Home Blog Page 5975

AllDay’s IPO timing expected to gain from spending season

ALLDAY Marts, Inc.’s upcoming P6.03-billion initial public offering (IPO) is seen to benefit from the upcoming holiday season.

The Villar-led company has just secured regulatory approvals for its IPO. AllDay’s offer period starts on Oct. 18 and will run until Oct. 25, while its market debut is set for Nov. 3. under the ticker symbol, “ALLDY.”

“We just entered the ‘Ber’ months where the mood is typically upbeat as we head into the consumption-driven holiday season,” Alvin Joseph A. Arogo, vice-president and head of research at the Philippine National Bank (PNB), said in a statement on Thursday.

PNB’s research division is expecting the benchmark Philippine Stock Exchange index (PSEi) to close at the 7,490 to 8,100 range by yearend “on [the] expectation that the relatively low yield environment will allow earnings multiples to remain elevated.”

On Thursday, the PSEi closed at 6,952.88, up by 18.77 points or 0.27%.

“GDP (gross domestic product) growth starting the second quarter of 2022 will encourage positive sentiment and investors are looking forward to less strict pandemic curbs overall,” Mr. Arogo said.

Meanwhile, AllDay Chairman Manuel B. Villar, Jr. said the approval of the Securities and Exchange Commission and the Philippine Stock Exchange of AllDay’s IPO is “a strong indication of the stability of AllDay.”

“This brings us closer to our vision to bring to the investing public another pandemic resilient business that continues to rapidly grow amidst the coronavirus disease 2019 (COVID-19) pandemic.”

AllDay’s IPO aims to raise as much as P6.03 billion from the sale of up to 6.86 billion primary common shares for up to 80 centavos apiece, with an overallotment option of 685.71 million.

Proceeds from the offer will be used for debt repayment, capital expenditures and initial working capital for store network expansion.

As of end-June, AllDay has 33 stores, and the company aims to have 45 branches by 2022 and 100 stores by 2026.

The company assigned PNB Capital and Investment Corp. as the sole issue manager for the transaction. It will be joined by BDO Capital and Investment Corp. and China Bank Capital Corp. as joint underwriters and joint bookrunners for the transaction. — Keren Concepcion G. Valmonte

The Clash returns for a fourth season

THE SINGING competition The Clash 2021 returns for a fourth season on GMA.

After months of auditions, this season’s top 30 “Clashers” include eight contenders from Mindanao, 10 from around Luzon, 10 from Metro Manila, and two from the Visayas.

The singing competition’s judges — Lani Misalucha, Christian Bautista, and Aiai Delas Alas — return to the show in search for talent, unique style, and a cooperative and disciplined attitude.

Ms. Misalucha noted that she is straightforward with her judgement of every contestant’s performance. “Dapat makakatulong sa kanya ’yung sasabihin namin (The feedback we provide should help them),” she said during an online press conference on Sept. 28.

“When we critique one contestant, sana ’yung ibang Clasher, kunin nila ’yung [criticism] at gawin na nila, at baka makatulong sa kanila (When we critique one contestant, we hope the other Clashers take the criticism and apply it to themselves, and it may help them),” Mr. Bautista said.

Julie Anne San Jose and Rayver Cruz also return as “Clash Masters” of the onstage “battles,” while “Journey Hosts” Ken Chan and Rita Daniela cover all sides of the backstage action.

“There are so many talented people out there and they are all waiting to be seen and heard. Through The Clash, ito ’yung isa sa mga platforms na nagbibigay pag-asa at inspirasyon din sa mga aspiring singers and artists (Through The Clash, this is one of the platforms that give hope and inspiration to other aspiring singers and artists),” Ms. San Jose told the press.

Para ito sa mga singers sa buong Pilipinas. Meron silang venue para ipamalas yung talent na meron sila. (This is for singers around the Philippines. They have a venue to showcase their talent),” Mr. Cruz said.

During the show, the top 30 contestants will also be sharing their stories aside from singing.

The third season of The Clash ended in December with Jessica Villarubin declared as the grand champion. Ms. Villarubin follows in the footsteps of Golden Cañedo and Jeremiah Tiangco.

The Clash premieres on Oct. 2 at 7:15 p.m. on GMA-7. — Michelle Anne P. Soliman

House adopts Senate changes to water franchises

PHILSTAR

AMENDMENTS on bills by the Senate that would provide water concessionaires Manila Water Co., Inc. and Maynilad Water Services, Inc. a fresh 25-year franchise have been adopted by the House on Wednesday evening.

House Bill No. 9422 and 9423 would allow the two concessionaires to establish, operate and maintain a waterworks system, and sewerage and sanitation services in their franchise areas, including the right to bill and collect fees from consumers.

The bills were approved by the House on Aug. 4 and was unanimously approved by the Senate with amendments on Tuesday.

The bills would now be transmitted to Malacañang for the President’s signature as the bicameral conference committee would be skipped following the House’s adoption of the Senate amendments.

If enacted, Maynilad would continue operating in the west zone of Metro Manila including Cavite province, and Manila Water in the east zone including Rizal province.

Among amendments made by the Senate was a section that requires employment opportunities and on-the-job trainees in the water providers’ franchise operations.

It would also mandate water concessionaires to comply with their obligations under their franchise such as the concession agreement and existing laws including Republic Act No. 8371 or the Indigenous People’s Rights Act of 1997.

Also, it would require the independent directors elected into the concessionaires’ board of directors to have at least three years of experience in water security, water science policy and management, environmental science, or any other similar fields.

The two companies would also be required to submit annual progress reports and completion plan for establishment and operation of water, sewerage, and sanitation projects until 2037, including five-year completion targets to Congress and the Metropolitan Waterworks and Sewerage System (MWSS).

Failure to accomplish annual progress reports to Congress would face a fine of P1 million for each working day of noncompliance.

Manila Water and Maynilad signed their revised water concession contracts with the government through the MWSS on March 31, 2021 and May 18, 2021, respectively.

The approval of the bills has been criticized by some House lawmakers as they were swiftly passed without any debate on the provisions of the new concession agreements.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Russell Louis C. Ku

Lending grows in Aug. after eight months of decline

BANK LENDING recovered in August to register its first annual growth after eight straight months of decline, backed by a rise in production loans and reflecting the transmission of the regulator’s rate cuts in 2020.

Outstanding loans issued by big banks grew by 1.3% year on year to P9.487 trillion in August, based on preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday. This is a turnaround from the 0.7% decline in July.

The growth in lending logged in August is also the fastest in 10 months or since the 1.8% expansion in October 2020.

Inclusive of reverse repurchase agreements, outstanding loans rose 1.6% year on year in August.

Month on month, outstanding loans by big banks increased 1.1% on a seasonally adjusted basis, the BSP said.

“This is the first reported expansion in outstanding loans of big banks after eight consecutive months of contractions, amid improvements in sentiment brought about by the continued rollout of coronavirus disease 2019 (COVID-19) vaccines and the gradual easing of quarantine restrictions,” BSP Governor Benjamin E. Diokno said at an online briefing on Thursday.

Loans for production activities rose at a quicker pace of 3.1% in August from 0.8% the month prior. This was fueled by expansion in credit disbursed for real estate activities (7.2%); information and communication (20.3%); manufacturing (3%); professional, scientific and technical activities (89.8%); and transportation and storage (9.5%).

However, this was tempered by the decline in loans to other sectors, including those for agriculture, forestry and fishing (-6.8%); wholesale and retail trade and repair of motor vehicles and motorcycles (-2%); and activities of households as employers, undifferentiated goods and services (-25.5%).

Meanwhile, consumer loans continued to contract, going down by 8.1% year on year in August from the 8.2% decline in July. Credit to all retail segments fell, led by motor vehicle loans, which dropped by 15.6%. This was followed by salary-based (-5.7) and credit card loans (-1.4%).

The lending growth seen in August reflects the delayed transmission of the BSP’s policy actions, Security Bank Corp. Chief Economist Robert Dan J. Roces said. The central bank last year cut rates by 200 basis points (bps) to provide support to the economy amid the pandemic.

“The turnaround in bank lending…lands right when the BSP said it would, which is a nine-month lag from the last rate cut. This means the monetary policy levers are right where they should be to support economic recovery,” Mr. Roces said in a Viber message.

“Production loans have been observed to be gradually improving since the start of the second half of 2021, and as such [it provides] a green shoot to growth via capital expansion of firms despite the pandemic,” he added.

Meanwhile, Asian Institute of Management economist John Paolo R. Rivera said the decline in retail loans shows muted consumer demand amid the pandemic.

“Loan growth may remain unpredictable and uncertain because it tends to move with the situation, which is currently still very fluid,” Mr. Rivera said in a Viber message.

M3 GROWTH PICKS UP
Meanwhile, domestic liquidity grew at a quicker pace in August, supported by the expansion in bank lending.

M3 — which is considered as the broadest measure of cash in an economy — expanded by 6.9% year on year in August, picking up from the 5.9% in July, BSP data released on Thursday showed.

On a seasonally adjusted basis, it inched up 1.2% month on month.

Domestic claims rose 6.7% in August, quicker than the 4.5% print seen the previous month. This was backed by the expansion in net claims on the central government as well as the continued improvement in bank lending to the private sector, the BSP said.

Net claims on the central government went up by 23.5% in August from an 18.5% expansion in July on the back of sustained borrowings by the National Government.

Meanwhile, claims on the private sector, driven by lending to nonfinancial private firms, rose 2.3% that month from 0.4% in July.

Net foreign assets (NFA) in peso terms grew 9.7% in August from 11.6% in July.

“The expansion in the BSP’s NFA position reflected the increase in the country’s gross international reserves relative to the same period a year ago. Meanwhile, the NFA of banks declined as banks’ foreign liabilities increased on account of higher deposits and placements made by foreign banks with their local branches,” the central bank said.

The pickup in M3 growth shows the ample liquidity in the financial system, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in Viber message.

The BSP infused some P2.2 trillion into the financial system through various policy measures, which is equivalent to about 12.1% of gross domestic product.

The central bank is optimistic that its current policy settings will support the economy’s rebound. The BSP last week kept benchmark rates steady amid the surge in infections due to the Delta variant.

“Together with the National Government’s fiscal and health interventions, the BSP’s prevailing accommodative monetary policy stance should help boost domestic demand and market confidence in support of economic activity,” the BSP said.

“Looking ahead, the BSP will keep a steady hand on its policy levers in support of the National Government’s ongoing initiatives to allow the momentum of economic recovery to gain more traction. Going forward, the BSP will continue to ensure that liquidity dynamics remain supportive of domestic demand and economic activity, in line with the BSP’s price and financial stability objectives,” it added. — Luz Wendy T. Noble

Stuff to do (10/01/21)

The Manila International Book Fair goes online

THE MANILA International Book Fair (MIBF) returns online from Sept. 30 to Oct. 4. Browse through a variety of book genres from over 30 publishers and enjoy up to 80% off on selected title. Visit and register at www.manilabookfair.com.

Free films at the Spanish Film Fest

THE INSTITUTO Cervantes de Manila will be showcasing a total of 20 films — four short films and 16 contemporary Spanish and Latin American feature films — at this year’s PELÍCULA Spanish Film Festival, which will be held online for a second year.  All the films will be available for free streaming with English subtitles at www.pelikula.es within 48 hours from their scheduled release. The online film festival will run from Oct. 1 to 10 at www.pelikula.es.

All-Filipino films at the FDCP Channel

ONE hundred Filipino Films are available for streaming beginning Sept. 30 at the Film Development Council of the Philippines (FDCP) website. Register at https://fdcpchannel.ph and subscribe for P99 a month. The subscription is available to users in the Philippine territory only.

European Higher Education Fair goes online

THE 2021 EUROPEAN Higher Education Fair (EHEF) goes online once again on Oct. 1 and 2. With the theme “Go Higher with the EU,” the EHEF will give Filipino students, academicians, researchers, and university officials the opportunity to connect directly with world-class higher education institutions from across the European Union (EU). EHEF 2021 consists of 140 European higher education institutions offering MAs and PhDs from this year’s participating EU member states. The two-day fair will have activities ranging from webinars on specialized courses and programs, to country presentations and live chats with representatives, alumni, and scholars from participating institutions. To join, register at https://www.ehefphilippines.com. For information on the Erasmus Mundus program, visit https://www.eacea.ec.europa.eu/scholarships/emjmd-catalogue_en

August hot money net inflow smallest since 2008 

MORE short-term foreign investments entered the country in August as the economy showed early signs of recovery, although the net inflow was the smallest since 2008. 

Foreign portfolio investments (FPI) — also dubbed as “hot money” due to the ease by which these funds enter or leave an economy — yielded a net inflow of $11.51 million in August, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday.  

This is a turnaround from the net outflow worth P126.76 million seen in the same month a year earlier as well as the net P339.7 million that left the country in July. However, this was the smallest net inflow since the $7.38 million logged in July 2008, which was during the Global Financial Crisis. 

Hot money yielded a net outflow of $434 million in the first eight months of 2021, smaller than the net $3.9 billion that left the economy in the same period of 2020. 

The central bank said key developments in August include the release of data showing the country exited recession in the second quarter, as well as improved corporate earnings in the same period. 

Gross domestic product (GDP) rose 11.8% year on year in the April-June period following five quarters of contraction. 

Meanwhile, a two-week lockdown was imposed in August to curb the Delta-induced infection surge, the BSP noted, which caused the country’s economic managers to cut the growth target for this year to 4-5% from 6-7% previously. 

Continued vaccine arrivals and the improvement in the country’s inoculation rate helped improve investor sentiment in August, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort. 

Central bank data showed hot money inflows in August increased 21% to $806.99 million from $666.51 million a year earlier. It likewise rose by 10.6% from the $729.77 million in July.  

On the other hand, portfolio outflows slipped 0.27% to $795.48 million in August from $793.27 million in the same month of 2020. It also decreased by 25% from the $1.069 billion logged in July. 

The BSP identified the United Kingdom, United States, Singapore, Norway and Luxembourg as the top five investor countries for the month with combined share of 79.3% of the total. 

The bulk or 64.7% percent of the foreign portfolio investments went to securities listed on the Philippine Stock Exchange, including food, beverage and tobacco companies, property firms, holding companies, banks, and transportation services. Meanwhile, more than a third (35.3%) went to investments in peso-denominated government securities. 

The central bank in September said it expects hot money to yield a net inflow of $4.3 billion this year, downwardly revised from the $5.5-billion net inflow projected earlier. 

Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said the gradual easing of restriction measures will help bring in more investments into the country. 

“This is expected to continue and attract portfolio investors because of the expected change in the national leadership,” Mr. Lopez said in a Viber message. — Luz Wendy T. Noble 

ECC considers cash aid for WFH coronavirus victims

PHILIPPINE STAR/ MICHAEL VARCAS

THE Employees’ Compensation Commission (ECC) said it is studying the possibility of providing cash assistance to employees who contract coronavirus disease 2019 (COVID-19) while working from home. 

“We’re still studying the inclusion of work-related illness or disease contracted from home in the compensation,” ECC Executive Director Stella Zipagan-Banawis said at a televised briefing Thursday. 

The ECC announced in a social media post Thursday that workers who contract COVID-19 while physically reporting to work may now claim P10,000 worth of cash assistance from the commission, which also grants P15,000 for deaths. The illness cash aid will be given regardless of the severity of the case.

The ECC said COVID-19 was approved for inclusion in the commission’s list of compensable diseases via a resolution approved in April.

Apart from cash assistance, workers who contract COVID-19 in the workplace may also claim loss of income benefits due to their illness, medical reimbursement benefits for out-of-pocket medical expenses, and death and funeral benefits for the beneficiaries of employees who die. 

Such claims may be made through the Social Security System (SSS) for private sector workers and the Government Service Insurance System (GSIS) for the public sector.

Ms. Zipagan-Banawis said all self-employed members of the SSS are also part of the ECC’s compensation program as long as they pay for at least one month of membership. She added that those who contracted the virus last year may also still claim cash aid.

Ms. Zipagan-Banawis added that requirements for claims have been streamlined. “Just show proof that your EC Benefit for COVID-19 has been approved from SSS or GSIS… to start the processing of your cash assistance.” — Bianca Angelica D. Añago

Private schools’ tax relief bill set for President’s nod

PHILIPPINE STAR/ MIGUEL DE GUZMAN

A BILL that would explicitly qualify private schools for tax relief would skip the bicameral conference committee after the House adopted the Senate version of the measure on Wednesday evening.

The House adopted Senate Bill No. 2407 as amendments to House Bill 9913, allowing for the measure to be transmitted to Malacañang for the President’s signature.

The measure would amend Section 27(B) of the National Internal Revenue Code that would grant a reduced tax rate of 1% from July 1, 2020 to June 30, 2023 to all proprietary educational institutions and nonprofit hospitals, as provided for under Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

The reduced tax rate would help private schools recover from the economic crisis due to the COVID-19 (coronavirus disease 2019) pandemic which has affected enrollment numbers.

Once the provision expires, the tax rate will revert to 10%.

However, the Senate version removes a provision where no tax credit or refund can be granted due to the reduced tax rate.

The measure comes after the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 5-2021 requiring private educational institutions to be “nonprofit,” effectively increasing the tax rate for private schools to the 25% regular corporate income tax.

The provision has since been withdrawn by the BIR on July 27.

Albay Rep. Jose Ma. Clemente S. Salceda, chairman of the House Ways and Means committee, said in a statement on Wednesday that he recommended for the adoption of the Senate version through a letter to House Majority Leader Ferdinand Martin G. Romualdez.

“With that letter, I think we will be able to send the bill to the President this week,” he said.

Mr. Salceda earlier said that the bill, if signed, would allow schools to “save an equivalent of 3.43% of compensation expenses, which could help them rehire at least 12,996 teachers at the start of the (current) school year.”

Coordinating Council of Private Educational Associations (COCOPEA) Managing Director Joseph Noel M. Estrada welcomed the development, adding that he hoped the bill would be passed into law as soon as possible.

“The millions of stakeholders of the private education sector and the linked ecosystem that depend on the continuity of our schools, would be deeply grateful to our Senators and Congressmen who tirelessly worked in passing this landmark legislation,” he said in a Viber message.

A total of 1.443 million private school students have enrolled for school year 2021-2022 as of Sept. 13, lower by 57% compared with 3.376 million in the past school year, according to data from the Department of Education.

To cope with the decline, 71% of private schools are considering the implementation of a “no work, no pay” scheme, 64% are considering retrenchment of employees, and 55% are considering closure of their schools, according to a survey conducted by COCOPEA among over 250 member schools. — Russell Louis C. Ku

Keeping an eye on the prize at a cost

NETFLIX

By Michelle Anne P. Soliman, Reporter

TV Review
Squid Game
Director/Writer Hwang Dong-hyuk
Netflix

IF AN ANONYMOUS person invited you to play for a substantial amount of money, would you trust the stranger or any of your teammates? What strengths do you possess that give you confidence of succeeding?

The Netflix series Squid Game follows adult participants who risk their lives playing mysterious twists to familiar childhood games to win the 45.6 billion Won cash prize. But only one will be proclaimed victor.

After a man he meets at the train station gives him a business card with a circle, a triangle, and a square drawn on it, chauffeur Gi-hun (played by Lee Jung-jae) calls the number on it and later wakes up in an unfamiliar place. Wearing identical green and white outfits, the 456 participants gathered in the room are all caught in desperate situations in their personal lives.

Despite being given the option to quit the game, they are enticed to continue by the prize money. The games venue, designed and painted like a children’s playground, transforms into an arena of violence and the fight for survival.

The nine-episode series is written and directed by Hwang Dong-hyuk who described Squid Game as “one giant allegory that expresses the capitalist society of contemporary times.”

A first for a Korean series, Squid Game is currently the No. 1 trending Netflix show in 76 countries.

The first game, “Green Light, Red Light,” sets the mood:  the participants must accomplish the task and adhere to all instructions within a given time limit; they can get killed during the game or, if they fail to comply with the rules, get shot. After the first game, the participants —  and audience —  fear that things might get even worse.

The succeeding games alternate from teamwork driven games which are adrenaline stimulating and gory; and intimate games that are more emotional and are used to establish the relationships among characters.

All the actors are convincing and portrayed their roles well — some had character backgrounds the audience can relate to, and some are simply so arrogant that the viewer wishes they were eliminated earlier. There is sympathy for Gi-hun and those he makes alliances with and one roots for them to survive.

While the theme of a competition for survival is nothing new —  comparisons can be made with Battle Royal and The Hunger Games — writer and director Hwang Dong-hyuk succeeds in presenting his allegory on the flawed equality in a capitalist society and survival. The participants represent the working class, who are expected to be productive and ensure mobility. On the way to the finish line, they are killed or destroy each other —  and themselves —  in the process. The VIPs in the story are the rich who are spectators and unaffected by the hardships and horrors afflicted on the participants.

Overall, the series was an exciting and emotional experience. The ending hints at a possible sequel. By then, I hope Gi-hun gets to prove that he, along with the other participants, is not a horse that anyone can bet on, but a human.

Quasi-banks post lower net profit in the 2nd quarter

THE QUASI-BANKING sector’s net profit dropped to P278 million in the second quarter amid lower interest and leasing income.

The second quarter figure is 55.5% lower compared with the P625 million logged a year prior, based on data from the Bangko Sentral ng Pilipinas (BSP).

For the first half of the year, the cumulative net income of quasi-lenders reached P330 million. This is lower by 23% compared with the P430-million net profit logged in the same period of 2020.

By type of nonbanks with quasi-banking functions (NBQBs), investment houses swung to a net profit of P189 million in the second quarter from a net loss of P145 million in the same period last year.

Meanwhile, the net income of BSP-supervised financing companies plunged by 88% to P89 million that quarter from P770 million.

The net interest income of the quasi-banking industry inched down 8.5% to P3.133 billion from P3.425 billion.

The quarter saw these firms’ interest earnings drop by 52% to P219 million, with leasing income also going down by 2.9% to P6.072 billion. On the other hand, interest expenses increased 3.9% to P3.158 billion from a year earlier.

Broken down, the net interest income of investment houses slumped 80% to P32 million in the second quarter from P168 million in the same period of 2020.

Meanwhile, net interest income of financing companies dropped 4.8% to P3.102 billion from P3.258 billion.

In the second quarter, the non-interest income of NBQBs surged by 83% to P891 million from P488 million a year earlier. This was supported by their fee-based income, which climbed 126% to P738 million from P326 million.

Quasi-lenders also recorded trading income worth P5 million in the three-month period, turning around from the P5 million trading loss a year earlier.

Meanwhile, operating expenses of quasi-banks rose 23.4% to P3.675 billion in the second quarter from P2.979 billion the year prior.

Bad debts written off by financing companies stood at P187 million in the second quarter, down by 9.2% from the P206 million recorded in the comparable year-ago period. Meanwhile, provisions surged by 177% to P1.345 billion from P485 million. — L.W.T. Noble

White House backs workplace rights bill for nursing mothers

REUTERS

WASHINGTON — The Biden administration said it is backing a bill that could give millions of new mothers more workplace rights when they pump breast milk.

A US House of Representatives bill co-sponsored by both Democrats and Republicans would, if passed and signed into law, require employers with 25 or more workers to provide time and private space for nursing mothers.

The 2010 Affordable Care Act, also known as Obamacare, extended those rights to only to smaller group of US workers, leaving out some 9 million people including many teachers and farmworkers, according to lawmakers pushing for the bill.

The new bill would also allow mothers concerned that their rights are being violated to pursue legal action against their bosses.

Employers would not have to pay workers for time spent on those breaks.

“No new mother should face unfair treatment in the workplace because their employer refuses to provide them with reasonable break time and private, clean space needed to adequately express breast milk while at work, forcing them to choose between their health and the health of her child, and earning a paycheck,” the White House’s Office of Management and Budget said in a statement.

“Without these protections, nursing mothers face serious health consequences, including risk of painful illness and infection, diminished milk supply, or inability to continue breastfeeding.” — Reuters

Grab PHL, MOVE IT partnership ordered suspended

THE Transportation department on Thursday told a Senate committee that the technical working group (TWG) overseeing the operations of motorcycle taxis has ordered the suspension of the implementation of the Grab Philippines-MOVE IT partnership.

Nag-issue po ang technical working group… na ihinto po muna ang pag-implement ng partnership nitong MOVE IT at Grab (The technical working group issued an order suspending the implementation of the partnership of MOVE IT and Grab),” Transportation Assistant Secretary Mark Steven C. Pastor said during a Senate committee budget hearing.

Ito po ay (This is) subject to further study pa ng (of the) technical working group,” he added.

Grab Philippines confirmed this in a statement, saying that its partner was notified to “suspend the MOVE IT with Grab service effective Thursday, Sept. 30, 12:01 a.m.”

“Together with MOVE IT, we are currently engaging with our regulators, and we look forward to resuming our partnership soon,” it added.

Grab Philippines has said that the partnership aims to help enhance mobility conditions in Metro Manila by providing MOVE IT motorcycle taxi services on the Grab app.

The partnership is also seen to enable both companies to provide the government’s technical working group with more safety statistics and insights on motorcycle taxi safety.

But transport group Lawyers for Commuters’ Safety and Protection said the partnership is “dubious.”

“The ride-hailing company’s dubious partnership with MOVE IT is clearly a circumvention of the program’s guidelines as the Singapore-based company is not part of the pilot study of the government,” Noel Valerio, spokesman of the Lawyers for Commuters’ Safety and Protection, said in a statement e-mailed to reporters on Sept. 25.

Grab Philippines said: “As a community partner, Grab Philippines will continue to do right by our consumers and partners, encourage constructive dialogue using facts and objective information, and help contribute to the recovery of our transportation industry.” — Arjay L. Balinbin