INFLATION likely remained unchanged for a third straight month in May, as food prices generally stabilized amid the lockdown in the Philippine capital and nearby provinces, economists said. Read the full story.
By Aries B. Espinosa
NEARLY two years after its July 2019 groundbreaking at the Subic Gateway District at the Subic Bay Freeport in Zambales province, the Isuzu Subic facility comes closer to reality with the May 20 signing of the dealership agreement between Isuzu Philippines Corp. (IPC) and Velocity Motor Sales Corp.
Despite the ongoing COVID-19 pandemic and the resulting socioeconomic slowdown, the completion of the P220-million full-scale Isuzu Subic dealership is expected to be realized in the coming months, approximating the original build estimate of two years.
In a virtual ceremony, IPC President Hajime Koso and Velocity Motors Sales Corp. President and Director Jason Hao signed the partnership agreement.
In his remarks, Mr. Koso revealed that IPC had long been eyeing Subic as the location of its key dealership covering the western portion of its Central Luzon market.
“We had been wanting to further establish our presence in the province of Zambales. Subic is primed to become the most competitive international services and logistic center in Southeast Asia, continuously leading to be one of the country’s major economic engines, and receiving numerous investment projects. Despite the pandemic, Subic remains thriving, especially its trading and shipment industries. Isuzu Subic is our response to the growing transportation requirements of Zambales, most especially for trucks, as IPC has begun our expansion to contribute to our customers’ success,” Mr. Koso explained.
Isuzu Subic thus fills the gap in IPC’s Central Luzon market coverage, and fits in strategically within IPC’s other dealerships in the region, such as Cabanatuan, Pampanga, and Tarlac.
Isuzu Subic also effectively becomes IPC’s 47th dealership — a step closer for the country’s leading truck maker in fulfilling its “road to 50 dealerships” drive.
Isuzu Subic’s 3,799-sq.m. spread follows the Isuzu Outlet Standard (IOS), and includes a display showroom, a customer mezzanine and parts warehouse. Although the main area already holds a 1,380-sq.m. service workshop that caters to both commercial and light commercial vehicles, there will also be a dedicated 1,518-sq.m. off-site space with a preparation bay and paint booth for body repairs in an effort to accommodate more vehicles, especially trucks, that require heavy-duty maintenance.
Mr. Hao expressed confidence that the combination of Velocity Motors’ knowledge of the auto business in the region that spans over four decades and the excellence of the Isuzu brand would enable Isuzu Subic to meet sales and service expectations even amidst a current health crisis.
“Being in business for over 40 years, we have been witnesses to the cycles of industry and commerce in the region being in constant evolution, more so now in transition to the ‘new normal.’ But we are in this for the long haul and believe that winners are tested and built through time,” Mr. Hao stressed.
“Isuzu is, without a doubt, the undisputed number-one brand for trucks, and equally successful in the SUV and pickup segments. At Velocity Motors, we choose to invest only in the best and IPC is such in its circle of competence. Headed by Mr. Koso, we are confident that IPC will always choose the best balance of products and systems of operations for its clients, shareholders, and us dealers, ensuring success for years to come,” he added.
Adding weight to the inking of the partnership was IPC being recognized by Isuzu Motors Limited in Japan for earning Triple Stars in the 2020 Aftersales Awards, an achievement shared by only four other distributors in Isuzu’s six worldwide regions. Isuzu Subic’s extended facility and increased capacity has been seen to provide IPC a firmer foothold on world-class after-sales servicing and parts fulfillment.
MARKDOWNS of up to 50% off on a variety of brands are being offered at Rustan’s End of Season Sale. Launching on June 4, the luxury department store is marking down prices from multiple categories including home, fine jewelry, beauty, women’s, men’s fashion and accessories, and kid’s toys and apparel. Shop in any of the Rustan’s stores — Makati, Shangri-La, Gateway, Alabang and Cebu, or through the Personal Shopper on Call (call 0917-111-1952) until June 17 to avail of the discounts. On June 4, shoppers get 10% off on regular-priced R tag Items — that means more options to shop at discounts during the first day of the sale. Plus, shoppers can avail 0% Installment for six months with a minimum purchase of P10,000 from June 4 to July 4. For those collecting FSP points, schedule shopping to June 4 to 6 to earn five times FSP Points with no minimum purchase required.
WONDERHOME Naturals, a Filipino brand of sustainable home care and personal care products, does it the green way. Its wide array of products — with categories in home care (laundry, kitchen, surface, and bathroom cleaners), personal care (hand wash, hand sanitizer, linen spray), and lifestyle (organic cleaners for the yoga mat, gadgets and desk, and pre-poo spray) — are formulated with plant-based probiotics that cleans without damaging one’s health or the environment. This safe biodegradable formulation is certified by Intertek to kill 99.9% of household germs and is lab-tested to eliminate viruses and prevent recontamination for up to 72 hours. Green also describes the brand’s earth-friendly packaging and shipping practices. Wonderhome Naturals come in bottles made from a combination of upcycled ocean plastic and biodegradable wheat. The low carbon footprint modular packaging means that they fit snugly in shipping boxes to eliminate the use of plastic fillers. These bottles can be brought back for recycling or refilling and the user can get store credits that can be used on their next purchases. Wonderhome Naturals is co-founded by brothers Bryan and Marvin Chua, who’s aim is to make sustainable, safe, and strong products easily accessible to Filipinos. Wonderhome Naturals is available at www.wonderhomenaturals.com, and soon on LazMall, Zalora and ShopeeMall. For more information of its sustainable cleaning products, visit www.wonderhomenaturals.com and @wonderhomeph on Instagram and Facebook.
ROBINSONS Malls is an active partner of LGUs nationwide for their respective COVID-19 Vaccination Programs. Currently, there are 20 partner shopping malls located in all over the Philippines. To make the vaccination journey more pleasant and rewarding, Robinsons Malls is offering exclusive deals to those who have been vaccinated. To redeem, they simply need to show their vaccination card to participating mall outlets. For example, at Robinsons Galleria, CLN Celine is offering 70% off on select items, David’s Salon is offering a 50% discount on major hair treatments, and select eyewear at Sarabia get a 50% discount, among other store specials. Visit Robinsons Malls Virtual Mall Directory bit.ly/RMallsVaccinationCardExclusives to see the complete list of promos and participating malls. The promos run from June 1 to June 30. Per DTI Fair Trade Permit No. FTEB-119919 Series of 2021
LACOSTE’S Autumn Winter 2021-22 collection — designed by Louise Trotter — tricks the eye with blown-up and shrunken proportions, unexpected fabrications, and the emergence of comic Lacoste characters. Like a cartoon, the signature house crocodile is reborn larger than life, as archive claw patches and bold croc heads create a new iconography alongside flaming tennis balls, a “tennis net” shadow check, and an L-shaped varsity logo. The concept of the tracksuit and twinset are subverted in multiple ways for men and women, as trompe l’oeil shirting, cardigans, and jogging pants are all cut in cotton piqué -— the keystone material of the Lacoste polo shirt — to create subtly matching sports ensembles. Tailoring reflects the sartorial heritage of the house founder René Lacoste, as the smooth enveloping lines of peacoats, varsity jackets, overcoats and trenches are tweaked for today with knit collars, bonding for bounce, and light nylon quilting. Shell suits, puffer coats and quilted liners are reconstructed from a patchwork of vintage and deadstock Lacoste fabrics, creating new geometries in classic sport shapes. In the Philippines, Lacoste is exclusively distributed by Stores Specialists, Inc., and has stores at Central Square in Bonifacio High Street Central, Alabang Town Center, City of Dreams, Eastwood Mall, Estancia in Capitol Commons, Fairview Terraces, Gateway Mall, Greenbelt 5, Newport Mall, Podium, Power Plant Mall, Robinson’s Galleria, Robinson’s Magnolia, Robinson’s Place Manila, Rustan’s Makati, Rustan’s Shangri-La, Shangri-La Plaza East Wing, SM Mall of Asia, SM Megamall, Solaire, Trinoma, UP Town Center, Waterfront Cebu, Ayala Center Cebu, Abreeza Davao, SM Davao, Veranza KCC Mall General Santos and Zamboanga. Lacoste Accessories is located at Glorietta 4; Lacoste Sport at Ayala Center Cebu; and Lacoste Footwear at Alabang Town Center.
CHILDREN’S clothing brands Moose Gear and Moose Girl study the trends in the market and in the fashion industry to provide children with the latest styles at reasonable prices. Before the coronavirus disease 2019 (COVID-19) pandemic, Moose Gear and Moose Girl apparel was mostly found in leading department stores nationwide. It has adapted to stay connected with its market by setting up social media accounts and onboarding with leading e-commerce platforms in the country. Shop for children’s clothes that reflect their unique personalities through Moose Gear and Moose Girl’s official online stores on Lazada, Shopee, and Zalora. Follow Moose Gear and Moose Girl on Instagram and Facebook to stay updated on the latest products and promos.
LONGCHAMP is unveiling its latest — and particularly audacious — collaboration: with Emotionally Unavailable (EU), the contemporary fashion brand founded by friends and kindred creative spirits Edison Chen and Kybum Lee. Like many designers before them, EU were inspired by Longchamp’s iconic Le Pliage, not only for its unique cross-gender, cross-generational appeal, but also for its unlimited potential for artistic reinterpretations. They bring their signature offbeat humor to the collaboration in the form of a play on the Longchamp name: “Been a CHAMP a LONG time.” The line hints at the design duo’s inspiration, which is the mind-set of the champion boxer, who fights on even when he’s down. However, their wider message — that, with the same mind-set, we can all be champions in life — also echoes the optimistic, dynamic attitude of Longchamp. Boldly emblazoned in white on the black Le Pliage bags, this slogan is accompanied by the tongue-in-cheek “Professional Heartbreaker,” a nod to EU’s cult bleeding heart logo. The “Been a CHAMP” design is featured on four nylon formats of Le Pliage: a shoulder bag, a small tote, a mini backpack, and a belt bag, while a spacious travel bag is printed with an all-over pattern of red EU hearts and Longchamp racehorses. All the bags feature a witty allusion to the other EU in the form of a European Union number-plate label on the side, made up of the EU flag, an EU heart, and the Longchamp reference for each format. A pink version of this line is exclusive to China, while a lilac iteration of the shoulder bag will be available only in a Longchamp pop-up in Shanghai. Emotionally Unavailable also tackled the Le Pliage Cuir, for which they transformed the Longchamp signature into a bold, boxing-style logo printed over the EU bleeding heart on the travel bag in supple black lambskin (equipping it with adjustable straps so it can be carried as a backpack as well as on the shoulder or in the hand). The leather line is completed by a mini tote with a removable shoulder strap and card holder-cum-coin purse-cum-key reel on a lanyard, while a miniature cross-body bag is printed with the all-over heart and racehorse pattern. The collaboration also extends to a capsule of ready-to-wear: a grey-marl hoodie, black sweatshirt and black and white tees printed with the “Been a CHAMP” or boxing logo designs, and black satin shorts and a matching kimono with a white tie belt, and a short-sleeved crew and drawstring pants in black lambskin combine Longchamp’s leather goods heritage with EU’s contemporary fashion vision. Longchamp is exclusively available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Cebu, Greenbelt 5 and Rustans.com.
ANALYSTS remain cautiously optimistic on bank stocks amid uncertainties surrounding the prospects of easing lockdown restrictions and the pace of vaccinations, which would influence demand for loans as well as the willingness of banks to lend.
The Philippine Stock Exchange’s (PSE) financials sub-index, which included the banks, ended the first quarter at 1,373.83. This marked the sub-index’s 5.1% decline on a quarter on quarter basis, which is a reversal of the 26.8% gain in the preceding quarter. The first-quarter decline, however, was slower than the 34.3% plunge recorded in the same quarter last year.
Still, this sub-index continued to outperform the benchmark PSE index’s (PSEi) steeper decline in the first quarter when compared with the performance seen in the fourth quarter of 2020.
In the first quarter, only three listed banks posted higher share prices compared with the preceding three months: Philippine Bank of Communications (PBC, 8.3%), Philippine Savings Bank (PSB, 2.8%), and the Bank of the Philippine Islands (BPI, 0.2%).
On the other hand, Philippine National Bank (PNB) saw the biggest share declines among listed banks at 22.8%, followed by double-digit declines in Philippine Trust Co. (PTC, -19.5%), Philippine Business Bank (PBB, -14.2%), Rizal Commercial Banking Corp. (RCB, -10.9%), and East West Banking Corp. (EW, -10.2%).
Other listed banks saw their share prices tumble as well, such as those of Security Bank Corp. (SECB, -9.7%), Metropolitan Bank & Trust Co. (MBT, -9.5%), China Banking Corp. (CHIB, -7.6%), BDO Unibank, Inc. (BDO, -4.5%), Asia United Bank (AUB, -3.6%), and UnionBank of the Philippines, Inc. (UBP, -3.2%).
Analysts said the mixed performance of listed banks during the period was still reflective of the developments surrounding the coronavirus disease 2019 (COVID-19) pandemic. Specifically, they point to the spike in COVID-19 infections in March, which prompted government to once again place Metro Manila and nearby provinces under an enhanced community quarantine (ECQ) from March 29 to April 11. These restrictions were later downgraded to a less restrictive modified ECQ until May 14, followed by an even more less restrictive general community quarantine albeit “with heightened restrictions” until the end of May.
PNB Senior Equity Research Analyst Wendy B. Estacio and Equity Research Analyst Marco R. Mauleon said the market “may have mixed sentiments” on the banking sector during the period.
“First, investors may have already priced in the impact of elevated provisions for credit losses on banks’ bottom line. At the same time, investors are still wary about the potential spike in non-performing loans (NPLs), as most of the banks reported NPL ratios in the first quarter were still far from their projected peak,” Ms. Estacio and Mr. Mauleon said in an e-mail.
“In [the first quarter], pre-provision operating profit of the banks we follow (except EW) grew at an average of 12% year-on-year. However, loan loss provisions increased by 51% year-on-year on the average. Net income rose by an average of 10% y/y. Meanwhile, NPL ratios of index banks (BDO, BPI, MBT, SECB) stood at an average of 2.9% against their projected peak of 4% to 5%,” they said.
Latest data by the Bangko Sentral ng Pilipinas (BSP) at that time showed the NPL ratio — or gross bad loans in proportion to total gross loans — stood at 3.61% as of end-December, easing from the 3.78% in the prior month. Subsequent data in the next few months showed the NPL ratio increasing to 3.72% in January, 4.08% in February, and to 4.21% in March — the latter being the highest since the 4.25% recorded in August 2009.
The BSP has said the ratio may go beyond 5% by the end of 2021.
Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said subdued lending activity “continues to be the largest factor in the banks’ performance” during the period.
“Moreover, some banks have drastically reduced their provisions for soured loans this year as expected since the industry was aggressively provisioning last year in anticipation of NPL formation,” he added.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun has a similar assessment, adding the trend may continue into the second and third quarter or “until restrictions are eased.”
Latest BSP data in this regard showed outstanding loans by big banks continued to shrink for the third straight month in February by 2.7%, reflecting lenders’ risk aversion and lower demand from borrowers.
In a separate central bank data, universal and commercial banks showed net interest margin — or the ratio that measures banks’ efficiency in investing their funds by dividing annualized net interest income to average earning assets — dipped to 3.49% as of March versus the 3.58% in March 2020.
Provision for credit losses on loans and other financial assets among universal and commercial banks amounted to P20.61 billion as of end-March, less than the P192.71 billion as of end-December 2020 and P23.35 billion as of end-March 2020.
Meanwhile, the big banks’ net income of P48.44 billion was around 4% lower than the P50.44 billion posted in the same period in 2020.
OUTLOOK
Analysts remain cautious over the prospects of listed banks in the next few months given current developments, but said there is still some room for investors to take positions long-term.
COL Financial Group, Inc. Senior Research Analyst John Martin L. Luciano cited a slowdown in the COVID-19 infection rate, as well as the acceleration of the vaccination program as among key factors that would drive up stock prices of listed banks.
“These would give the government room to further ease restrictions as well as boost consumer and business confidence. This would ultimately increase the demand for loans. More importantly, the further reopening of the economy would allow more businesses to operate at higher capacities which could temper the rise in NPLs,” he said.
I.B. Gimenez Securities, Inc. Research Head Joylin F. Telagen said bank stocks will “perform better” in coming months compared with last year due to base effects.
“[Listed banks] will perform better [in the second quarter] compared with the second quarter of 2020 due to less restrictive quarantine measures, mass employment of vaccines, a [sustained accommodative monetary policy], and the faster recovery of the global economy. However, there are still certain risk as there are new variants of virus,” Ms. Telagen said.
Still, Ms. Telagen said she remains to be on “watch mode” with regard to local stocks: “Technically, the PSEi is still on the downtrend, so I’m waiting for the reversal or breakout to that downtrend…,” she said.
For a fourth straight policy meeting on May 12, the BSP maintained the overnight reverse repurchase rate, lending rate, and deposit rate at 2%, 2.5%, and 1.5%, respectively. Moreover, the central bank lowered its inflation outlook this year to 3.9%, from a previous estimate of 4.2%, while that for 2022 was raised to 3% from 2.8%.
For Ms. Estacio and Mr. Mauleon, the slowdown in NPL formation as well as an improvement in asset quality indicators “should buoy investor sentiment on banks.”
Nevertheless, they said banks’ share price movements “may remain muted” given the economy remains in recession.
“As a result, banks may continue to be selective with lending and remain defensive to cushion further stresses in asset quality. However, better-than-expected trading income, cost efficiencies and other factors that may result to growth in profitability should make a strong investment case for a bank,” Ms. Telagen said.
Similarly, Mr. Mangun said a recovery in loans “would generate optimism” among investors in listed banks, but that there would still be “some weakness in the short term.”
For Mr. Limlingan, the continuous monitoring of loan demand, NPL formation, and provisions would be important in gauging the health of the banking sector amid the pandemic.
“The central bank’s decision on monetary policy will also play a part in how the banks’ balance sheet and income statement will look over the next few quarters,” he said. — A.M.P. Yraola
Here’s a quick glance at how PSEi stocks fared on Friday, May 28, 2021.
THE FIRST three months of the year saw the country’s biggest banks issuing even fewer loans as soured loans piled up amid the coronavirus pandemic. Read the full story.
THE PESO is expected to move sideways this week ahead of the announcement of quarantine measures for June and as the market awaits US jobs data to be released on Friday, which could show if the Federal Reserve can tighten its policy settings sooner rather than later.
The local unit closed at P47.80 per dollar on Friday, rising by 18.5 centavos from its P47.985 finish on Thursday, based on data from the Bankers Association of the Philippines.
Week on week, the peso also strengthened by 14.5 centavos from its P47.945 close on May 21.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed to the local unit’s appreciation last week to S&P Global Ratings’ affirmation of the country’s credit grade.
S&P on Thursday kept its “BBB+” rating on the Philippines and assigned a “stable” outlook on expectations of a “healthy” economic recovery, which will help improve the country’s fiscal standing that has weakened because of the coronavirus crisis.
A trader, meanwhile, said the peso strengthened last week amid persistent weakness in the dollar as US Treasury yields rallied.
For this week, the peso could move sideways versus the dollar ahead of key data out of the world’s largest economy, which could dictate the pace of the US central bank’s policy tightening.
“[The dollar] faces renewed pressure again if the US data release this week capped by a hefty read of nonfarm payrolls later in the week, fail to spawn another round of sell-off in the US treasury market,” the trader said.
The trader noted that positive jobs data would accelerate the Fed’s tapering.
The US will release its monthly jobs report on Friday. A Reuters poll predicts a 621,000 rise. Strong data could again raise concerns of an earlier-than-expected stimulus unwind by the Fed.
In April, US job growth unexpectedly slowed, possibly because of shortages of workers and raw material. Nonfarm payrolls added a mere 266,000 jobs compared with predictions for more than 3-1/2 times that.
“Steady to retreating May [Philippine] inflation and an upbeat PSEi (Philippine Stock Exchange index) with further relaxation of the lockdown in the NCR (National Capital Region) Plus expected soon, bodes well for [the peso],” the trader added.
Mr. Ricafort said the latest decision on quarantine restrictions in the capital will drive peso-dollar trading this week as this could affect market prospects for economic recovery.
“The expected increase in COVID-19 (coronavirus disease 2019) vaccine arrivals…could help further reduce new COVID-19 cases in a more meaningful manner, justify further re-opening of the economy, including some hard-hit industries/sectors, thereby improve confidence by consumers and businesses, and provide greater support to the overall economic recovery prospects,” he said.
For this week, the trader expects the local unit to move within the P47.85 to P48.15 levels versus the dollar, while Mr. Ricafort gave a forecast range of P47.70 to P47.80. — with Reuters
PHILIPPINE shares are expected to move sideways this week as they are already “overbought” following the market’s rally in the past few days.
The benchmark Philippine Stock Exchange index (PSEi) gained 9.37 points or 0.14% to close at 6,674.51 on Friday, while the broader all shares index went up by 12.56 points or 0.31% to 4,047.48.
Week on week, the main index climbed by 475.26 points from its 6,199.25 finish on May 21.
“Sentiment was positive [last] week, as investors hunted for bargains amid the growing optimism over the economic recovery of the country, as the vaccine rollout continues to take place,” Darren Blaine T. Pangan, trader at Timson Securities, Inc., said in a Viber message on Friday.
“Moreover, the MSCI rebalancing results and the month-end window dressing activities may have affected the market’s movement this week,” he added.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Sunday that the PSEi “came back to life” after several weeks of losses and overly cautious market sentiment, finishing its best week in the past seven months.
“Several internal issues like the passing of a resolution by Congress which would allow them to pass laws to ease foreign investment restrictions, the beginning of the plenary debate on fiscal stimulus package Bayanihan III, the continuous progress of the vaccine rollout and the MSCI rebalancing may have all contributed to the improved sentiment,” he said.
“Speculation on lighter restrictions for the coming weeks may also be in play,” Mr. Mangun added. “The rally in other markets also gave investors more confidence.”
“With containment of the virus still nowhere in [sight] on slow vaccine rollout, we may continue to see downward pressures as we await the approval by the Senate of Bayanihan III which may somehow counter the negative sentiment among investors in the near term,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Saturday.
“I am expecting a pullback after last week’s colossal move higher,” AAA Southeast Equities’ Mr. Mangun said. “Although, this should be treated as a buying opportunity by investors as the economy continues to recovery despite the tightening of restrictions.”
Economic reports such as local inflation data for May will also affect sentiment this week.
“The uncertainty of the results will encourage some profit taking. If inflation, as well as the unemployment rate, continues to accelerate, we will see the sentiment turn cautious,” Mr. Mangun added.
He placed the PSEi’s support at the 6,450 to 6,500 levels and resistance at 6,950 to 7,000. Meanwhile, Timson Securities’ Mr. Pangan expects the index to trade between 6,200 to 6,940.
“We’ll see how traders will move [this] week as we keep tabs on what quarantine measures the government will be implementing in the capital region,” Mr. Pangan said. — Keren Concepcion G. Valmonte
THE HEAD of the retailers’ association said companies need to digitize to gain insight into their customers and operations like inventory management, which will generate cost savings that will more than offset the cost of adopting new technology.
Philippine Retailers Association President Rosemarie B. Ong said companies in the industry must learn to integrate online and offline processes and streamline their use of data.
The pandemic has forced retailers to turn to technology due to the pandemic, notably the migration to e-commerce, in order to continue selling after commercial foot traffic declined during the lockdowns.
“With an omni-channel approach, your stores will be data-driven and tech enabled. That will help your business run efficiently and more productively,” Ms. Ong said at the BusinessWorld Economic Forum on Thursday.
“The cost in investing in an effective omni-channel system will definitely offset… losing customers and sales because of disruptions.”
Ms. Ong, who is also an executive vice-president at Wilcon Depot, said that the health, beauty, food and beverage and technology sectors have benefited most from the shift to online selling. Other sectors, on the other hand, benefit more when bricks-and-mortar sales are available to consumers.
“There’s still some businesses like groceries, home improvement, and fashion wherein we still see people tend to go back to physical stores when restrictions are eased,” she said.
Ms. Ong said retailers must offer consistent customer experiences both online and offline.
Ipsos Philippines Country Manager Vicky V. Abad said that not all real-world experiences have to be replicated online.
“Especially in these times when the lines between online and offline can be blurred, how customers approach shopping in each channel is still fundamentally different,” she said, citing an Ipsos study. She said that companies must redesign channels based on customer needs.
According to the firm’s Southeast Asia survey done in February, 78% of consumers have shopped online in the past year, with 53% increasing their online shopping. But 41% said that they would go back to malls once restrictions are lifted.
Exequiel C. Delgado, president and chief executive officer of Radius Telecoms, Inc., made three recommendations to retailers looking to improve connectivity: make sure services are available, secure, and have low latency.
“Imagine accessing a website and every time you click on an option, the website freezes. That’s a horror story as far as a customer is concerned,” he said. “Customers nowadays are not very patient.”
As more retailers transact online, UnionBank SME Segment and Platforms Head Jaypee R. Soliman said that banks need to invest in cybersecurity.
“There’s one big challenge that we have to make sure we address,” he said. — Jenina P. Ibañez
ELECTRIC COOPERATIVES (ECs) in Mindanao need more support to serve more households and address the continued rotating brownouts in parts of the southern islands despite an average 1,000-megawatt (MW) surplus on the grid, according to the Mindanao Development Authority (MinDA).
Many areas are still “confronted with the sad reality that even with the excess supply of over 1,000 MW… there are rotating brownouts,” MinDA Deputy Executive Director Romeo M. Montenegro said during the Mindanao Power Forum 2021 held virtually last week.
Mindanao has an available capacity of about 2,700 MW with peak demand ranging from 1,700 to just over 2,000 MW daily, according to first quarter data from the National Grid Corp. of the Philippines (NGCP).
“Areas that are currently having the trouble on the availability of electricity perhaps is on account of the ECs needing support… they have to be assisted and given focus on the way forward,” according to Mr. Montenegro, who also heads the technical working group of the inter-agency Mindanao Power Monitoring Committee.
There are 39 ECs operating in Mindanao, 34 of which are connected to the main grid.
Mr. Montenegro noted that these cooperatives have varying levels of financial and management capacity and are confronted with geographical and political challenges.
Sixteen of these electricity distributors are among the top 20 nationwide with the smallest rate of coverage as a proportion of potential connections.
The top five are located within the island provinces of Sulu and Tawi, and Maguindanao and Lanao del Sur in the mainland. All are under the Bangsamoro region.
The MinDA official said assisting these cooperatives will need “innovative financing” opportunities, among other support schemes.
He said the National Electrification Administration, which oversees ECs, and the Department of Energy can design suitable financing windows to be opened by government financial institutions.
MinDA is also calling for the establishment of the Local Power Development Advisory Group to enhance coordination between power sector actors and local government units for targeted solutions on specific community conditions.
Strengthening ECs, Mr. Montenegro said, is particularly crucial at this point as the Wholesale Electricity Spot Market in Mindanao is scheduled to finally open by June 26, about four years since it was launched.
NGCP is also expected to complete the Visayas-Mindanao interconnection project within the year, which will put Mindanao’s supply on the national system.
The Energy department’s Mindanao Energy Plan 2018-2040 aims to achieve 100% electrification in the south by 2030 from the current level of 70%. It projects demand of over 10,000 MW by 2040.
Mr. Montenegro said strengthening ECs is key to energizing Mindanao, especially the rural areas where the average electrification coverage is even lower at around 30%.
“We have to look at how else we can work collectively to be able to have everybody moving in the same direction, at the same pace, and enjoying the same benefits.” — Marifi S. Jara
THE prolonged ban on face-to-face learning during the pandemic could worsen the learning gap in the Philippines, highlighting the need to reform the education system, according to a book released by the Asian Development Bank (ADB).
With students and teachers forced to rely on digital platforms for education because of the pandemic, only 55% of students and 26% of public schools have access to the internet, according to Teach for the Philippines (TFP), a non-government organization, which was writing in the ADB book Powering a Learning Society During an Age of Disruption, released last week.
“Today, we face aggravating circumstances — an unprecedented health crisis that has taken a toll on past efforts and threatens to generate insurmountable inequities. The students who were already disadvantaged before COVID-19 are now even more crucially and cruelly impacted,” TFP said.
“Without immediate and long-lasting action, the most underserved children will continually fall further behind, compounded by other preexisting challenges such as poverty, gender, disability, geography, and ethnicity,” it added.
President Rodrigo R. Duterte prohibited face-to-face schooling starting March 2020 because of the pandemic and the absence of a widely available vaccine. The Education department implemented a blended learning approach incorporating paper, digital, television and radio media.
TFP said it rolled out training programs to help teachers adapt to the new methods.
“It is a sad reality that despite teachers’ best efforts, students worldwide do not have equal access to quality education,” it said.
Despite the challenges, it said the crisis has opened opportunities to make the education system more inclusive and equitable. It said classrooms should also be adapted to the new platforms that have emerged, to expand methods of learning.
“Equity in education in the Philippines is possible by broadening the pathways into the teaching profession, increasing school-based coaching, prioritizing the well-being of our education workforce, promoting participant data ownership, and ultimately, by allowing teachers to participate in policy decision-making processes,” it said. — Beatrice M. Laforga
