PIGO pioneer on the go

September 10, 2021 | 12:01 am

The pioneering Philippine Inland Gaming Operator (PIGO) licensee, Inter-Active Entertainment Solutions Technologies, Inc. (IEST), generated P113.9 million gross gaming revenues in the first half of 2021. IEST is a subsidiary of Philippine Stock Exchange-listed DFNN, Inc.

In November 2020, IEST became the first company to be issued an online gaming license by the Philippine Amusement and Gaming Corp. (Pagcor). The novel PIGO scheme was conceived as Pagcor’s response to the closure of land-based gaming venues resulting from the COVID-19 pandemic. It allows casinos and integrated resort operators to offer online gaming to existing registered members who can log in and play from anywhere in the country.

IEST’s legal domestic gaming platform, InPlay.ph, has proven to be a successful venture for DFNN. With gross bets of P2.5 billion, it contributed 12.6% of the parent company’s total revenues for the six months to June 2021 from zero last year. The remote gaming platform offers more than 500 games while providing full confidentiality and 24/7 customer service.

DFNN President and CEO Calvin Lim said: “The positive result of our revenue comparing the second quarters of 2020 and 2021 showing a 104% increase is due to the success of InPlay. It is an undeniable success as customers now opt to use the platform for the reliability and convenience that it offers.”

Mr. Lim said InPlay represents a significant measure toward regenerating revenues for the government as well as to help fight the proliferation of illegal online gambling in the country, since its technological capabilities ensure legal and secure transactions. DFNN recognizes that as the pandemic continues to hamper customer movement, it has also presented a huge gap in service delivery and an immense business opportunity for the technology sector.

Pagcor Chair and CEO Andrea Domingo revealed that online gaming has boomed because of the COVID-19 lockdowns and quarantine restrictions. She cited “e-sabong” or online cockfighting as a major source of revenue to the tune of P400 million per month. “It’s the online games now that are earning the money for the government,” Ms. Domingo disclosed during a media interview, adding that “Pagcor is on track to earn at least P38 billion this year.”

Due to the vacuum created by the exit of many Philippine offshore gaming operators or POGOs since March 2020, investors have been anticipating Pagcor’s move to find ways to increase revenues. The exodus of POGOs back to Mainland China also spelled trouble for local businesses such as property leasing, banking, fintech, transportation, and restaurants.

IT solutions companies like DFNN and IEST are poised to capitalize on the digital shift and other current trends in the coming months. Aside from their InPlay platform, they also hold licenses for electronic gaming machines, a sports betting exchange, and pari-mutuel games from Pagcor. Having a first mover advantage in the PIGO industry is a big incentive for them to pioneer more technology-driven services in the near term.

The opinion expressed herein does not necessarily reflect the views of these institutions and BusinessWorld.

J. Albert Gamboa is the chief finance officer of Asian Center for Legal Excellence and co-chairman of the FINEX Week Committee.

Entertainment News (09/10/21)

September 10, 2021 | 12:01 am

GMA Network, Regal Entertainment seal partnership

GMA AND REGAL have partnered on a telemovie collaboration, Regal Studio Presents, beginning Sept. 11 on GMA-7. Regal Studio Presents is a weekly TV anthology that features stories starring various GMA artists. The two companies are also developing a variety of content to air across GMA channels. On GTV, viewers can catch Regal classic movies via Regal Treasures every Friday afternoon. Meanwhile, Heart of Asia is set to bring the hit BL (Boys Love) series Ben X Jim starting Sept. 26. Apart from these, viewers looking for fresh content can expect new movie features from Regal to be shown on GMA’s various platforms in the years to come. For the pilot episode of Regal Studio Presents, Ken Chan and Sanya Lopez team up for the very first time in “That Thin Line Between,” a story of neighbors who are at odds with each other. Upcoming episodes will star Gabbi Garcia, Khalil Ramos, Sofia Pablo, and Allen Ansay.

Hoy, Love You Two on iWantTFC

JOROSS Gamboa and Roxanne Guinoo-Yap deal with the difficulties of having a stepfamily in the iWantTFC original series, Hoy, Love You Two, which streams on Sept. 11. They play newlywed couple Jules and Marge, who try to build a relationship with their step-kids and prove themselves worthy to their in-laws, all while dealing with their own issues as a couple. The romantic comedy is directed by Theodore “Ted” Boborol and will stream on the iWantTFC app (iOs and Android) and on iwanttfc.com. The series is free for all users in the Philippines and is available to premium subscribers outside the Philippines.

Good Vibes with Edu Season 2 opens with ‘plantitas’

THE SECOND season of Edu Manzano’s Metro Channel talk show, Good Vibes with Edu, premieres on Sept. 12, 8 p.m. For its season opener, the host invited celebrity “plantita” guests for a conversation on the benefits of plants during this pandemic and a helpful discussion on how they take care of their indoor and outdoor plants. Actress-model Aubrey Miles, award-winning TV host Daphne Oseña-Paez, news anchor Gretchen Fullido, and singer-TV host Karel Marquez will speak about their planting journey and share tips on gardening. Good Vibes with Edu is a half-hour talk show where Mr. Manzano connects with his guests virtually and engages them in lively casual conversations. The new season will air on Metro Channel on SKYcable channel 52 (SD) and channel 174 (HD), Cignal channel 69, and GSAT channel 70. Episodes will also be available to stream via iWantTFC and Metro.Style’s YouTube channel.

Grandparents’ Day at Shangri-La Plaza

CELEBRATE Grandparents’ Day with Shangri-La Plaza mall on Sept. 12 by finding the right gifts for them. Looking for home exercise equipment that can help keep their heart strong, enhance their mobility, and maintain a healthy weight? The Trax Ultra Slim Deluxe Treadmill or the Trax Cadence Stationary Bike 2.0 from Chris Sports are compact enough for any home. For a comfortable pair of sneakers that they can use whenever they work out or walk around, Dr. Kong has Orthoknit sneakers that offer a hard heel counter to stabilize the heel bone, arch support, and soft padding for shock absorption. From Rustan’s Home, make their Zoom calls and movie nights livelier with Bang & Olufsen. A bouquet of flowers and a handwritten letter will make grandparents feel special and loved, so get a bouquet of mixed-colored Dutch tulips from Holland Tulips and a heartfelt Hallmark card from National Bookstore. Shangri-La Plaza mall is open daily from 10 a.m. to 6 p.m. For inquiries, call 8-370-2597/98 or visit www.facebook.com/shangrilaplazaofficial.

Netflix to release Season 3 of Sex Education

IT’S A NEW year, Otis is having casual sex, Eric and Adam are official, and Jean has a baby on the way. Meanwhile, new headteacher Hope (played by Jemima Kirke) tries to return Moordale to a pillar of excellence, Aimee discovers feminism, Jackson gets a crush, and a lost voicemail still looms. All this is up — along with commitment animals, alien phenomena, vulva cupcakes, and much more of Madam Groff — in the third season of Sex Education. The eight-episode season premieres on Sept. 17 on Netflix. For more information, visit netflix.com/SexEducation.

Julia Baretto stars in TV5’s ‘Di Na Muli

JULIA Baretto returns to star in the TV series ‘Di Na Muli, alongside Marco Gumabao. Produced by Cignal and Sari-Sari Channel together with Viva Entertainment for TV5, ‘Di Na Muli tells the story of love found and lost⁠, and moving forward in life without regrets. It is told through the eyes of Yanna, played by Ms. Baretto, a woman burdened with precognition. Her ability makes her aware of how life is so fleeting and how time can pass you by if you fail to value every moment. Mr. Gumabao plays Mico, the man who challenges Yanna’s perspective on love. ‘Di Na Muli premieres on Sept. 18, 8 p.m., on TV5, Sari Sari on Cignal TV Ch. 3 and SatLite Ch. 30, and on Live and On-Demand via Cignal Play app.

Miss Universe PHL appoints Lazada as voting platform

THE MISS Universe Philippines Organization is again partnering with Lazada as the official voting platform for the upcoming Miss Universe Philippines 2021 pageant. From Sept. 13 to 24, beauty pageant fans will once again be able to support their favorite finalists through the Fan Vote feature available exclusively on the Lazada app. The finalist who receives the most votes through the Fan Vote system on Lazada will earn a spot in the pageant’s Top 16. Fans can enter up to five free votes daily and can support their favorite finalist by casting votes multiple times a day during the voting period. Fans can choose to purchase more votes via the Voting Packages offered in the voting page. The Miss Universe Philippines 2021 Finals will be on Sept. 25. Vote can be cast through the Miss Universe Philippines voting page on the Lazada app/site: https://lzd.co/LazadaVoting.

Musical series Still moved to November

SET in a pandemic-struck music camp, Still puts the spotlight on young aspiring artists as they navigate through a period of isolation and struggle. Its Exclusive PreViu on Ticket2Me.net was set for Sept. 10, but because of delays due to recent lockdowns, the new release date has been moved to Nov. 12. Still is Viu’s first Filipino Original musical narrative series and will consist of eight episodes. The cast is headlined by Julie Anne San Jose and Christian Bautista, and they will be joined by Bituin Escalante and Gab Pangilinan. Still is presented by Viu Philippines and This Side Up, in collaboration with Arkeofilms, TheaterFansManila.com, Flip Music, and Black Box Collab. The PreViu tickets are now available for purchase at https://bit.ly/ViuStillSeries.

Clinton Kane releases new single

FOLLOWING his viral success on TikTok and other online music platforms, Clinton Kane has released his stripped-down pop ballad, “I Guess I’m in Love,” via Columbia Records and Sony Music. Detailing the winding journey and range of feelings that come with finally finding true love, the single is currently at No. 4 on Spotify Philippines charts, and has amassed nearly 23 million streams since its release on Aug. 20. The track is currently a mainstay on various local radio charts, ranking within the top 20 of Manila-based mainstream radio stations, RX 93. 1 and 99.5 Play FM. Over at TikTok, The Filipino-Norwegian star’s chart-topping track has been covered by Filipino artists, including SB19’s Pablo, whose rendition garnered close to 200,000 views in less than an hour. “I Guess I’m in Love” is available on all digital music platforms worldwide via Clinton Kane – I GUESS I’M IN LOVE (lnk.to).

Kyle Juliano, Sam Atkins collaborate on single

TWO homegrown talents from Dumaguete, Kyle Juliano and Sam Akins, are bringing back slow 2000-style R&B melody with their first collaboration, “I Need You Now.” The song talks about an unhealthy attachment and dependency on a relationship that doesn’t bring value in one’s life anymore. “Kyle played a four-chord progression on guitar that you hear throughout the song, and we wrote that together with Stefani (Kyle’s cousin),” Mr. Atkins said in a statement. These show their flair in uniting music and lyrics with their much-awaited record. “I Need You Now” is available to stream on Spotify and Apple Music.

Philippines’ richest 2021

September 10, 2021 | 12:00 am

THE 50 RICHEST families and individuals in the Philippines saw a “robust recovery” as their collective wealth surged by 30% to $79 billion (P3.94 trillion) this year even as the pandemic continued, according to Forbes. Read the full story.

How PSEi member stocks performed — September 9, 2021

September 10, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, September 9, 2021.

Philippine factory output continues rebound in July (2021)

September 10, 2021 | 12:00 am

THE COUNTRY’S factory output expanded for the fourth straight month in July, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.

Philippine trade year-on-year performance (July 2021)

September 10, 2021 | 12:00 am

THE COUNTRY’S trade-in-goods deficit widened in July as merchandise import growth outpaced the increase in exports, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.

Dominguez says PHL can’t be ‘trailblazer’ on deficit spending

September 9, 2021 | 9:50 pm

FINANCE Secretary Carlos G. Dominguez III said the Philippines must remain in the “middle of the pack” in terms of deficit spending and cannot be a “trailblazer,” in an apparent rebuff to calls for more economic stimulus.

“The Philippines cannot be the trailblazers here. My goal always has been to land somewhere in the middle of the pack. I don’t want to be too far ahead, I don’t want to be far behind when you come to those ratios. So far, we’re just about there.” Mr. Dominguez said in a budget hearing at the Senate Thursday.

His presentation indicated that the National Government’s outstanding debt was equivalent to 54.6% of gross domestic product (GDP) in 2020, as opposed to 49% for Thailand and 48% for Vietnam. The Philippine deficit is roughly comparable to Poland’s 57.7%.

The ratio grew to 60.4% in the first half of 2021 as the government continued to borrow to address the budget deficit, which is expected to be equivalent to 9.3% of GDP this year.

Senator Franklin M. Drilon said at the hearing that the government needs to roll out more stimulus and cash aid, as the private sector cannot provide enough jobs and economic activity with the pandemic dragging on.

“I agree that managing our deficit and debt levels are essential. But these are not normal times and many Congresses (in other countries) have allowed their deficits to go higher in relation to GDP because they believe this is a fiscal stimulus that will also be necessary in order to assist the economy in recovery,” Mr. Drilon said.

The government released two stimulus packages in 2020, the P275-billion Bayanihan to Heal as One Act (Bayanihan I) and the P160-billion Bayanihan to Recover as One Act (Bayanihan II), to help individuals and businesses deal with the effects of the lockdown.

Two rounds of cash aid were also issued to poor families hit by the April and August lockdowns, worth P23 billion and P13 billion, respectively.

Legislators have been pushing for a third stimulus package of up to P400 billion.

Mr. Dominguez has said the government can only support around P173 billion in new stimulus without breaching the budget deficit ceiling of 9.3%.

“We should also remember that we (cannot foresee) how long this COVID is going to last,” he said.

“Our goal is to land in the middle of the pack and that we should conserve our resources for a long fight. That has been the policy that we have espoused and that is what we are implementing,” he added.

Mr. Dominguez said the government is closely monitoring spending and revenue performance against targets.

The economic team expects debt to hit 59.1% of GDP this year, peaking at 60.8% in 2022 before easing to 60.7% in 2023 and 59.7% in 2024.

The budget deficit is projected to fall to 7.5% of GDP in 2022, 6.3% in 2023 and 5.3% in 2024, before returning to the pre-pandemic cap of 3.2% by 2025. — Beatrice M. Laforga

Diokno sees recovery by first quarter of 2023

September 9, 2021 | 9:50 pm

THE CENTRAL BANK will keep up its monetary support for the economy, which it said might need until the first quarter of 2023 to fully recover its pre-pandemic levels.

“On the aggregate level, we will be back by the fourth quarter of next year or the first quarter of 2023. The structure or the composition of that economy will be much different from the pre-COVID-19 economy,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in an online briefing Thursday.

Economic managers downgraded the full-year economic growth target for 2021 to 4-5% from 6-7% previously, citing the impact of the new lockdown in August and the recent infection surge.

In August, the central bank kept policy rates steady at a record low of 2%, citing the need to support the nascent stages of the recovery.

“The BSP will strive to maintain an accommodative monetary policy stance to help boost domestic demand and support market confidence, thus allowing the momentum of economic recovery to gain more traction in the coming months,” Mr. Diokno said.

He said that monetary policy stance will remain primarily driven by the inflation and growth outlook, although he said they also take into consideration actions taken by major central banks.

“Going forward, the BSP will continue to ensure that the expansion of money and credit, along with fiscal stimulus and low interest rates, will not lead to excessive inflation and trigger financial stability risks,” Mr. Diokno said.

The Monetary Board is scheduled for its next policy setting on Sept. 23.

With policy normalizing in the US, Mr. Diokno expects investors to view the Philippines positively.

Mr. Diokno said the Philippines will be shielded from the effects of a winding down of Fed support for the US economy — the so-called “taper tantrum” — by its “stable banking system and sound external sector,” noting that gross international reserves remain high.

“I think investors are smart, they will look at other metrics, like maybe the debt-to-GDP (gross domestic product) ratio, the potential growth of the economy; they will also look at the age structure. Is it an ageing country or is it a mostly young population,” Mr. Diokno said. — Luz Wendy T. Noble

DBM queried on authority to stall devolution to LGUs

September 9, 2021 | 9:49 pm

A SENIOR LEGISLATOR has questioned the Department of Budget and Management’s (DBM) authority to allow delays to the devolution of National Government functions to local government units (LGUs).

Senator Francis N. Tolentino said the delays being contemplated deprive some LGUs of the full benefits of the Supreme Court’s (SC) Mandanas ruling, which expanded LGUs’ share of the National Government’s tax collections starting in 2022. In response to the expanded funding, the National Government plans to shed some of its functions for transfer to LGUs.

Mr. Tolentino, who chairs the Senate’s local government committee, was speaking at a hearing Wednesday of the Development Budget Coordination Committee (DBCC).

He cited DBM Circular No. 2, which permits National Government agencies to retain budgets of National Government functions due to be devolved, if they make a determination that it is unfeasible to transfer such functions to fourth and fifth class LGUs by 2022.

“You gave yourself the discretion to deviate from the Supreme Court’s decision, as well as to deny the full benefits of the Mandanas Ruling to the LGUs if you consider that as not feasible,” Mr. Tolentino said. He added that if this continues, “the Mandanas ruling will only be implemented on a granular basis and limited to the discretion of the (National Government agencies).”

Under the Local Government Code of 1991, LGUs receive 40% of all national taxes via the Internal Revenue Allotment (IRA). Payouts for a given year are reckoned based on collections from three years prior.

Before the Mandanas ruling, the National Government had interpreted the code to mean that it was obliged to share only “internal revenue” collections with LGUs. The SC ruled that the IRA must also include collections from Customs.

During the DBCC hearing, Mr. Tolentino also said that LGUs were not properly consulted on the National Government’s devolution plans.

He said DBM has indicated that it plans to “re-calibrate, assess, and monitor” current guidelines for the implementation of the Mandanas ruling, contrary to the court’s intent. “Those terminologies are inconsistent and nowhere to be found in the said SC decision,” said Mr. Tolentino in a statement.

He also said flagged as inefficient and wasteful what Acting Budget Secretary Tina Rose Marie L. Canda calls the “scrap-and-build” policy, under which national agencies replicate positions that have been devolved.

He said the logic of the Mandanas ruling generates savings from abolished positions, and that creating new jobs in the national agencies runs counter to the ruling’s intent.

“I’m a firm believer that the national economy will be led by the LGUs, post-COVID-19,” said Mr. Tolentino, adding that the DBM seems to be unwilling to let go of the reins.

Ms. Canda replied that the department will honor the autonomy of local governments, and that it is seeking to ensure a smooth devolution process, including ensuring local responsibility for budgets. Its timetable for the full transition is three years, she said. — Alyssa Nicole O. Tan

Meat imports rise 44.8% in eight months to August

September 9, 2021 | 9:49 pm

MEAT IMPORTS in the eight months to August period rose 44.8% year on year to 800,152.24 metric tons (MT) led by pork, according to the Bureau of Animal Industry (BAI).

The BAI said in a report that pork imports for the period rose 184.1% year on year to 389,556.86 MT.

Pork cuts accounted for 40.5% or 157,832.61 MT of pork imports, followed by offal at 32.2% or 125,575.62 MT, and fats at 11.2% or 43,716.38 MT.

Chicken imports fell 2.6% to 260,881.85 MT, turkey imports rose 69.9% to 1,272.65 MT, while buffalo imports rose 99.4% to 36,183.6 MT.

Mechanically deboned meat (MDM) of chicken accounted for 53.4% or 139,411.95 MT of all chicken imports, though MDM imports fell 23.3% year on year.

MDM is used by meat processors in production of processed meat products such as sausages, dim sum, luncheon meat, and chicken nuggets.

Beef imports during the period fell 11.9% year on year to 111,880.25 MT, while lamb imports fell 79.7% to 321.15 MT.

Duck imports dropped 38.6% to 55.89 MT.

President Rodrigo R. Duterte issued two executive orders that increased the minimum access volume quota for pork by 200,000 MT and lowered the tariff rates for in-quota and out-of-quota pork imports in an effort to increase supply and keep prices stable. — Revin Mikhael D. Ochave

Updated renewables plan in final stages, DoE says

September 9, 2021 | 9:49 pm

THE DEPARTMENT of Energy (DoE) said that the latest edition of the National Renewable Energy Program (NREP) covering the 2020-2040 period is nearing completion pending the results of a public hearing on adjustments to the yearly renewable portfolio standards (RPS) increment.

“We are in the final stage of the NREP. We will just await the (public consultation) on the adjustment on the RPS annual increments as this will enable us to meet the 35% RE share in the total generation mix by 2030,” DoE Renewable Energy Management Bureau Director Mylene C. Capongcol told BusinessWorld by e-mail late Wednesday.

The public consultation for the revised RPS increment is scheduled for Friday, Sept. 9 via Zoom videoconference. The hearing will run from 1 p.m. to 3:15 p.m.

The RPS program requires distribution utilities to source an agreed portion of their supply from eligible RE facilities. The yearly RPS increment is currently at 1%, but the National Renewable Energy Board recommended an increase to at least 2.52% by 2023 to meet the country’s “aspirational” RE targets.

According to a draft circular posted on the DoE’s website this week, the department hopes to increase the yearly minimum level of electricity contracted from RE developers to 2.52% beginning 2023 for mandated participants in on-grid areas. At such a rate of increase, the Philippines will hit a renewable energy (RE) share of 36.96% in 2030 and 55.8% in 2040.

The NREP details the framework and building blocks needed to help the Philippines attain its RE goals as required under the Renewable Energy Act of 2008. — Angelica Y. Yang

Quality, price still viewed as barriers to e-vehicle adoption

September 9, 2021 | 9:48 pm

DEMAND for electric vehicles (EVs) in the Philippines remains low, the Electric Vehicle Association of the Philippines said, citing barriers best addressed by local government units (LGUs) and the National Government, such as vehicle quality and price.

“The reason why we are not having much activity on the e-vehicles supply side is there is not much demand,” Electric Vehicle Association of the Philippines Executive Director Jose Bienvenido Manuel M. Biona said at an online forum, “Mobility: Building an E-vehicle Ecosystem.”

“One of the reasons also why we are not having much demand is because there are some problems with the quality and the price of the e-vehicles. These are all interconnected, and we will be needing some integrated solutions,” he added.

In his presentation Wednesday, Mr. Biona said performance, reliability and uncertainty about vehicle durability are issues, as are lack of familiarity with e-vehicles, technological inertia, concerns about flooding, negative prior user experience, and lack of credit support for vehicle purchases.

He added that the government’s capacity to provide significant support for adoption is limited.

He said LGUs can promote e-mobility adoption by organizing pilot and demonstration programs and supporting first adopters.

The National Government can provide investment incentives for e-jeepneys, as well as ease the import process for quality EV components while shielding the industry from competition from imports of fully-assembled vehicles.

Global EV sales are expected to grow from four million units in 2021 to 35 million in 2030, Arthur R. Tan, chief executive officer of AC Industrials and Integrated Micro-Electronics, Inc., said.

“I think one of the key things that we always grapple with here in the Philippines, and one that a lot of people have asked me about is that number one, yes, it is happening all over the world, but it’s probably not going to happen in the Philippines yet. Why is that so? It’s because we are not ready for it, and it’s too expensive, and we’ll continue to be a fossil-based economy as far as mobility is concerned,” he added.

“All the car manufacturers (worldwide), every single one of them, have determined that they will transition to electric vehicles by the end of the decade. Therefore, my question is always… when the time comes that all the car companies will only produce electric vehicles, what cars are Filipinos going to buy?”

He said the time is right to determine its plans for e-vehicle charging infrastructure.

The growth of EVs can happen only with a “robust ecosystem” that needs the support of the government and the private sector, he said. — Arjay L. Balinbin