The coronavirus pandemic obliterated 9.3 million jobs in Southeast Asia as lockdowns hit the region’s traditional engines of growth such as hospitality and tourism, according to the Asian Development Bank.
This pushed 4.7 million people to extreme poverty last year, measured as living on less that $1.90 a day, the ADB said in a report Wednesday. Inequality also widened as movement restrictions hit hardest the retail and informal sectors, where women, young people and unskilled workers are typically employed.
“The pandemic’s impact on poverty and unemployment will likely persist as inactive workers become de-skilled and poor people’s access to opportunities further deteriorates,” the ADB said. “When this happens, the deterioration in inequality could transfer across generations.”
Green shoots are emerging though, with close to 60% of Southeast Asia’s population vaccinated and public mobility rebounding. Gross domestic product is expected to grow 5.1% this year, though the omicron wave could slash this by as much as 0.8 percentage points.
Equipping small businesses with digital tools and providing skills training for displaced workers will ensure they’re not left behind in the “new normal” of work, the ADB said. Increasing health spending to 5% of GDP, from 3% in 2021, will also improve disease surveillance and add 1.5 percentage points to growth. — Bloomberg
Globe President and CEO Ernest Cu led food distribution in a community in Mandaluyong City at a recent #BrigadangAyalaKaakay event. At the event, he also paid a visit to Globe prepaid load retailers including 60-year-old Mary Magaling, who relied on her sari-sari store business to make ends meet during the pandemic.
The pandemic posed many challenges to Filipino families – many survived through the guidance and leadership of the women in their communities.
For Kathleen Anne Quiambao, Mary Magaling, and Rebel Caadan, they did not let the hardships and unexpected situations get the better of them, as they stood strong and found ways to adapt to what life in the pandemic threw at them.
True to its commitment to creating a #GlobeOfGood, Globe became a bridge for these three women to become pillars of their homes during the health crisis. They were able to earn extra money through Globe’s products and services to keep their families afloat and ensure an uninterrupted learning environment for their kids.
The women of Barangay Barangka in Mandaluyong City served as pillars of strength for their families during difficult times of the pandemic. They were among beneficiaries of a recent #BrigadangAyalaKaakay event, where Globe provided food packs to residents.
Quiambao is the main contributor to their household income. She was previously employed but transitioned to online selling when she had to leave her job for health reasons. She now sells a variety of products in her online store, including frozen goods, apparel, and sanitation essentials. She has since gained a number of patrons who support her business and attributes the small successes of her online selling to Globe’s accessible internet connection in their area.
“Very convenient ‘yung may malapit na cell towers dito sa Mandaluyong para madali ma-access ang mga sites na gamit namin sa online selling,” she shared.
At the start of the pandemic, 60-year old Magaling found herself at the brink of bankruptcy and almost closed down her sari-sari store, which has been her primary source of livelihood for nearly two decades. Amid the lockdowns, she persevered to keep her store open to serve her customers within her neighborhood, especially those who became her suki and friends.
Magaling has been a mobile prepaid load retailer for years and intends to expand her reach and become a merchant of Electronic Commerce Payments Inc. (ECPay), another Globe affiliate that provides a wide array of services, ranging from bill payments, top-up load, electronic PINS, cash-ins, and money transfers.
“Hindi ko na masyadong alam ‘yung mga online o apps pero gusto ko subukan para dagdag kita. ‘Yan rin kasi ang hinahanap ng mga suki ko kaya gusto ko rin i-offer sa kanila.”
Mary Magaling has been a mobile prepaid load retailer for years. She intends to expand her services and become an ECPay merchant, with the hopes of offering her customers bill payments, top-up load, electronic PINS, cash-ins, and money transfers services in the future.
Meanwhile, Caadan, a mother of three children aged 7 to 14, uses Globe as her partner to prepare them for the future. They have challenges getting a broadband connection since they share a household with two other families, but are grateful that they are able to utilize mobile data for their online learning and communication with the teachers.
With her children experiencing difficulty keeping up with online classes, she makes sure that she is constantly available when they need help, closely coordinates with their teachers, and remains supportive to help them finish their studies.
The three women are part of the community where the Globe of Good and #BrigadangAyalaKaakay programs operate, which consists of a 12-week food distribution program that provides rice, fresh vegetables, canned goods, and bread to 10,000 families across Metro Manila.
At a food distribution event in Mandaluyong last month, Globe President and CEO Ernest Cu expressed his gratitude and excitement at seeing the beneficiaries of San Roque Parish, Barangay Barangka Ilaya, Mandaluyong City. He emphasized Globe’s commitment to driving digital adoption by catering to the community’s needs through their products and services.
“A very big focus of Globe is sustainability. Conducting these types of programs allows us to help address the needs of the community, and continue to drive adoption of products that really serve our customers,” he said.
Cu added that employees and executives’ on-ground experiences in these programs are very valuable to the culture that they foster at Globe.
On top of its community engagement efforts, Globe continues to expand its network services to provide connectivity to more Filipinos, Cu said. Being a digital solutions provider, the company intends to strengthen its GCash e-money services for broader financial inclusion.
Globe supports the United Nations Sustainable Development Goals, particularly UN SDG No. 8, which promotes inclusive and sustainable economic growth, full and productive employment, and decent work for all, and SDG No. 9 on fostering innovation. Globe is committed to upholding the UN Global Compact Principles and contributing to 10 UN SDGs.
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The CEO Summit to be held in Baguio City in April has received a warm response from leading names in technology.
The much-awaited face-to-face conference post-pandemic will be held at the Baguio Country Club from April 3 to 6, 2022 with this year’s theme as “4IR Ready: The Era of Digital Transformation.” Over 200 business leaders, industry experts, and C-level executives are expected to gather in the City of Pines for four days of thought-provoking talks and exchange of views.
DTI – CAR Regional Director, Juliet Palpal Lucas enthused: “We welcome the CEO Summit 2022 in the Creative City, Baguio. This is a timely and significant event just as the economy is set to get back better from the impact of the pandemic. We are excited to listen to remarkable speakers that are coming for the conference to pitch in trendy technologies and innovative solutions which our business leaders today will surely benefit from.”
Angelo Cenon Valdez, Harper, and Hill Conference and Exhibition, Inc. Managing Director and summit organizer, shared: “We saw the strong need for a face-to-face gathering after two years of doing virtual conferences brought about by the COVID-19 pandemic. And where else should we kick it off but in Baguio, the smart city of the North? We want to create a relaxing atmosphere behind the exchange of opinions and sharing of insights between top conglomerates during the conference.”
The summit is highly supported by the Department of Trade and Industry — Cordillera Administrative Region (CAR) which will showcase MicroSME PhilExport products to create access to large businesses participating in the event.
Technology and top companies confirm participation
917Ventures, Globe’s corporate venture builder and home to some of the most successful digital pioneers like GCash, KonsultaMD, Adspark, and many more, confirmed participation in the summit.
Natasha Dawn Bautista, 917Ventures’ Head of Growth and Programs Group said, “Conferences like the CEO Summit are a great platform to sharpen our knowledge and skills, bump into old connections & create new ones, and celebrate the excellence of the Filipinos. I’m looking forward to this year’s summit!”
Crypto Master Traders, Inc., President, and CEO, James Sali Dongla shared, “This is the first time we are joining the CEO Summit and we are excited to showcase our technology solution called ServiCoin, a cryptocurrencywhich I believe will revolutionize the payment systems for many services and businesses today.”
The CEO Summit’s main highlight will be the presentations of brilliant speakers which will focus on four topic tracks on digital transformation — Opportunities for Growth, Collaborative Governance, Transformative Leadership, and the Future of Smart Cities.
For more information on how to participate in the CEO Summit 2022, please contact HRTech500, visit www.ceoasiasummit.com, or email cris@harperandhill.com.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Fostering digital transformation requires more than the ability of acquiring new technologies. It also means creating environments where business can leverage innovation to deliver meaningful change and drive best results. Moreover, utilizing the right tools creates more opportunity for businesses that allows them to stay steady in the industry.
MYBUSYBEE, INC.(BUSYBEE)has always been consistent through the years of service in pioneering Filipino Digital Transformation. True to its mission, creating high-quality and innovative applications that incorporate technology to unravel solutions for brands and companies is top priority of the team. Harnessing the advancement of technology for public service that resulted in a greater good. Moreover, the innovation of these digital products helps improve and even sustain the heartbeat of the business environment in the Philippines.
The Paradigm Shift of Digitization
Prior to the pandemic, there is already a paradigm shift towards digitization that will greatly influence the move of the economy underway. Most businesses have this foresight, especially updating their marketing plans and goals every year. They need customized digital platforms and services aligned to the core and business goals of their company.
Fortunately, BUSYBEE is already ahead of the game in making this possible through providing its clients the right gear for digital transformation since 2012. Through the efforts of BUSYBEE CEO Mr. Rico Hernandez, the firm grew from producing Basic SMS software to a full-pledged digital agency, covering the entire spectrum of digital marketing. BUSYBEE is the Number 1 provider of SMS messaging platform and services that also offers other digital marketing services such as domain and web hosting subscription, web development & design, software, app and chatbot development, SEO, email marketing platform, social media management, cybersecurity, Virtual Event Platforms (VEP) and a lot more. Hence, Mr. Hernandez constantly pushes the business to adapt to the advancement of technologies as this is where the future lies.
BUSYBEE provides excellent service in Website design and development services which help companies successfully have their own compelling website to increase their brands’ credibility and client engagement. The first ever website project of BUSYBEE in 2015 is for Octaplas Industrial services Inc. followed by Mazda Philippines and many other startups and SMEs. Government agencies like the National Bureau of Investigation (NBI), Philippine Travel Exchange, Tourism Promotions Board and many more also chose BUSYBEE for the creation of their websites. To further improve our services and product offering, BUSYBEE partnered with credible brands such as Zoom, Coursera, Rakuten, Blackboard, and ISSUU. BUSYBEE also joined the Internet and Mobile Marketing Association of the Philippines (IMMAP), IT & Business Process Association of the Philippines (IBPAP), Philippine Software Industry Association (PSIA), and other businesses organizations to stay updated with industry trends and learn from other business leaders.
Digital Essence in a Pandemic
According to a recent study from data management consultancy, Transunion Information Solutions revealed that utilization of digital platforms and applications could possibly be permanent for Filipino businesses. Due to the pandemic, most institutions (finance, education, government transactions and more) in the country have delved completely to the digital realm. There is no other option for it is only the solution to make the world go round again.
Digital solutions companies, like BUSYBEE had an opportunity to serve more Filipino businesses during these challenging times. It gained exponential growth not only in revenue but also in the range of digital solutions offered and its agency force. While the COVID 19 pandemic may have disrupted our normal lives; on the other hand, it created opportunities for people to explore online businesses or migrate their existing businesses online.
“In this period of rapid digitization, it is imperative for experts in the field of technology to take initiative and help recalibrate the business landscape in the Philippines. We envisioned BUSYBEE 10 years ago as an agent of change, empowering businesses with our digital solutions. Definitely, this is not just a milestone we achieved but also a decade of impactful service to our clients,”said Rico Hernandez, CEO of MYBUSYBEE, INC.
This March 16, all BUSYBEE members from all over the Philippines will gather through a virtual event called BUSYBEE AFTER HOURS to celebrate its 10th Year Anniversary. There will be promos and giveaways for both the general public and all their clients who were onboarded in the past ten years.
As a part of BUSYBEE’s commitment in helping the Filipino community go digital, they have been providing support to organizations and initiatives that aims promote digitalization. BUSYBEE is the Digital Transformation Partner of many events happening this 2022. This includes the Philippine SME Business Expo that will be held on March 16-18, 2022, virtually. It is the country’s biggest B2B expo, conference, and networking event that aims to empower small and medium enterprises, Start-Ups, and Entrepreneurs, organized since 2013.
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We believe that collaboration is the key to success as we continue to be at top of the digital transformation initiatives in the country. Our team welcomes collaboration proposals.
For more details, contact BUSYBEE’s Business Development Manager, Mr. Ellirie Aviles through ellirie@mybusybee.net.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
KMC Solutions, the country’s largest flexible workspace and talent-as-a-service provider recently hosted the “Luau Foam Party for Odette”, a fundraising event to support the rehabilitation efforts of various Visayas provinces following Typhoon Odette’s damage. The party, which took place last March 10 (Thursday) in the company’s Skydeck at their headquarters in BGC, Taguig, raised a total of PHP380,000 in donations, garnered from event ticket sales and additional cash pledges. Spinning their beats and providing great music to the fundraiser was DJ Katsilly and DJ Arra Gunio, officially welcoming back KMC’s signature foam parties in style.
The innovative flexible workspace company in the past has launched Corporate Social Responsibility initiatives that were also in line with assisting these affected communities, donating hundreds of portable water filtration straws to provinces like Siargao, Cebu, and Negros Oriental — giving access to clean drinkable water to these provinces back when they were still reeling from the after-effects of Odette.
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The “Luau Foam Party for Odette” additionally served as the official launch party for KMC’s latest incentive program, Flex by KMC, designed to enable clients, members, and staff to work from picturesque beach destinations across the Philippines. Partnering with several hotel establishments, the incentive program lets managers and team leaders purchase hotel vouchers and reward hard-working teammates with a beach workcation — gifting them the flexibility to lounge by the beach while still staying on top of work.
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As Metro Manila and 38 other areas descend into Alert Level 1, workplace flexibility has started to become a large talking point for companies, as they contemplate their next move regarding mandates about returning to the office. Worldwide, workforces are slowly transitioning to hybrid work, splitting their time between working from home and the office. Combining both the benefits of remote and on-site work, hybrid work is believed to be the next big step for businesses in the coming months. Being a flexible workspace company, KMC is currently the most equipped and experienced to help other
businesses enable a hybrid work arrangement for their own teams. With lowered alert levels and economic activity slowly returning to normal, this has enabled employees to explore alternative work environments — as well as the lessened restrictions on gatherings letting KMC’s famous foam parties officially and more importantly, safely, make a comeback.
The “Luau Foam Party for Odette” sold Silver and Gold-tier tickets which served as entry to the event and doubled as a cash pledge to the event’s cause, with the donation proceeds coming mostly from ticket sales.
A total of PHP380,000 was raised by the end of the night via ticket sales and additional cash pledges, which will go towards the rehabilitation of several provinces in Visayas. Staying true to their vision of making work + life better and having close ties to affected communities, KMC looks forward to supporting many of these provinces’ recovery post-Odette.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
LABOR MARKET scarring due to the pandemic will require the Philippines to roll out training programs and improve social protections in order not to worsen the gap between employee skills and workplace expectations, the Asian Development Bank (ADB) said in a report.
The ADB in its Southeast Asia: Rising from the Pandemic report launched Wednesday said the coronavirus disease 2019 (COVID-19) pandemic disproportionately affected young people in the Philippines.
While Filipinos in many sectors lost their jobs, employment in information and communications technology along with professional and business services was more resilient.
“This divergence will increase skills mismatches as workers do not transition easily between sectors given differences in required skills. Companies have also been rapidly adopting digital technology in their business models, further raising demand for higher value-added skills,” the ADB said.
“These developments are likely to increase the mismatch between new skills demanded by employers and those possessed by displaced workers.”
The jobless rate for 2021 eased to 7.8% from 10.4% a year earlier.
Philippine unemployment had hit a record high of 17.6% in April 2020, when the government implemented strict lockdowns to contain the pandemic.
The International Labour Organization (ILO) in January said Philippine unemployment could hit 1.1 million in 2022, or 10% higher than pre-pandemic levels.
The impact of the pandemic on jobs could be even bigger after a large-scale exit from the labor force, which does not count as unemployment, the ILO said.
“While job losses have occurred across most sectors, the hardest-hit sectors are those dependent on personal contact, such as accommodation, food services, transportation, and recreational services,” the ADB report said.
In response, the ADB said the Philippines should invest in upskilling through industry-led training and apprenticeship programs. Public-private partnerships, the report added, can help link those that do not have access to digital technology to training.
The ADB also noted that unemployment insurance is limited in the Philippines.
“It is critically important that the Social Security System has a well-funded unemployment insurance scheme to provide workers with income stability during major economic shocks and disruptions to the labor market,” it said.
The report said that Southeast Asian governments should invest more in health systems to respond to future pandemics and support economic growth.
“We encourage Southeast Asian governments to invest in smart, green infrastructure and adopt technological innovations to reinvigorate economic growth,” ADB President Masatsugu Asakawa said. — Jenina P. Ibañez
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A member of Anakpawis holds a sign in front of a gasoline station in Manila to protest the latest oil price hike on Tuesday. Fuel retailers on raised gasoline and diesel prices by P7.10 and P13.15 per liter, respectively. — PHILIPPINE STAR/ RUSSEL PALMA
A HOUSE of Representatives committee on Tuesday approved a bill that seeks to prevent oil companies from raising prices of old stock via changes to the Downstream Oil Industry Deregulation Act, amid soaring global fuel prices.
The measure approved by the Committee on Energy — subject to form and style changes — also requires oil players to increase their minimum inventory to prevent fluctuations in local fuel prices.
“Unbundling the retail price of domestic petroleum product does not run counter to the principle of deregulation, and is, in fact, a tool to ensure its effectivity. Thus, the DoE (Department of Energy) must be mandated and capacitated to monitor the unbundled retail prices,” Marikina Rep. Stella Luz A. Quimbo said during the hearing.
The DoE has been pushing for the unbundling of oil prices, even issuing in 2019 a circular requiring oil firms to submit a detailed computation of the price components with every retail price adjustment of petroleum products. However, a local court issued a temporary restraining order on its implementation.
Ms. Quimbo said the country’s oil price monitoring should not be based on the weekly changes in the Mean of Platts Singapore. She said this would prevent firms from “unjustly” adjusting retail prices, even if inventory was purchased at a lower price.
Ms. Quimbo also proposed to include a provision in the bill giving the President the power to suspend or lower the excise tax rates on fuel products when the price of Dubai crude oil reaches $80 per barrel.
“This way, we could balance the interest of the people while maintaining a deregulated market,” she added.
Local fuel retailers implemented the biggest weekly price increase on Tuesday, after global crude oil prices surged last week due to jitters over Russia’s invasion of Ukraine.
‘NOT THE SOLUTION’ However, the oil industry is opposing these amendments, including the unbundling of prices and the provision requiring refiners, importers and bulk distributors to maintain 30 available days’ supply of finished petroleum products.
In a Viber message, Fernando L. Martinez, president of the Independent Philippine Petroleum Companies Association (IPPCA), said: “Price unbundling is not the solution to reduce the local price of fuels.”
He shared IPPCA’s position on the matter that cites the cause of price distortions in different locations to include the distance from a fuel depot to a retail location, real estate cost, and the cost of permits.
IPPCA is composed of more than a dozen oil companies, including Unioil Petroleum Philippines, Inc., Seaoil Philippines, Inc., Filoil Energy Co., Inc. and Eastern Petroleum Corp.
Mr. Martinez, who is also chairman and chief executive officer of Eastern Petroleum, in a Senate hearing on Monday said that the association does not see any benefit in analyzing the components of oil companies’ pricing.
“It has been there,” he said, referring to the submissions of the companies to the Energy department.
He enumerated these components to include the petroleum product cost itself, transportation and operating costs, but excluding disclosures disallowed by non-compete clauses in their agreements with suppliers.
Separately, Phoenix Petroleum Philippines, Inc. Senior Vice-President Raymond T. Zorrilla said in a text message: “We have yet to see the copy of the bill. But as a commitment to the public, we shall always adhere as to what is required by law.”
The other oil companies that were sought for comment did not immediately send their response.
SPECIAL SESSION SOUGHT Pampanga Rep. Juan Miguel M. Arroyo, one of the bill’s co-authors, urged Malacañang to call for a special session and certify the proposed amendments to the oil deregulation law as urgent.
Malacañang earlier this month urged Congress to review the oil deregulation law, but did not say if it will call for a special session. Congress is currently on a break for the May 9 elections.
When asked if Congress has time to tackle the amendments to the oil deregulation law, Senate President Vicente S. Sotto III replied: “Too little (time), let’s just say that.”
Senator Panfilo “Ping” M. Lacson, Sr. told reporters on Viber that it’s too early to say that the House plenary will approve the bill.
“I’m not saying it’s dead, but it’s too premature to say that it will be approved by the House of Representatives, because it’s just a panel, a committee. It will still be debated on,” he said in Filipino. “We’re not saying that (there’s no time). We’re going to see how urgent it is and when it will be passed.”
The Downstream Oil Industry Deregulation Act, or Republic Act No. 8479, removed government control on the pricing, exportation, and importation of petroleum products, allowing market forces to dictate oil prices.
Meanwhile, Bayan Muna Rep. Carlos Isagani T. Zarate said that while he supports the amendments to the oil deregulation law, it should be repealed.
“We propose (that the oil prices) should return to a regulated regime, because these past 24 years, we have become a hostage to large petroleum companies. The government’s only role has become the one who announces how high they will increase the price or if they will have a small rollback, if any,” Mr. Zarate said in Filipino.
He also pushed for the passage of bills to suspend the excise tax on fuel, establish a National Petroleum Exchange Corp., which would serve as a centralized procurement of petroleum products and would allow the government to regain control of Petron Corp. — Jaspearl Emerald G. Tan and Victor V. Saulon
Motorists line up at a gasoline station along España Boulevard in Manila on Monday night, before fuel retailers implemented a huge increase in pump prices on Tuesday morning. — PHILIPPINE STAR/ MIGUEL DE GUZMAN
THE NATIONAL Economic and Development Authority (NEDA) is confident the Philippines could still reach its economic growth target this year, despite the impact of Russia’s invasion of Ukraine on prices.
“As of the end of year 2021, I believe we were a hundred billion short from reaching pre-pandemic level. So, I still believe, in the first quarter, we will exceed the 2019 level, and there have been significant developments in the domestic economy,” Socioeconomic Planning Secretary Karl Kendrick T. Chua said at a Tuesday briefing.
The shift to Alert Level 1, the least strict pandemic restrictions, in several areas has added over P9 billion to the economy per week, he added.
NEDA also expects a return to face-to-face schooling to add P12 billion to the economy each week.
However, there are concerns the ongoing geopolitical conflict in Eastern Europe may hurt the Philippine economy’s recovery. Consumption is expected to take a hit as prices of fuel and basic commodities continue to climb.
“Unfortunately, we are facing global headwinds to our economy. We believe we have a very strong domestic economy that can withstand that. We also believe the current global tension is temporary in nature,” Mr. Chua said.
Government economic managers said the Philippine economy will be “collateral damage” to the Russia-Ukraine war as oil and food prices increase. The conflict could also push up interest rates or the cost of borrowing, while investors are expected to be more conservative.
To assist public utility vehicle drivers and agricultural workers affected by oil price hikes, the government has released P3 billion in subsidies so far.
“We are ready to support the affected sectors. We also have to think about our strategies and calibrate our policies so that we achieve the highest gain for the people, not only certain groups,” Mr. Chua said.
“I think we are still very much on track to our projected growth targets for this year,” he added.
The government expects the economy to expand by 7% to 9% in 2022. The statistics agency is scheduled to release the first-quarter gross domestic product (GDP) data on May 12.
In 2021, the economy grew by 5.6%, reversing the 9.6% contraction a year earlier but remained below pre-pandemic expansion.
“We really don’t know how long this crisis or tension (in Ukraine) would last. Of course, we are hoping a few weeks or months,” Mr. Chua said.
Meanwhile, the peso is seen to be vulnerable to the effects of the Russia-Ukraine war as the net importing country faces twin budget and current account deficits, adding pressure on the central bank to hike rates, Oxford Economics said.
The peso weakened by 1.6% since the crisis began on Feb. 24, the think tank said. — J.P.Ibañez
AS FUEL PRICES continued to climb this week, at least two ride-hailing and delivery service providers said they currently do not have plans to increase their rates.
They have also started taking steps to ease the pain at the pump for their drivers, such as providing incentives and fuel discounts.
“No, we don’t intend to increase our pricing. We’re also under a technical working group regulatory framework which has our price pegged at a certain rate per kilometer, but we are not talking to them to push for any type of increase,” Angkas Chief Executive Officer George I. Royeca told BusinessWorld in a phone interview on Tuesday.
For its part, online delivery firm foodpanda Philippines said: “We are assessing the situation regarding adjustment in pricing. Our priority now is the welfare of the riders and easing the burden of rising fuel costs.”
Pump prices went up for an 11th straight week on Tuesday. Fuel retailers raised gasoline and diesel prices by P7.10 and P13.15 per liter, respectively.
To encourage drivers to continue working, Mr. Royeca said the company gives cash incentives, especially if they reach certain targets or number of rides.
However, he admitted the sky-high fuel prices are “definitely a cause for concern.”
“But I think this is one of the times when we are more thankful that we are in the motorcycle business because the fuel efficiency of motorcycles is much better than any other vehicle. Hopefully that will translate to more people, maybe at this time, looking for an alternative mode of transportation to get from point A to point B,” Mr. Royeca said.
The Land Transportation Franchising and Regulatory Board has said it would start the distribution of the fuel subsidy to 377,443 beneficiaries this week. Each one is expected to receive P6,500.
“The initial batch is really meant for the delivery guys, and we are working to expand it to include the drivers,” Mr. Royeca said. “I’m currently working on this with the Department of Information and Communications Technology, which is the one facilitating this program.”
Meanwhile, foodpanda is ramping up efforts to ease the burden of the rising gas prices on its riders through fuel discounts and other initiatives.
“We already have existing partnerships with several fuel providers, including Seaoil, Caltex, Phoenix and Unioil. In the case of Unioil, it has partnered with foodpanda to co-subsidize an enhanced and exclusive fuel discount for foodpanda riders up to P10 per liter since March 1,” the company told BusinessWorld in an e-mailed reply to questions on Monday.
It has also teamed up with the PriceLOCQ app that allows its partner riders to enjoy P4 per liter discounts and other vouchers.
The company said it is working with its partners to expand the gas discounts to more locations and riders.
Foodpanda said it is now finalizing a list of its riders who will be eligible to get fuel subsidies from the government.
“While this is being finalized, we continue to look at how foodpanda can provide more help to riders through discounts, loans, and other subsidies, to support them through these challenging times,” it added.
Grab Philippines announced last week its “P25-million Partner Assistance Fund” this year for its Grab drivers and delivery partners. This is expected to help them “overcome the adverse impacts of natural calamities and ongoing macroeconomic conditions.”
The company said it is also extending working capital loans and working closely with the government to revisit existing fare and fee structures.
Mr. Lucio Tan III during the 81st Philippine Airline Anniversary, March 15, 2022. — PHILIPPINE STAR/KRIZ JOHN ROSALES
PHILIPPINE Airlines, Inc. (PAL), which celebrated its 81st anniversary on Tuesday, is working to strengthen its cargo business to take advantage of the e-commerce boom.
PAL, which hopes to return to its pre-pandemic size in two to three years, is studying to convert some of its aircraft to cargo-only airplanes.
“We are looking into that. We are exploring,” PAL’s newly appointed President and Chief Operating Officer Capt. Stanley K. Ng told reporters, adding that “the e-commerce is getting stronger.”
“We will innovate our business by integrating our cargo reservations system with a new cargo mobile app and website and create more cashless payment options and offer last-mile cargo deliveries directly to homes and offices, soon in the Philippines.”
PAL will have a one-way cargo flight from Asia to the United States to transport medical supplies. The airline will use the aircraft back as a passenger airplane, Mr. Ng also said.
PAL is also studying to acquire more aircraft in order to revert to its pre-pandemic size.
“It will take about two to three years because we’ve reduced our fleet size,” Mr. Ng said.
“We need to forecast the demand. If we forecast that the demand will be enough, then that’s the time when we can actually customize,” he added.
On the impact of the rising fuel prices on PAL’s operations, he said: “The fuel component is about 50% of our costs… We are actually managing it. We are looking into solutions on how to manage the situation right now.”
“We are working with the Civil Aeronautics Board to add some fuel surcharge to the fares. However, we will make sure that it will still be reasonable for passengers,” he added.
PAL also announced on Tuesday its 81st Anniversary Seat Sale. “It is our biggest sale of the year with the lowest fares, with over five million seats on sale from March 15 to 21,” Mr. Ng said.
“Next… by April, we will embark on a new ‘Project Open,’ a partnership between PAL and the Department of Tourism to revive the Philippine tourism industry on which many communities and local businesses depend.”
PAL Director Lucio C. Tan III said the company’s 81st anniversary is a “rebirth.”
“In overcoming the pandemic, we have created a new Philippine Airlines.”
“It’s a new PAL because we emerged in record time from our restructuring with fresh capital — $505 million infused by our chairman, Lucio C. Tan; lower debt — a $2-billion reduction in debt, as agreed with our major creditors via a 100% positive vote under the Chapter 11 process; and a streamlined fleet — anchored on 70 aircraft, from island-hoppers to wide-body long-haul aircraft including NEOs, A350s and B777s,” Mr. Tan noted. — Arjay L. Balinbin
PLDT, Inc. on Tuesday said its Home business, which offers fixed broadband services to residential customers, is aiming to reach more areas in the Visayas and Mindanao, as the overall market is still underpenetrated at around 20%.
“The group is anticipating PLDT Home to grow its revenues at an accelerated pace as it adds more fiber customers, with the market still underpenetrated at approximately 20%, compared with up to 50% penetration in the Asian region,” PLDT and Smart Communications, Inc. President and Chief Executive Officer Alfredo S. Panlilio said in an e-mailed statement.
Mr. Panlilio expects PLDT’s Home business to continue its strong performance “given the latent demand, as well as our improved service metrics and the upcoming conclusion of our copper migration campaign.”
PLDT Home said it registered 1.13 million new fiber subscribers last year, up from its target of one million new subscribers.
PLDT now has nearly three million fixed broadband customers.
“This exceptional performance sets the foundation for 2022 and beyond as we continue to build on our strengths as an integrated telco and our commitment to serve our customers in the best way possible,” Mr. Panlilio said.
PLDT Home is ramping up installations this year, according to the group.
The goal is “to serve untapped markets, fast-track completion of migration for the remaining copper customers to fiber, and continuously improve in terms of operations using automation,” it noted.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
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