debate. Other examples of men wearing dresses are usually associated with transvestism or those undergoing gender reassignment.

Huge progress over the past few decades has made their visibility and acceptance far more widespread, along with gender fluid and queer identity becoming a regular part of the fashion landscape, thanks to designers such as Harris Reed, Telfar Clemens, and Charles Jeffrey Loverboy. Each, in their own way, are creating and championing fluid fashion, showing the world how it can be done.

However, we are not yet at the point where most men would consider a dress a viable option, or where a man wearing a dress would not provoke assumptions around sexuality or gender identity. We also seem to be at a crossroads in terms of how men in dresses are received by different communities.

A controversy arose earlier this year when cisgender man, the rapper Kid Cudi, performed on Saturday Night Live wearing a dress intended to pay tribute to Kurt Cobain.

In 1993, Mr. Cobain had boldly donned a similarly patterned, but shorter frock on the cover of The Face magazine, attracting considerable backlash.

In 2021, wearing a fuller, longer, more classically “feminine” style, Mr. Cudi was met largely with praise. However, some commentators — particularly those from the LGBTQI community — felt his choice was nothing but a “costume” worn by a performer.

Some pointed out that what was a publicity stunt for him amounted to a “life and death” decision, for which trans people have been severely bullied. The reality is that however casually a man might wear a dress, and whatever his motivations for doing so, the choice is fraught with political, emotional and social ramifications. It will be commented on and judged, positively or negatively.

Earlier this year, singer Post Malone’s stylist Catherine Hahn put the singer in a dress, another tribute to Mr. Cobain.

The success of this outfit inspired her to create “a unisex dress that could be worn every day. To work, to school, to skateboard in, or on a date.” The result is a calf-length, oversized plaid shirt that recalls ’90s grunge styles and certainly offers a fun, fresh, casual option for men.

However, it is still unisex, rather than aimed specifically at men. Its shirt-like cut makes it a familiar, non-threatening segue for those wishing to experiment with dresses. This style is the closest we have seen to a potentially mainstream, workable male frock option.

Dresses are likely to remain a novelty for many men, a defiant show of bravery and individuality akin to the female pioneers of the rational and aesthetic dress movements of the 19th and 20th centuries.

Mind you, during this pandemic, there has been a surge in male skirt designs by the likes of Burberry and Stefan Cooke.

Many of these take inspiration from the traditional “man skirt,” the kilt. But longer, calf-length, pleated and A-line examples have been championed too. More men may have felt comfortable experimenting with a skirt or dress during the privacy of lockdown.

The year 2020 was a seismic shift in life as well as fashion. But given the highly gendered and ingrained nature of clothing codes, it seems unlikely we will see men’s dresses go mainstream anytime soon.

 

Lydia Edwards is a Fashion historian at the Edith Cowan University.

Megawide cuts net loss as projects’ operations normalize

MEGAWIDE Construction Corp. managed to cut its attributable net loss to P218.91 million for the third quarter from a loss of P321.16 million in the same period last year, as operations of ongoing projects started to normalize and continued to ramp up due to the start of newly awarded projects.

In a stock exchange filing on Nov. 12, Megawide said its total revenues for the third quarter increased by 40% to P3.92 billion from P2.80 billion in the same period in 2020.

Meanwhile, attributable net loss for the first nine months of the year was cut to P80.80 million from a loss of P610.79 million previously.

“From quarantine restrictions imposed by the government on March 16, 2020, construction segment slowly transitioned to normal levels starting third quarter of 2020,” Megawide noted.

It also said that operations of projects continued to ramp up this year due to the start of newly awarded projects such as Suntrust Home Developers’ Suncity West Side City project, Megaworld’s Newport Link project, and the Department of Transportation’s Malolos Clark Railway Phase 1 project.

Direct costs for the period amounted to P9.46 billion and were higher by 27% or P2 billion. 

“The movement was consistent with the revenue performance across all three segments, taking in consideration fixed costs and depreciation expenses despite reduced passenger volumes and lower occupancy rate at the airport and landport terminals,” Megawide said.

The company also saw its total tax expense increased this year due to the improvement in the operations of the construction segment.

“Tax expense under construction increased by P248 million due to the net income recognized for the period, as compared to the net loss incurred last year,” it said.

“This is offset by the decrease in tax expense in the landport segment, which is directly related to the decrease in its net income, and the reduction in tax rate from 30% to 25% under the CREATE (Corporate Recovery and Tax Incentives for Enterprises) law,” Megawide added. — Arjay L. Balinbin

From Olympic medalists to agile businesswomen to pantry organizers: PeopleAsia honors ‘Women of Style and Substance’

HIDILYN DIAZ

WOMEN from the fields of business, politics, entertainment, and now, sports, were given the PeopleAsia Women of Style and Substance Award for 2021.

The event was held on Facebook Live last week, with performances by Jon Joven and Pops Fernandez (who was an awardee herself). Joining Ms. Fernandez as an awardee from the entertainment sector was actress, chef, and restaurateur Judy Ann Santos, for providing employment during the pandemic through her restaurants, as well as providing homemade face shields to frontliners.

From the fields of law and politics, the award was given to Justice Undersecretary Emmeline Aglipay Villar (her battle against online child sexual exploitation has managed to convict 220 perpetrators), Biñan Representative Len Alonte Naguiat, and Representative Stella Quimbo of the 2nd District of Marikina. Aside from being its first female representative, elected in 2019, she was commended for her role in the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) Bill.

In the field of business, the award was given to Wildflour president and CEO Ana Lorenzana De Ocampo (for her successful pivot during the pandemic), and Casa Bella director Stephanie Coyiuto-Tay. Two skincare CEOs made the cut with Glenda Victorio (Brilliant Skin Essentials president and CEO), and Maricor Monton Flores (South Care Cosmetics Manufacturing. Inc. founder and CEO).

Hilton Manila Commercial Director Joanne Golong Gomez also received the award for also helping the Hilton hotels in Manila pivot during the pandemic — all while dealing with her daughter’s cancer diagnosis.

Martha Sazo, the CEO and President of Mynt-Globe Fintech Innovations (behind GCash) was commended for expanding the mobile wallet service, now boasting usage among 40 million Filipinos, including 2.5 million sellers.

An award was also given to Ana Patricia Non, the founder of the Maginhawa Community Pantry, an initiative where people donated goods for others in need to take during the pandemic. Ms. Non’s initiative has sparked similar actions throughout the nation, the magazine numbering the number of community pantries at more than 6,000. “Malaking bagay po talagang ma-recognize niyo po ang pagbabayanihan ng mga simpleng mamamayan. Kwento natin ito (It’s a big thing that you can really recognize the communal unity of ordinary people. Let’s tell this story),” she said in a pre-recorded speech, which saw her during a repacking of goods to be prepared and delivered.

Finally, a special award — The Woman of Strength, Style, and Substance Award — was given to Hidilyn Diaz. Ms. Diaz won the country’s first gold medal at the Tokyo Olympics 2020 for Weightlifting. “Thank you sa pagpapahalaga sa aming mga Filipino athletes at mga kababaihan. Tayo po ay mahusay, matatag, at magaling (Thank you for appreciating our Filipino athletes and women. We are excellent,  steadfast, and good).” — J.L. Garcia

Rates of Treasury bills may move sideways ahead of RTB offering

BW FILE PHOTO

RATES of Treasury bills may move sideways with an upward bias in Monday’s auction ahead of the start of the government’s retail bond offer.

The Bureau of the Treasury (BTr) plans to raise P15 billion via the Treasury bills (T-bills) it will auction off on Monday, or P5 billion each from 91-, 182- and 364-day debt papers.

“Yields of T-bills will continue to move sideways with a basis point (bp) upward bias across tenors. Dealers and investors will now gear up for the government’s 26th retail Treasury bond (RTB) offering where efforts and bulk of the demand will be concentrated in the said offering,” a bond trader said in a Viber message.

“We may see the coupon for the 5.5-year RTB be set to an indicative range of 4.500% to 4.750%.”

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said T-bill yields could be slightly higher following the higher rates fetched for the central bank’s 28-day bills on Friday amid inflation concerns.

“Continued excess liquidity in the financial system would also temper any uptick in T-bill auction yields,” he said. “The upcoming RTB offering could take some of the excess liquidity in the financial system and could add to supply of government securities.”

He said the RTB’s coupon could be around the 4% level, close to the latest five- and six-year secondary market yields.

The BTr will offer 5.5-year RTBs to raise at least P30 billion ($603 million), with a swap offer for bonds falling due in 2022, it said on Friday.

The bond offer will be launched on Nov. 16 and follows the government’s first onshore retail dollar bond issue that raised $1.6 billion in September, helping boost funding for government programs to support the economy’s recovery.

The offer period is set to run from Nov. 16 to Nov. 26, unless the BTr closes it early. The papers will be issued on Dec. 2 and will mature by 2027.

The BTr will suspend the auction of five-year and seven-year Treasury bonds on Nov. 16 and 23 to give way for the offering.

With minimum investments for RTBs at P5,000, the Treasury is targeting small investors that want low-risk, higher-yielding savings instruments backed by the National Government.

At the secondary market on Friday, the 91- 182- and 364-day T-bills were quoted at 1.2133%, 1.4391% and 1.6575%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, the five- and seven-year T-bonds were quoted at 4.1571% and 4.6372%, respectively.

The BTr raised P15 billion as planned via the T-bills it auctioned off on Tuesday as the offer attracted P42.52 billion, almost triple the initial offer and higher than the P41.78 billion in bids logged in the previous auction.

Broken down, the BTr raised P5 billion as planned via the 91-day debt papers from P14.53 billion in bids. The three-month T-bills fetched an average rate of 1.143%, up by 1.3 bps from the 1.13% seen at the previous offering.

The BTr also borrowed P5 billion as programmed from the 182-day securities as tenders reached P15.26 billion. The average yield of the six-month debt paper rose 0.6 bp to 1.401% from 1.395% fetched a week earlier.

Lastly, the government made a full P5-billion award of the 364-day T-bills as the tenor attracted bids worth P12.73 billion. The average rate of the one-year instrument stood at 1.616%, up by 0.3 bp from the 1.613% a previously.

The BTr plans to raise P200 billion from the domestic market in November, or P60 billion via weekly offers of T-bills and P140 billion from weekly T-bond auctions.

The government wants to borrow P3 trillion from local and external sources this year to help fund a budget deficit seen to hit 9.3% of the country’s gross domestic product. — Jenina P. Ibañez