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San Miguel also wants to rehabilitate NAIA, says head of gov’t airport body

By Arjay L. Balinbin, Senior Reporter

SAN MIGUEL Corp. (SMC) and the Philippine Airport Ground Support Solutions, Inc. also want to get the contract to rehabilitate the Ninoy Aquino International Airport (NAIA), the Manila International Airport Authority said on Thursday.

“There are two more: Philippine Airport Ground Support Solutions, Inc. and… San Miguel Corporation,” MIAA General Manager Eddie V. Monreal said at a Senate hearing on Thursday afternoon, when asked by Senator Maria Lourdes Nancy S. Binay who the third and fourth proponents are after the tandem of Megawide Construction Corp. and India-based GMR Infrastructure Ltd. (Megawide-GMR), whose original proponent status (OPS) has been revoked.

When asked if there were efforts already to talk to the third proponent, Mr. Monreal said: “Sa ngayon, wala pa po (For now, none yet).”

Also at the hearing, Transportation Secretary Arthur P. Tugade said the Megawide-GMR tandem could still appeal for reconsideration, while MIAA implements its own reconstruction and rehabilitation program.

“Kung gusto nila mag-apila sa desisyon, sa aking pananaw, pwede pa silang mag-apila, habang ginagawa ng MIAA ang kanilang reconstruction and rehabilitation program,” Mr. Tugade said.

(If they want to appeal the decision, in my view, they can still make an appeal while the MIAA is doing its reconstruction and rehabilitation program.)

Mr. Monreal said it was the MIAA Board that decided on the OPS of Megawide-GMR.

“Should Megawide-GMR ask for a reconsideration, we will present it to the board, so that the board can act on it favorably or not,” he explained.

“We will see how the board takes it,” he added.

On Thursday morning, SMC President and Chief Operating Officer Ramon S. Ang told BusinessWorld that the company was only interested in operating and maintaining (O&M) the airport.

SMC is also building an airport in Bulacan.

The Philippine Star first reported that SMC had submitted an O&M proposal for NAIA.

Sought for comment, Terry L. Ridon, convenor of infrastructure-oriented think tank Infrawatch PH, said in a phone message: “This development gives rise to a clear suspicion of collusion for the irregular revocation of the second private proponent’s original proponent status: that the OPS revocation was made to accommodate another private proponent to rehabilitate NAIA.”

“Nonetheless, the SMC proposal should be scrutinized not only on financial and technical competency, but also on concerns of anti-competition, given that it has already been awarded the right to build its airport in Bulacan,” he added.

Mr. Ridon also said that controlling two airports within the Greater Capital Region “may give rise to higher terminal and airport fees for passengers, airlines and service providers.”

“Furthermore, strict scrutiny should be undertaken on SMC’s debt-equity ratio, given that it will already undertake high financial leverage to fund the development of its Bulacan airport costing at least P735 billion,” Mr. Ridon said.

Holiday retail workers seek ‘temporary lifeline’ in warehouse jobs, if they can find one

THIS TIME of year, hundreds of thousands of seasonal retail workers across North America and Europe would usually be wrapping gifts, stirring hot chocolates, tidying Christmas displays or assisting the flurry of last-minute shoppers.

But the balance of available holiday jobs this year has radically shifted from storefront to warehouse and delivery amid record purchases online. And with millions of retail workers in the United States and Europe already laid-off, competition for what remaining jobs are left is fierce, economists say.

The supply of available holiday jobs in US customer-facing retail fell by a third to 302,100 this year from around 466,400 jobs last November, data from the Bureau of Labor Statistics gathered by consultancy Challenger, Gray & Christmas showed.

Macy’s, Inc. cut seasonal hires to 25,000 this year from 80,000 in 2019. JC Penney Company, Inc. narrowly rescued from bankruptcy in early November, is hiring just 1,700 people in contrast to 37,000 last year. For a graphic, click here ‘Tis the season: Fewer retail jobs up for grabs.

Meanwhile, applications for US storefront retail positions have jumped by around 34% year-on-year, according to November data from jobs site Glassdoor.

Kayla Frederick, 31, was laid off from her position as leasing assistant for a tour bus company in Florence, Alabama in April as venues closed and tours were canceled because of the pandemic. In November, she started her first ever seasonal job in a local clothing boutique’s warehouse, pulling online orders, folding inventory and tagging intake items.

“I never expected to be laid off this long,” Ms. Frederick said. “I’m thankful this gave me a job.”

In Europe, data from jobs sites like Indeed, Adzuna, Student Jobs and CV Library paints a similar picture of lower vacancies and rising applications. The number of available seasonal jobs in the UK was down by a third year-on-year in November to 13,600, according to Adzuna data.

CV Library reported a 60% drop in the number of customer-facing retail jobs listed in the UK compared to last year — but clicks per job have doubled. In Germany and the UK, sales associates at jobs site Student Jobs reported increased contact from frustrated students not hearing back from companies inundated in applications.

Data from Indeed in the UK showed a jump of around a third in clicks per posting on seasonal jobs this year compared to last, according to a report by Indeed’s UK in-house economist Jack Kennedy.

“Jobseekers may be looking at Christmas jobs as a potential temporary lifeline as job losses mount,” Mr. Kennedy wrote.

‘NEW WORLD OF RETAIL’
UK postal service Royal Mail increased its seasonal hires to 33,000 this year from 20,000 in 2019, while FedEx Corp in the U.S. hired a quarter more seasonal workers, taking total hires to 70,000 from 55,000, labour statistics bureau data showed.

“This is likely a window into the new world of retail,” Daniel Zhao, senior economist at Glassdoor, said. “What was done out of necessity during a pandemic is likely to become an annual online shopping tradition for future holidays.”

Glassdoor saw a 120% year-on-year increase in applications for e-commerce roles like delivery drivers, warehouse workers and order pickers in the United States and a 45% jump in the UK.

Oscar Jiminez, a twenty-two year old college senior in Southern California, is among the lucky ones. He landed seasonal employment in October in a gig he believed would have him working as a customer service agent on an “essential” retailers’ sales floor. But he found himself in a warehouse at the back of the store instead.

“This wasn’t exactly in my job description.” Mr. Jiminez said. “So far I’ve been picking orders, going around the store, finding things people purchased online and getting them ready for curbside pickup, ship-to-home… I’m constantly on the move.”

Some supermarkets are also pushing up hiring. In the UK, British supermarket Tesco posted 2,000 more seasonal vacancies than last year. It posted its seasonal vacancies on student jobs site E4S a month later than usual because of lockdown uncertainty, but still received over twice as many applications, according to website data.

German supermarket giant Lidl took on 2,400 apprentices this year in Germany, 40% higher than last year’s intake. Lidl and Amazon.com, Inc. were already boosting their staff by a significant amount throughout the year to deal with the surge in demand, reducing the need for temporary seasonal hires, the companies said.

Amazon hired just 100,000 seasonal staff this year in the United States, half last year’s total of 200,000, because it had already boosted operational hires by 275,000 throughout the year, it said in September.

Lidl took an opportunistic approach to finding candidates this season in Germany, where a partial lockdown is likely to be toughened in coming days. “Bar work is so yesterday,” read a November 30 recruitment ad. “Look forward to a secure job for €12.50 an hour — switch industries and get into retail.”

Lidl pulled the ad within a day after backlash from the gastronomy sector on social media, it told Reuters, apologizing for the distress the message caused. It declined to say how many new positions it had on offer. — Reuters

Ayala Corp. decouples chairman and CEO positions

By Revin Mikhael D. Ochave, Reporter

JAIME Augusto Zobel de Ayala will be solely focusing as Ayala Corp.’s chairman of the board, the conglomerate said on Thursday, after some of its subsidiaries earlier made announcements of succession moves.

Mr. Zobel will transition from his previous role as chairman and chief executive officer after the move is approved by Ayala Corp.’s board. The change will take effect on April 23, 2021 after the company’s annual stockholders meeting.

Further, the statement said Fernando Zobel de Ayala will become Ayala Corp.’s president and chief executive, moving from his previous position as president and chief operating officer, which will also take effect on the same date.

Both will still hold their existing positions as chairman or vice-chairman in different subsidiary boards across the Ayala group of companies.

“Fernando and I are very fortunate to work with a deep leadership bench, and we are confident that planned leadership transitions such as this are critical ingredients for sustainable success,” Mr. Zobel said.

“Moreover, we have the opportunity, with this move of decoupling the Chairman and CEO roles, to reflect an evolving global best practice in Environment, Social and Corporate Governance,” he added.

The move by Ayala Corp. is part of several leadership changes recently made by its subsidiaries.

In separate regulatory filings on Wednesday, Bank of the Philippine Islands (BPI) and Globe Telecom, Inc. announced their respective position changes.

BPI’s board of directors approved the succession of Jose Teodoro K. Limcaoco as president and CEO of the bank, replacing Cezar P. Conzing.

The move will be effective on April 22, 2021, also after the bank’s annual stockholders meeting.

Mr. Conzing will remain as a board director and an executive committee member after his tenure as president and CEO.

Meanwhile, Globe announced the nomination of Maria Louisa Guevarra-Cabreira as the successor of Alberto M. de Larrazabal as its chief commercial officer, to be decided via an election during the organizational meeting of the company’s board of directors after the annual stockholders meeting on April 20, 2021.

Mr. Larrazabal has been nominated to replace Mr. Limcaoco as chief finance officer, chief risk officer, and chief sustainability officer of Ayala Corp. to take effect during the organizational meeting on April 23, 2021.

For the third quarter of the year, Ayala Corp. posted a P3.4 billion attributable net income, 59% lower compared with the P8.3 billion it had last year.

Its core subsidiaries also recorded lower profits, with Ayala Land, Inc. down 77% to P1.8 billion, BPI by 34% to P5.5 billion, and Globe by 22% to P4.4 billion.

On Thursday, shares in Ayala Corp. at the stock exchange fell 1.06% or P9 to end at P840 apiece.

Connecting the dots in agriculture: Supply, ship, sustain

By Maya M. Padillo, Correspondent
and Marifi S. Jara, Mindanao Bureau Chief

IN the imagined post-pandemic Philippines, there would be no shortage of affordable food and Filipino farmers and fisherfolk would not be poor.

“Our goal is a country that is food-secure and resilient, where farmers and fisherfolk are empowered and enjoy better incomes and a higher standard of living,” Agriculture Secretary William D. Dar said during the Sept. 9 virtual launch of the World Bank report Transforming Philippine Agriculture: During COVID-19 and Beyond.

Not that the dream suddenly cropped up during the coronavirus disease 2019 (COVID-19) crisis.

Mr. Dar, when he assumed office in August 2019, launched what he branded as “new thinking” for the agriculture sector, a nine-point agenda which signaled a policy adjustment that looks beyond the staple and politically-charged commodity, rice.

That new thinking and its goals have been made more urgent by the disruptions stemming from the pandemic, bringing to the fore the industry’s inherent strength as a source of essential goods as well as its many weaknesses.

“The gaps within the commodity value chains must be addressed in order for (agriculture) to be efficient and an effective catalyst for inclusive growth,” Antonio S. Peralta, chairman of the European Chamber of Commerce of the Philippines-Southern Mindanao Business Council, said in an e-mail interview.

 On the supply side, agricultural output grew at a rate of 1.6% and 1.2% in the second and third quarters, respectively, bucking the downward trend in other sectors and the economy’s overall economic performance.

In the southern islands of Mindanao, where about 43% of the country’s food output and more than 30% of agricultural exports come from, the sector also stayed positive at 0.1% in the second quarter while the industry and services sectors contracted 6.9% and 9.7%.

 “Agriculture grew point one percent, very small and minimal perhaps, yet, we can consider that agriculture is a tiny spark in the light of this otherwise dark reality that we face because of the pandemic,” Mindanao Development Authority (MinDA) Deputy Executive Director Romeo M. Montenegro said in an online briefing in early September.

MAKING CHAINS
But while supply proved buoyant, pain points in marketing and distribution became pronounced even after the national policy on the unhampered movement of food products across local borders was made abundantly clear.

Remedy came from various quarters — national and local government agencies, big business, social enterprises, and individual entrepreneurs — but the form it took followed a consistent theme: setting up relatively small chains directly linking farmers to buyers. 

The Department of Agriculture (DA) launched its Kadiwa ni Ani at Kita, which came on wheels and came in pop-up shop format. Farmers were given venues to sell their harvest, such as in barangay sports centers, open spaces in major shopping malls, and even gas stations owned by San Miguel Corp.’s (SMC) unit Petron Corp.

MinDA also restaged and expanded its Tienda program, bringing Mindanao goods to the cities of Manila and Baguio, and at the same time, facilitating regular supply deals.

Well-established farmer cooperatives also ventured online to find new markets.

A unique organization, Rural Rising Philippines (RURI), also found impetus from the crisis, with Baguio-based couple Andie and Ace Estrada starting it as a simple drive to help Cordillera farmers and retailers who found themselves giving away or throwing out vegetables for lack of buyers.

Their stopgap initiative attracted conglomerate SMC, which provided them with an unused property along Maayusin Street in UP Village, Quezon City. What initially served as a much-needed warehouse has now been spruced up into the RuRi House, a hub for a growing community of farmers from various parts of Luzon, organic packaging makers, resellers, and consumers.

“It’s the power of the collective,” Mr. Estrada said during the Nov. 19 episode of the ongoing webinar series hosted by the Climate Change Commission and House of Representatives Deputy Speaker Loren B. Legarda.

When asked by Ms. Legarda what government can do or provide to help them as they continue to expand the RuRi movement, Ms. Estrada, in earnest, gave a full menu: “Greenhouse farming, storage, logistics, and food processing.”

Rural Rising PH’s wishlist echoes recommendations continually being lobbied for by agriculture stakeholders across the country, especially in Mindanao.

“This is really the best time to rethink, reimagine, repurpose, or invest in the agricultural sector,” Philippine Chamber of Commerce and Industry Area Vice-President for Mindanao Ma. Teresa R. Alegrio said.

She made the proposals in a resolution sent to the economic managers as part of this year’s Mindanao Business Conference output. The chamber emphasized the need not just for funding commitment from government, but technological and logistical support to move the industry a step up the global value chain through agro-processing.

“Agriculture is the low-hanging fruit” now for development and investment, Davao City Chamber of Commerce and Industry President John Carlo B. Tria said, noting possibilities in high-value crops such as cacao and coffee and, literally, fruit.

“The pandemic gives us an opening to really look… to give opportunities to our farm sector so that we are not simply going to be dependent on one way of doing business,” he said.

Felicitas B. Pantoja, co-founder and president of social enterprise Coffee for Peace, in an email interview said there is much room for growth within the Philippine market itself.

“We heavily rely on imported coffee for our drinks… This time (of the pandemic) should give our farmers the stage to shine and be proud of our local product,” she said.

“Our farmers are as important as our (health) frontliners,” added Ms. Pantoja, who is one of the three recipients of the 2020 Oslo Business for Peace Award, which has been likened to a Nobel Prize for business.

Ms. Pantoja said the award, while honoring her work as an individual entrepreneur, also gives recognition to Coffee for Peace as an example of a sustainable business “that can contribute to our society by making the farmers rich.”

But more than the monetary gain, she said it is about elevating them from being just suppliers in the agricultural chain and helping them become “confident as farmers.”

AC Energy approves nearly P11B in funding for solar, wind projects

AYALA-led AC Energy Philippines, Inc. (ACEN) has approved a total of P10.81 billion in funding for a solar energy project and a wind farm, the firm told the local bourse on Thursday.

Its board of directors greenlit the financing of a solar plant project in Arayat and Mexico, Pampanga, through a secured loan, which would cover 100% of the project cost at P3.33 billion.

The firm also authorized the P7.48-billion funding of a wind farm project in Pagudpud, Ilocos Norte. This would take up 70% of the total project cost.

ACEN also approved the preparatory works needed for the planned follow-on offering, and a special audit of the company’s increase in authorized capital stock with multidisciplinary professional services firm SyCip Gorres Velayo & Co.

Last month, AC Energy President and Chief Executive Officer Eric T. Francia said that the firm had plans to sell its investments in coal-fired power plant projects in Bataan and Lanao del Norte in line with its goal to generate more than half of its energy from renewables in five years’ time.

Mr. Francia earlier said that financiers of renewables were able to limit their financial risks because they could invest in smaller amounts in those projects.

“The advantage of renewables, I should say, is that you can do your investments in digestible, reasonable chunks, unlike a large scale thermal plant where you typically invest billions of dollars,” he said during a webinar organized by the Philippine Energy Independence Council and the European Chamber of Commerce of the Philippines on Nov. 23.

Shares in ACEN on Thursday inched down by 0.16 % to close at P6.16 apiece. — Angelica Y. Yang

Falling plane values, e-commerce rise fuel boom in converting passenger planes to freighters

SYDNEY/JERUSALEM/MONTREAL — From Air Canada to China’s CDB Aviation, airlines and leasing firms are rushing to permanently convert older passenger jets into freighters, betting on a boom in e-commerce as the value of used planes tumbles amid the pandemic.

That has created a huge opportunity for passenger-to-freighter (P2F) conversion companies, including Singapore Technologies (ST) Engineering Ltd, Israel Aerospace Industries (IAI), and US-based Aeronautical Engineers, Inc.

Aviation analytics firm Cirium expects the number of P2F conversions globally will rise by 36% to 90 planes in 2021, and to 109 planes in 2022.

“We estimate that most slots are sold for 2021 and at least 40% for 2022,” Cirium Head of Market Analysis Chris Seymour said. “There is an increase in newer-generation programs, notably the 737-800 and A321, as well as the A330, although older types like the 767 continue to see strong demand, driven in the past few years by Amazon building their own fleet.”

The market value of 15-year-old planes has fallen by 20% to 47% since the start of the year depending on the model, according to advisory firm Ishka, which makes freighter conversions more attractive.

Air Canada is looking to convert several of its Boeing Co 767s, Russia’s S7 Group is acquiring its first 737-800 converted freighters from lessor GECAS, and lessor CDB Aviation has ordered two Airbus SE A330 conversions from ST Engineering’s EFW joint venture with Airbus.

The P2F conversions are a step beyond the cheaper temporary conversions many airlines have implemented during the pandemic, which remove passenger seats to carry more cargo.

Permanent conversions are a financial bet that air freight demand, which was weak before COVID-19, will remain strong for years to come as shoppers turn to e-commerce. The airline industry estimates it will take until 2024 for passenger traffic to recover to 2019 levels.

Freight markets are notoriously volatile, however, and have been beset by extended downturns; shortage can quickly turn into overcapacity, analysts warn.

Normally, about half of the world’s cargo is carried in the bellies of passenger planes, but the hit to demand has left the world more reliant on dedicated freighters.

“2020 has seen record high freighter aircraft utilisation, and our view is that the pandemic has accelerated the long-term structural shift towards increased e-commerce demand,” said CDB Aviation chief executive Patrick Hannigan.

Boeing said cargo yields had risen by 40% through September because of the pandemic-related passenger disruptions, and it forecasts more than 60% of freighter deliveries over the next 20 years will be conversions rather than new widebody freighters like the 777. Narrowbody freighters are almost all conversions.

The conversion boom is also helping aviation maintenance, repair and overhaul groups offset some of the lost business from the decline in passenger flights.

Such conversions generally cost millions of dollars on top of the cost of the aircraft and take three to four months, said ST Engineering Aerospace president Jeffrey Lam said.

His company is ramping up capacity, with plans to convert at least 18 A321 planes next year, rising to around 25-30 annually in the future, up from single digits this year.

“We are all booked out for 2021 for aircraft conversions,” Lam said. “The first slots are well into 2022.”

ST Engineering also may add converted freighters to its leasing business, which has focused on passenger planes, he said.

IAI can convert 18 or more 767s a year and produces most of those used by Amazon.com, Inc.

“We are investing a lot of effort to meet the market demand,” said Yosef Melamed, general manager of IAI’s aviation group, which is also working on the first-ever P2F conversion of the larger 777-300ER as part of a 15-plane contract with GECAS.

“What happened with the coronavirus outbreak, commercial flights were significantly reduced… international flights dropped to nearly zero,” he said. “So, the only solution for transporting cargo, and with the trend that people are staying at home ordering online, is cargo planes.”

US-based Aeronautical Engineers is also seeing a dramatic increase in demand for conversions, said Robert Convey, its senior vice president for sales and marketing, citing a 30-40% fall in the value of planes.

“We’re seeing younger and younger aircraft being converted due to the large number of passenger aircraft that have been grounded and are not likely to return to service in the near future,” he said.

Grant Stevens, vice president of corporate services at Canada’s KF Aerospace, said increased demand for P2F conversions, which grew from about 10% of its business before the pandemic to about half today, has helped offset a decline in requests for aircraft maintenance.

“We have been able to employ most of our staff by doing conversions,” he said. — Reuters

Philodrill extends SRO subscription to end-2021

LISTED exploration company The Philodrill Corp. has extended its subscription call for half the balance of its stock rights offering (SRO) to Dec. 31, 2021, the firm told the local bourse on Thursday.

The SRO, which was previously issued in 2009, had a 50% balance on subscription receivable that stood at P175.20 million last month.

The board of directors explained that the firm offered an extension on the SRO subscriptions as the global pandemic restrictions caused a delay in the implementation of projects, while noting that there was “no immediate need for liquidity.”

“The Board has decided to further extend the subscription call period to “at any time, on or before December 31, 2021,” Philodrill said in a regulatory filing.

The SRO previously commenced on Jan. 15, 2009, when Philodrill offered 38.37 billion new common shares at a par value of P0.01 per share to all stockholders of record.

Eligible stockholders were allowed to subscribe to one offer share for every four common shares held at an offer price of P0.01 per share, as of record date.

“At least 25% of the subscription price shall be payable upon subscription, another 25% shall be payable after 60 days from end of offer period, and the balance upon call by the Board of Directors not later than December 31, 2009,” Philodrill said, quoting the terms of its 2009 SRO.

It said the deadline was further extended when the Galoc oil field, of which it is a partner, started operating.

“During that time, the Company had a positive cash flow, there was no need for additional funds to cover operating expenses. In recent years, with the Company’s prudent measures implemented, it was able to sustain opex without needing to call on the subscription payments,” Philodrill said.

Last September, the firm, which operated a petroleum block northwest of Palawan, said that it would seek a 50-year extension of its service contract with the government once its contract expires in 2024.

Philodrill’s active petroleum projects cover production and exploration areas in onshore Mindoro and offshore Palawan, and holds various service contracts with the Department of Energy.

Philodrill shares on Thursday shed 8.33% to close at P0.011 apiece. — Angelica Y. Yang

As borders close and employers collapse, OFWs play the waiting game

By Luz Wendy T. Noble, Reporter

CRUISE SHIP singer Harry G. Bayona was home for a two-month holiday, which has since dragged on for more than half a year, and counting.

“It’s really stressful because this is how I make a living now,” Mr. Bayona said in a Zoom interview, noting that he had hoped his cruise career was a turning point for his ambitions to make it overseas.

When the COVID-19 outbreak turned into a pandemic, Gilbert A. Gayeta, a technician, was among the 300 employees sent home from a single company in Saudi Arabia.

“Operations started again and the company informed us that we can come back soon, but our status has been on hold for the past five months,” Mr. Gayeta said in Filipino via Facebook.

Overseas Filipino Workers (OFWs) have been a lifeline for the economy, but the pandemic has sent them on a rough — and uneven — ride. Health care workers were suddenly in demand all over the world, but faced caps on their overseas deployment. Workers in the Middle East became collateral damage as the oil markets collapsed. And cruise ships, which became notorious as vectors for infection, have been tied up in port for months.

The World Bank estimates that the Philippines is the world’s fourth biggest destination of worker remittances, behind only India, China, and Mexico. The impact of the pandemic has been severe, with May cash inflows declining 19% year-on-year to $2.106 billion the largest drop since the 33.5% contraction posted in January 2001.

Driving the decline was job losses in the OFW-dependent industries like oil, shipping, and cruise lines. The Department of Foreign Affairs (DFA) tally for repatriated workers toped 254,000 as of Nov. 15. Those numbers are expected to rise to about 300,000 by the end of 2020.

While OFW deployments have since recovered on a month-on-month basis from the April low, when only 1,794 OFWs left the country, deployments are still nowhere near their 2019 levels, based on preliminary data from the Philippine Overseas Employment Agency (POEA). In the seven months to July, deployments were down 65.24% year-on-year to 484,762.

“Based on the DFA’s experience in repatriating our distressed overseas Filipinos, the pandemic’s impact had an immediate effect on the cruise line industry and on our thousands of seafarers on board ship,” Foreign Affairs Undersecretary for Migrant Worker Affairs Sarah Lou Y. Arriola said in an e-mail.

Ms. Arriola said irregular migrants or those who left the country on tourist visas to seek employment abroad were also hit hard.

“When countries started to impose lockdowns and businesses had to temporarily close shop, the already limited job market for irregular migrants dwindled further,” she added.

Analysts said that the jobs recovery for OFWs will still depend on how economies in the host countries deal with the virus.

“OFWs working in sectors that are still deemed ‘non-essential’ and involving ‘high touch’ such as hospitality will still be under threat. However, as we get to know how to act during the pandemic and as vaccines emerge, such effects will be mitigated, but not in the short term,” Asian Institute of Management economist John Paolo R. Rivera said in an e-mail.

Mr. Rivera said some countries which have contained their outbreaks, such as New Zealand and Taiwan, may provide employment prospects for OFWs.

There are some bright spots for OFWs as restrictions ease and authorities find ways to operate their economies in the “new normal.” A return to pre-COVID levels of global trade could also herald an employment recovery, ANZ Research analysts Sanjay Mathur and Kanika Bhatnagar said in a note.

In late October, the US Centers for Disease Control and Prevention laid down guidelines for a phased resumption of cruise operations, ending the run of bad news for an industry that was laid up following a no-sail order in March. But the outlook remains clouded for demand.

“Even if you have the protocols to ensure the passengers are safe… convincing them to go onboard is another…,” Levinson C. Alcantara, a director at the Philippine Overseas Employment Agency (POEA) overseeing pre-employment services for OFWs, said at a forum.

Governments are now starting to decide to open up borders in reciprocal arrangements with countries they deem to be safe, according to Christian de Guzman, senior vice-president of the Sovereign Risk Group at Moody’s Investors Service, who cited the so-called “travel bubble” arrangement agreed to by Hong Kong and Singapore.

The flip side is the inability to travel of citizens of countries where infection rates remain high, such as the Philippines, whose nationals are not allowed to enter places like China.

“If the Philippines doesn’t get infection rates under control, it could very well affect the deployment of OFWs, which could then affect the remittance of inflows going forward,” Mr. De Guzman said in a Zoom interview.

As the crisis drags on, migrant workers may find themselves at a turning point in terms of how their host countries treat them.

“Given the lessons from the pandemic, will foreigners be given access to social protection in host countries – especially less skilled workers?” Jeremaiah Opiniano, Executive Director at the Institute for Migration and Development Issues, said in an e-mail.

In the meantime, Mr. Bayona, the cruise singer, has shelved his plans to buy property this year and has tried his hand at part-time jobs while awaiting notice from his company.

“There are so many OFWs who are breadwinners and still need to send their kids to school. I’m luckier in a way as I have more wiggle room when it comes to my finances,” he said.

In Batangas, Mr. Gayeta, the technician from Saudi Arabia, is still waiting for his company to call after being on no-pay forced leave since May. He continues to support his family by selling frozen chicken and working at building sites from time to time.

In the event of the worst-case scenario — a terminated contract — Mr. Gayeta said he will likely continue to look for jobs overseas with terms of at least a year or two, to provide more continuity compared to his three to six-month stints in construction.

“I’m the eldest sibling and what I earn here is not really not enough. In Saudi, I earn a little more and I will still choose that because I can handle homesickness anyway,” he said.

Roxas Holdings posts P3.8-B net loss

LISTED sugar and ethanol producer Roxas Holdings, Inc. (RHI) posted an attributable net loss of P3.81 billion for its 2020 fiscal year that ended on Sept. 30 despite cutting its net debt.

In a stock exchange disclosure on Thursday, the sugar company said its result for 2020 is worse than its 2019 losses of P1.88 billion.

Revenues of RHI dropped 41.1% to P4.8 billion against P8.15 billion in the previous year.

Further, the company said its net debt dropped 55.1% to P4.4 billion compared with P9.8 billion a year ago due to the completion of its asset sale.

RHI Chairman Pedro E. Roxas said funds from the sale of company assets such as its sugar mill and ethanol plant in La Carlota City, Negros Occidental, and investment properties like shares in Najalin Agri-Ventures, Inc. were used to pay all long-term loans.

“The sale of these assets to significantly reduce our debt is part of our efforts to de-risk the business and focus on expanding our sugar refinery operations in Nasugbu, Batangas,” Mr. Roxas said.

“This will also allow the group to help our country minimize importation of refined sugar needed by beverage and food manufacturers,” he added.

Meanwhile, the company said its non-recurring losses reached P2.6 billion as a result of its asset sale and goodwill impairment at the end of the year.

RHI Chief Financial Officer Celso T. Dimarucut said before the non-recurring charges, the company’s overall growth was tempered by losses from its ethanol business segment.

“The early shutdown of our alcohol plants due to the delays in lifting by oil companies and the steep rise in the cost of feedstock tempered gains, which resulted in slim margins for the alcohol unit,” he said.

Mr. Dimarucut added that the company’s performance during its fiscal year was also affected by the eruption of Taal Volcano in January, worsened by fewer available canes in the area, which subsequently hampered its production of refined sugar.

“Despite the prevailing uncertainties due to the pandemic, RHI is doing its best to fast track recovery and implement a wide-ranging transformation strategy to rebuild its sugar mill and refinery in Batangas, while boosting its alcohol business in Negros Occidental and strengthening its agri-business with more targeted programs to help farmers increase their yields,” he said.

Meanwhile, RHI also announced in another regulatory filing that Mr. Dimarucut will be appointed as the company’s president and chief executive officer effective immediately.

As a result, George T. Cheung will be the company’s executive vice-president, chief commercial officer, and chief risk officer to take effect on Jan. 15, 2021.

In a separate disclosure on Thursday, RHI’s parent company Roxas and Co., Inc. announced that the board of directors had approved the sale of some properties to National Grid Corp. of the Philippines. (NGCP).

The company has sold a total of 27,680 square meters coming from its own property and some portions of Roxaco Land Corp.’s property in Banilad, Batangas to NGCP.

“The properties are intended to be used by NGCP for its Tuy (Calaca)-Dasmariñas 500 kilovolt (kV) Transmission Line Project. The project of NGCP will be adjacent to properties of the corporation identified as a site for a future solar project,” the company said.

On Thursday, shares in RHI fell 2.17% or 4 centavos to close at P1.80 apiece, while those in Roxas and Co. rose 0.69% or one centavo to end at P1.45 each. — Revin Mikhael D. Ochave

How the entertainment industry learned to be more efficient during the pandemic

By Zsarlene B. Chua, Senior Reporter

THE KISSING SCENE is mandatory for certain types of drama, but became forbidden overnight because of work safety rules imposed during the pandemic. The US TV network Lifetime got around the prohibition by having actors kiss through plexiglass, and then digitally removing the barrier in post-production. These adjustments, some small and many large, all of them disruptive in some way, paint a picture of an industry having to frantically make up new rules as fresh problems arose.

GMA Network, Inc., the country’s largest television network, was caught out by the lockdown with two films in production — one in which crews were “literally in the middle of shooting,” according to Ianessa S. Valdellon, GMA Network first vice-president for public affairs, in an e-mail interview with BusinessWorld. It also had to halt production of various television series and had to air reruns until September, when Descendants of the Sun, the Philippine adaptation of a Korean TV drama, resumed filming.

“We were supposed to produce our second film this year, but I’m afraid this will be pushed back until such time that quarantine restrictions are relaxed,” according to Lilybeth G. Rasonable, GMA Network senior vice president for entertainment, also in an e-mail interview.

Despite the restrictions, GMA managed to produce five shows under “new normal” rules while TV5 managed to produce a slew of scripted and non-scripted shows.

Production company IdeaFirst also had “to stop and reevaluate all our plans,” its president Perci M. Intalan said by e-mail. It had movie and TV projects that had to stop because “they just weren’t feasible considering all the safety requirements and logistical restrictions.” Instead, it had to regroup with new projects that “can be produced safely and realistically.”

One of those new projects was the web series Gameboys, shot remotely and via videoconferencing, except for scenes in which the characters met. It aired in May.

Gameboys was unique because it was produced during ECQ (enhanced community quarantine, the strictest phase of the lockdown) — so we forced ourselves to shoot 100% from home and figured out ways to send props and equipment and to direct actors and finish entire episodes virtually,” Mr. Intalan said. He called it a “slow and laborious process” which “we are very proud of.” 

Mr. Intalan was quick to add that this may not be possible for other series.

“It’s not something you really wish to do over and over again…(that) won’t work for other projects especially those where characters have to interact in the same physical space,” he said.

The pandemic health regulations included a 50-person limit for on-set personnel, a half-day shooting window, locked-down shoots, regular testing, and monitoring by a health and safety officer. All of these imposed added costs.

“Without giving a number — it varies depending on the size of the production — it is definitely more expensive to shoot drama programs now with the need for swab tests, lockdown accommodations and food, PPE (personal protective equipment) and the observance of disinfection and safety protocols on set,” Ms. Valdellon said.

Mr. Intalan said shooting is “definitely” more expensive as in the case of his company’s TV5 Christmas special, Paano Ang Pasko, which had a P6.9-million safety budget, forcing the production to exceed its overall budget.

“You can’t scrimp on this. There are no shortcuts. You cannot risk anyone getting sick,” according to Mr. Intalan, who is also the head of programming at TV5.

The show ultimately had to rope in three directors — Mr. Intalan, Enrico Quizon, and Ricky Davao —  to distribute the added burden of pandemic-style production. 

“This is bayanihan,” said Mr. Davao, who was originally only a cast member.

The added costs of shooting, according to Jade Castro, a director, forced productions to be more efficient, particularly in response to the limited hours of shooting, which was for years on the wish lists of many industry workers. One byproduct of the lockdown requirement was that “everyone is in the same location.”

“For such a long time we have been pushing for shorter shoot times and now in the pandemic we proved that it can be done,” Mr. Castro said during an online interview with BusinessWorld during the promotion of Boys Lockdown on Oct. 7.

He added that he hopes this becomes the norm from now on, because shoots used to run for over 24 hours at a time, posing health risks for both cast and crew.

Locked-down shoots lay the groundwork for productions that are “more controlled. I think it would benefit the television and movie industry to continue studying this kind of setup and improving on it for the future,” Ms. Rasonable said.

“Despite the pandemic being a negative, I think that it has pushed producers/creators to be more imaginative and innovative in coming up with content and in the manner by which they produce such content. Out-of-the-box ideas, smaller and more efficient productions teams, new ways of story-telling, more experimentation on new technologies, new formats, etc. These, I believe, will be the long-term positive impacts of the pandemic on production,” she added.

Content was always king, but the lockdown made it even more so

By Denise A. Valdez, Senior Reporter

MARCH is a distant memory now, the last time many of us did things that we would deem non-essential. But as the lockdown weeks stretched into months, keeping people trapped at home, the dividing line between things that were vital to survival and those that were merely nice to have began to blur. And it’s fair to say that somewhere along the way, online content creators cemented a place in the homebound routines of a population starved for entertainment and connection.

The first signs of this longing, apart from self-improvement projects like manic workouts or sourdough baking, had an element of escapism, embodied in Netflix watch lists. One indicator of the sheer dependence people developed for Netflix was the dwindling list of recommended shows as audiences with time on their hands watched everything in sight.

Undeniably, entertainment proved to be just as essential to people’s lives, in whatever form, as the world turned unrecognizable. In the early days of the lockdown, TikTok grew more popular, online concerts became a thing, and live streams were popping up left and right.

For creators of content distributed via traditional channels, the lockdown meant no shoots, no production activity and no new shows. TV had to resort to reruns during the quarantine until it could adapt with new shows and homebound presenters reaching out via videochat.

“Even when the restrictions were eased, new protocols needed to be adopted. Everything that we did on television had to adapt to the new normal,” Raz de la Torre, director of shows such as Maalaala Mo Kaya for ABS-CBN Corp., said in an Oct. 20 video call.

Some of the protocols are shorter shoot hours, a 10-person limit per scene, sets reconfigured for social distancing, a ban on dining scenes, and the need to obtain performers’ consent to stand closer than six feet, among others.

“Many of the things that we used to have the freedom to do were suddenly gone, and that has a creative impact,” Mr. De la Torre said.

While TV struggled to produce new shows, digital content creators were able to adjust with more ease.

“A lot of creators thrived during this time because they have been able to pivot easily. A lot of vloggers just film their lives, so they can easily make content from their homes. They don’t need expensive equipment,” Jako de Leon, YouTuber and executive producer of PaperbugTV, said in an Oct. 29 video call.

At the height of the lockdown, Filipinos spent 5.2 hours a day of non-work time online — the most in Southeast Asia, where the regional average was only 4.7 hours a day at the time, Bain & Company said in its e-Conomy SEA 2020 report prepared with Google and Temasek. After lockdown rules were relaxed somewhat, Filipinos spent 4.9 hours a day in front of screens, still the highest in the region, where the average is 4.2 hours.

“The market is more ready now, so if you want to be a creator, now is the best time to do it,” Carlo Ople, who maintains a sneaker review vlog and heads tech blog Unbox.ph, said in an Oct. 22 video call.

Having started in digital content creation more than a decade ago, Mr. Ople said he has seen the industry change across various media over time: from blogging, photo sharing (see: Instagram), video blogging (vlogging), micro video blogging (see: TikTok), and now, live streams. The robust digital environment that took years for creators to build, the pandemic was able to develop in a matter of months.

“The internet was growing and internet usage was growing. But when the pandemic hit, the digitization of the Philippines in terms of market behavior shot up dramatically,” Mr. Ople said.

With people stuck at home, there was only one place for work, school, shopping, hanging out and entertainment. In other words, the past months were like an immersive training environment for understanding how digital platforms work. For a growing industry of digital content creators, this was a more than welcome development.

In January, the Creator and Influencer Council of the Philippines (CICP) was formed, gathering creators, influencers, and marketing professionals whose roles are intertwined with the industry.

Having recognized the usefulness of creators and influencers in brand-building, CICP’s founders thought it was high time to band together to strengthen the “influencer ecosystem.” Mr. De Leon and Mr. Ople are both board members of the organization.

“As they said, there are good things that have also happened during this pandemic, one of which is being able to bring the CICP to life,” Jim Guzman, president of CICP and social media head at Dentsu Aegis Network, said in an Oct. 29 video call.

One solid indication of the industry’s emerging centrality is how much bigger companies are willing to spend on digital creators. Ten years ago, Mr. Guzman said only about 5% of advertising budgets were allotted to digital. Now, this has shot up to about half the budget. “No one can deny the fact that the new celebrities are the internet stars,” he said.

Even Mr. De la Torre, the TV director, acknowledges the impact of digital content in advertising. “A lot of digital content, especially the ones that you see on YouTube, have monetization schemes that are actually very similar to a television structure… It’s still advertising-driven,” he said.

For this reason, some have found an online career to be a viable alternative to a day job. Mark Averilla, known digitally as Macoy Dubs, rose to online fame for creating Tagalog-dubbed videos. While holding on to a job at a creative agency, Mr. Averilla continues to attract new fans online, such as those following the “Aunt Julie” videos launched during the pandemic.

“Today, content creation is considered a passion and (a possible) source of income. As a matter of fact, a lot of millennials are considering leaving their full-time jobs just to be full-time content creators,” Mr. Averilla said in an Oct. 19 e-mail.

This is also one of the CICP’s goals. “Many are (creating content) because they want to entertain, to make people laugh, or to educate people… We’re here to help them continue that as a living, and not just something that they’re doing in the meantime,” Mr. De Leon said.

Mr. Ople, the sneaker vlogger, likened the appeal of online content to getting a “fix.” He said people watch TV and get sucked in for about 30 minutes, just to get a “kilig” fix, for instance. Online, a two-minute video can give a person just about the same feeling.

“The universal truths and benefits of storytelling will forever be there. What’s just happening is people can get that across multiple platforms now,” Mr. Ople said.

Mr. De la Torre, who’s been in the TV industry for more than a decade, said however that there are aspects of traditional narratives that cannot be replaced by digital. 

“You don’t give up how narratives should be told. The teleseryes, they’re supposed to mirror real life. So the way the scenes are written still has to mimic real life,” he said.

Similarly, Mr. De Leon said the two platforms will likely learn to co-exist, offering consumers more variety.

“We will still want to watch movies, we will still want to watch high-quality production stuff, we still want to see great shows and great writing. There are just more types of content now,” Mr. De Leon said.

Despite the challenges the pandemic imposed on the TV industry, digital creators agree that the mainstream platform is in no danger of dying out anytime soon. “It’s still the dominant platform that a lot of Filipinos look to, especially in areas wherein you don’t have robust and strong internet connection,” Mr. Ople said.

Mr. De la Torre also noted that getting featured on TV still gives digital creators a feeling of “legitimacy,” as it is acknowledged to have a wider reach than online.

“In many ways, you could see digital content creators as the ones who are more experimental, and therefore leading the way into treading new territory. But at the end of the day, it’s still popular mainstream platforms like television that dictate what will be palatable to a greater mass audience,” he said.

As for the future of digital, Mr. Ople said it may have to consolidate at some point. “In anything, you will always see the age of exploration and trial. That’s where people will go to a platform and try it out and experiment. And then you will start to see a consolidation — either some people will quit, or some people will band together. Some groups will form, and then you can see more structured, formal businesses out of that particular melting pot,” he said.

Pag-IBIG postpones increase in members’ monthly contribution

PAG-IBIG FUND has decided to defer the increase in its members’ monthly contribution that was supposed to take place in January 2021, the agency said, adding the move came after consulting with labor and employer groups.

“We know that many of our members and employers faced financial challenges in the last few months because of the effects brought about by the pandemic to the economy. After consulting with our stakeholders, we will no longer push through with the increase of the members’ monthly contributions next year,” Secretary Eduardo D. del Rosario, who heads the Department of Human Settlements and Urban Development, said in a statement.

He said the decision was in line with efforts of the Duterte administration “to alleviate the financial burden of our fellow Filipinos and help businesses recover.”

Mr. del Rosario heads the 11-member Pag-IBIG Fund Board of Trustees.

The agency’s statement said that in 2019, its officials approved the increase of members’ monthly contributions, which had remained unchanged since the 1980s.

Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said that the projection at that time placed the amount of loans disbursed would eventually outpace the total collections from loan payments and members’ contributions each year.

“So, we proposed to increase the monthly savings by P50 to have enough funds to answer the growing demand and maintain the low rates of our loans,” the official said.

But he said with the pandemic, the circumstances have changed.

“Rest assured, our financial position remains strong and that has allowed us to defer the increase in our monthly contributions by a year. What we are focused on right now is providing our members and businesses the assistance they need to cope with the effects of the pandemic,” he said.

Mr. Moti said home loan availment had been rising steadily with the easing of quarantine restrictions after the pandemic dampened demand early this year.

He said that as a signal of early economic recovery, the agency released P44.16 billion in home loans this year, allowing 43,733 members to have their own homes.

For October alone, P7.7 billion in home loans were released, which equals pre-pandemic monthly takeout target for the month, he said.

Mr. Moti described the result as a “hopeful sign” that the agency was getting back on track.

“We assure our members that we will continue serving them, especially during these difficult times. While the pandemic could have been used as an excuse not to serve, we at Pag-IBIG Fund used it as a reason to serve our members better. That is the Lingkod Pag-IBIG way,” he said.