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PHL is 4th in region for women with most leadership posts

THE PHILIPPINES ranked fourth in Southeast Asia in a study measuring the percentage of women holding leadership positions in e-commerce companies, online shopping company iPrice Group said.

With 39% of top-level positions in e-commerce firms held by women in the third quarter of 2020, the Philippines dropped to fourth out of the seven countries studied after holding the top spot in 2018.

“Hong Kong has the highest percentage of women in power in the top e-commerce companies in Southeast Asia, where 55% of the top-level roles are actually women,” iPrice said.

Vietnam and Hong Kong followed with 46% and 44%, respectively. Malaysia trailed the Philippines with 37%, followed by Indonesia (36%) and Singapore (35%).

“Overall, there is a 60-40 disparity between men and women when it comes to being in positions of power,” the report said.

The gender gap in Southeast Asia is wider for C-level and vice-president roles, with only 31% and 38% of the positions held by women.

But the gap shrinks with senior vice-president roles, 44% of which are taken on by women. Similarly, department heads in these firms are 41% women.

The Philippines last year topped a list of 32 countries in a global survey on the role of women in senior management. The Grant Thornton International 2020 Women in Business report showed that 43% of female executives were in a senior leadership role, compared to the 29% of female executives globally.

The iPrice report also found that Filipinos in e-commerce are the second-most “satisfied” with their jobs in Southeast Asia, after Indonesia.

“They give their top 3 e-commerce companies a 3.8-star rating, while 76% of them would recommend the companies to friends, and 87% of them approve of their CEOs,” iPrice said, but noted that the Philippines also has one of the lowest recorded salaries among the countries studied. — Jenina P. Ibañez

Yields on term deposits decline on post-holiday demand surge

YIELDS ON term deposits offered by the Bangko Sentral ng Pilipinas (BSP) slipped on Wednesday as demand picked up following the holidays and with the financial system still awash with liquidity.

Total bids for the BSP’s term deposit facility (TDF) reached P867.292 billion on Wednesday, going beyond the P530-billion offering and also higher than the P531.223 billion in tenders logged on Dec. 22, the last auction in 2020.

“The results in the TDF auction reflect increased market interest for the BSP’s deposit facilities as demand for cash gradually normalizes following the December holidays,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

Broken down, demand for the seven-day term deposits amounted to P380.918 billion, surpassing the P190 billion on the auction block as well as the P159.937 billion in tenders seen in the previous offer.

Accepted rates for the one-week tenor ranged from 1.6105% to 1.7%, narrower than the previous auction’s yield margin of 1.65% to 2%. With this, the seven-day paper’s average rate stood at 1.6735%, falling by 3.8 basis points (bps) from 1.7115% seen in the previous offering.

Meanwhile, for the 14-day papers, demand reached P486.374 billion, higher than the P340-billion offering and also more than the P371.286 billion seen for the P320 billion auctioned off on Dec. 22.

Banks asked for yields ranging from 1.6125% to 1.7125%, a slimmer band than the 1.6% to 1.7444% logged in the previous auction. This caused the two-week tenor’s average rate to slip by 1.84 bps to 1.6819% from 1.7003%.

For the 12th straight auction, the BSP did not offer 28-day term deposits following the start of its weekly offerings of short-term bills with the same tenor.

The TDF and BSP securities are among the tools used by the central bank to gather excess liquidity in the financial system and to better guide market interest rates.

“Yields mostly eased for the first auction for 2021, as the premium for short-term funds eased upon crossing the new year with the end of window-dressing and balance sheet management shortly before the accounting,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message on Wednesday.

Despite the faster inflation seen in December, the lower yields, backed by higher demand, reflect the “large excess liquidity” in the financial system, Mr. Ricafort added.

Inflation rose to 3.5% in December, quicker than the 3.3% in November as well as the 2.5% print a year ago due to the surge in food and transport prices. The December inflation print was also the fastest in 22 months or since the 3.8% reading in February 2019.

This caused headline inflation to average at 2.6% in 2020, slightly faster than the 2.5% logged in 2019 but matching the BSP’s forecast and also falling within its 2-4% target. — Luz Wendy T. Noble

Alegria oil field cannot supply fuel on a national scale, DoE official says

PRODUCTION capacity of the onshore Alegria oil field in Cebu is not enough to supply fuel on a regional and national level, a Department of Energy (DoE) official said on Tuesday.

“Although [its production capacity] is significant from a local perspective, it’s not enough to supply at a regional or even more so, the national level,” DoE Assistant Secretary Leonido J. Pulido III told Senator Risa N. Hontiveros-Baraquel during a Senate hearing on the Midstream Natural Gas Industry Act. He did not give exact figures on the oil field’s current production capacity.

In 2016, the DoE and the oil field’s service contractor China International Mining Petroleum Co. Ltd. (CIMP) said that the 197,000-hectare area in Southern Cebu had commercial quantities of natural gas.

Mr. Pulido made the statement in response to Ms. Hontiveros-Baraquel’s question on the Alegria oil field’s status of production.

Although the oil field was “ramping up,” it had experienced some delays, said Mr. Pulido. He did not explain the cause of the setbacks.

Last year, Hong Kong-based Polyard Petroleum International Group Ltd.’s unit CIMP signed a drilling service agreement with oil services firm East Asia Oil Engineering Group Ltd. The deal, which was inked on Jan. 11, remained valid until Dec. 31 last year.

Under the deal, East Asia Oil was tasked to provide turnkey services to help CIMP drill six production wells in the Alegria oil field. The services included supplying a full set of drilling equipment, materials and personnel in well drilling, mud logging, wire line logging, cementing, testing and other related services.

CIMP, which held Petroleum Service Contract No. 49 covering the Alegria oil field, began exploration and drilling activities in the area in 2009.

Three years ago, DoE Secretary Alfonso G. Cusi said that the Southern Cebu oil field could produce enough natural gas to supply the requirements of a small power plant with a capacity of 60 megawatts.

He added that the two oil wells in the field could produce 180 barrels of crude oil each.

The US Energy Information Administration described the Alegria oil field as one of the two active petroleum fields in the Philippines, with the other being the Galoc offshore field in the northwest Palawan basin. — Angelica Y. Yang

What are you doing after New Year’s Eve?

Cooking up the leftovers

IT’S BEEN just a week since your New Year’s Eve dinner, and we’re sure you’ve got a full fridge. We trust that numerous servings of lechon paksiw and days of chicken sandwiches might grind your gears. San Miguel Culinary Center’s cooking show, Home Foodie, helped us out with these recipes that might make your holiday recipes taste completely new. —  JLG

CHICK ‘N JUICY ARROZ CALDO

Skip the chicken sandwiches, there is a warm, tasty soup for these colder January days.

Ingredients:

2 tbsp Magnolia Nutri-Oil Coconut Vegetable Oil

1-1/2 cups shredded leftover Magnolia Chick ‘N Juicy (or just about any fried or roast chicken)

1 piece (18 gm) ginger, sliced and pounded lightly

1 piece (50 gm) onion, sliced

4 cloves garlic, crushed

3 cups rice, washed once

6 cups water

2 tbsp patis (fish sauce)

1 (20 g) stalk green onion, chopped (optional)

Procedure:

Heat oil in a pan and sauté the ginger, onion, garlic, and rice.

Add chicken and water. Simmer for 30 minutes over low heat, stirring occasionally until rice is cooked. Season with patis.

Top with green onion.

Makes seven servings.

CHICKEN TURMERIC RICE

When you have leftover chicken adobo from cooking up your leftover roast chicken.

Ingredients:

1/4 cup Magnolia Nutri-Oil Palm Vegetable Oil

2 pieces (100 gm each) potatoes, cubed

1 cup shredded leftover chicken adobo, reserve adobo sauce

4 cloves garlic, crushed

1 tbsp turmeric powder

1 piece chicken bouillon cube

1/4 tsp pepper

1 (160 grams) bundle mustard greens, cut into 2-inch length pieces

4 cups cooked rice

Procedure:

Heat half of the oil in a large pan then fry potatoes until cooked. Add the leftover chicken adobo and sauté. Set aside.

In the same pan, add the remaining oil and sauté the garlic, turmeric powder, chicken cube, and pepper. Add the reserved adobo sauce and simmer for two minutes.

Add mustard greens and cook until bright in color. Add the rice and toss well.

Arrange on a serving plate and top with the chicken and potato mixture.

Makes six servings.

Tip: You can also toss the chicken and potatoes in the rice.

FIESTA HAM FRIED RICE

Skip the ham sandwiches for this breakfast (or lunch) special.

Ingredients:

1 tbsp Golden Fry Palm Oil

1/2  a ball (500 gm) of Purefoods Fiesta Ham (or any other leftover ham), cut into 1 cm cubes

1 head garlic, finely crushed

3 eggs

6 cups chilled cooked rice

1 tsp fine iodized salt

Procedure:

In a non-stick wok or large pan, cook ham in oil until its surface caramelizes.

Add garlic and cook until sticky.

Make a well in the center of the ham bits and add eggs. Cook until almost set and then scramble to fully cook.

Add rice and mix well. Season with salt.

Makes six servings.

ADOBO PIZZA

Another dish to jazz up that classic leftover recipe.

Ingredients:

1 pc pre-baked pizza crust (12 inches)

1/2 cup sweet-style pizza sauce

1/3 cup grated Magnolia Quickmelt Cheese

1/3 cup cubed leftover adobo

1/2 cup cubed kesong puti  (carabao milk cheese)

1 pc tomato, chopped

1 egg hard-boiled then cut into eighths

2 tbsp toasted garlic

Procedure:

Preheat the oven to 550°F.

On a pizza crust, spread the pizza sauce then top with cheese.

Arrange the rest of the toppings on top of pizza crust and bake for three minutes.

Makes eight servings.

BOSCAIOLA FRITTATA

A deceptively fancy way to deal with leftover ham.

Ingredients:

2 tbsp Magnolia Gold Butter (Unsalted)

1 can (198 gm) button mushrooms pieces and stems, drained

3 cloves garlic, minced

1 tbsp chopped parsley (optional)

200 grams leftover Purefoods Fiesta Ham, diced or cut into thin strips

1/4 tsp iodized fine salt

1/8 tsp pepper

6 eggs, beaten

1/2 cup Magnolia Fresh Milk

1/2 cup grated Magnolia Queso de Bola

Procedure:

In a frying pan, melt the butter on medium heat and sauté the mushrooms, garlic, parsley, and ham. Season with salt and pepper.

Meanwhile in a large bowl, combine the eggs, milk, and cheese. Pour over the filling in the pan.

Cover and cook over lower heat until set. Check doneness by sticking a toothpick in the middle. The toothpick should come out clean and without any egg mixture on it.

Makes eight servings.

ROAST CHICKEN PIZZA

How to deal with leftover chicken, lechon, or pork.

Ingredients:

1/2 kg leftover Magnolia Chick ‘N Juicy Sweet Roast (you can also use leftover lechon or roast pork)

2 pre-baked pizza crusts (12 inches)

1/2 cup store-bought barbecue sauce

1 cup store-bought pizza sauce

1/2 cup grated mozzarella cheese

1/2 cup grated Magnolia Quickmelt Cheese

1 (100 gm) red bell pepper, sliced

1 (50 gm) bundle fresh cilantro leaves

Procedure:

Remove meat from bones and shred into large pieces. Mix with the barbecue sauce and set aside.

Place the pizzas on baking trays. Spread 1/2 cup of pizza sauce on the surface of each pizza.

Combine the mozzarella and Quickmelt cheese. Top each crust with 1/4 cup of cheese and equal portions of the marinated chicken and the bell pepper slices. Top with the remaining cheese.

Bake in a preheated oven for 15 to 20 minutes at 450 degrees F. Top with fresh cilantro leaves before serving.

Makes two 12” pizzas at eight slices per crust for a total of 16 slices.

CHICKEN BARBECUE WRAPS

Something different for the leftover roast chicken.

Ingredients:

1/4 cup Magnolia Nutri-Oil Coconut Vegetable Oil

1 cup sliced red bell peppers

4 cups flaked leftover roast chicken

1 cup store-bought barbecue sauce

8 pieces flour tortillas

1 pack (120 g) Magnolia Cheezee Squeeze

1/4 cup chopped parsley

Procedure:

Heat the oil in a pan over medium heat. Add the bell peppers and cook until tender. Add chicken together with barbecue sauce. Mix well.

To assemble, place the chicken filling in the middle of the tortillas. Roll tortillas into cone shapes then drizzle warm cheese onto the filling. Garnish with parsley.

Makes eight servings.

E-wallet YouTrip ties up with Visa as it looks to enter PHL mart

SINGAPORE-BASED mobile wallet YouTrip inked a deal with Visa, Inc. to boost its expansion into the rest of Southeast Asia, including the Philippines and Malaysia.

“YouTrip looks to Malaysia and the Philippines as the next potential markets in the next six to 12 months,” the companies said in a joint statement on Wednesday.

“The two markets present massive untapped potential with outbound travel expenditure expected to reach $12.4 billion and $12 billion from Malaysia and Philippines respectively in 2021,” it added.

The tie-up is banking on the recovery of international travel, saying regional travel is likely to be the first to bounce back.

“Unlike regional travel in other parts of the world such as Europe or the United States of America, traveling within Southeast Asia requires multi-currency spending,” it said.

Visa head of digital partnerships in Asia Pacific Matt Woods said the payment solution will be “ideal for international e-commerce and cross-border travel.”

Based on a 2019 study by Visa, Southeast Asian consumers have been demonstrating strong preference for digital payments.

YouTrip is a multi-currency wallet that allows the conversion of e-wallet money from one currency to another, with wholesale exchange rates and no foreign currency transaction fees for over 150 currencies. Top-up can be done by users through their bank accounts or credit cards.

Given restriction measures in place, the Bangko Sentral ng Pilipinas is hopeful that more Filipinos will opt for digital transactions. It wants e-payments to make up 50% of total transactions in the country in terms of both volume and value by 2023.

In 2018, the volume of e-payments in the country made up 10% of the total, up from the 1% in 2013, according to a Better than Cash Alliance report. In terms of value, digital transactions made up 20% of the total in 2018 from just 8% in 2013. — LWTN

Trump bars US transactions with eight Chinese apps including Ant’s Alipay

WASHINGTON — US President Donald Trump on Tuesday signed an executive order banning transactions with eight Chinese software applications, including Ant Group’s Alipay mobile payment app, the White House said, escalating tensions with Beijing two weeks before President-elect Joe Biden takes office.

The move, first reported by Reuters, is aimed at curbing the threat to Americans posed by Chinese software applications, which have large user bases and access to sensitive data, a senior administration official told Reuters.

The order argues that the United States must take “aggressive action” against developers of Chinese software applications to protect national security.

It tasks the Commerce Department with defining which transactions will be banned under the directive within 45 days and targets Tencent Holdings Ltd.’s QQ Wallet and WeChat Pay as well.

The order also names CamScanner, SHAREit, Tencent QQ, VMate which is published by Alibaba Group subsidiary UCWeb, and Beijing Kingsoft Office Software’s WPS Office.

Kingsoft said in a statement published by Chinese state media that it did not expect Trump’s order to substantially impact the company’s business in the short term. Ant and the Biden transition team declined to comment.

Alibaba, Tencent, CamScanner, SHAREit, and the Chinese Embassy in Washington did not immediately respond to requests for comment.

“By accessing personal electronic devices such as smartphones, tablets, and computers, Chinese connected software applications can access and capture vast swaths of information from users, including sensitive personally identifiable information and private information,” the executive order states.

Such data collection “would permit China to track the locations of federal employees and contractors, and build dossiers of personal information,” the document adds.

The order aims to cement Trump’s tough-on-China legacy before the Jan. 20 inauguration of Biden, a Democrat, who has said little about how he plans to address specific tech threats from China.

Biden could, however, revoke the order on the first day of his presidency, though his transition team did not immediately respond to a request for comment on the matter.

The order will likely ratchet up tensions further between Washington and Beijing, which have been locked in a bitter dispute over the origins of the coronavirus and a Chinese crackdown on Hong Kong.

Despite the 45-day time line laid out by the order, the Commerce Department plans to act before Jan. 20 to identify prohibited transactions, another US official told Reuters.

The directive mirrors Trump executive orders signed in August directing Commerce to block some US transactions with WeChat and the Chinese-owned video app TikTok.

Had those orders gone into effect, they would have effectively banned the Chinese apps’ use in the United States (US) and barred Apple, Inc. and Alphabet, Inc.’s app stores from offering them for download for new users.

The restrictions, however, were blocked by courts mainly on freedom of speech grounds. The White House is confident the new restrictions will stand up to judicial scrutiny, since applications like Alipay would struggle to bring a First Amendment case, the senior administration official told Reuters.

US Secretary of Commerce Wilbur Ross said in a statement that he supports Trump’s “commitment to protecting the privacy and security of Americans from threats posed by the Chinese Communist Party.”

Alipay has been in Washington’s cross hairs for months.

Reuters reported in November that the US State Department had submitted a proposal to add Ant Group to a trade blacklist in order to deter US investors from taking part in its lucrative initial public offering. But the Commerce Department, which oversees the blacklist, shelved the proposal after Alibaba Group Holding Inc. President Michael Evans urged Mr. Ross to reject the bid.

Ant is China’s dominant mobile payments company, offering loans, payments, insurance, and asset management services via mobile apps. It is 33% owned by Alibaba and controlled by Alibaba founder Jack Ma, but is currently unavailable for American users.

Alipay was downloaded from Apple’s US app store and Google Play 207,000 times in 2020, while image scanning app CamScanner and office suite app WPS Office were downloaded 4.4 million and 563,000 times respectively, according to research firm SensorTower.

Tuesday’s move is the latest in a raft of tough new curbs on Chinese companies.

The White House unveiled an executive order in November banning US investment in alleged Chinese military companies including China’s top chipmaker SMIC and oil giant CNOOC. Last month, the Commerce Department added dozens of Chinese companies, including Chinese drone manufacturer SZ DJI Technology Co. Ltd., to a trade blacklist. — Reuters

Holcim Philippines launches environment-friendly mortar

HOLCIM Philippines, Inc. unveiled a new mortar product that aims to improve the quality of walls, floors, and tile installation in building projects.

In a disclosure to the stock exchange on Wednesday, the company said its new product, Holcim Multifix, is a combination of sand and cement modified with polymer for better performance, and can be used just by adding water.

Holcim said the new product is produced in its dry mix plant, which removes the need to combine materials on the construction site, and maintains the right proportion for the application of the mortar.

“Being factory-produced significantly reduces wastage of building materials such as sand, thus making the product friendlier to the environment,” the company said.

Ramakrishna Maganti, Holcim senior vice president for marketing and innovation, said Holcim Multifix will help solve the common problems of builders in producing mortars such as high-quality raw materials and varying skill levels of workers. 

Mr. Maganti said the poor quality of mortars is one of the reasons that affect the quality of walls.

He added that aside from being a wall plaster, Holcim Multifix can also be used for screeding, a finishing layer of concrete slabs for levelling floors, and also for tile laying.

“Holcim Multifix helps make it easier for our partner builders to produce good quality walls. It is factory-mixed using Holcim cement and quality sand for superior performance,” Mr. Maganti said.

“Since we are not screening sand, there will be less material wastage. Holcim Multifix is the only all-in-one drymix product in the Philippines,” he added.

Holcim said its new product will be initially retailed as 25-kilogram bags in select areas in Luzon and will be introduced in Mindanao by the first quarter of 2021.

On Wednesday, Holcim shares at the stock exchange fell 2.03% or 15 centavos to close at P7.25 apiece. — Revin Mikhael D. Ochave

Exhausted by 2020? Here are 5 steps to recover and feel more rested throughout 2021

FOR most of us, 2020 was an exhausting year. The coronavirus disease 2019 (COVID-19) pandemic heralded draining physical health concerns, social isolation, job dislocation, uncertainty about the future and related mental health issues.

Although some of us have enjoyed changes such as less commuting, for many the pandemic added extra punch to the main source of stress — engaging in or searching for work.

Here’s what theory and research tells us about how to feel more rested and alive in 2021.

Recovery is the process of reversing the adverse impacts of stress. Leading recovery researchers Sabine Sonnentag and Charlotte Fritz have highlighted the important distinction between recovery activities (what you do during leisure time) and recovery experiences (what you need to experience during and after those activities to truly recover).

Recovery activities can be passive (such as watching TV, lying on a beach, reading, internet browsing or listening to music) or active (walking, running, playing sport, dancing, swimming, hobbies, spiritual practice, developing a skill, creating something, learning a language and so on).

How well these activities reduce your stress depends on the extent to which they provide you with five types of recovery experiences:

• psychological detachment: fully disconnecting during non-work time from work-related tasks or even thinking about work issues

• relaxation: being free of tension and anxiety

• mastery: challenging situations that provide a sense of progress and achievement (such as being in learning mode to develop a new skill)

• control: deciding yourself about what to do and when and how to do it

• enjoyment: the state or process of deriving pleasure from seeing, hearing, or doing something.

Of these, psychological detachment is the most potent, according to a 2017 meta-analysis of 54 psychological studies involving more than 26,000 participants.

Benefits of mentally disengaging from work include reduced fatigue and enhanced well-being. On the other hand, inadequate psychological detachment leads to negative thoughts about work, exhaustion, physical discomfort, and negative emotions both at bedtime and during the next morning.

Here are five tips, drawn from the research, to feel more rested and alive.

1. FOLLOW THE EVIDENCE

There are mixed findings regarding the recovery value of passive, low-effort activities such as watching TV or reading a novel.

More promising are social activities, avoiding work-related smartphone use after work, as well as engaging in “receptive” leisure activities (such as attending a concert, game or cultural event) and “creative” leisure activities (designing and making something or expressing yourself in a creative way).

Spending time in “green” environments (parks, bushland, hills) is restorative, particularly when these are natural rather than urban settings. “Blue” environments (the coast, rivers, lakes) are also highly restorative.

Even short lunchtime walks and relaxation exercises lead to feeling more recovered during the afternoon.

Two of the surest ways to recover are to engage in physical exercise and get plenty of quality sleep.

2. ASSESS YOUR ‘BOUNDARY MANAGEMENT STYLE’

Your boundary management style is the extent to which you integrate or separate your work and life beyond work. Work-life researcher Ellen Kossek has created a survey (it takes about five minutes) to help assess your style and provide suggestions for improvement. (The survey can be found here: FlexStyles Assessment (qualtrics.com)

The table developed by Kossek shows physical, mental and social strategies to manage boundaries and separate your work and life beyond work.

3. CULTIVATE YOUR IDENTITY BEYOND WORK

Many of us define ourselves in terms of our profession (“I’m an engineer”), employer (“I work at …”) and perhaps our performance (“I’m a top performer”).

We may also have many other identities related to, for instance, (“I’m a parent”), religion (“I’m a Catholic”), interests (“I’m a guitarist”), activities (“I’m a jogger”) or learning aspirations (“I’m learning Portuguese”).

Dan Caprar and Ben Walker suggest two useful ways to prevent being overly invested in work identity.

First, reorganize your physical space to reduce visual reminders of your work-related identities (e.g. your laptop, professional books, performance awards) and replace them with reminders of your other identities.

Second, do some “identity work” and “identity play,” reflecting on the identities you cherish and experimenting with potential new identities.

4. MAKE TIME FOR BETTER RECOVERY EXPERIENCES

Document what you do when not working. Ask yourself how much these activities enable you to truly experience psychological detachment, relaxation, mastery, control, and enjoyment.

Then experiment with alternative activities that might provide richer recovery experiences. This will typically require less time on things such as news media (especially pandemic updates and doomscrolling), TV, social media, online shopping or video games, gambling, pornography, alcohol or illicit drugs to recover.

You will make it easier to give up activities with minimal recovery value if you supplant them with more rejuvenating alternatives you enjoy.

5. FORM NEW HABITS

Habits are behaviors we automatically repeat in certain situations. Often we fail to develop better habits by being too ambitious. The “tiny habits” approach suggests thinking smaller, with “ABC recipes” that identify:

• anchor moments, when you will enact your intended behavior

• behaviors you will undertake during those moments

• celebration to create a positive feeling that helps this behavior become a habit.

Examples of applying this approach are:

• After I eat lunch, I will walk for at least 10 minutes (ideally somewhere green). I will celebrate by enjoying what I see along the way.

• After I finish work, I will engage in 45 minutes of exercise before dinner. I will celebrate by raising my arms in a V shape and saying “Victory!”

• After 8:30 p.m. I will not look at e-mail or think about work. I will celebrate by reminding myself I deserve to switch off.

Perhaps the most essential ingredient for building better recovery habits is to steer away from feeling burdened by ideas about what you “should” do to recover. Enjoy the process of experimenting with different recovery activities that, given all your work and life commitments, seem most promising, viable and fun.

 

Peter A. Heslin is a Professor of Management and Scientia Education Fellow, UNSW.

iPhone supply chain sends bullish signal on 5G after tepid start

IPHONE SUPPLIERS are racing to meet surging demand for Apple, Inc.’s 5G handsets after tech-savvy consumers leaped on the first major wireless technology upgrade in a decade.

Robust demand for the devices helped iPhone assembler Hon Hai Precision Industry Co. beat quarterly revenue expectations. British-German chipmaker Dialog Semiconductor Plc increased its revenue forecasts due to stronger-than-expected demand for fifth-generation (5G) phones and tablets.

The numbers suggest the world may finally be warming to 5G with its much faster download speeds and more reliable connections. After spending billions of dollars on new infrastructure, carriers have struggled to sell the costly handsets to consumers during an economic crisis.

They were hoping Apple’s late arrival to the 5G game would fire up demand, but it’s been an uncertain picture for the first few months. Apple shares fell in October after quarterly iPhone sales missed Wall Street estimates and revenue in China slumped, although Chief Executive Officer Tim Cook said the new 5G-ready iPhone 12 line was well received.

“This update confirms continuing strong performance of Apple’s hardware line-up, still supported by the need to work from home and to learn from home,” said Bryan, Garnier & Co. analyst Frédéric Yoboué. “On top of that it shows that demand for the new iPhones is very buoyant.”

Asian countries, including South Korea and China, have moved fastest in rolling out full 5G services. US phone companies are piling into the technology to sustain profits for the next decade and are racing to offer the broadest, most reliable network.

At an auction of the nation’s 5G airwaves on Monday, bids from carriers and pay-TV providers surged past $76.5 billion, crushing analyst estimates of $47 billion.

Demand for 5G gear was not a given after several years of sluggish handset sales that plateaued at around 1.5 billion units in 2019, according to data compiled by Gartner. That’s partly because high-end phones have become more expensive: Google, Samsung, and Apple have all rolled out several devices costing more than $1,000.

Europe’s less profitable phone industry has avoided a headlong plunge into 5G, wary of rolling out expensive services that consumers won’t be ready to pay for. That’s left a region that pioneered wireless mobile phones lagging the world in the latest technology, with many countries still lacking full 4G services. In much of the region, 5G signals disappear beyond the limits of big cities.

If European consumers joined the 5G phone rush, it would give a short-term boost to the profits of carriers that make a chunk of their earnings from handset sales, and encourage them to spend more to close gaps in 5G national coverage.

5G HEADWINDS
Apple’s 5G push has been complicated by a shortage of vital chips that manage power consumption in iPhones and other devices.

There’s also a turbulent political backdrop. Governments across the globe — led by the US — have banned China’s Huawei Technologies Co. and ZTE Corp. from supplying 5G networking equipment, forcing local telecom companies to more expensive alternatives.

Conspiracy theorists have also promoted groundless and widely condemned theories linking 5G to the spread of coronavirus.

That’s done little to dent long-term optimism over a technology that allows near-instantaneous video downloads and heralds a wealth of industrial applications from self-driving cars to remote surgery and connected factories. 5G is expected to generate $1.15 trillion in revenue by 2025, according to forecasts from the GSMA, an industry body.

“We expect strong consumer demand to continue to filter deeper into the supply chain,” said Andrew Gardiner, analyst at Barclays. — Bloomberg

MSME loans used as alternative reserve compliance hit P134.8B

BANKS CONTINUED to increase their lending to small businesses in November, taking advantage of the central bank’s relief measure to consider these loans  part of their compliance with their reserve requirements (RR).

“MSME (micro-, small-, and medium-sized enterprises) loans used as alternative compliance with reserve requirements reached P134.8 billion as of Nov. 26. This represented a 9.8% share of total RR,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in his speech at the virtual Kapihan sa Manila Bay on Wednesday.

Meanwhile, Mr. Diokno said loans to large enterprises used as reserve compliance reached P29.1 billion or 1% of total RR.

The BSP in April allowed MSMEs loans to be counted as part of banks’ reserve requirements in a bid to boost lending to the sector, which was hit severely by the pandemic crisis.

MSMEs accounted for 99% of the roughly one million business establishments in the country as of 2018, based on data from the Department of Trade and Industry. They also accounted for 5.7 million or 63.19% of new jobs in the same year.

In May, the central bank began to count lending to pandemic-hit large enterprises as alternative compliance with banks’ reserve requirements. The relief measure is only applicable to credit disbursed to businesses with asset sizes of more than P100 million but are not part of a conglomerate.

The BSP in December capped credit to MSME and large enterprises that banks could utilize as alternate reserve compliance at P300 billion and P425 billion, respectively.

Mr. Diokno has said the caps were meant to ensure that bank loans used for alternate reserve requirements were in line with liquidity conditions.

The central bank last year reduced the reserve requirement ratios of banks by a total of 300 basis points (bps) as a relief measure to boost liquidity during the crisis.

Broken down, it lowered the reserve requirement of big banks by 200 bps to 12%, while the reserve ratios of thrift and rural lenders were trimmed by 100 bps to 3% and 2%, respectively. — L.W.T. Noble

SFEX, Candaba Viaduct rehab slated for completion this year

NLEX Corp. said it targets to complete the Subic Freeport Expressway (SFEX) Capacity Expansion and Candaba Viaduct Upgrade projects this year.

The tollway company also hopes to complete the first section of the NLEX Connector project this year.

“These infrastructure works are intended to further improve traffic flow and connectivity, as well as promote road safety for hundreds of thousands of motorists using these critical arteries in Central and Northern Luzon,” said NLEX Corp. President and General Manager J. Luigi L. Bautista in an e-mailed statement on Wednesday.

The P1.6-billion SFEX Capacity Expansion project is now 92% complete, the company said.

The project is slated for completion within the first quarter.

“Once finished, the new and expanded SFEX will complement Subic Bay Metropolitan Authority’s infrastructure program, accommodate the growing number of traffic while promoting road safety, and most especially, facilitate passage for truckers and merchants delivering essential goods in and out of the Subic Bay Freeport Zone,” NLEX Corp. said.

In a phone message to BusinessWorld, NLEX Corp. Senior Vice-President for Communication Romulo S. Quimbo, Jr. said the major works associated with the Candaba Viaduct Upgrade project in Pampanga featuring the link slabs replacement will also be completed this year.

The company said it had finished the replacement of 13 link slabs on the southbound portion of the five-kilometer Candaba Viaduct in December.

“Around 12 link slabs more on the southbound segment are up for replacement this year to further strengthen the bridge,” it added.

The company also targets to complete in the last quarter of the year the first section of the NLEX Connector project, which will connect NLEX to Metro Manila Skyway Stage 3 in Sta. Mesa, Manila.

“The project is on track, and is currently at 16% completion,” it said, adding that the project, once completed, is expected to reduce travel time from NLEX to South Luzon Expressway (and vice versa) from two hours to just 20 minutes.

NLEX Corp. is under Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

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

Fintech startup Affirm aims for over $9-billion valuation in US IPO

AFFIRM HOLDINGS INC., founded by PayPal Holdings, Inc. co-founder Max Levchin, is aiming for a valuation of over $9 billion in its initial public offering, the lending startup said in a filing on Tuesday.

Affirm said it plans to price its shares, to be listed on Nasdaq under the ticker ‘AFRM’, between $33 and $38 each and raise as much as $935 million from the sale.

The projected valuation of the company would represent a more than three-fold jump from its last private funding round, when it was valued at a shade less than $3 billion, according to PitchBook.

The financial technology (fintech) venture had planned to complete its IPO before the end of last year, but was forced to delay the share float by a few weeks.

Levchin started Affirm in 2012 to give people without credit history or savings accounts access to small loans. The startup offers financing for online purchases, such as a couch or guitar, that can be paid back in monthly installments.

Affirm’s major investors include Peter Thiel’s Founders Fund, Singaporean sovereign wealth fund GIC, Scottish asset manager Baillie Gifford, venture capital firm Spark Capital, and Fidelity Management and Research Company LLC.

Affirm’s offering kicks off what is expected to be yet another frenetic initial public offering (IPO) season for US capital markets.

A number of high-profile private firms and “unicorn” startups such as Robinhood, Instacart, and Coinbase are expected to debut on US stock exchanges later this year.

Companies raised a record $167.63 billion in the United States in 2020, according to Dealogic data. In comparison, $108 billion was raised in 1999, the previous record for capital raised through new issues.

Morgan Stanley, Goldman Sachs, and Allen & Co. are the lead underwriters for Affirm’s offering. — Reuters