GMA NETWORK, Inc. said it now covers more than 98% of television households with around 84 million viewers nationwide.
“In both total Luzon and total Visayas, GMA’s net reach was similarly at 98.6% of TV households, while posting 49.8% and 47.7% people audience shares, respectively,” the listed media company said in an e-mailed statement on Monday. “In total Mindanao, GMA was able to reach 97.9% of TV households with 42.2% people audience share.”
The network cited Nielsen Philippines TV Audience Measurement’s total Philippines data for 2020, from Jan. 1 to Dec. 26.
In December 2019, ABS-CBN Corp. reported, citing data from Kantar Media, that its nationwide TV audience share stood at 42% as of November, versus GMA’s 30%.
But GMA said it started “strong” in 2020.
“For the period January to May 5, GMA was already ahead of ABS-CBN in terms of both reach and viewership before the latter went off air in May. GMA registered over 95% household reach and was also on top with its 33.1% people audience share during the said period,” it explained.
This year, GMA plans to launch its digital TV mobile receiver GMA Now.
Also on Monday, GMA reported it already sold 1 million units of its digital terrestrial television (DTT) receiver “GMA Affordabox.”
“As GMA Network expands its digital broadcast coverage, more and more Filipinos are able to use GMA Affordabox,” it said.
“Recently, Misamis Oriental (including Cagayan de Oro City) and Camiguin were added to its coverage areas. It is also available in selected towns/cities within Metro Manila, Benguet, La Union, Pangasinan, Bulacan, Pampanga, Nueva Ecija, Tarlac, Batangas, Cavite, Laguna, Quezon, Rizal, Bohol, Cebu, Leyte, Davao de Oro, Davao del Sur, and Davao del Norte,” it added.
The company has allocated more than P20 billion for capital expenditures (capex) and content cost for the current year until 2023.
A big portion of the budget is allocated for content production and post-production.
The media giant had set aside a capex of P1.22 billion last year.
The listed company recently reported an attributable net income of P3.90 billion for the January to September 2020 period, up 79.03% from the previous year’s P2.18 billion.
It saw its total revenue grow 3.59% to P12.66 billion during the same period in 2020, from P12.22 billion in 2019.
GMA Network shares closed 1.84% lower at P5.88 apiece on Tuesday. — Arjay L. Balinbin
THE CULTURAL Center of the Philippines (CCP), through its Visual Arts and Museum Division is now accepting nominations for the 2021 Thirteen Artists Awards.
The Thirteen Artists Awards (TAA) started 50 years ago as a curatorial project of the Cultural Center of the Philippines (CCP) Museum under the directorship of its first curator Roberto Chabet. It was created in order to showcase the works of artists who attempted to “restructure, restrengthen and renew artmaking and art thinking… that lend viability to Philippine art.” Raymundo Albano, the next Director of the CCP Museum and Non-theater Operations, transformed the 13 Artists into the awards program that it is today.
The 13 Artists exhibition was mounted every two years from 1970 to 1980, and again in 1988, 1990, 1992 and 1994. It was revived in 2000, and changed to a triennial format, which it follows until today.
Nominees must possess the following eligibility requirements:
• Have a body of work characterized by artistic integrity, innovativeness, and forcefulness of ideas;
• Be responsive to contemporary realities;
• Show evidence of sustained artistic activity demonstrated by a track record of individual exhibitions and group shows for at least the past three years;
• Engagement with contemporary visual art forms including, but not limited to, painting, sculpture, new media, installation, performance art, photography, printmaking and digital imaging;
• Have Filipino citizenship;
• Be less than 40 years old in the year of conferment.
Art councils, art groups, heads/deans of art schools, museum and gallery curators and directors, art critics and past Thirteen Artists Awardees may nominate a maximum of three artists each.
The CCP Visual Arts and Museum Division (VAMD) under the Production and Exhibition Department and the Office of the Artistic Director will convene a Selection Committee composed of four past awardees and the head of the CCP-VAMD. The decision of the Selection Committee is final.
A Thirteen Artists Awardee will receive a cash grant to defray the cost of materials for producing new work for a group exhibition at the CCP Bulwagang Juan Luna (Main Gallery), which will open with the formal awarding ceremonies; a trophy designed by a 13 Artists Awardee and specially commissioned for the 2021 Thirteen Artists Awards; as well as participation in the CCP’s public programs of discussions, lectures, workshops and other activities.
The deadline for nominations is on March 1, 2021,at 11:59 p.m.
The nomination form can be downloaded from bit.ly/taa2021nominations. Completed nomination forms must be sent to ccp.thirteenartists@gmail.com. Hardcopy nomination forms will not be accepted.
For inquiries, contact the CCP Visual Arts and Museum Division, Production and Exhibition Department via landline at (632) 8832-1125 loc. 1504/1505, mobile phone (0917-603-3809), e-mail (ccp.thirteenartists@gmail.com), or visit www.culturalcenter.gov.ph, Facebook, Twitter and Instagram @ccpvamd.
THREE Western brands are leading in sustainability efforts in the Philippines, based on perceptions of locals, according to a national study released by a research firm and a data provider.
The report, titled “Philippines Sustainability Study,” ran in November last year and surveyed 752 individuals. The report was written by research firm Blackbox Research, and data and insights platform Dynata.
The top three brands that received higher scores in the study’s brand sustainability index are Google (1.47), YouTube (1.37), and Nestle (1.27). Meanwhile, Asian brands Samsung and Shopee were the only ones that “ranked above average,” with scores of 1.13 and 1.04, respectively.
The report’s brand sustainability index takes into consideration the perception of locals on how the various brands worked in the interest of people, planet and economy, and how individuals wanted to see these brands contribute to sustainable development goals (SDGs).
Despite the findings, Blackbox Research Chief Operating Officer Saurabh Sardana said that there was a “strong opportunity” for progressive local brands to connect with consumers by becoming more sustainable, especially now since the pandemic has halted the country’s efforts in achieving its SDGs.
The report said that the country had been making significant headway in implementing the United Nations’ SDGs, with the national poverty rate declining to 16.6% in 2018 from 23.3% in 2015.
“While our study found global companies dominating the market in this respect, Blackbox Research believes that progressive Filipino brands can lead the way when it comes to pioneering sustainable business that would help create a brighter future for all, while winning the hearts, minds, and spending power of consumers,” Mr. Sardana said in a press release.
The study’s findings also showed that 96% of Filipinos were willing to buy sustainable brands.
“Nearly all Filipinos are more open to brands that are sustainable… This finding is consistent across age groups, gender, and even educational levels,” the report said.
For Mr. Sardana, the study’s findings showed that “sustainable capitalism made business sense in the long term.”
“Our research makes it clear that this has major economic implications, given that Filipinos have demonstrated a preference for brands that are sustainable,” he said.
Further, the report found out that Filipinos wanted businesses to focus on three key sustainability areas. These are: ensuring economic growth by providing employment for all; promoting interconnectivity and equitable trading systems between countries; and responsible consumption and production. — Angelica Y. Yang
To say that 2020 has been rough for the cultural and creative industries is an understatement. More specifically, coronavirus disease 2019 (COVID-19) has been nothing short of a perfect storm for workers in those industries, who already experienced precarious conditions. Venue closures and travel restrictions have affected other economic sectors, such as hospitality, on which many workers depend to make ends meet.
If this pandemic were a natural disaster, it would be as if the tides kept on bringing oil to already devastated shores, day after day after day. In the end, who can we count on to provide some of the much needed “post-disaster” assistance, and when?
Research on disaster management offers insights into these questions. Interestingly, it suggests that future assistance will need to look a lot different than the responses seen to date.
Almost a year into this pandemic, it feels as if everything has been said. We know all too well about the struggle, the layoffs, and the dire financial situation many artists now find themselves in. We know about artists and other creative professionals moving on to more stable, greener professional pastures — at times in a literal sense as they leave cities that they were increasingly priced out of pre-pandemic. Perhaps more worrisome, we also know about the mental toll of prolonged inactivity and isolation.
Yet, we have also regularly been privy to glimpses of hope, promising innovations, and we’ve marveled at the adaptations of a generally resilient arts sector.
Think back to when news media extensively covered the phenomenon of people singing or playing instruments from their balconies. Despite the crisis, many established artists found ways to engage the public and some people in quarantine filled time with crafts or their windows with paintings.
Such positive moments remind us of the value and power of creativity, but they sit, of course, in the context of grief, anxiety, and exhaustion.
There is now a need to look also beyond immediate relief to deal with artists’ short-term needs met through things like emergency benefit schemes, wage-subsidy programs, and other forms of cash injections. The subsequent “chronic” stage efforts will need to focus on cleaning up, conducting post-mortems or self-analysis, and, perhaps more importantly, on healing.
Applied to the cultural and creative industries, this involves asking tough questions on the current working conditions, financial stability, and social recognition of artists, as well as extending sustained non-monetary support such as counseling for those who have had to weather a seemingly perpetual storm.
Only then can the sector turn to long-term rebuilding strategies, which must include reinvestment strategies.
Recent disasters, natural or man-made, show that help for devastated communities tends to come from those who have been for the most part unaffected by the situation. For example, over 90 countries provided logistical and financial assistance to New Orleans following Hurricane Katrina in 2005, much like many nations across the word were quick to come to Beirut’s rescue after last summer’s horrific explosions. On the surface, this may seem hardly applicable in a context of a global pandemic that has affected most people in some shape or form.
However, when it comes to the cultural and creative industries, a handful of sectors such as the video game industry and streaming platforms such as Netflix have actually experienced record growth over the past months.
We suggest that those companies that have weathered the storm, if not flourished during the pandemic, should launch joint initiatives, production support, sponsorships, and dedicated programs for individual artists or small organizations.
Furthermore, the collective expertise among these sectors could support digital transformation initiatives for those that did not previously rely on online outreach. This includes the development of tailor-made, but scalable immersive experiences that allow audiences to engage with creatives in a digital first, or hybrid digital-offline context.
In addition to reinvestment, infrastructure considerations and dedicated communications efforts have an important role building up sustainable arts communities and enterprises. Redesigning venues to make them more accessible, but also much safer for both patrons and artists is significant. In addition, what’s needed are government programs to support not just artists’ productions, but also cost of living and rent stabilization subsidies.
Beyond this, government investment to promote audiences’ consumption of artistic goods and services also matters. Once the pandemic is over, overcoming the stigma of mass gatherings and the public’s residual fears is also likely to be an everyday communication battle, one in which the entire cultural sector will need to come together in a concerted effort to encourage people to go out.
Likewise, while the rest of the economy was taking a battering, universities remained reasonably safe and privileged despite the collapse of the international student market. It is also the responsibility of universities to help by offering spaces and programatic support for experimentation and incubation of creative projects, as well as reskilling programs and research initiatives into the future of these sectors.
The current pandemic has shocked many of us into an awareness of the threat posed by disasters particularly given the world’s interdependence and complexity. This is why we need to develop much more sophisticated contingency, rescue and recovery strategies, in which stakeholders other than just governments are compeled to come together and support each other in times of crisis.
Louis-Etienne Dubois is Assistant Professor at the School of Creative Industries, Faculty of Communication and Design, Ryerson University. David Gauntlett is the Canada Research Chair in Creativity, Ryerson University. Ramona Pringle is the Director, Creative Innovation Studio, and an Associate Professor, RTA School of Media, Ryerson University.
THE NUMBER of lives insured by the microinsurance products of mutual benefit associations (MBAs) grew to 26.66 million last year, but total premiums earned declined due to the pandemic, the Microinsurance MBA Association of the Philippines, Inc. (MiMAP) reported on Tuesday.
MiMAP’s 18 MBA members covered 1.723 million more lives with their microinsurance products last year, increasing the sector’s coverage by 7% from the 24.93 million in 2019, its chairman emeritus Jaime Aristotle B. Alip said during the organization’s forum on Tuesday.
Premiums written, however, declined by 18% to P3.94 billion in 2020 from P4.81 billion the year prior after several clients found it more difficult to settle their dues during the pandemic, Mr. Alip said.
“Mahirap po kasi ang pagbabayad, maraming miyembro ang gustong magbayad (Many members found it difficult to pay their premiums even if they wanted to) because with this lockdown and mobility restrictions, (payments) became an issue,” he said.
Claims paid by MiMAP’s MBA members, meanwhile, rose by 12% to P1.6 billion from P1.43 billion in 2019 as companies continued to process payments and claims of clients, Mr. Alip said.
The average amount of death claims they received per day jumped by 12% to P4.38 million last year, while the number of payouts issued inched up by 2% year on year to 182 on average.
“This signifies the commitment of Mi-MBAs to prioritize addressing the needs of its members especially during this state of calamity in the country brought about by the COVID-19 pandemic,” he said.
Meanwhile, the Insurance Commission (IC) expects the MBA industry to remain the top-performing insurance sector in microinsurance after being so in the past five years.
IC data showed the number of lives covered by MBAs with their microinsurance products accounted for 69% of the total market share at end-June 2020, making it the top contributor in microinsurance.
MBA’s microinsurance premium production also accounted for the bulk or 58.8% of the total premiums recorded in the first half of 2020.
“The IC remains optimistic that the number of lives insured will continue to increase gradually now that the community quarantines are being eased up. Certainly, it will still involve our collective efforts to spread information and awareness about microinsurance, and other financial instruments in general,” said Insurance Commissioner Dennis B. Funa at the same event.
Mr. Funa said the industry’s shift to digital and wider adoption of insurance technology (insurtech) will support the promotion of microinsurance.
However, the IC chief himself admitted that communities in remote areas will still be difficult to reach due to connectivity issues.
“Another challenge is the fact that marginalized sectors, which are the target market of the microinsurance, are also the ones most affected by the pandemic,” he said.
“Nonetheless, we should still continue to reach out to them and educate them about the importance of insurance and microinsurance products, especially in times of crisis,” he added.
The estimated lives covered by microinsurance rose by 8% year on year to 39.67 million as of June last year, IC data showed. — Beatrice M. Laforga
PEPSI COLA Products Philippines Inc. (PCPPI) has opened a new line in Santo Tomas, Batangas that it expects to improve the overall polyethylene terephthalate (PET) bottle production by 30%.
Frederick D. Ong, PCPPI president and chief executive officer, said in a statement on Tuesday that the new line aims to address the increasing consumer demand for drinks amid the coronavirus disease 2019 (COVID-19) pandemic.
“PCPPI’s investment in this new line is a testament to our commitment to helping stimulate the economy by generating more jobs, especially in the Santo Tomas area. We believe that our country is on its way to recovery and, by investing and expanding our business, we can support the economic upswing,” Mr. Ong said.
According to the company, it now has four operational lines in its Southern Tagalog regional office.
“The new line, inaugurated last Jan. 7, adheres to sustainable business practices, as PET remains one of the highly-recyclable and sustainable plastic materials in the world,” the company said.
The new line comes after PCPPI announced that it had implemented the SAP Enterprise Management System as part of its plan to improve business operations and operational management.
With the move, the company now has an end-to-end single data platform to process data, which translates information to real-time analytics and insights.
In December, PPCPI received approval from the Philippine Stock Exchange to delist its shares. The company decided to delist voluntarily after its public ownership declined to 2.1%, far from the 10% minimum requirement. — Revin Mikhael D. Ochave
AN OPEN fair inspired by European street markets, Palacio de Memoria opens its grounds to the “Flea Market at The Palacio,” a weekend of arts, antiques, and artisanal goods on Feb. 6 and 7, 10 a.m. to 5 p.m. There will be unique and curated finds from art galleries, private collections, and artisanal shops, Rue Angelique Gallery of Prints, ARCHIVO 1984, Galeria Lienzo, Vidro, and the Edd Fuentes Private Collection. In addition to the market, special events will be held over the weekend. On Feb. 6, there will be a talk, “Connoisseur Conversations” with Dr. Jaime Laya from 11 a.m. to noon, followed by a Cognac Masterclass by Remy Martin at 1 and 3 p.m. At 5 p.m., there will be a screening of the 1977 film Tisoy by ABS-CBN Restoration. On Feb. 7, there will be a cooking demonstration by Cibo de Marghi at noon to 1 p.m., followed by the Remy Martin Cognac Masterclasses at 1 and 3 p.m., followed by Cigar Night by Tabacalera and Don Papa Rum starting at 5 p.m. Pre-registration is encouraged but walk-ins are welcome subject to health protocols. Strict health and safety measures apply throughout the fair. RSVP at hello@palaciodememoria.com by providing the names and number of guests and their contact details.
James Clar joins Silverlens
SILVERLENS has announced Filipino-American artist James Clar has joined the roster of artists it represents, ahead of his presentation in the 14th edition of Art Dubai in March. The artist will also have a solo exhibition at Silverlens Galleries Manila in June. Clar’s artistic practice analyzes the effects of media and technology on the perception of culture, nationality, and identity. His body of work often overlaps non-physical spaces — dream world, virtual world, spiritual world — so that constants, such as gravity and space, become pliable material. Creating visual sculptural pieces that utilize light and technology, Clar’s art fosters the potential for narratives to exist. Clar received his Masters from New York University’s media art program ITP. There, he developed his own light and technology systems to create the installations that would come to characterize his practice. Clar then established his studio in Dubai, participating in the city’s developing art scene until 2012, before moving back to New York, where he furthered his studio practice from Brooklyn and taught a graduate course at his alma mater. In 2021, he opened a studio in Manila to work from the Asian region. Silverlens first worked with Clar in 2019, with a solo exhibition at the gallery entitled “Noise Field #1,” which was his first presentation in the Philippines. In 2020, he expanded this show with a laser and liquid installation, Noise Field #1B, which he created in partnership with AC Motors for Art Fair Philippines. Clar was also included in Silverlens’ first online exhibition, “Anticipating the Day” in June 2020, where his installation piece, The New Normal (Red/Green, 6×6) was presented alongside works by Nicole Coson, Frank Callaghan, and Mit Jai Inn. The gallery said that Clar’s innovative light and media artworks align with its “objective of working with artists that expand the boundaries of contemporary art production.”
8-year-old becomes an author
#RAJISMS, a book filled with funny quips and witticisms from an eight-year-old boy will be launched via zoom and livestreaming on Feb. 13, 3 p.m. The book covers the quips that young author Maharadya Miclat-Janssen, Raja for short, has been saying from the time he was two to the present. These cover diverse topics like food, bilingual mix-ups, religion and house rules, geography and travel, politics, learning to read, arts, historical and world views, gender and politics, literature and creating stories, and the “new normal.” In the book’s foreword, his mother, UP Professor Banaue Miclat-Janssen, writes: “Kids say hilarious things. I cannot help but keep a record of my son Raja’s quips as experienced by my parents, his father and me.” Finding his thoughts amusing, even unconventionally funny for a small kid, she started posting his quips on Facebook. Friends prodded her to compile them in a book. The book also features Raja’s stories entitled Hyperion and Mixels and highlights six of his paintings done at ages three and four. Book design and illustration is by Ivan Reverente of INK, Ilustrador ng Kabataan. Jointly published by the Maningning Miclat Art Foundation, Inc. (MMAFI) and Erehwon Center for the Arts, the book to be launched via Zoom live streamed at Maningning Miclat Artist Facebook page. The book may be ordered through maningningfoundation@gmail.com or viber/text 0999-504-2898.
Virtual exhibit opening at The Met
THE METROPOLITAN Museum of Manila presents a retrospective exhibit ofManila-based Spanish artist Betsy Westendorp titled “Passages.” Over 100 artworks spanning more than 60 years of Ms. Westendorp’s painting career form the retrospective collection curated by Dannie Alvarez, and features in a catalogue written by art critic Cid Reyes. Her body of work includes portraits, Philippine landscapes, seascapes of Manila Bay, Philippine flora, and grand cloudscapes across Philippine skies. There will be a virtual exhibit opening featuring a brief interview with the artist and a 3D virtual tour of the exhibit on Jan. 29, 4 to 5 p.m. The event is free and open to all at http://bit.ly/PassagesBetsyWestendorp.
Atlantis to hold virtual theater workshop for adults
ATLANTIS Theatrical kicks of the new year with an online musical theater workshop for adults, featuring the fundamentals of acting, voice, and dance. The virtual setting will give students an intimate and focused learning experience aided by faculty members who have graced local and international stages. Acting classes will be taught by stage and TV actor Nelsito Gomez; voice classes will be taught by classically trained singer and Gawad Buhay and Aliw Awards winner Arman Ferrer; while Cecile Martinez, Atlantis Theatrical’s resident choreographer, rounds up the faculty as the Movement coach. The classes will be conducted from Feb. 22 to March 26, every Monday, Wednesday, and Friday. Sessions are an hour and 15 minutes long, with only two to three students to be accommodated per time slot. To conclude the course, there will also be an online recital with solo performances from all students on March 27, to be held live via Zoom. Students are expected to leave the workshop with rudimentary acting, singing, and dancing skills (with a focus on jazz dance); a polished musical theater song performance; applied understanding of song analysis and vocal techniques; and confidence that will help them shine wherever they go. A special class on basic makeup for theater and virtual meetings will also be conducted by make up designer Johann Dela Fuente. Visit www.atlantistheatrical.com/workshops for more information about the program. Contact Atlantis Theatrical at info@atlantistheatrical.com or at 0917-838-1534 to inquire. Slots are Limited.
THE PLANNED merger between Bank of the Philippine Islands (BPI) and BPI Family Savings Bank (BFSB) will boost efficiencies and have little impact on the parent bank’s credit profile, S&P Global Ratings said.
“The integration will increase BPI’s operational efficiency by eliminating duplication of the physical network. The surge in popularity of mobile and internet banking due to COVID-19 has enhanced focus on having a robust digital infrastructure and rationalize the branch network,” S&P analysts Ivan Tan and Nikita Anand said in a report on Tuesday.
The merger will have “minimal impact” on BPI’s credit rating, which currently stands at BBB+ with a negative outlook, the analysts said. They noted BPI’s rating is already based on a consolidated level, with BFSB contributing 13% to 15% to the parent bank’s overall assets and profits.
BPI last week announced its plan to absorb its thrift unit, saying they hope to finalize the transaction within the year. It said the merger will put under one bank the two lenders’ 8.5 million customers.
It said the reduction in the gap in the regulatory reserve requirements between commercial banks and thrift banks was also a factor for the move. The reserve requirement ratio for big and thrift banks currently stand at 12% and three percent, respectively.
S&P said they do not see other big banks following BPI’s move to consolidate with its thrift arm.
“The 600-basis-point gap in RRR ratio is still significant for major banks to benefit from having a separate thrift bank subsidiary. Banks will likely continue to take advantage of lower regulatory costs at thrift bank subsidiaries and house riskier loans with them,” it said.
BFSB is the country’s largest thrift bank with P287 billion in assets, P235 billion in deposits and P227 billion in loans.
Meanwhile, its parent bank BPI’s net income declined 33.7% to P5.5 billion in the third quarter of 2020. This brought its net profit for the first nine months to P17.17 billion, down 22.1% from the P22.03 billion booked in the comparable 2019 period.
BPI’s shares slipped by 25 centavos or 0.3% to close at P82.95 apiece on Tuesday. — L.W.T. Noble
THE PESO closed nearly flat against the greenback on Tuesday as investors wait for the result of the US Federal Reserve’s policy meeting.
The local unit finished trading at P48.08 per dollar, almost unchanged from its P48.079 close on Monday, data from the Bankers Association of the Philippines showed.
The peso opened the session at P48.07 per dollar. Its weakest showing was at P48.085, while its intraday best was at P48.05 against the greenback.
Some $1.0146 billion changed hands on Tuesday, up from the $763.05 million seen on Monday.
The trader said in a text message that the peso was steady as investors stayed on the sidelines ahead of the Fed’s policy meeting.
Fed Chairman Jerome Powell earlier said an interest rate hike will not come anytime soon as the central bank continues to provide support to the world’s largest economy.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said investors preferred the safe-haven dollar over the local unit amid worries over the delayed approval of a new stimulus package in the United States.
US President Joseph R. Biden said he is open to negotiate tweaks on the $1.9-trillion relief proposal to make it a more bipartisan deal, Bloomberg reported.
For today, the trader expects the peso to move from P48 to P48.10 versus the dollar while Mr. Ricafort sees it trading within a tighter band of P48.05 to P48.10. — LWTN
PHILIPPINE shares declined anew on Tuesday as the country confirmed the local transmission of the new coronavirus disease 2019 (COVID-19) variant from the United Kingdom (UK).
The benchmark Philippine Stock Exchange index (PSEi) dropped 94.34 points or 1.33% to finish the session at 6,977.16, while the broader all shares index fell 81.69 points or 1.92% to end at 4,168.96.
Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a mobile phone message that the market ended lower as investors unloaded shares amid the local transmission of the new COVID-19 variant in Bontoc, Mountain Province.
“The market closed in the red territory amid stricter lockdown measure worries after the mounting cases of a new COVID-19 variant. Stringent lockdown measures are not good for the economy, particularly that we are just in the beginning phase of recovery,” Ms. Alviar said.
Reuters reported that the Health department has confirmed the local transmission of the new COVID-19 variant first detected in Britain.
Dubbed B.1.1.7, the new variant has infected 12 people in Bontoc, bringing the total number local cases of the strain to 17.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the local bourse closed in negative territory as market sentiment remained cautious.
“The lack of optimism from investors may be coming from the lack of positive news from companies with regards to their fourth quarter performances. Most issues have lost all of their gains for 2021, with prices going back to where they were at the beginning of December,” Mr. Mangun said in an e-mail.
All sectoral indices at the PSE ended lower on Tuesday. Mining and oil declined 494.33 points or 5.36% to 8,718.37; financials went down 26.37 points or 1.79% to 1,444.51; holding firms retreated 127.7 points or 1.77% to 7,085.63; services shrank 24.66 points or 1.6% to 1,516.3; property decreased 46.89 points or 1.29% to 3,562.38; and industrials lost 21.83 points or 0.24% to 9,079.54.
Value turnover on Tuesday amounted to P11.56 billion with 74.53 billion issues switching hands, a jump from the P9.11 billion with 79.86 billion shares logged in the previous session.
Decliners dominated advancers, 209 against 29, while 31 names ended unchanged.
Net foreign selling climbed to P504.07 million yesterday from the net P311.43 million that left the market on Monday.
“Breaching the significant support area at 7,000, 6,700 now becomes the next support level to watch,” Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said via text.
“The next major support for the PSEi is at 6,740. The bloodbath continued for second and third liners as investors are now unloading positions at a massive scale. This trend may also continue until the end of the week,” AAA Southeast Equities’ Mr. Mangun said.
SOCIOECONOMIC planners warned Congress that failure to pass pending reform legislation will likely stall the opening up of the economy, adding that without such laws, it may not be possible to expand foreign investment to more industries.
If passed, pending legislation amending the Public Service Act, the Retail Trade Liberalization Act, and the Foreign Investments Act will allow for a more permissive Foreign Investment Negative List (FINL), the document which outlines industries foreign investors are allowed to participate in, according to National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon.
Speaking before the House Committee on Constitutional Amendments Tuesday, Ms. Edillon said legislative action is needed because NEDA has “exhausted” all possible action at the executive level to open up the economy.
“We really need the legislation to be able to come up with a more liberalized Foreign Investment Negative List,” she said.
She added that the pending reform bills will work “hand-in-hand” with the tax-reduction bill known as CREATE.
The proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which is currently being tackled by the bicameral conference committee, reduces corporate tax rates while rationalizing the incentives regime.
Originally a purely tax reform measure, CREATE has since been repositioned as an economic relief bill to help businesses recover from the pandemic.
“We should also know that these amendments actually complement the CREATE bill and the other reforms that have already been done with respect to the ease of doing business,” she said.
Members of the Cabinet’s economic team appeared before the committee Tuesday in the context of moves to amend the Constitution, to weigh in on whether charter change could play a role in effecting the proposed reforms.
“If there are things that we can do to open up the economy through administrative measures, we must implement them,” Finance Secretary Carlos G. Dominguez III said at the committee hearing. “If there are areas that we can liberalize by amending our existing laws then let’s do that.”
Trade Secretary Ramon M. Lopez said the timing of the campaign to amend the Constitution could be problematic because of the approach of the 2022 elections.
“We are just mindful (that) the current challenges, including the nearing 2022 presidential elections, might affect the focus of the deliberations, but we leave those concerns to the wisdom of the legislators.”
Also at the hearing, the Joint Foreign Chambers (JFC) of the Philippines said it supports Constitutional amendments. However, the JFC’s John D. Forbes, Senior Adviser with the American Chamber of Commerce, said it may take “several Congresses” to complete the desired reforms.
“We recommend the immediate enactment of other laws that provide new (foreign direct investment) opportunities… and programs that increase competitiveness to surpass FDI levels achieved by our neighbors,” he said.
The JFC said Philippine FDI as a share of gross domestic product averaged 1.6% a year between 2010 and 2019, the worst performance within the Philippines’ regional economic peer group, which includes Indonesia, Malaysia, Thailand, and Vietnam.
Economist Bernardo Villegas, a member of the commission that drafted the 1987 Constitution, told the panel that the pending legislation could be subject to challenge without actual amendments to the charter.
“I think there will be a lot of constitutional challenges… I don’t think it will be that easy to allow foreign ownership in public utilities,” he said at the hearing.
“We have to act right now with regard to the economic provisions” of the Constitution, he added. — Gillian M. Cortez
